The Express.
London, England, 1849-09-21 00:00:00

BANK OF ENGLAND.

Yesterday a half-yearly general court of the pro.
prietors wav held in the Bank parlour, for the pupa gl
considering of a dividend, and on other affairs, sad thus
was rather a larger attendance than is usual at tide
The Governor (Mr. J. H. Prescott), with the ether mew
ben of the board, entered the Court-room at 12 °Meek pa
duly, and
Mr. J. KNIGHT (the secretary) having read the minute
of the jut meeting, and which were confirmed,
The GOVERNOR then rated that this was a quarterly
soave, held in accordance with the terms of the charter,
and likewise • halnearly general court appointed by
the byelaws to consider of a dividend. The het -yest's
profits yielded • surplus of 14,51. over the amount re
quit. d to pay a dividend of 34 per cent., and the teat, out
of which the dividend would be declared, en
3,887,3284 7s. 10d. The board of directors therefore pre.
weer, subject to the approbation of the proprietor; tsar a
dividend of 34 per cent. should be declared, out of intend
and profits, for the bilinear ending the 10th Oeolur
free of income-tax. This would leave the Rest at 3,057,9741.
He therefore moved that the dividend should be 34 per
cent.
A PROPRIETOR in the body of the meeting hers it
voluntarily exclaimed, " What only 34 per cent?"
Mr. PARRY DE WINTON rose and was about to rusk
when he was questioned as to whether it was his intenders to
propose an amendment, and answering in the affirmative,
the hon. proprietor then proceeded to state that he was is
favour of a larger dividend, and in moving an amendment to
that effect he would give his reasons, supported by (sets
which were incontrovertible. He would endeueer to
prove that the Bank in its present position did nut requires
Rest of three millions either as capital or to protect half
against the contingency of loss. Previous to the passing of
the act 7 & 8 Viet., in July, 1844, the capital of
the Bank was 14,653,0801., out of which 11,000,0001.
was lent to the country at an interest of 3 per cent. There
was then left • working capital only of 3,563,0001.. whisk,
added to the rest of 3,000,0001., gave a result of 6,553,00 M
That was not, however, their position under the Act of 1814,
which he might say had been passed by the first of stature',
and had, enabled them, under a liberal government, to best
up gloriously through an ordeal of unparalleled difficulty,
whilst the whole continent of Europe was oonvulsed. What,
then, was their position under the act They could Wes
11,000,0001 bank-notes, which was, in fact, so much ennui,
and 3,000,0001. more upon securities. That, with the " rest,"
made a waist capital of 17,000,0001 Now, was so large as
amount of "rest" required?He should show that during tbe last
six months it was notrequired, and had not leen employed.
The average government and other securities fur the last sin
moutna were 16,000,0001. Now, as an old banker, and ha
was sure that all bankers would be of the same opinion, that
at least one-third of the liabilities ought to he kept in the
till, and as they had convertible securities which were easily
disposed of in the market, he thought they did not want say
more for this purpose than 500,0001. But what was the
amount of capital unemployed during the last six monks?
no lees a sum, in notes and in cash, than 10,000,0001., whisk
he submitted, was 6,000,0001. too much. The highly ell
dent board of directors and their excellent manageress;
was the best guarantee director,
any loss being sustained ia
the working department. He thought, therefore. the tee
great points, that this surplus sum was neither required fee
capital nor for loss, had been proved. Under Moe
circumstances, why could not they agree to divide
that which belonged to them ? And he would mak,
that they were not only acting for themselves, bet
that they had to protect the interests of widows and orphans,
whore existence depended upon their receipts from do Bank.
Having then alluded to the operation of free trade, the hon.
gentleman observed that corn eventually might be cheaper
in our markets than in any part of the continent or is
America, the oonsequesee of which would be that we could
even become expellers, and no diminution of bullion would
take place in the coffers of the Bank. What our farmers
needed wee additional monetary facilities, and if our agri-
cultural resources were put to the test there would be link
I fear of competition from abroad. (Hear, bear.) He bad s
greet deal to do with landed *stater, and this was his old.
Won. But he would go further. The rates of eschew at
New York and on the continent Mt TO in favour of
England, and the Bank of France had a very
large amount of specie. He would direct attend*
also to the probable results of the Californian discoveries
as based upon the information given by the leading jeered',
which, be was bound to say, were most creuitably ear
ducted. It appeared that last year the tg, ld collected is
CaVernis amounted in value to 50,000,000 of dollars, at
10,000,0001. sterling. What effect would that have use
the price of gold in London, which war the centre of the
industrial world ? Why, he should not be surprised that
Instead of 15,000,0001. they would next year luve2o,ooo.oooii
in bullion, which, of course, would make a great' 15-
duction in their capital. The arbitrary price of gold km
was 31. 17s. 1044., but it a large influx hereafter redacted it
to 31. 10s., there would be • difference of 10 pus
cant. He would not detain them longer, but simply
say, that he thought he had shown sufficient grounds is
reducing the " rest" to 2,000,0001., and leerier lle
other 1,000,0001. to be added to the dividend, or to tit
given to the proprietors in the shape of a bones.
He concluded by moving an auteadment, that out of the
" rest" of 3,674,8611., a dividend of 40 per cent., for the
current halt year, on the bank capital be paid to the Pm
prit tors.
Mr. DE WINTON, jun., begged to second the said-

