COMMERCIAL.

Poverty Bay Standard, Volume III, Issue 401, 20 September 1876, Page 2

COMMERCIAL.

UNION BANK OF AUSTRALIA. The thirty-eighth annual general meeting of this bank was held at the Bank-build-ings, Lothbury, Sir H. W. Parker in the chair.

The report, read by tlie manager, was as follows : —The directors have pleasure in submitting to the proprietors on this their thirty-eighth annual general meeting, a statement of accouuts which, after providing for every bad and doubtful debt, has enabled them to declare a dividend and bonus equal to those of last halfyear, viz., 7 per cent., and a bonus of as per share, or at the rate of 16 per cent, per annum. The commercial depression which has prevailed so com inuously for some time past in Europe and in America, and which has so materially affected the value of raw as well as of manufactured products, cannot fail to be seriously felt throughout the whole of the Australian colonies. There has been a very large reduction in the marketable value of their main article of export, wool. Although this may be seriously felt by those engaged in pastoral pursuits, and may necessitate, on the part of the bank, great circumspection and caution in the conduct of its business, the directors do not hesitate for a moment in expressing their confidence in the general resources of Australia and New Zealand. Tiie recent favourable rains, the successful working of gold mines, especially in the Northern territory, and the continued extension of new areas for pastoral occupation, must operate beneficially for the colonies. Frederick Gonnerrnan Dalgety, Esq., and John Sheriff Hill,Esq., retire from the direction on the present occasion, in conformity with the deed of settlement, and now offer themselves for re-election. The earnest and able services of Mr. M’Mullen and of the other officers of the colonial as well as of the English staff, of the bank continue to merit the warmest acknowledgments of the directors and proprietors. The annexed balance-sheet presents a net profit of £107,816 17s sd. available for division; of which the dividend and bonus will absorb £lOO,OOO, leaving £7,816 17s sd, to be carried forward. The dividend warrants will be transmitted by post on the 171 h inst., and the dividends will be payable in the colonies at such time as the general manager shall fix after receipt of telegram. STATEMENT OE LIABILITIES AND ASSETS, AT THE BRANCHES, OS THE 3 I ST DECEMBER, 1875, AND AT THE LONDON OFFICE, ON THE 30tH JUNE, 1876 : LIABILITIES. £ d Circulation 401,241 5 0 Deposits 4,505,256 13 1

The Chairman, in moving the adoption of the report, said the directors had the pleasure of meeting the shareholders with what he thought he might describe as a very satisfactory report and statement of accounts. Considering the great and widespread depression prevailing, in the older countries at any rate, there was more for them to.be congratulated upon than perhaps might have been the case. The depression which prevailed in England and in the older countries of the world could not but eventually have an effect on the business of the Australian colonies. He himself was not sufficiently perceptive of commercial relations to understand how such a continued state of depression could exist, but he came to the conclusion that it must be the foundation of something better in the future. He regarded it as a cloud of depression that had behind it a silver lining. The rupture of telegraphic communication with the Australian colonies at the present, moment was unfortunate. It was said they never fully appreciated the value of anything till they were deprived of it, and they had had sufficient experience of the advantage of telegraphic communication with Australia to make them feel the deprivation of it very much indeed. He could remember that from the absence of snch communica'ion the Australian colonies had been frequently flooded with goods which they did not require; and had been short of goods which they wanted. It seemed to him to be a natural consequence of telegraphic communication that the state of the market at each end of the telegraph would be accurately known, and what happened in other days was not in his opinion, likely tooccur again, as by a simple operation of the telegraph, merchants in London could tell what was the state of the markets on the other side of the world. The only serious matter which he had to touch upon was the unfortunate fall in the price of the staple commodity. But he had full confidence in the resources of the Australian colonies and he had experienced, over and over again, that there was an alternate depression and resuscitation. He looked forward to something.of this kind taking place with regard to the whole of the producing community, and considered that the present state of depression was the forerunner of a better condition of things. Mr W. Botly seconded the motion, and expressed satisfaction with the profits of the bank. He remarked that Australia was now an exporter of wheat, whereas formerly she did not produce enough for her own wants, and that her mineral wealth was very great, and said they could confidently recommend emigration to such a country. Mr Mowatt called attention to the increase in the expenses of the bank. The Chairman said the explanation of the increased expenditure was, for the most part, if not wholly, that fresh branches had been established for the extension of the business. Besides this everj’ shareholder would know that there was not a single item of expenditure that was not increasing. Mr Botly said the explanation was quite satisfactory. Mr Sebag referred to the subject of Australian loans, and said he thought the colonies should be careful, and not ask for money too often. The Chairman said that, so far as he knew, there was not a shilling of an Australian loan that was not laidouton works of a reproductive character. The railways in Australia were the property of the Government, and without loans they could not have been made. He learned from the latest accounts that the earliest constructed railway in Australia, one in New South Wales was returning 1J per cent., and he had just been told that in Victoria 4 per cent., was being returned on the capital invested which latter was as much as was expected in this country

