The Sun.
London, England, 1852-10-15 00:00:00

LONDON, FRIDAY

on her entire registered tonnage, from which if in ballast
only they ace exempt, at a time when the exportation
of the staple tides of commerc is torhiddne, impedes
that of minor articles, and the result of the two last
enactments is, that ships kayo this port with ballast of
a description injurious to their construction and safety,
while fine timber has been seen floating down to the sea
unheeded. Lot us now turn our attention to the nature
and effects of the prize seizure.
"As the Government on shore consider it necessary
for the public service to seize all timber for their use,
whether the same be owned by friends or foes, and the
prospect of recompense, for it is certainly distant and
improbable, it has given rise to great inconvenience,
and dissatisfaction.
" The commodore has likewise taken the step of ap-
propriating the cutch, cotton, and grain brought here by
the native boats, whose owners were under the impres-
sion they would be protected, and allowed to dispose of
their property fur their own advantage. Under the
same order the rice is being exported, and it is under-
stood that the petty proceeds will be applied for prize
money. These two acts are universally pronounced to
be in violation of the proclamation with regard to the
trade of this place, which was a short time since pro-
mulgated, and cases of great hardship have in cense-
qusnce occurred to people who have been our partisans
on the rivers. We regret the unavoidable conclusion to
which these circumstances lead, viz., to want of confi-
dence, the alienation of the natives from our cause, de-
cline in trade and in the consumption of British im-
portations, the impoverishment of all classes, and the
condemnation hereafter of measures productive of results
so disastrous and so difficult to retrieve."

I enclose you the report of a meeting of the
shareholders of the Bombay Bank, summoned to
consider and sanction some very important altera-

tions in their constitution. Before the bank was
allowed to commence business in 1840 the whole
capital of half a million and upwards (Rs. 52,25,000)
required to be paid up; nearly the whole of this
was invested in Government Securities, the restric-
tions of the charter depriving them of more profitable
business. The bank has occasionally held 400,000 d.
of Government Stock , at present they hold above
320,0001. Government now urge them to reduce the
amount of this to 260,000/., or half their capital; but
the bank is at a loss in this case how to dispose of the
funds thrown into their hands. Their average rate of
profits, in excess of Government interest, has been
about 3 per cent. ; their average circulation of notes
about 250,0001. ; their maximum 650,0001., though
the charter authorises them to issue two crores. The
bank, under these circumstances, desires to have the
privilege of issue curtailed to a million, and to be
permitted to issue another in the shape of bills of ex-
change payable in any quarter of the world. Should
this be declined, the directors recommend that the
capital be reduced by one-half—shares of 1001. being
henceforth worth 501.—the difference to be paid back
to the shareholders. These propositions are all most
important, and deserving of the most minute and ma-
ture consideration.

