The Sun.
London, England, 1837-02-27 00:00:00

THA2I,IES-OFFICE.

John James Richardson, mud-bargemen, in the
employ of Mr. rtlartin, the contractor for removing the mud
from St. Catlystine's Dock, Were charged with throwing their
cargo of me ,d overboard off Rotherhitbe, to the great obstruc-
tion of the navigation. -
Mr. llnonEßte should undoubtedly put the law in force,
aud•if the evil was not abated, he should inflict the. full penalty
of 20!. in every case. In the present instance Foe should fine
White 41., and the others 21. each. The fines were imme-
diately paid by Mr. Martin the contractor.

ST. PETEBSBURCH, FEB. 26. -Returns of the
Population professing tkie orthodox Gre co-Russian religion,
for 1835 :
BIRTHS.-- Males
Females 904,964-1?.M,54
DEATITS. —Males 748234
Females 734,349-1,482,583

Excess or Births 337;21'9
1'imutu.GE....42712.t31. --Journal (le Pacrsburri,i',, Feb. ~7-1

NORTHERN AND CENTRAL BANK.

MEETING AT MANCHESTER.
(Abridged from the Morning Post.)
The general meeting of shareholders of this bank was held
at Ladyman's Hotel, on Thursday, " when a summary or ba-
lance sheet of the report, from the period of the last report,
was to be laid before the meeting, and to elect two directors
in the place of those who retire, in pursuance of a provision of
the deed of settlement."

Mr. BRAIDLEc, haring taken the chair, read the following
report:—

THIRD ANNUAL REPORT OF THE DIRECTORS OF THE NOR-

THERN AND CENTRAL BANK OF ENGLAND.
" Manchester, Feb. 23, 1837.

" The Directors of the Northern and Central Bank of Eng-
land, in bringing forward their report to the shareholders at
the present meeting, beg leave to state that they have gone
through the books of the company with considerable care from
its commencement to the 31st of December last, and have to
report the following as the result of their investigations :
" The total sum of profit derived from business
accounts from the 17th of March, 1834, when
the Company first began, to the 31st of Decem-
ber last is X 145,699 16 8
" Received for premiums during same period__ 34,881 10 0

" Total profits at 31st of Deoember, 1836 £180,581 6 8

DEDII CT.

" Dividends paid during same
period ... £93,784 2 1
" Interest due to the Bank of
England to the 31st of Dec.,
1836
" Solicitor's bills and law charges,
say

3,306 0 0

1,200 0 0

98,290 2 1

" I eaving an amount to be placed against all bad
debts, from the commencement, of £82,291 4 7

" The Directors went through the list of bad debts, up to
the 31st of December last, with the anxious view of making
such allowance for loss on each as in their judgment, would
be sufficient to meet any actual deficiency which might arise ;
and they have to state that it was their opinion that it would
require, to cover the losses at the head office and 38 branches,
the sum of 97,9791. 2s. Id. for this purpose, which would
1 Dave a deficiency in the assets of the bank, after paying all
I' abilities, of 15,6871. 17s. 6d. below the amount of capital due
o the shareholders.

