The Press.
London, England, 1855-11-24 00:00:00

COURT OF DIRECTORS OF THE UNITY BANK.

OOVEIINOR.

J. J. MECHI, Esq., Tiptree-hall, Kelvedon, Essex.
WILLIAM JOSEPH BRUCE, Esq., IC, Duke-street, West-
minster, and 4 A, Hyde-park-place, Cumberland-gate
G. L. P. EYRE, Esq. (Messrs. TAnder and Eyre), I, John-street,
Bedtbrd-row
THOMAS CARLYLE HAYWARD, Esq (Messrs. Hayward and
Sons), 98, Minories, and 3, Higbbury-park North
MAJOR HENRY STONES, LL.B., 38, No

1, Re-

gent's-park. .
ROBERT GARLAND, Esq., Thames-chambers, York-buildings,
Adelphi, and BeMore-lodge, Highbury
THOMAS H. BAYLIS, Esq., Cannon-street, City, and 4, Not.
tingham-terrace, York-gate, Regent's-park
1)R. LLOYD, 4, Suffolk-place, Pall-mall
ROBERT JAMES SNAPE, Esq., 2, Stone-buildings, Lincoln's-
inn
EDWARD GOULD BRADLEY, Esq., Heathland-lodge,
Hampstead
MAJOR MARTIN MULKERN, Ightfield-house, Alsop-terrace,
Regent's-park.
BANKERS.
THE LONDON AND WESTMINSTER BANK.
SOLICITOR.
THOMAS TAYLOR, Esq., 275, Bucklersbury, London.
BROKERS.

Messrs. R. and J. SIITTZ)W;27,fIoyaI Exchange, London,
GENERAL MANAGER.

GEORGE CHAMBERS, Esq. (from Messrs. Barnet, Hoare,
and Co.)
SECRETARY.
HENRY LAKE, Esq.

THE PRESS.

Each of the Directors is duly qualified, haying subscribed for
twenty shares, and paid the deposit of 1,0001., iu accordance
with the Deed of Settlement.

THE NEW PRINCIPLE INTRODUCED BY THE UNITY

BANK.
Regarding the distinctive principle of the Unity Bank, it has
been suggested that there must be a detraction from the profits
of the Shareholders, by reason of 50 per cent. being given to the
customers of the Bank. This idea can only have arisen, how-
ever, from the want of a careful consideration of the whole sub-
ject. In the first place, it is necessary to remember from whom
the profits of a Sauk are derived. They are not wale from the
share capital. The viny first ingredient for the formation of
profits is a customer. The amount of profit must, therefore, be
governed by the amount of business transacted; and the larger
the business, provided it be properly conducted, the larger will
be the profits. It must be borne in mind, also, that the real ex-
tent of the dividends must depend on the number of cents. of
profits, and that 60 per cent. of the profits, extending over large
transactions, may be far greater than 100 per cent. derived from
more circumscribed business. If, then, the customers of a Bank
constitute its profits, the customers should be induced to
transact their busitiess with the Bank, and thereby the profits
of the Shareholder, instead of being reduced, will be augmented.
The inducement held out to the customer, however, should be
such as does not involve or complicate the business of banking
It should not be by the promise of some peculiar accommoda-
tion, or some particular and increased rate oi interest, or by any
departure from that sound system of Joint-stock Banking which
has stood the test of years of experience, and procured so great
prosperity. But it should be, as it is iu the Unity Bank, an ad-
vantage which interferes in no degree with established princi-
ples, but merely allocates a portion of that which has already
been declared to be profit to those who have been the makers of
it. Assurance Companies have been accustomed to apportion
certain of their profits, by way of bonus, to their assurers; and
so general has become the recognition of the right of the
assurer to ibis participation, that no Assurance Association
would now be established without this essential to success.
The justice of the principle consists in this—that as the assurers
make the profits of the company, they ought to be participators
in its prosperity. What is just in assurance will be found just
also in banking. The customers of a Bank make the profits of
the Bank, and they ought also to be participators in its pro-
sperity.
It has been asserted, also, that the 50 per cent. of the profits
proposed to be divided, while it would detract from the profits I
the Shareholders, would be but a trifling benefit to the customers.
It might. iu the first place, be replied that no benefit is considered
"trifling' by those who rightly estimate pecuniary affairs; that
the benefit, if trifling, is in addition to all the other benefits
usually derived by banking at a Joint-stock Bank; and that no
correct data can yet be formed of the profits which will be made.
On the other hand, it must be remembered that hitherto persons
have taken their banking account where personal feeling, accom-
modation, or zonvenience of locality might lead them. Now, for
the first time, by the introduction of the principle of mutuality,
self interest is appealed to. And when, to the large number of
the public attracted by this all-powerful stimulus, is added the
number of the connections of the Unity Insurance Associations
iu all parts of the country, who have a peculiar identification with
and interest in its success, it may fairly be stated, that antece-
dent data are not sufficient to form an estimate of the advantages
which both the Shareholders and customers will derive from the
Unity Beek.
- - - -

Great difficulty exists in estimating the effects likely to be pro-
duced by the establishment of this new and most desirable feature
in banking. It is one that must become highly popular with
every commercial interest, and with every class of the public,
because its simplicity and advantages are at once to be seen and
appreciated.
To those great commercial bodies which are compelled to have
large cash balances constantly at their bankers', it will prove to
be a serious consideration, and a most important source of
profit. The railway, dock, gas, water, steam navigation, insurance,
and other companies, professional men, merchants, brokers,
gentlemen of fortune, and traders of all kinds, will duly estimate
the difference in the system now propose'l from that heretofore
existing. In fine, as Joint-stock Banks became a public neces-
sity, as is now proved, so will the principle of mutuality—where-
by these admirable institutions may be rendered still more ser-
viceable to the public, and in no way less safe—demand the best
consideration of the community at large.