SPECIAL MEETING OF THE PROPRIETORS
OF THE BANK OF BOMBAY.
A special general meeting of the proprietors of the
Bank of Bombay was held on the 2d inst., pursuant to
notice, at eleven o'clock in the forenoon, at the bank
premises, in Rampart-row.
The following gentlemen were present on the occa-
sion:—J. R. Hadow, Esq., vice-president of the board,
in the chair; Major Swanson, Manockjee Linjee, Esq.,
A. Rimington, Rich, and J. Hunter, Esq., directors; J.
Warden, Esq., Botaanke Framjee Cams, Esq., Colonel
Waddington, Dossabhoy Franejee, Esq., Captain Cruick-
shank, W. Aciacd, Etcp, A. S. Le Messurier, Esq., Dr.
Maclennan, Captain Crawford, and Mejor Davidson;
comprising almost all the European shareholders resi-
dent in Bombay.
Mr. STITAR'N, secretary to the Bank, read the notice
d
l ahn u special
s a general
e annual
e real e r
meeting
e dayeteint ign
calling the meeting, as also the section of the charter
u
nder which it was convned; and then proceeded to
read the following report:—
proprietorstestatements
so
Report of the Directors of the Bank of Bombay, sub-
mitted atmeetingofgo' f September,
twhenoh fe the
the
1852, a
proprietors
t
s heldo ocna
the usual edcaa y the gn
eleven o'clock in the forenoon.
1.
n In
after
of the affairs of the bank made up to 30th June last were
submitted, the directors are most anxious
operations
r ap
tl
iaacnof
e
be-
fore them the following summaries of the
the bank from its commencement iu 1840, with the
wholebepoafidthe up
view that the opinions of the shareholders may be taken
as to the advisability of an application to Government
requiredbeforenatal theof
for a modification of the present Charter, Act 111. of 1840.
2. A sthe
to
Bank was 52,25,000
was
to continence business in 1840, the directors were unable
to find profitable employment for it in the description of
business allowed to
be transacted under the charter, and
therefore invested nearly the whole amount in Govern-
ment Securities, and although a considerable • portion of
these securitses have since been realised, the average
amount held by the bank has been forty lakhs of rupees
(40,00,000), the present amount is nearly thirty-two
lakhs (32,00,000), and the Government urge upon the
directors the necessity of reducing this amount to at
least twenty-six 1akh5(26,00,000), or one-half the amount
of the capital.
3. The directors still experience great difficulty in
finding profitable employment for the large amount of
funds placed at their disposal, and they are of opinion
that some of the restrictions imposed upon the bank
under the present charter may with great advantage be
modified, so as to render the bank more useful to the
public, and profitable to the shareholders, without in the
least affecting its present stability.
4. The average rate of profit realised on banking
operations since 1840 (exclusive of all profit on invest-
ments in Government Securities) is little more than
three per cent. per annum on the whole paid-up capital.
5. Under the present charter the bank is allowed to
issue bank-notes payable on demand to the extent of
two crores of rupees (2,00,00,000) end the directors
now propose to the proprietors that this credit should
be divided into two equal parts, one for the issue of
notes payable on demand, and the other for the issue of
bills of exchange payable either in India or elsewhere,
and for this purpose they submit that an application
should be made to Government for a modification of the
present charter, particularly with reference to the 32d
section, and that the prohibition limiting the bank to
buying and selling bills of exchange payable in India
only should be rescinded, and that the bank be allowed
to deal in bills of exchange payable in England or else-
where.
6. If the Government will grant this request the bank
will agree to give up the privilege of issuing notes to the
extent of two crores, and limit its issue of notes payable
on demand to one erore, and in order to insure to the
public the most perfect security for the payment of the
notes, the bank will further agree that the whole amount
of capital raised by the issue of notes will be employed
in granting advances on deposit of Government Secu-
rities, discounting Government bills, or invested in Go-
vernment Securities, and at all times the bank will hold
a reserve in cash equal to one-fourth of the total amount
of notes in circulation, as provided for under section 26
of the present charter.
7. The largest amount of notes the bank ever had in
circulation was 63* lakhs in December, 1843, but the
average circulation, as shown in the annexed statement,
is only 35 I,akhs, and it is believed, from the result of the
last twelve years' experience, that an authorised circula.
tion of one crore of rupees will be seeply sufficient to
supply all the wants of she community, but if not, the
bank may be allowed to issue notes in excess of ono
crore on deposit of cash equal to the excess of issue, on
the same principle as regulates the issue of notes by the
banks in England in excess of their authorised circu-
lation.
8. With reference to the bank being al di lowe to buy
and sell bills of exchange payable beyond the mits of
India, the directors propose that never more than one-
half of the present paid-up capital will be employed in
these operations, and that the total liabilities on such
bills of exchange will not at any time exceed one crore
rupees, being equal to the other half of the credit allowed
the bank under the present charter, and that no bill will
have a longer term to run than six months after sight.
9. The directors understand that her Majesty's Go-
vernment has granted Royal Charters for the incorpora-
tion of banks of issue is the colonies on similar princi-
ples, and hitherto no inconvenience has been experienced
in allowing these banks to issue notes payable on de-
mand in cash at the place of issue, and bills of exchange
payable in England.
10. Another modification the directors propose is that
the bank may be allowed to advance money on the se-
curity of the shares of any of the chartered banks of
India, and on the shares of any of the Indian railway
companies upon which the interest is guaranteed by the
Government; and also on the security of bills of lading
and shipping documents of goods in transit and con-
signed to Bombay, and that the clauses in the 27th and
2S th sections of the charter prohibiting this description
of business be rescinded.
11. Under the present charter two general meetings
of the proprietors are held in each year, one on the first
Monday iu August (under section 36), for the purpose
of receiving from the directors a statement of the affairs
of the bank made up to the 30th June, and the other on
the second Monday in December, under section 13, for
the purpose of electing two directors. It is now pro-
posed that only one meeting be held in each year on the
second Thursday in February, and that the accounts be
submitted made up to 31st December, and the two di•
rectors be elected at the same meeting.
12. In the event of the directors not being able to ob-
tain any modification of the charter with reference to
issuing bills of exchange payable beyond the limits of
India, they are most reluctantly compelled to propose
that one-hall of the present paid-up capital should be
returned to the proprietors, and that the shares be re-
duced from Rs. 1,000 to Rs. 500 each.
13. The authorised circulation of notes to the extent
of two crores of rupees, allowed under the present char-
ter, will also require to bo reduced to one crore, an
amount as shown in the annexed statement to be amply
sufficient for the trade of Bombay; but if not, the bank
may be allowed to issue notes in excess of one crore on
the
conditions
stated in the
14. The 7th paragraph as above.
average rate of dividend paid by the bank
since 1840 is 6i per
the :ritee woceunidt., but had the capital been only
one-hal
statement, showing bee 9-11 per cent., as per an-
nexedyeara and the rate of
the
net
profit realized in each
cent. of that profit an
adividend paid, also the rate per
amount, otter deducting capitalinterest of one-half the present
at the rate of 4 per cent.
and 5 per cent. on that portion of the capital proposed to
be returned to the proprietors.
15. In the original proepectus of the b
in 1836, it was estimated that a paid-up capitalank, published
lakhs of rupees would be amply sufficient,e.
and ofhad
the
thirty
bank commenced with this capital, it would havepai d
much higher rate of dividend than it has dune, but in