mane.
The GOVERNOR must express a hope, berme salt
elusion took place on the amendment, that the court vein
net agree te the amendment. (Hear, hear.) At as lee
half-yearly divivion, when 300.0001. was taken from " tin
rest," the directors, at the regent of the ?reprises.,
er
pressed their opinion that " tee rest" could not be ably
reduced below the amount to which it was then bangle.
That opinion seemed to receive the general avant of G•
proprietor'. (Hear, hear.) The directors continued ea'
saimenaly to be of the opinion which they had thee
premed. believing the: any further deduction from
the rest would endanger the reduction of the dividend below
$4 per cent., a circumstance which the proprietors would be
extremely sorry to see brought about ; indeed, it was one
which could not be too much deprecated. Tee rent,he
w, old eb-erve, was not only a guarantee fund tor*
for the esontiogency of possible louses, but conititat amen
important part of the working of the capital of the Bra.
(Hear.) Moat gladly would their directs re prolongs a lOW
dividend if they could do coo—(bear, beer)—but they we
not at the present moment assent to any increase, bet they
hoped by judicious manag..ment, on a future occasion—hl
uld not ray when—(laughter)-10 be enabled to propose a
hither dividend out of the profits of the Bank ; but tote
coestantly making up dividends out of capital might lead to
dangerous and dieutrius consequences. (Hear, hear.) No
one, be was sure, who had a due regard to the welfare of the
Bank would propose or sanction such a proceeding. 01
hoped, therefore, his hon. friend would withdraw his amend'
meet. (Hear hear.)
Mr. COOKE regretted that Mr. De Winton had not given
the proprietors notice of his intention to bring on the taco
tion he had today, as they would have been better gobbet
to discuss it in detail. Re believed, however, that the OW
meet of the governor was the best answer that could 1,
given to the speech of Mr. Ds Winton When they haw_
an
mind the high d honourable pceitioikelich the Jew
held in the eyes of the world, he thoughrtbey had me!il
poison to thank the directors for having brceght thous ■
40
to their present satisfactory poiition. He Trees 1/I"kre'
opposed to the amendment.
Mr. P. DE WINTON observed that be had given notice
of hie intention to the Court of Directors.
A PROPRIBTOR sea be was glad that, wider the W
they were ambled to receive 31 per emit.
Mr. CLARK must oppose the amendment, and remarked
that,the reticence of Mr. De Winton to the Wad °f tb°
continent thrice the past sir months was peculiefle 11.
fortunate. since there was a stoppage of all communal intm,
course, in consequence of eapitaliets not being disposed "
risk their rooney abroad. (Heim.)
MT. P. DE WINTON said his calculation' were bawd
upon the experience of 3 yeses, not 6 atonal.
Mr. CLARK., in condonation. observed that 3 yeses fed
the discussion of this 'abject was commenced, namely, I!,!.
propriety of capitalising any portion of the annuel pi.o!"
beyond the maintenance of a rest of 3,000.6001. The irt
proprietor then adverted to the GAMS which the prey:
dircueeions upon the. matter had taken, and ploc.1"?
..31y,pottrlateewnt.heniatheisadeitaeccitoezt pwromposedmovao
view to en increase of the dividend anti the red
don of the rest, but it was lost, which he understood tore
listed the discussion of the question. Thep ropnetore tat;
premed the directors to state the saternt of rest which
.ateitheee_tbose..