The Sun.
London, England, 1855-11-27 00:00:00

NflY
JOINT-STOCK MUTUAL BANK-
ING ASSOCIATION.

PRINCIPAL OFFICES.
Unity Buildings, 8 and 10, Cannon-street, City.
LEICESTER-SQLTARZ
1, New Obventry-street, Leicester-square.
CLOSING OF THE SHARE LIST.
The directors are happy to announce that, in consequence
of the large number of shares that have been allotted and
paid upon, the share list will be closed on Friday, the 30th
November, after which date no applications will be received.
Arrangements have been made which will enable the bank
to commence business early in January next.
This bank, to be incorporated by royal charter, is estab-
lished for the purpose of founding the principle of MUTUAL
BANKING, whereby customers, who create the profits, be-
come entitled to a participation in them, by way of interest
on their cash balances. The principle of mutuality has been
for many years acted on by insurance compan!es, and their
policy-holders -have participated to a very great extent in
the bonuses, with much advantage to the institutions and the
shareholders. By banks, however to this period, MUTU-
ALITY has been neglected. The whole of the profits result-
ing from successful operations have *been given to the share-
holders only.
ADVANTAGES OFFERED BY THE UNITY BANK.
I. To shareholders, 5 per cent., from the date of payment,
on all paid.up capital, as well as 50 per cent. of the profits.
11. To customers, in addition to the ordinary amount paid
on deposit and current accounts, interest on their cash ba-
lances, equivalent to 50 per cent. of the profits.
This is the plan on which the UNITY JOINT STOCK MUTUAL
BANKING ASSOCIATION is established. By it is created, for the
first time, an identification of interest between the customers
and shareholders of the bank, who thus become mutually con-
cerned in the extension of its business. It will be the means
of opening up new business, preserving a connection once
formed, and productive of practical benefits to the public
generally.
CONDITION OF LONDON JOINT STOCK BANKS.
The success of joint stock banks in London is readily ad-
mitted, as well as proved by the statements periodically
issued by those great commercial institutions. In support
of this, the following table is submitted, showing the condi-
tion of each of the six metropolitan joint stock banks which
have published accounts, the original cost of the shares,
their present market value, and the dividends 'payable
thereon ;

.
• E": .;4
Gr
NA.II-s OP BANK. :46.
c°s' °
A., c)
'4
£ £
£
London and Westminster 1834 1,000,000 20 47 16 4
London Joint Stock 1836 600,000 10 32% 25
Tinton Bank of London 1939 422,900 10 30 20 z.
Lo..ondon and County . . 1839 394,135 20 39R 12 r
ommerelal Bk. of Londoin 1840 300,000 20 31 10
,'Royal British Bank 1849 100,000 40 .. 6J c%

regard

The above banks publish the following facts wit
to their positions :—•
I. The entire amount of subscribed capital in the six joint-
stock banks in London is 12,704,2001.
11. The amount thereof paid up is 2,817,035/.
111. The amount of deposits, or customers' balances, is
29,376,410/.
IV. The total number of shareholders is .4,097.

V, The number of shares issued, 187,084.
Thus is presented proof of known security, extent of busi-
ness, and general financial resources. These establishments
hold half-yearly meetings, and lay before their connections
full accounts of their progress and general operations. This
course cannot fail in inspiring with confidence all who have
any dealings with them, while it gives to the public the
means of forming an opinion as to their responsibility.

- _
INCREASED VALUE OF JOINT-STOCK BANK SHARES,

It is proved to demonstration, that joint-stock banking,
Under proper supervision, affords a most legitimate and un-
usually profitable field for the investment of capital. The
dividends paid by the banks above quoted vary from 6 to 25
per cent., and the latest quotations of their shares show an
increase of 55 to 225 per cent. on their paid-up capital. The
real increase, however, in the value of the shares may be bet-
ter understood, by the fact that the paid-up capital of these
six banks is 2,817,0351., and that its present market value is
6,912,1161, It has thus increased two-and-a-half fold, so that
every 1/. has now become 21. 10s., and there is every prospect
of this amount continuing to increase in value.
COURT OF DIRECTORS OF THE UNITY BANK.

GOVERNOR.
J. J. MECHI, Esq., Tiptree Hall, Kelvedon, Essex.
WILLI'AM JOSEPH BRUCE, Esq., 16, Duke-street, Wcst-

minster, and 4A, Hyde-park-place, Cumberland-gate.
G. L. p. EYRE, Esq. (Messrs. Triuder and Eyre), 1, John-
street, Bedford-row.
THOMAS CARLYLE HAYWARD, Esq. (Messrs. Hayward
and Sons), 93, Minories ; and 3, Highbury-park North.
MAJOR HENRY STONES, LL.B., 33, Nottingham-place,
Regent's-park.
ROBERT GARLAND, Esq., Thames-chamber, York-build-
ings, Adel hi and Belflore-lodge, Highbury.
THOMAS H. BAYLIS, Esq., Cannon-street, City; and 4,
Nottingham-terrace, York-gate, Regent's-park.
Dr. LLOYD, 4. Suffolk-place, Pall-mall.
ROBERT JAMES SNAPE, Esq., 2, Stone-buildings, Lin-
coln's-inn.
EDWARD GOULD BRADLEY, Esq., Heathland-lodge,
Hampstead.
MAJOR MARTIN MULKERN, Ightlleld house, Alsop-
terrace, Regent's-park.