consequence of the great demand for shares the capital
was afterwards fixed at 521 lakhs, and this is too large
in proportion to the The average total
liabilities is only 56i lakhs, and it is generally considered
that the paid-up capital of a bank sheuld be about one-
third the amount of the total liabilities. Judging, there-
fore, by this otandard, the capital of the Bank of Bombay
should be only nineteen lakhs, but the directors now
propose to reduce it to rupees 26,12,500, being one-half
the preEent amount.
By order of Os Board of Directors,
JOHN STUART, Secretary and Treasurer.
Bank of Boaiwy, Sept. 2, 1852.
The following propositions wero then brought for-
ward:

Proposed by J. WARDEN, Esq.; seconded by Colonel
WADDINGTON, C.B.:—" That an application be made to
the Government for a modification of the present charter,
as specified in the report now read to the meeting."—
Cart ied unanimously.
A slight conversational discussion here took place
principally between Messrs. Warden, Le Messurier, and
Stuart.

Proposed by A. S. LE MESSUBIER. Esq,, seconded by
Dr. M`LENNAN :—" That the thanks of this meeting
be offered to the directors for bringing the state of the
bank to the notice of the proprietors, and for their very
clear report. Carried unanimously.
The Chairman returned thanks on behalf of himself
and his brother directors, in a neat and appropriate
speech.
Great unanimity prevailed throughcut the proceed-
ings, and tho meeting separated shortly after twelve
o'clock.

Casualties by death in the armies of India since
the departure of the mail on the Ist of September :
Her Majesty's Troops—Ensign F. Al`Pherson, Bth
King's, at sea, on board the ship Herefordshire, on the
Ist of April.
Madras—Major C. O. Fothergill, Ist N. V. Batta-
lien, at Cudderlore, on the 26th of August.
Bengal—Lieutenant H. Russell, 7th Regiment, N. 1.,
at Ferczepore, on the 21st ult., Major H. C. Boileau, 28th
N. 1., at Dinaporo, on the 22d ult.

BOMBAY MARKETS.
(From the Telegraph and Courier.)
BOMBAY, SEPT. 15.—There has been a considerable
amount of business transacted in piece goods since the
departure of the last mail, but we regret to state that
owing to the large stocks held, prices have not improved,
and we look for no permanent rise in the value of im-
ports till after the Dewallee holidays, which commence
on the 10th of November.
THE BOMBAY MONEY MARKET.

