The Sun.
London, England, 1836-05-26 00:00:00

remains an unappropriated surplus of 14,5201. 15s. lid.,
which the Directors recommend to the Proprietors as the first
fcundation of a Reserved Fund, and which it is expected will
be still further augmented out of the profits of the current
yea, after payment of the next Midsummer and Christmas

Dividends. -
The Directors cannot close their Report, without adverting
to the good effects, in so short a time, already visible in Ire-
land, arising in some degree front the extension of their ope-
rations, combined with the high rate of agricultural prices in
the past and present years, as compared with former ones ;
the one enabling the agriculturist to dispose of his produce to
advantage, and the other to discharge his obligations with
punctuality.
It is hoped that, by due caution, and the prudent develope-
ment of the great resources of that country, many of the so-
cial evils will be mitigated, and the National Bank of Ireland
will be fully compensated for the part it has taken in prcrnoting
this permanent object, by the strong hold it has been the study
of the Directors to obtain for it in the affections of the great
body of the people.
In reviewing the transactions, as closed on the 31st of De-
cember, 1835, the Directors consider the contingency of loss
slight. The sum of 3,3151. 2s. had, early in 1835, been
locked up in Guernsey, in the attempt to form a Bank there,
which, it is hoped, will be entirely liquidated before the next
Annual Meeting.
The number of Directors by the deed of settlement is 24 ;
but the Directors consider that 16, the present number, is
sufficient, and will lead to a certain saving in the expenditure.
and they have, therefore, enabled the Proprietors to amend the
deed of settlement in this particular.

Since the date of the deed of settlement in January, 1835,
the Directors, in conformity with the powers contained in it,
filled up three vacancies, and elected two other Directors.
There are now to be re-elected six Directors, in the room of
those who have gone nut by rotation.
(Signed) By Order of the Court of Directors,
J. SOLL Y, Jun., Cha'sman.

DANIEL O'CONNELL,
Chairman of the Meeting of Proprietors.

The Report having been read—
Mr. O'CONNELL said—Gentlemen, you have heard the Re.
port read, and you perceive from it the very favourable aspect
which it gives of the state of the affairs of this concern, about
which we shall go more into detail presently, as to the amount
of the assets and of the liabilities, although the deed of settle-
meat does not require that we should be so minute and parti-
cular in these respects. For my own part, being of opinion
that in whatever the public arc interested, they should have
the fullest information, I should not consent to belong to any
speculation of any kind, which did not include in its arrange-
ments the greatest publicity possible. I held in my hand the
balance-sheets, and these •I think will be found to warrant this
Report to its fullest extent, and will show further that, for the
period during which the Bank has been in operation, it has
been eminently useful to the shareholders, and certainly has
conferred most considerable advantages on the country in
which its concerns are carried on. Unfortunately, in that
country almost every measure of every nature takes a party
and a religious aspect ; and it' there was any one subject that
ought to be free from both these taints, one would say that
that was particularly a 'pecuniary concern ; but in Ireland it is
otherwise. The Bank of Ireland has been conduCted for a
number of years on a principle of the closest monopoly, guarded
round by many and severe statutes, and more so still by the
exclusive system, and the leading plans of the internal regula-
tions of that concern. The first step tried towards establishing
a popular and impartial system of Banking was made by the
Provincial Bank of Ireland, and very considerable advantages
have bcen derived to that country and to the proprietors of that
establishment, which I hope to be a thriving concern. But in
many localities they have involved themselves with party and
political objects; and the object of the present Bank is totally
to disclaim both the one and the other, and to be purely a
mercantile and commercial transaction, having no reference to
any distinctions but between solvency and insolvency—between
profit and loss. On that basis all Banks should be founded,
and' to show you, Gentlemen, that this report does not exagge-
rate anything, I will just-read a few of the items which consti-
tute the balance sheet, every one of which can be verified by a
reference to the books of the Company, which are open to the
minutest scrutiny of every shareholder. From the period at
which the Bank started, the amount of paid-up capital is
374,140/.. 12s. I id. The, circulation is 521.7451; the deposits
are 256,6381. 12s. Id. ; and the undivided reserved fund
amounts to 14,5201. 15s. lid. ; making a total of 1,167,045/.
Os. Ild. These are our liabilities. The assets on the other
hand consist of the following :—lnvestments,lss,74o!. 12s. 61.
We have in securities 826,638/. ls. 61.—in specie and
cash at our Bankers, 166,4711. 145. id. Besides, we are
entitled to credit for the London proposition of the
expenses to be liquidated in four years, which is 8,5471.
3s. Bd., and a like expenditura which it is proposed to
be
spread over a period of five years, 9,6471. 9s. 2d., and
these balance the accounts completely, the amount being
1,167,045/. Os. Lid. I shall now read the statement of the
profit and loss account of the National Bank of Ireland.
Charges and proportion of Preliminary ex-
£3,727 15 5
penses
Reserved for General and Local Dividends 7;319 2 8
Balance carried to Reserved Fund 14,520 15 11