Since that period, however, owing to the difficulties of
tle times, a great many failures have taken place, which were
liot contemplated, and the Directors cannot say positively what
less will be. They hope, however, that a loss of 15s. per
share will cover everything; but they do ,not think, under the
'worst circumstances, and making allowance for all contingen-
.sies, that a greaterloss than It. per share can be incurred.
Under the worst circumstances, therefore, that they can anti-
-I:ipate, a working capital of about seven hundred thousand
-pounds will be left to the bank.
Mr. AARON LEES moved that the report now read be
ad ,pted.
Mr. BROADBENT would say as to transactions in shares, that
since he had had to do with the inspection he had become quite
:satisfied that this bank had never been in a condition to make
ea dividend of one. farthing—( Hear, hear)—and any Director
icho had looked narrowly at what was going on must have
b !en struck with that fact. Those Directors who had been
trafficking in shares, acting upon their superior knowledge
over many shareholders of limited incomes, who, having
'nought shares at high premiums, had embarrassed themselves,
those Directors, acting upon that knowledge, had sold shares,
n,t in their own names, by which the public might have
ktown of it, but in the names of nominees.—(Cries of
" Shame.") Ile would say the shareholders might put what
cotstruction they pleased on it.
Mr. HARBOTTLE, iii the course of the proceedings, said he
felt it his duty to the Shareholderito say that the Directors
lzenerally had largely trafficked in shares, not of this bank
merely, but in almost all the species of s:Aares which had been
current during the past year, and that money to a large ex-
scat had been extracted from the Northern and Central Bank
to I, ay for shares which the Directors had themselves bought.
—(Shameful.) These shares had been transferred to the in-
spe etors as security for the Directors' accounts.. He believed
eveis the Directors themselves did not wish to conceal that the:,
lad been guilty in this way. The Dirctors had kept taro ac-
cote Is, it business account and a private account, which he
ti,ni+ght was anything but correct.
1; appeared on inquiry by several shareholders that neither
lU,. Cassels, the Itte, nor Mr. Evans, the present, manager of
tilt• bank, was aware of the private account being kept for the
Dh.eetors, it being done in a private ledger, kept by the ban'e
ac auntant, who stated he had done so in compliance with an
o. dor of the Board of Directors.

UL mutely the resolution for the adoption of the report was
pas.7e(tunanimously, though not two-thirds of the shareholders
p:esent voted.
i4r. CASSELS at a subsequent part of the proceedings read
the following statement of the liabilities of the Northern and
Central Sank.
Mr. W. G. CASSELS read the following statement of the
No.-tbern and Central Bank on the 31st of December, 1836:
Due on current accounts in London £2,175
at branches
at head office

£357.51

Dc.posA receipts at branches 153,198
at head office .
Interest clue on ditto at head office and branches 2,2f.)6

156,431
Ealane* due to the Bank of England, exclusive of interest 318,220
Cash thie to bankers (Preseotts, and London and West-

100,70

387,796

mins.ter
Draft; Ind advices current on bankers,
Ditto ditto on W. G. Cassells, including
American drafts
Cirri stion of Northern and Central notes .. 161,335
Dividends remaining unpaid 2,664
Branch drafts unpaid

4 572

Making up a total of £1,592,656
Paitl up capital BOO,OlO

£2,396,666
Lettving a surplus of 86,7521. to be carried to the new account.
:We have been informed that the balance will be smaller than
above, stated by the following items :—Deduct interest to the
Bank of England, 3,3061. ; law expenses, 1,2001. ; together,
4,5064., making the total 1,597,162/., and the surplus to the
new account 82,246/. The assets of the Bank, including bills,
past clue bills, overdrawn accounts, and cash, amount to
2,479,4181.—REP0RTER.]
Mr. STenns moved, and Mr. WEBSTER seconded the nomi-
nation of Mr. Joseph Armstrong and Mr. Aaron Lees, to the
two vacant places in the Directory. These gentlemen were
unanitnously elected.
Thanks were voted to the inspectors, and they were requested
to continue their services till the Bank's engagements with the
Bank of England and the London and Westminster Bank
were satisfied. Thanks were also voted to the Chairman, and
the proceedings terminated shortly after two o'clock.

PRINCIPLES OF BANKING IN THE

UNITED STATES.

There are no less than 558 banks in tho United States,
with 146 branches. You have frequently read in the Ameri-
can papers of " pet banks." This term is applied to those
institutions in which General Jackson has caused the depo-
sits of public money to be made from time to time, and these
pet" or " deposit banks" are obliged to return on oath an
annual report of their debits, credits, and liabilities to Con-
gress, as well as to the governments of their own states. I
believe these deposit banks are about 126 in number.
When it is proposed to start a bank in any town or city, a
memorial is signed by a number of the citizens, and presented
to the Senate aid House of Representatives of the Common-
wealth in which such town or city may be located, stating
the terms, capital, &c., on which they desire to establish a
bank.

