The Press.
London, England, 1855-06-30 00:00:00

NEW PRINCIPLE IN BANKING.

UNITY
JOINT-STOCK MUTUAL BANKING
ASSOCIATION.

Established for the purpose of introducing the principle of
mutuality into banking operations, whereby the customers of
the bank become entitled to bonus, by way of interest, estimated
after the rate of fifty per cent. on the net profits.
Capital, Half a Million Sterling.

Divided into 5,000 shares of 1001. each. Deposit, 501. per share.

This amount will be payable by two instalments, namely 101. on
allotment, and 401. at the Limo of incorporation. shareholders
have the option of paying up the whole 801. on the Shares al-
lotted lo them, iu one instead of two payments. It is not ex-
pected that any further call will be made.

The business of the bank will not be commenced until the
whole of the capital has been subscribed and one half thereof
paid up.
By a clause in the deed of settlement, shareholders are
entitled to interest at the rate of five per cent, per annum on all
share capital pall up, previously to the declaration of bonus, as
well as to fifty per cent. of the net profits.
With the exception of the amount needed to defray the neces-
sary preliminary expenses, the paid•up capital will be invested
in Government securities until the bank is incorporated.

TO BE

amp BY ROYAL CIIAIITEE.

The Central Offices of the Bank will be at the Unity Buildings,
No. 10, Cannou•street, City. During the necessary alterations,
business will be carried on at the

TEMPORARY OFFICES.
Chief-40, Pall-mall, London.
City Branch-98, Cannon-street, London-bridge.

COURT OT DIRECTORS.
William Joseph Bruce, Esq., Duke-street, Westminster, and 4.).
Hyde-park-place, Cumberland-gate.
G. L. P. Eyre, Esq. (Messrs. Trinder and Eyre), 1, John-street,
Bedford-row.
Thomas Carlyle Hayward, Esq. (Messrs. Hayward and Sons),
93, Minories, and 8, Highbury-park North.
Robert Garland, Esq., Thames Chambers, York-buildings,
Adelphi, and Belfiore Lodge, Highbury.
Thomas H. Baylis, Esq., 38, Cannon-street, City, and 4, Notting-
ham-terrace, York-gate, Regent's-park.
Dr. Lloyd, 4, Suffolk-place, Pall-Mall.
Edward Gould Bradley, Esq., Heathland Lodge, Hampstead.
Major Hetry Stones, LL.B., 33, Nottingham-place, Regent's-
park.

Robert James Snap., Esq., 2, Stone-buildings, Lincoln's lun.
M‘jor Martin Mulkern, JO:afield-house, Regent's-park.
••• This number to be increased. When the court of directors
is completed, the governor and deputy-governor will be ap-
pointed.

BANKERS.
The London and IVesunineter Bank.
Chief Officee—Lothbury.

And at the following Branches, at either of which deposits on
shares will be received and receipts given, viz.:—
Westminster Branch, 1, St. James's-square.
Bloomsbury Branch, 214, High Holborn.
Southwark Branch, 8, Wellington-street, Borough.
Eastern Branch, 87, High-street, Whitechapel.
St. Marylebone Branch, 4, Stratford-place, Oaford-street.
SOLICITOR—Thomas Tayloe, Esq., 27a, Bucklerabury, Loudon.
GENERAL MANAGER—James Knight, Esq., F.S.S.
SECRETARY--Henry Lake, Esq.

Among the various improvements Introduced during the pre-
sent century, in connection with the commercial institutions of
this country, there is not one in itself so entirely satisfactory—
not one which has been attended with more solid and complete
success, or that has conferral greater benefits on the community
—than that of joint•stock bulking. It has opened up metns
for profitably employing capital—provided the public with insti-
tutions replete with known security, arising from paid-up and
st.hicribed capital by numbers of individuals—and given to
banking operations a tone and an importance previously
unknown.

The joint-stock banking system has grown out of a combination
of circumstances, arising, amongst other causes, from the pro-
sperity of the country, and the inereaA of population. It has
now become a positive necessity to the commercial world, and it
provides such advantages as command the cordial approval and
iupport of the public.
The late Sir Robert Peel, in a speech delivered twenty years
ago in the House of Commons, alluding to the joint-stock
princ iplo generally, and in particular to the joint-stock banks,
said :

" f look upon theprinciple of joint-stock companies as one of
"the great discoveries of modern thaw.. I regard them, when
"made responsible to public opinion, as the ground ou which all
" successful enterprise must be founded. I say further, that if
" there can be one description of business to which the principle
"of the joint-stock company can be wore applicable than
" another, it is, under due restrictions, the business of banking."

