The Express.
London, England, 1848-03-17 00:00:00

THE BANK OF ENGLAND.

Yesterday a quarterly general court of the stockholders in
this corporation was held in the assembly room of the esta-
blishment, for the purpose of declaring a dividend for the
hale-year ending Al rid sth next, and upon other important
matters. The court was exceo.iingly well attended. At the
customary hour, the governor, Mr. James Morris ; the de-
Vil.7.,%'re.ThcoorAoinr:alind ortyherJ James Prescott;
rdeizocttto; Mer t n
re, .ntePlrted the
court room, and the regular business of the day was com-
menced by the secretary, Mr. Knight, reading the Mialltel
of the last general court.
The ejovxalloa said that he had to acquaint the court of
proprietor that this was a general meeting, held pursuant
to the charter, and for the purpose of declaring a
dividend. The court of directors having carefully considered
the Bank's account, were of opinion that a dividend
might be declared at the rate of 44 per cent. for the half-year
out of interest and profits, with the income tax deducted.
He had to state, for the information of the proprietors, that
the amount of the rest on Feb. 20, 1848, was 3,946,6241. On
the 31st August last it was 3,925,6341. ; and showing a our-
plus gain of 20,8901. The rest therefore. after the dividend
was paid with the income tax, would be 3,291,6391., or an
increase of 20,8991. 'rhe governor moved that the recom-
mendation of the court of directors, as to the dividend, should
be agreed to.
Mr. Et eines thought that the interests of the life-holders
should be considered in every resolution that might be come
to that day. He hoped to be enabli dto show that the pro-
fits of the Bank of England since the April dividend was
declared in 1846, were such as would warrant the increase
of the dividend now proposed by one-half per cent., or to 5
per cent. for the half-year. (Hear.) Should a dividend at
the rate of 5 per cent. he now declared, there would be, after
paying it, income tax included, a eurplus of 3,403,156/. In
point of tact the affairs of the Bank of England had pro-
greesively gone on so favourable that the court of directors
ought to make the addition to the dividend, as he should
move. In 1846, the April dividend took 509,35.51.,
and leaving the rest at 3,861,7461., showing an in-
crease of 172,3161. The October dividend in the
same year took 509,3551. ; the rest then stood at
3,892,6131. Increase, as compared with August preceding,
52,7601. At the April dividend (1847) meeting there was
required for the dividend 509,3551. ; add bonus, 145,5531.;
total, 654,9081. ; and with the rest remaining at 4,046,6741.
The GoVERNOs explained that the difference between the
two amounts, as would appear, of 3,899,2221., and the
4,046,6741., axon from some payments not made in the
previous return, but of necessity included in the latter.
Mr. FIELDan said that at all events there was an increase
in the rest, notwithstanding, of 147,4521. The October divi
dcnd and bonus took 654,9081., leaving the rest at 4,150,3401.,
an increase of 225,3401. On the 4th March, 1848, the divi-
dend at 41 per cent. would be 3,980.8401.; six weeks' in-
crease, 150,0001. Taking the April dividend at 41 per
cent. far the half-year, it would amount to 654,9081. ;
and if one-half per cent. more were added (or making
the dividend at the rate of 5 per cent. for
the half-year) the increase to be paid would be
72,776/., leaving a rest remaining of 3,403,1561.. He
(the hon. proprietor) would not on any account touch the
capital of the Bank which stood at 14,553,0001., or the
value of the buildings, &c., which was 4,047,0001.,
together 18,600,0001., to increase a dividend, but he would
contend that, out of the present rest in hand the dividend to
be declared should he 5 not 41 per cent., fee the belt-year,
as in this way the life and the reversionary interests would
be protected. He concluded by moving as an amendment
that au addition of one-half per cent. be made to the amount
of the dividend, which would raise the annual dividend to
10 per cent.
Mr. De WINTON, in seconding the amendment, said that
in his opinion the amount of the dividend ought to be in-
creased. It appeared that, after the payment of the dividend
and the bonus that was declared at the laatcourt, the rest
amounted to 3,300,0001._, or as stated by the governor to
3,390,0001. Deducting 5 per cent. dividend from that sum
there would still be a rest amounting to 3,120,5001 , to
which might be added the revenue accruing between that
time and the sth of April, which taken at 100,0001. would
leave a rest of 3,350,000/. He therefor. hinted, con-
sidering the very great losses which had been austsined in
consequence of the late panic, and which he attributed
• eetirely to the course that was then adopted by the court of
directors—(hear, hear)—he could prove by figures that it
was attributable to them—that the dividend should be in-
creased to the extent proposed by Mr. Fielder. They never
had been in a better position to pay a dividend of 5 per cent.
than they were at that moment. He therefore thought that
' the dividend ought to he 5 per cent., if such a dividend could
be declared without trespassing on the reserved fund.
Mr. CLAIMS said he rcee to oppose the amendment ; and
be did so not because he did not most folly recognise
the principle that the proprietors ought to have the
beuefit of a division among them of as much
of the profits of the establishment as could con-
veniently be given !el them, but because he considered
that they were placed in very peculiar circumstances. The
whole continent of Europe was convulsed from one end to
the other, and no one could foresee in what chaotic state the
financial affairs of Europe might yet be placed ; and, with
such facts staring them in the face, he thought it would be
most unwise to make any increase in their dividend beyond
what was truly safe. He would rather, if there was any-
thing to spare, that it should be added to the amount of the
rest. Although the present prospect of affairs abroad indi-
cated the approach of a financial crisis, he was glad that
this country was in a favourable position. In conse-
quence of the numerous failures that had recently taken
place, every mercantile homes had been compelled to con-
tract their engagements, with a view to their being
faithfully and honourably met; and it was in consequence
of this course having. been pursued that England
stood on a firmer baste than elm. (Hear, hear.)
He considered it to be the duty of the court of directors not
to increase the dividend at the present moment, and that •
dividend of four-and-a-half per Cali was a satisfactory one,
and ought to be si considered by the proprietors. It was
very it convenient to argue prospectively upon matters which
were not before the court. He would, therefore, support
the original motion.
Mr. Coon hoped the court would not adopt the too corn-
Men principle of showing all their goods in the window, and