There is still a vast amount of unemployed capital in
Bombay, and little or no demand for money. At the
opening of the fair season the banks usually raise their
rates, but this year the operation has been reversed for
the first time within the last twelve years. On the 26th
of August the Bank of Bombay lowered their rates one
per cent., and were followed, as a matter of course, by
the minor establishments. Advances are now being made
on the security of Government paper at three per cent.
per annum, on loans for three months. Government
and private bills are done at three and five per cent. re-
spectively; and large amounts at even a lower figure.
A few lakhs are being exported to Ceylon and the coast,
but our imports of bullion have far exceeded exports for
some time past. Actual monetary transactions are very
limited; our money market is extremely dull for the
season of the year, and likely to continue so.
Government Securities remained stationary during the
past fortnight, until the close of last week: within the
last four days the Company's Four per Cents. have ad-
vanced from 92 to 924, and are now hardly procurable
at the latter figure. A further and considerable rise in
the price of paper of this loan, especially of the notes
issued in 1835 36, is expected. There being no outlet
for money, Government securities of all descriptions are
firm at our quotations.
Bank Stock is in fair demand, and commands very fair
premiums, as will be seen by our quotations. Since our
last report the Beek of Bombay has made an important
move in the right direction, as will be seen by the
which we publish elsewhere. It is to
directors'
regrettedectors'
thatrfiPnr' t
the original founders of the bank ever
accepted of a charter trammelled with such restrictions
as the then Government of India and Court of Directors
saw fit at that time to impose. Those restrictions will
now, no doubt, be removed, to the infinite satisfaction
and mutual benefit of all parties concerned.
EXCHANGE.—The unaccountable proceedings of the
East India Company in regard to their Exchange opera-
tions, have been severely felt throughout the whole of
We were just in the midst of the disorganization
ilianntdovv.hich their lowering e penny in the rupee, or nearly
4 per cent., on the 10th July, had thrown us, when, to
the consternation and disgust of the whole Indian mer-
cantile community, the second July mail brought us
word that the Exchange had again been raised to 2s.
Some of our contemporaries suspect that there has been
a good deal of method in this madness; and that some
parties at home have had more than their fair share of
profit by those speculations. If the Manchester Asso-
ciation could procure and publish a list of the names of
parties who purchased bills from the 10th to the 24th of
July inclusive, they may by this means be able to esta-
blish grounds for a strong representation to her Majesty's
Government. Here, no merchant or banking establish-
ment can calculate with any degree of certainty upon the
issue of their transactions with England. If the East
India Company are to continuo to rule the exchange
operations of India, they should be compelled to base
their operations upon sound mercantile principles. As
matters now stand we are at the entire mercy of a system
of jobbery which we trust ere long will be put a final
stop to.
Freights—There are, vee hear, vessels in harbour
averaging 10,000 tons disengaged, and as there is a scarcity
of exports, freights continue low. Our quotations are
2/. 55. to Liverpool, and 2!. 10s. to London. To China
we cannot
quote higher than rupees 6i to 7 per candy.
Grey shirtings, 40-inch, maintain their value; indeed
the lighter qualities have improved in value to the ex-
tent of 2to 3 annas per piece. About 8,000 'pieces of
71b. cloth have been
,sold at Rs. 4 Ito Rs. 4 2; 45-inch
cloth has not changed in value, and the sales we observe
amount to about 9,000 pieces at Rs. 4 7 to Re. 6 9.
Grey Long Cloths, 40-inch—We regret to say
.that
the market for this article is very dull. 15,000 pieces
have been sold at Rs. 3 14 to Rs. 6 2, the former at 81b.,
and the latter price indicating a 13/ lbs. cloth.
Grey T. cloths have been sold to a large
extent at
formerly very low and unremunerating rates. About
20,000 pieces have been sold at Rs. 2i to Rs. 3i per
piece.
Grey Domestics—ln these we have heard of very few
transactions. 100 pieces, 70 by 36, have been sold at
Rs. 14, and 1,000 pieces, 60 by 23, at Rs. si.
Grey madapollams are in rather better request;
pieces of 30 and 32 inches have been disposed of at the
low rates of Rs. to Rs. 27i per piece. 3,000
1 u e2,s,bouotothede-
clinedprice.feces
cefiners 0-
neeshc r lionspav hate
b
R. 121 to P
sa.s.!l 14, and 1,000 pieces of 45-inch have
fewsaleedrmil
deen disposed of at Rs. 1 151 per piece.
Grey •
alsdeanadretwn eehnaysoelda
twills have declined in price, but the
Bleached shirtings and madapollams are somewhat
scarce, and their value has improved to the extent of 2
to 3 annas.
Bleached cambrics have been sold to a limited extents
at from Rs. 2 to Re. 3 per piece.
Bleeched jaceonets, although they
have improved is
value, are still sold at a loss, but we think that an ad-
vance -may be yet secured.
Bleached Lappets-1,000 pines 10 by 40 have been
disposed of at Rs. 1 10k to Rs. 3 10.
In other descriptions of bleached goods we hear of
very few transactions.
In coloured goods we have no sales to describe.
liktten Yarn—ln twist the sales during the fortnight
have been very limited, and prices have receded. 360
bales water and 30 bales mule yarn have been sold at
our quotations. In coloured yarn we have heard of no
ales.

Metals—Very little has been done in these since the
last mail left.
Copper has been neglected, but at our quotation
prices are firm.
Iron has again advanced 2 Rs. per candy in price.
130 tons English bar have been sold at Rs. 2.54 ; ISO
candies square nail rod, at 23 Rs. ; 700 cwt sheet, at
Rs. 41 per cwt. ; 1,200 cwt. hoop, at Rs. 4. Our
quotations fur other descriptions of metals will be found
below.

Cochiceal-200 lbs. have been sold at Its. 2 4.
Saffron--175 lbs. have changed hands at Its. 134
per lb.
Beer—There is none of Allsopp's and Bass's in the
market.
Cotton—There is very little now for sale, and what
is now in the market is of inferior quality. The new
cotton is arriving very slowly, and the purchases which
have been made are at the rates quoted below.
In other articles of produce we have nothing to note.