UNION BANK OF AUSTRALIA.

Southland Times, Volume 2, Issue 100, 12 October 1863, Page 3

UNION BANK OF AUSTRALIA.

The Annual General Meeting of the Shareholders was at the office, No 38, Old Broadstr.'et, Mr Buckle in the chair. The directors in their report state ihat the operations of the bank and all its branches during the past year have been ofa very satisfactory character. C *mm-rcial and pastoral pursuits in the colonies indicated a steady advai a in general prosperity, and there has been a marked absence of those violent fluctuations and consequent disasters which hid called for observa ion hi previous report . The business of the bank during the past, year required a gradual transfer to the colonies of a considerable portion of the funds which had been previously accumulated in London. The transfer arose chiefly irom the extension of business in Queensland and New Zealand, and in some degree also from the removal of deposits, because the board did not think proper to continue to pay a high rate of interest — a system the policy of which they had always disapproved. The profits of the past half-year enabled the directors to recommend a dividend of 8 per cent. The following balance-sheet was presented : Liabilities. — Circulation, L 491,662 10s ; d p sits, L' 2.379,932 8s 7d ; bills payable and other liabilities (including reserves hel 1 against doubtful debts), L 1,978,633, 978,633 Os 7d bilance of undivided profits, L.88,871 8s lid ; reserve fund, L 200.000 ; capital, L 1,000,000, 000,000 —total, L 6,139,099, 139,099 8s Id. Assets — Specie on hand, and cash balance' 5 L 599,387 17s lOd ; bullion, L.43 042 5s ld^ baßk premises and property, L.91,193 7s _4d^ government securities (British and colonial L 203,752 I os -I local bills, bills receivable, an other securities, L 4,70, 70 1,723 is lOd ; reserve fund, invested as per statement, L' 200,000 — tofal, Lfi, 139,099 8s Id. Sta tement of Profits— B dance of undivided profits at June 30, 1862, L 74,997 6s 9d ; out of which a. dividend was declared of L 70.000; leaving a balance of L 4,997 6s 9d ; profits of the past year, after the making provision for all bad an<¥'cioubtful debts, L 264,079 12s 3d. Less : Remuneration to the local directors, and salaries and allowances to the colonial staff, L 55,957 Is 3d; general expenses in the colonies, including rent, taxes, stationery, &c, L' 24,949 4s 2d ; amount applied in re-di-ction of bank premises account, L 4,735 17s Id; remuneration to the board of directors, salaries cf London office staff, rent, taxes, stationery and general expenses, L 10,298 11s 7d ; income tax paid, L 4.294 16s, making L 100,205, 10s Id Total, L 163,874 2s 2d. Deduct: Dividend paid January, LBO,OOO, leaving L 83,874 2s 2d ; balance of undivided profits at this date, L 88.871 8s lid. Reserved Fund.— New Three per cents., L5O,000 ; New Zealand Imperial Four per cent, debentures, Llso.ooo— total L 200,000. The Chairman, in moving the adoption of the report, observed that the accounts nowsubmitted showed an increase of profits as compared with the previous years of more thin £20,000, which enabled the directors to pay a dividend of 16 per cent, for the year, instead of 14 as last year. This was the • 25th anniversary of the bank, and he was happy to say that during the quarter of a century they had been in business their course had been one of uninterrupted prosperity. It was true that their dividends had not been equally high. In all commercial undertakings there would be ups and downs, more especially in the colonies, which were subject to periods of> great prosperity, and as a natural consequence to periods of great

depression. MtajQiVresifiit' Svbulii .no doubt remember th^t'at* tllfe "^ imnijdiately foil " lowuig" tKe'gofd 3iscoWri.es ib% P?}^ba3crt< > <the proprietors 40 j per certtP 6f * thelr^TO|d and 32 per cent, next year . 9 ,s^^g camej reaction and the dividend3''ie.llV^y n otJbe low a point (hat ,mustrb?> held as iiidicativ* of successful and : profitable bfisinesp, foi they never paid i^sstHati'if ; per dHt. in anj yeac. i OProm Uhat' p<j'idd/ Kd*We*gi?' j -ihingi ( began to improve, rising fromait&.'to .l4, a'ld now from 14 to 16 per cent., and that ir spite of the increasedcohYpetition brought intfj oper.R,tsu, by,;,the,,gr»iat,success,,of tb,9ibanks which were in existence ">yh e n { the,.gojp disoveries were made. He wished to guard himself agiinst holding out expectations that they would ever reach the extraordinary, high rate of profit they Wad' in thVose yearVafttained,! and if they 'could hold,, their 'business at itsj present standard against the competition; which now prevaUen'iri colonial banking, he; thought the diiectors might claim to have doae their duty. .But caution must be their motto, safety beiiig 'tlie firsthand profit the second consideration; (Ch'eefs.) The report told them that ,the increased demand for, money in the cokmies ! ha ; d necessitated the transfer o capital from' this country that was: wanted there, and they had '^onseqaentlyj converted a considerable part; of the Govern -j ment securities formerly held by the. bank into cash, in order to employ it more profit-; ably in business on. the other side. There hadj been voted LII.OOO to meet the deficienc3 r in. the stock, owing to the high rate at which it had been bought. That was now absorbed,, and would no longer appear in the accounts.! He had only further to add, that in Mr M'Murray, the colonial manager, and his! staff, the directors had the highest confidence, and felt that they and the proprietors were, largely indebted te their exertions and ability for the success the bank had.attained, . A shareholder seconded the motion. The report was the i adopted. The directors retirnsr by rotation were re-elected, and the dividend of 8 per cent, for .the, •half-year declared. • A vote of thanks to the. chairman and directors 'concluded. the,.business. ,