The Sun.
London, England, 1838-03-15 00:00:00

BANK OF EN

.-(THIS DAY.)

The Half-yearly General Court of Directors and Pro-
prietors of the Bank of England took place this day.
At twelve o'clock the Chair was taken by TIMOTHY
ABRAHAM CURTIS, Esq., Governor of the Bank.
There were a large number of Proprietors present. The
minutes of the last quarterly Court having been read,
The CHAIRMAN said it was his duty to acquaint the Court
that this was one of the half. yearly general Courts, appointed
by the bye-law to consider of a dividend ; and the
Court of Governors and Directors having considered the state
of the Bank accounts, were of opinion, that if the proprietors
thought fit, a dividend of 4 per cent. interest and profits should
be declared for the half year ending the sth of April next.
He should, therefore, move that a dividend of 4 per cent. be
declared for the half year ending the ith of April.
Mr. SELWYN did not know bow the body of Proprie-
tors at large might be affected by their worthy Gover-
nor's very brief, very concise, and, if he might be per-
mitted in that place to use the expression, very penurious
statement, on the present occasion, namely, that the Court
of Governors and Directors had recommended a dividend of
4 per cent., that being the sum and substance of the come- e-
nication of the worthy Governor of that illustrious Corpora-
tion. Certainly at the present season he could have wished,
considering how many and what striking events had occurred
during the time that had rolled away since their last General
Court, he could have wished that the worthy Governor had at
such a season told them how those events had borne upon that
great concern ; more particularly he wished it since it had been
surmised on very good authority, that the revenue of the cotin-
try was not, in the present era, in the most flourishing condi-
tion. It did seem to him, that upon the present occasion, the
characteristic of the Governor's eloquence had been si-
lence—that timid caution—that studied reserve which had
uniformly marked the proceedings at General Courts
held in that place, had not been departed from, and
he lamented it on the present occasion. Perhaps the
worthy Governor might say "I have told you that I
think you are entitled to a dividend of 4 per cent. —4 per cent.
is the usual dividend which you have enjoyed during a long
series of years, and, therefore, Gentlemen, you ought to be
content with that statement." Now he (Mr. Selwyn) must say
for one that he was not altogether content, and he could have
wished that their worthy Governor had told them something
more, for if he did them the favour to advert to the language
of that bye-law to which he had alluded, he would find that
they were not met there solely and merely for the purpose
of considering a dividend, but also for the purpose of consi-
dering the state and condition of that Corporation. Now,
upon the present occasion, he had confined himself most nar-
rowly merely to a declaration of the dividend; and even as to
that, he had not yet furnished them with the proper materials,
for them to say whether they could assent or demur. It was,
therefore, necessary for him on the present occasion, as on
former ones, to administer to the worthy Governor a few in-
terrogatories, and he would do so as briefly as possible. The
first question he begged to submit to the worthy Governor
was—When was the dividend of four per cent. finally agreed

