The Sun.
London, England, 1854-11-25 00:00:00

LONDON CHARTERED BANK OF

AUSTRALIA.

At a meeting of the London Chartered Bank of Aus-
tralia, held to-day, Mr. 1). Dunbar presiding, a dividend
of 3 per cent., free of ir come-tax, for the half-year end-
ing the 30th of June, was unanimously carried. The
chairman stated that it was not the practice to exhibit
accounts on the present occasion, the ordinary period
being in June, when they would be brought forward
properly audited, but that an abstract of profit and less
had been prepared, with the view of satisfying the
shareholders that the rate of distribution proposed is
warranted by the position of the bank. The advices
from the colony are satisfactory, and, with the exercise
of due caution, business is making progress. After pay-
ment of this dividend and the transfer of 10 per cent.
to the reserve fund, a balance of 7,0001., or nearly 14
per cent., will remain to the credit of the current half-
year. In illustration of the increase of operations, it
was mentioned that the circulation, which, on the
31st of December, 1853, was 125,0001., had, on the
30th of June, increased to 279,0001. ; that the de-
posits, from 230,7941., had increased to 291,0001. ; and
that the discounts, from 386,4531., had increased to
816,0001. The dividend having been agreed to, the
question of an increase of capital was taken into con-
sideration. On behalf of the directors it was intimated
that the augmented transactions of the bank require at
least 200,0001., which is proposed to be raised in 10,000
shares of 201. each, the board promising to use circum-
spection in calling up the amount after the payment of
the first Si. per share in January next. Under the
charter the capital can be increased to 1,000,0001., but
the directors state they are not desirous of carrying it at
present beyond 700,0001., so that the proprietors may
receive the full benefit of the profits. There are three
establishments to support in Australia—one in Sydney,
one in Melbourne, and one in Geelong ' • and, as the co-
lonial officers report that these cannot be adequately re-
presented by less than 450,000/., it is felt that 50,0001.
is too little for the parent establishment in London.
The great majority concurred in these views, but one
proprietor suggested that no hurried steps should be
taken in this direction, especially since it would be ne-
cessary, in the existing condition of Australian affairs,
not to encourage an extension, but rather a contraction
of banking facilities. It having been explained, bow-
ever, that the London Chartered Bank of Australia
being in comparative infancy, and having to sustain itself
against the active rivalry of the oatablished Australian
banks, may require the amount to increase the confi-
dence of its customers and the public, the resolution was
forthwith unanimously adopted. At the close of the
proceedings, Mr. C. G. Barnett, of the firm of Barnett,
Hoare, and Co., was elected a director ; and, in answer
to a question, it was announced that, although the board
under the deed are entitled to receive 3,0001. as remu-
neration, they have accepted only 1,8001. The following
is the abstract of the profit and loss account at 3.th of
June, 1854 :
To proportion of preliminary expenses for
half-year ending 30th of June last £1,403 911
Amount carried to reserve fund 1,600 0 0
Dividend of 3 per cent. on paid-up-capital
for half-year ending 30th of June (free of
income-tax)
Balanse to next half-year 6,977 11 9

£24,881 1 8

By balance at 31st of December, 1853, per
last Report
Balance of profit and less at London office
and branches at 30th of June last ....

£24,881 1 8

............ £6,97711 9