Total 025,567 14 0
This is the account of the details of the preliminary c-spen-
diture, setting forth each item, and this,expenditure any gen-
tleman
interested in the Bank is at liberty to see there, when-
ever he pleases. The Hon. Gentleman having again referred
to the several items included in the above statement, said, that
he went thus into detail because it was their interest to give every
person all the information that could be required, and the Di-
rectors would at all times feel happy in doinr, so, and in satis-
fying every individual. It only remained for him to put the
question on the adoption of the Report.
The question having been put from the Chair, the Report
was unanimously ordered to be received and adopted.
Mr. O'CONNELL—Gentlemen, the next business is, that I
should announce to you the names of those Directors who
upon a ballot according to the deed of settlement now go out
of office. They are.--John Roskell, Esq., J. R. Elmore,
Esq., the Rev. H. Cholmondeley, Maurice O'Connell, Esq ,
M. P., Edmond Green, Esq., and R. Sutton, Esq. ; and these
gentlemen :wee-ding to the deed can be candidates and are
candidates for re-election. Your choice cannot be a difficult
one, fur there has been to other candidate proposed. We
must, however, go throu2h the form of an election, but there
is no necessity or utility in proceeding to a ballot.
,they must
therefore be re-elected.
The above named Directors were then unanimously re-
elected. -
Mr. O'CONNELL—If any shareholder has a wish to obtain
further information, the Secretary is now ready to give it.
Mr. Stuns wished to know to what period the accounts
were made up, and what were the prospects of the Company
for the current year?
Mr. L'AMIE MURRA Y—To the 31st of December, 1635.
Since then there have been about 16,0001. profits—that is,
from January last.
Mr. SININIS—And not included in the present account ?
Mr. O'CONNELL—That will be carried to the credit of the
next year.
Mr. MURRAY—The profits will of course become larger as
the branches are increased, and in proportion to the time they
are established. There are some branches lately opened at
Sligo, at Boyle, at Galway, at Team, at Athlone, at Bali-
nasloc, and at Moatc. I should mention also, in answer to a
question of an lion. Proprietor, that our circulation has, from
month to month, gone on increasing—it has been a continual
increase, never falling off, as may be seen by the weekly re-
turns of circulation kept at our office.
A PROPRIETOR asked what had been the increase in the