upon ?
The GOVERNOR—In 1823.
Mr. SELWYN— I mean the dividend we are to enjoy for our
stock for the current half-year?
The GOVERNOR-1 did not perfectly understand your
question.
Mr. SELWYN—I mean this new proposition we are now
called upon to assent to—when was that dividend finally
agreed upon ?
A PROPRIETOR—This very day—everybody understands that.
Mr. SELWYN—Then on this day when that dividend was
agreed upon, what was the amount of the Rest ?
The GOVERNOR-2,810,3931.
Mr. SELWYN—May I be permitted to ask whether the
amount of the Rest, which you state to be 2,810,3951. exceeds
or falls short of the amount of the Rest this time twelve-months.
A PROPRIETOR—( In a remote part of the Room)—Oh that's
nonsense—quite nonsense.—( Much laughter.)
The GOVERNOR—It falls short.
Mr. SELW YN hoped the worthy Governor would keep order
at least, in his part of the establishment.
A PROPRIETOR said it was very improper for any Director
to laugh.
Mr. SELWYN—It is not of that 1 complain, but of the word
" nonsense."
The PROPRIETOR who had used the word, stood up and ob-
served—lt was I said it, and I repeat it is nonsense to ask
what occurred twelve months ago—we don't want to know
it.—( Cries of oh.)
Mr. SELWYN—May I be permitted to ask whether there has
been any extension of the branch system since the last Ge-
neral Court ?
The GOVERNOR—None whatever.
Mr. SELWYN—From the returns made by the Branch Banks
from time to time, are the Governor and Directors so satisfied
as to be induced to recommend their continuance ?
The GOVERNOR—Certainly.
Mr. SELWYN—The last question I shall ask is when the
London and Westminster Bank have since the decision of the
late question adopted any new mode of circulating their paper
calculated to infringe upon our chartered rights.
The GOVERNOR—Not to my knowledge.
Mr. SELWYN—I now beg to say that as the Rest amounts to
nearly three millions, I for one assent to this proposition of
a four per cent. dividend —(Hear, bear.)
Mr. B. HAVIIIOND said. that last year their Rest
amounted to 2,878,0001., and since then there had bean a re-
duetion of 68,0001.
The GOVERNOR—Yes.
Mr. HAMMOND—I wish to ask one or two questions with
respect to the annuities. Can you tell me what portion of
the s,OOOl. and odd a-year is applied to the payment of the
dividend, and what portion is applied to the reduction of the
cost price (as we understood Mr. Hammond).
The GOVERNOR—I cannot enter into the particulars of the
items. I hope the Proprietors have that confidence in the
Board of Directors as to believe that they will see that a suf-
ficient amount of these annuities is laid aside to cover the
amount of capital laid out.
Mr. HAMMOND—I beg to know whether, in estimat-
ing the amount of the divideud, these annuities are taken at
the price they cost, or at the price of the day ?
The GOVERNOR—I shall leave the Court to decide whether
I ought to answer that question.
Mr. HA MMOND—I beg to ask what is the amount of the
American debt still unsettled?
The GOVERNOR—That is another question. I wish to
put t o the Court to ascertain whether it should be an-
swered, because the answer might involve many questions
which would lead to much discussion, and no beneficial re-
sults whatever.
Mr. HAMMOND.—There is another questton I wish to put.
Have you had any negociation with the Chancellor of the
Exchequer, with respect to a new loan ?—( A laugh.)
The GOVERNOR. —I have no knowledge whatever of it.
Mr. HAMMOND.—The reason I ask it is, because it has
been stated that you have lent the Government two millions
of money.
The GOVERNOR.—I believe the Court of Directors is pre-
cluded from entering into any negociation for that purpose,
except under a certain Act of Parliament.
Mr. HAMMOND—I suppose you would *not object to lend
the money upon Exchequer bills ?
The GOVERNOR—We cannot.
Mr. FRILLIER had given notice of a motion two years ago,
which he had not persisted in, but the proceedings of that day
showed that it was necessary for him to renew it. In common
courtesy, Hon. Proprietors who intended to submit qestions to
the worthy Governor, ought to give notice of such questions. He
would therefore give notice that, at the next half-yearly meeting,
he would bring forward a motion, rendering it necessary that
when questions of finance, and involving matters of account, were
to be put to the Governor, notice of them be given to the Court
of Directors at least a week previously to the Ge-
neral Court ; by such means the Directors and the
Governor may have time to make up their minds as
to the propriety of answering the question ; and if they do so,
then they will be prepared to answer in a proper and definite
manner. The public often drew very improper inferences from
the Governor of that large establishment refusing to give an-
swers to questions of account, which were put without any no-
tice. He trusted out of common courtesy, the Honourable
Proprietors would give such notice. They ought to do so
for the purpose of obtaining accurate information, and out
of courtesy to the Directors lie trusted they would do so without
a formal motion on the subject—if not. he would consider it
his duty to persevere in his motion. He wished, then,
to put a question to the worthy Governor. By the arrange-
ment with the Government, a certain part of the annuity to be
received from them was to be set aside for the purpose of re-
deeming the capital—has that been done ?
The GOVERNOR—Certainly.
Mr. WEEDING—The word Rest had been mentioned. May
I beg to ask whether any knowledge of the amount of the
Rest can be derived from the averages which are published
quarterly. That publication gives on the one side the liabi-
lities of the Bank, and on the other the bullion and securities
in its possession. Does the difference show the Rest ?
The GOVERNOR—Certainly not any exact knowledge. It
is merely a rough statement of the accounts of the Bank.
Mr. YOUNG—Mr. Weeding inquires whether the balance
forms the Rest.
The GOVERNOR—I do not think it does. It cannot, as it is
a mere statement of the accounts of the Bank and as to its
liabilities and assets, made out according to the Act of Par-
liament.
Mr. WEEDING—If there is any use in these publications it
must be in showing what is the amount of the Rest of the
Bank. I have always taken the difference between the Assets
and the Liabilities of the Bank as the amount of the Rest. I
ask, therefore, is that a fair estimate of the Rest ?
The GOVERNOR—Nothing but the profit and loss balance-
sheet can show the amount of the Rest. No average can
show it.
Mr. WEEDING—I want to understand the matter. For in-
stance, in your last quarterly publication your assets were
32,807,000/. ; your liabilities amounted to 30,135,0001. Does
not the difference show the amount of the Rest?
The GOVERNOR—The Accountant will better explain the
matter than I can.
The ACCOUNTANT—The difference does not show the Rest,
because upon the statements upon which the averages are
founded there is no-interest calculated. In order to get at
the Rest interest must be calculated upon all the accounts.
Mr. WEEDING-_I have stated the amounts already. The
difference between the liabilities and the assets must be the
property of the Bank, and a ill show the Rest.
The ACCOUNTANT—Not exactly, for the interests must first
all be calculated.
Mr. YOUNG—Then there may be a difference of several
thousands of pounds between the balance and the Rest. The
Rest may be some thousands more than the balance ?
The ACCOUNTANT—CertainIy, at tunes.
Mr. WEEDING—May I ask, Sir, who makes up the averages,
you or the Government ?