The Sun.
London, England, 1855-11-20 00:00:00

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 Dent being
givin to the customers of the bank. This idea at 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
are 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, that the 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 be augmented.
The inducement held out to the customer, however, should be
such as does not involve or complicate the business of bank-
nil. It should not be by the promise of some peculiar accom-
modation, 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
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 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
no benefit is considerid " trifling" by those who rightly esti-
mate pecuniary affairs ; that the benefit; if ,rifling, 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. Ou 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. New, 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 in all
parts of the country, who have a peculiar identification with
and interest in its success, it may fairly be stated, that ante-
cedeut 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 new 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.
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,
gation, insurance, and other companies,water, steam navi-,
adprofessional
traders Tani
merchants, brokers, gentlemen of fortune,
kinds, will duly estimate the difference in the system° now
In fine, as joint-
proposed,ublic necessity, as is nose awdmprioravie)die,
inso•
bsele to the public,
from that heretofore existing,
stock banks became a p
will the principlebe
roefnmdeurteu.dllsittiyll—mwohreeisTebryvitcheae
stitutions may
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 Bank in every desirable quarter.
CuaRENT ACCOUNTS will be made up half-yearly, namely—to
the 30th of June and the 31st of ecembe and interest will
be allowed at the rate of 2/. per ce Dnt. ou tr, hem.
DErosir Accocyrs.—With respect to these,s,tnhoeti le•aetowoilfl
tcrest allowed on money placed at seven day
be
1/. per cent. under the rate of discount on first class bills
adopted by tho Bank of England, regulated thereby. The
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
than 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 tile safe custody of title deeds and other secu-
rities belonging to its customers, to which they will at all
timesApphl
Application
convenience
for
p prospectuses
oe
ef
taccess,and
,
forms ofapplication for,
the
J. sntz,eonr,
the remaining shares, to be made to Messrs
stock brokers, 22, Royal Exchange ; or to; R
th,e secretary, at
the principal offices, 10, Cannon-street, City.
HENRY LAKE, Secretary.

FORM OF APPLICATION FOR SHARES.
T THE DIFLECTOES OF THE uNITT JOINT-STOCK MUTUAL BANKING

ASSOCUTIOY.

Gentlemen,— I request that Sou will allot me shares of
100/. each in the above association, and in consideration or
such allotment, or any less number you may appropriate to
me, I hereby undertake to pay the deposit, or first call of
101. per elms thereon, and 10/, at the time of incorporation,