amount of deposits since January?
Mr. MURRAY—About 120,000/. Of course, the longer a
Bank is established, the greater will be the amount of its de-
posits, and some of our branches have been only two or three
months started.
Mr. O'CoNNELL invited the shareholders to wait upon the
Directors at the Office, when they would find the statements
of Mr. Murray verified by the official documents.
A SHAREHOLDER wished to know if there was any probabi-
lity of obtaining a charter?
Mr. MURRAY said there was great doubt among practical
men as well as pOlitical economists, as to the expediency of
obtaining a charter for a Banking Establishment. It was sup-
posed that the credit of a Bank would be injured by it. There
was always a greater watchfulness over the details where thera
was involved a personal liability.
Mr. O'Coeszee—At present there is no intention of ap-
plying for a charter; no such idea is in contemplation. If a
charter were obtained, the consequence would be that what
is now a mere general partnership under the Irish Acts
would then become a Corporation, and this Corporation would
not be responsible for more than their vested capital, and
would incur no personal liability. That would necessarily
affect our credit, because no man could'know without the mi-
nutest investigation what was the amount of the Corporate
they may be large, but yet far exceeded by the amount
of the them;
liabilities, leaving to the public generally of very
lfud
itntlevalue. A Corporation has interests adverse to those of
the public in the accumulation of debts, and if that exceed the
assets the difference is a direct profit to their mischief. I
therefore state my opinion, which is, that we ought not make
any application for a charter. As each shareholder incurs a
general responsibility, he therefore has a more direct interest in
the prosperity of the concern, and it affords an additional sti-
mulus to watch over the accounts; it enhances the credit
of the Bank, and gives to the public an additional secutity.
A Charter is in itself, and by its very nature, a monopoly, and
one of our objects is to be'ready to meet the question of mo-
nopoly now enjoyed by the bank of Ireland. A notice has
been served on the first of March last of the intention
to put an end to the Charter of the Bank of Ireland as it at
present stands. By the statutes that Charter expires at any
time after the Ist of March, 1837, provided twelve months'
notice has been given by Government to pay up the amount of
the loans to the Bank, and they have given that notice. We
therefore will have the question of the Bank of Ireland dis-
cussed before us in Parliament early in the next session.
The question of banking in Ireland will he then open. Ire-
land has been considered a province of England, and I hope
that the system which so much affects the freedom of com-
merce, and which partakes so much of the mischievous nature
of a monopoly, will be put an end to and disposed of, as if we
were an integral portion of the empire ; not as if we were a
distinct and separate kingdom. I have myself, as most
of you may know, political opinions, and strong pO-
- feelings; but I am here not as the representative
of any party, and I believe there is one sentiment in
which all will concur, that Ireland should be considered a
portion of the British dominioes as a separate limb upon
which tq inflict injury, but to be treated so as to ensure the
general well-being, and he of utility to the whole. I went
thus into detail, as a gentleman has thrown out the idea of a
—not
Charter, to plum the impolicy of looking for one—our object

being to put an end to monopoly of every kind. All we seek,
all we demand for ourselves, is to leave our exertions un-
shackled—to give us a clear stage and no favour.—( Cheers.)
A PROPRIETOR wished to know how soon the new shares
would he issued ?
Mr. Mcnr.Ay said the Directors would issue them from time
to time, as might seem to them advisable ; and said he hoped
if any other gentleman had a question to put he would then do
so, as at the special meeting they would not be entitled to go
into such matters. With respect to the increase of shares he
would remark that it was evident they could not do a large
business with a smlll capital, and therefore it was proposed to
increase the shares.
Thanks were then voted to Mr. O'Connell, and the general
meeting was declared to be dissolved.
BALANCE SHEET •
OF VIE NATIONAL BANK OF IRELAND.

ASSETS,

Investments £155,74,0 12 6
Securities 826,633 1 6
Specie and Cash at
Bankers
London preliminary
eapenses, to be li-
quidated in four
rears

8,547 3 8

11.:'anch ditto, ditto,
in fire years 9,617 9 2

£1,167,045 0 11

PROFIT AND LOSS OF THE NAT

DECEAMER 3

Dr.
To Charges and pro-
portion of prelimi-
nary expenses £3,727 15
Reserved for General
and Local Dividends 7,319 2 8
Balance carried toPro-
prietors' Reserved
Fund 14,520 15 11

LI_IiDILITIES.

Capital -1'374,1-I_lo 12 11
Circulation 521,745 0 0
Deposits
Proprietors un-
divided fund 14,520 15 11

£1,167,045 0 11

ONAI, BANK OF IRELAND,
1835.
Cr.