on safe security; and these dividends were earned, not with a dense population, as at home, but in a thinly-settled country. The report was then adopted and the dividend declared. Mr F. G. Dalgety and Mr J. S. Hill were re-elected directors, and the proceedings were concluded with a vote of thanks to the chairman, the manager, the directors, the Secretary, and the colonial managers and staff. WOOL. The N. Z. Loan and Mercantile Agency Co.’s Circular of the 27th July says :— Shortly after despatch of last mail via San Francisco, a better tone became apparent in the competition, with an accession of fresh buyers, especially Continental, the result being a brisker demand for those qualities which bad suffered the . greatest depreciation, particularly low greasy wools, while crossbreds for a time showed no recovery ; on the contrary, they shared in the decline named at the opening. Since then the improvement in certain directions has become established, having extended to greasy cross-bred parcels, and embracing also medium grease and inferior scoured fleece wools, for which a rise of Id on the lowest point touched during the earlier periods of the sales may be quoted. New Zealand superior grease wools in many cases, but not invariably, show an advance of |d per lb. during the past fortnight, but on superior washed and scoured parcels generally, there has been no recovery apparent. Cape wools which were in a slightly better relative position at the opening, have not participated in the improvement, if, indeed, they have maintained their value. A fair proportion of the purchases made in the early part of the series has gone into consumption freely, and this fact has engendered some speculative demand in the market, and at present competition both on Home and French account is animated. The conditions of manufacturing industry cannot hut experience considerablerelief from the important depreciation established in the raw material, which will also no doubt facilitate a return to more prosperous trade, when the causes which have for some time past acted in restriction of business and are slill in a great measure in force, shall have exhausted themselves. At present however, there are few or no symptoms of any movement in this direction.

Rills payable and other liabilities (including reserves held against doubtful debts) 1,119.365 5 6 Balance of undivided profits 107.816 17 5 Reserve Fund as per contra 250,000 0 0 Building and other Reserve Funds 150,000 0 0 Capital 1,250,000 0 0 £7,783.680 1 0 ASSETS. £ ». <1 Spneie on hand and cash balances 849,340 13 6 Bullion on hand and in transitu 54,719 14 4 Bank premises and property 188.443 14 8 Government Securities ... 266,970 4 1 Local ‘•ills, bills receivable, and other securities 6,174,205 14 5 Reserve Bund, invested as per statement 250,000 0 0 £7,783,680 1 0 STATEMENT OF PROFITS. £ 8. d Balance of undivided profits at 30th June. 1875 106,471 14 3 Ont of which a dividend and bonus were declared of ... 100,000 0 0 Leaving a balance of ... £6,471 14 3 Profits of the past year, after making provision forall bad and doubtful debts, Less: ... £306,895 2 1 Remuneration to the local directors, and salaries, and allowances to the colonial itaff ... £66.240 12 0 General expenses in the Colonies, including rent, taxes, stationery, &e., ... £21,618 5 11 Remuneration to the Board of Directors, salaries of London office, stuff, rent taxes, stationery, and general expenses •£15.997 7 5 Income tax ... 1,693 13 7 £105,549 18 11 £201,345 3 2 Balance down 6,471 14 3 £207,816 17 5 Deduct : Dividend and bonus paid in January 100,000 0 0 Balance of undivided profits at this date £107,816 17 5 "RESERVE FUND. New Zealand Imperial Four per Cent. Debentures ... 200,000 0 0 Colonial Six per Cent, debentures 50,000 0 0 London, 6th July, 1876. £250,000 0 0 (Signed) R. J. Ashton, Chairman ef Committee. John Bramwell, Manager, R. Buckler, Accountant.