THE LONDON ANDBA.NRERS WESTMINSTER BANK.
LICITOR.
THOMAS TAYLOE, Es 50q.,0 27A., Bucklersbury, London.
BROKERS.
Messrs, R. and J. SUTTON, 22, Royal Exchange, London.

GENERAL MANAGER.
GEORGE CHAMBERS, Esq.
(from Messrs. Barnett, Hoare, and Co.)
SECRETARY.
HENRY LAKE, ESQ.

Each of tho directors is duly qualified, having subscribed
for twenty shares, and paid the deposit of 1,000/., in accord-
ance 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 cont. being
Riven to the customers of the-batik. -This idea can only have
arisen, however, from the want of a careful consideration of
the whole subject. In the first place, it is necessary to re-
member from whom the profits of a bank are derived. They
aro not made from the share capital. The very first ingredi-
ent fur the formation of profits is a customer. The amount
of profit must, therefore, be governed by the amount of busi-
ness transacted ; and the larger the business. provided it be
Properly conducted, the larger will be the profits. It must be
borne in mind, also, thattho real extent of the dividends must
depend on the number of cents. of profits, and that 50 per
cent. of the profits, extending over large transactions, may
be far greater than 100 per cent. derived from more circum-
scribed business. If, then, the customers of a bank consti-
tute its profits, the customers should be induced to transact
their business with the bank, and thereby the profits of the
shareholder, instead of being reduced, will bo augmented.
The inducement held out to the customer, however, should be
such as does not involve or complicate the business of bank-
ing. It should not be by the promise of some peculiar accom-
raodation, or some particular and increased rate of 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 in
the Unity Bank, an advantage which interferes in no degree
'With established principles, 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 re-
cognition of the right of the assurer to this participation. that
ho assurance association would now be established without
this essential to success. The justice of the principle consists
ill this—that as the assurers make the profits of the company,
the3t ought to be participators in its prosperity. What is
Just in assurance will be found just also in banking. The
ccaiPomers of a bank make the profits of the bank, and they
ought also to be participators in its prosperity.
It has been asserted, also, that the 50 per cent. of the pro-
fits proposed to be divided, while it would detract from the
Profits of its shareholders, would be but a trifling benefit to
the customers. It might, in the first place, be replied that
110 benefit is considered " trifling" by those who rightly esti-
naato pecuniary affairs ; that the benefit, if trifling, is in addi-
tion to all the other benefits usually derived by banking at a
joint-stock bank ; and that no correct data can be formed of
the profits which will be made. On the other hand, it must
be remembered that hitherto persons have taken their bank-
ing account where personal feeling, accommodation, or con-
venience 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
42. f the connections of the Unity Insurance Associations in all
Parts of the country, who have a peculiar identification with
and interest in its success, it may fairly be stated, that ante-
cedent data are not sufficient to form an estimate of the ad-
vantages which both the shareholders and customers will
derive from the Unity Bank.
Great difficulty exists in estimating the effects likely to be
Produced by the establishment of this now and most desirable
feature in banking. It is one that must become highly popu-
lar with every commercial interest, and with every class of
the public, because its simplicity and advantages are at once
to be seen and appreciated.
Tcir those great commercial bodies which aro 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 navi-
gation, insurance, and other companies, professional men,
raerehants, brokers, gentlemen of fortune, and traders of all
kinds, will duly estimate the difference in the system now
proposed, from that heretofore existing. In find, as joint-
stock banks became a public necessity, as is now proved, so
'will the principle of mutuality—whereby these admirable in-
stitutions may be rendered still more serviceable to the public,
and in no way less safe—demand the best consideration of the
community at large.
BUSINESS TO BE UNDERTAKEN.
All the usual business of banking will be undertaken ; and
arrangements will be made for extending the transactions of
the Batik in every desirable quarter.
CURRENT Accoures will be made up half-yearly, namely—to
the-30th of June and the 31st of December, and interest will
be allowed at the rate of 2/. per cent. ea them.
Deposrr Accouters.—With respect to these, the rate of in-
terest allowed ou money placed at seven days' notice will be
1/. per cent. under the rate of discount on first class bills
adopted by the Bank of England, regulated thereby. Tho
bank will give receipts for the sums so deposited, or, for the
convenience of depositors leaving England, promissory notes,
or bills, including interest as well as principal, at not less
thah six months' date.
The bank will undertake the agency of country and foreign
banks, whether joint stock or private, and will afford every
accommodation to travellers and others with respect to circu-
lar notes and letters of credit. It will receive all kinds of
income for its customers, including annuities, dividends, mili-
tary, naval, and civil officers' pay. It will undertake the sale
and transfer of stock in the public funds, &c. ; and will be
responsible for the safe custody of title deeds and other secu-
rities belonging "to its customers, to which they will at all
times have convenience of access.
Application for prospectuses and forms of application for
the remaining shares, to be made to Messrs. R. and J. Sutton,
stock brokers, 22, Royal Exchange ; or to the secretary, at
the principal offices, 10, Cannon-street, City.
HENRY LAKE, Secretary.

FORM OF APPLICATION FOR SHARES.

TO THB DIRECTORS OF THE UNITY JOINT-STOCK MUTUAL BANKING

ASSOCIATION.

Gentleinen,— T request that von will allot me shams of
1.001: each in the above association, and in consideration of
such allotment, or any less number you may appropriate to
tae, I hereby undertake to pay the depesit, or first call of
101. per jars thereon, and 401, at the UM in corPeretign.