The opinion of Sir Robert Peel, delivered in 1835, has not
only been fully confirmed by the success which has attended
joint-stock companies generally, but more especially by the
success which has since then been obtained by all joint-stock
banks that have been well established and prudently managed.
That there has existed. dui ing the past twenty years, room
for additional banks, no doubt can be entertained. For, while the
iii London Joint-Stock Banks have created and transacted a
large business. while they have extended and popularised to a great
degree the principles of banking—and thus afforded valuable
facilities to the commercial community, by directing capital to
most profitable uses—there is no known instance of any well-
regulated and responsible private bank which has not increased
its busines also during the same period. Bearing in mind the
daily extension of the commercial operations of this country,
and the continuous increase of the population, this is not to be
wondered at. The population cannot increase without rapidly
extending commerce, and adding to the wealth of the nation.
This, necessarily, gives an impetus to every commercial enter-
prise. The banking system, therefore, like all others, must pro-
gress, and In order still further to facilitate commercial trans-
actions, and to meet the increasing requirements of the
oommunity, new organisations must be brought about for its
further development.

THE PRESS.

It is, moreover, proved to demonstration, that Joint-
Banking, under proper supervision, affords a most legit
and unusually profitable field for the investment of capital.

The five totals in the foregoing table show that—
I. The entire amount of subscribed aiming in the whole of the
existing joint • stock banks in London, amounts to
12,1304,2001.

H.
HI.

The amount thereof paid up is 2,767,0351.
The amount of deposits, or customers' balances, is
25,505,6971.

The total number of shareholders is 4,028.

The number of shares issued, 180,094.

These live facts exhibit the material points in connection
with the whole of the existing London joint-stock banks, so far
as their responsibility, business, and extent of connection are
concerned.

With respect to the profitable working of these Institutions, it
will be observed that the highest rate of dividend payable
amounts to the large sum of 20j per cent. per annum, while that
of the lowest is 6 per cent. Viewed, therefore, in any respect,
each institution has proved to be a most desirable investment to
the persons holding shares.

The small number of shareholders in all these banks together
—namely, 4,028—wi11, no doubt, excite surprise; and the more
so, when it is known that very many of these are resident out of
London. This clearly indicates that there is but a very small
proportion of the public who are enabled to participate as
shareholders in the bonuses resulting from the joint•stock
banking system. The comparison of 4,028 persons constituting
the shareholders in the six London joint stock banks with the
number of their customers, is very small indeed ; and yet
these are the only persons who enjoy the privileges and tie
bonuses resulting from the large transactions of the whole
body.

It is, therefore, evident that there not only exists ample room
for properly-established and well-regulated joint-stock banks,
conducted on sound banking principles, but that by their estab
lishment the public will be materially benefited. It now becomes
worthy of consideration, what course can be adopted in the con-
struction and practical management of banks, which will recurs
the more effectual identification of interests between the share•
holders of a bank and its customers. As at present constituted,
the shareholders alone participate in the bonuses declared by
the banks.
Of late years the requirements of the public have led to the
establishment of various joint-stock institutions based on
another principle, namely, that of mutuality. This has resulted
entirely from an experience which has proved its necessity, and
has led to a most desirable and successful " Unity " of purpose
and interests. lu no one instance has this principle failed in
securing the very best results. Nor is it likely to do so; for it
confer upon the greatest number of persous the largest amount
of benefit.
The present joint-stock banks, as compared with the private
banks, are an exemplification of this fact.. The former have,
unquestionably, given greater benefits to the public than the
latter; but it will remain for other institutions to do so in a
more comprehensive and effectual manner. It is for the accom-
plishment of this object that the

SATURDAY,

UNITY
JOINT•STOCK MUTUAL BANKING ASSOCIATION
is established. This association is promoted under singularly
advantageous circumstances, Although entirely distinct from
them In point of capital and liabilities, it commences its career
with the assistance of two powerful and popular institutions,
viz., the Unity Fire and Unity General Assurance Associations,
whose united constituencies number several thousands of
shareholders. So that., apart from the support that will neces-
sarily arise from the public appreciation of the new features
now propounded, there is every reason to regard the present
project as one comniencMg muter peculiarly favourable auspices.
The plan proposed is that of extending the " mutual principle"
to the business of banking, by paying the customers of the bank
interest estimated accordiu.t to profits, and by these means in-
ducing them to interest themselve 4 iu promoting and extending
its operations.
CAPITAL OF THE BANK.

The capital will amount to half a million sterling, with power
to increase. This sum will be divided into 5,000 shares of 1001.
each, on which a deposit of 101. will be required on allotment,
and 401. on incorporation. This will yield a paid•up working
capital of 250,0001.