The Legislature of the Commonwealth then take it into con-
sideration. All parties are heard, and sometimes the charter
applied for is refused. But when granted, the amount of
capital, price and number of shares, and other matters of pub-
lic import, are settled by the Legislature of the State or Com-
monwealth ; and the bankers are bound to return a statement
of their affairs once a year, which is published by the State
Government to the people.
Permission to establish a bank having been thus obtained,
the shares or scrip are sold in the following manner : Sup-
pose the capital of the projected bank be 2,000,000 doll., the
shares 10,000 in number, at 200 doll. each ; they are bought
by capitalists the moment they are advertised, and probably
the first instalment required ,on them may be only 20 doll. or
30 doll. each, the remainder being called for at stated periods
during the subsequent twelve or eighteen months, by which
time all will be paid up. The scrip is soil, at first, by par-
ties empowered so to do by the State Government ; they are
called commissioners. Sometimes the shares will bear a pre-
mium of 5 doll. or 6 doll. each within a few days after they are
granted and issued.

The shares being all sold, and the shareholders forming a
body corporate, they meet and elect their Board of Directors
once a year for ever, or during their charter, by ballot.
I wish you particularly to notice that everything in this
country that is public is conducted on the elective principle,
and by ballot. In all cases the people are represented, their
interests consulted, and they have a complete control over
tlxeir own affairs. This is the one grand secret of American
prosperity.
The Directors, President, Cashier, and other officefs of the
bank being elected and appointed, the establishment proceeds
to ;he transaction of business. They issue paper, discount
bills, ,and make dividends of their profits every six months.
The President must be one of the Directors, and of course
a stockholder. The Cashier must not be a stockholder, and
must have. no pecuniary interest in the bank, in order that his
testimony ,and conduct at all times, and in courts of justice,
may be disilterested. The Presidents and Cashiers are elected
by tlle Boan.l of Directors, also by ballot.

No stockholder is liable, either in person or property, be-
yond the amount of his share or shares.
The stockholders meet once a year to audit the affairs of
their bank, and a I ;st of them is always previously published and
poste i tr? in the ba.ok.
No Director is eli'gible to be elected more than three years
out of every four. The operation of this rule is, that there
occurs a continual succession, one-third dying a natural death
every ye.ar.
Directors are generally twelve in number, and they must be
citizens cr.f the United States. Foreign stockholders are not
entitled to vote, either by proxy or in person, except in a very
few banks. Many shares will give a holder more votes than
one share, pro rata.
All bills and promissory notes discounted in these banks
moist be pr,?sented at least one day previous to the weekly
discount days, of which there are generally two—say Tues-

days and Fridays. These bills and promissory notes are
examined by a Court or Council of the President and Di-
rectors, and accepted or rejected as the case may be. On
the same discount day, at 12 o'clock, the presenters of bills
call to know their fate, and either receive them again, or their
value, minus the discount.

All discounts at banks are done at the legal interest of the
different states. In Pennsylvania this is 6 per cent. ; in New
York, and many states, it is 7 ; and in Louisiana, and some of
the southern states, it is la.

The banks do not every six months divide quite all their
profits, but reserve a little to meet losses, contingencies, build-
ings, &c.
The average dividends of banks I should consider to be about
4 per cent. every six months, or 8 per cent. per annum. Some
make as high as 10 or 12, while others do not exceed 6 or 7.
In the event of the Directors affording any suspicion of
violation of their charter, the legislatures of the different states
have power to call for persons and papers to be examined on
oath.

The annual accounts of the banks, which arc delivered to the
different legislatures every session, and published to the people
by the " auditors general" of the different states, are very full
and explanatory, being perfect balance sheets of debits, cre-
dits, assets, and liabilities, showing their state not only for the
whole year, but also for each quarter of that year.