.£23,567 14 0

By amount of
Profit, it-laud-
- ing Premium
on Shares ...Z•25,567 14 0

£25,567 14 0

SPECIAL MEETING.
Mr. O'CoNNELL having been again called to the Chair,
The SECRETARY read the advertisement calling the Special
Meeting of Directors and Proprietors of the Company.
Mr. RICKARDS, the solictor, then read the Resolutions which
had been prepared, relative to the limitation of the Directors
to sixteen, &c.
The Resolutions were put from the Chair, and carried una-
nimously.
Mr. MURRAY said the solicitor was about to read to them
another Resolution, the object of which was to increase the
capital of the Company. It had always been the intention of
the Directors and Promoters of the National Bank of Ireland
•
to have a very large capital, in contemplation of the expira-
tion of the Charter of the Bank of Ireland. He believed that
if any privileges were again conferred upon that establish-
ment, they would not extend to preventing Banks of issue
being formed in Dublin and the surrounding district. They
would have no longer a monopoly such as they at present
enjoyed, but if any privilege should be granted them
it could not, in justice to Ireland, extend beyond that which it
might be supposed to possess as the Government Bank. The
present capital of the National Bank was 374,0001. This with
the payments on local capital, as branches extended in Ireland,
would soon bring it to about 500,0001., and amount to 25 per
per cent. on one million of general, and one million of local
capital. It often happened in making calls on proprietors
while the business was in its infancy, that unreasonable depres-
sion were caused in the property, and from these causes the
original shareholders obtained the least benefit, and it was the
persons who succeded them who reaped all the advantages.
Everybody who embarked in a bank, did it with a view to profit,
and it was rather unfortunate for the original shareholder who
incurred all the risks in the first instance, that the circum-
stances of the concern would not induce him to hold, rather
than to give away his advantages. Yet it was found in al-
most every instance to be inseparable from calls. So far the
calls had amounted to 25 per cent. on the nominal capi-
tal, a rate as high with the exception of the char-
tcred banks as any of the oldest establishments. Therefore
no further call was intended to be made on the proprietors ;
but as it was certain the business of the Company would in-
crease very largely, when Ireland was more filled with its
Branches, it was proposed to increase the capital, and that
most advantageously to the Proprietors. Taking into consi-
deration the great improvement of Ireland itself, and the in-
creased business ofthe Company within the last few months, he
was sure with that improvement and prospects a larger amount
of business would spring up, as the great resources of Ireland
were developed. It was, therefore, now proposed to admit
new Shareholders at a premium, which the position and pro-
spects of the Company, from time to time, would warrant.
The principle of admission would be this :—Tie Directors did
not contemplate the present would be the last increase. They
contemplate as probable a further extension, and have reserved
to the original Proprietors upon it ; but the Shareholders
coming in will participate equally in all the advantages which
shall otherwise arise. The premium to be obtained upon the
present issue, was to be obtained solely by the original Share-
holders. The object. of the bonus was, to remunerate them
for the risks and liabilities which they might have incurred
in the establishment of the Bank. The new Proprietors
would participate in all the profits of the concern, which
would, in a very few years, be much greater than the
present ; the shares were now at five per cent. pre-
mium, and of course the new ones would not be sold at less
than that per centage. The principle of the proposed argu-
ment between the present and the new proprietors was this,
that the new proprietors obtained a security from the original
proprietors, not to increase the capital any more without a
surplus income had been derived on the business of the Com-
pany after payment to him of his dividends, equal to what
would amount to half a year's dividend in the capital to be ad-
vanced. In all cases an increase of income must precede an
increase of capital. This the new proprietors were fully en-
titled to, as he must pay a premium to be telmitted. It was
quite obvious, that if they were to have a large business they
must have a large capital, and to obtain this they must spread
themselves over a large surface of individuals. If the present
proprietors were to pay up the entire a.nount of their shares it
would be only inconveniencing them, and one million would
not in itself be sufficient, and to accumulate capital in the way
proposed would obviate all the difficulties hitherto found by
other Companies, of making profits beyond a given maximum.
The present proprietors were entitled to the proposed bonus,
and if the business of the Bank continued as good as it
had been, they might possibly be pail back their capital, and
still retain their stakes in the concern. It was not very
extravagant to suppose so, as the Proprietors would probably
receive in the course of the year 50 per cent.back upon it. The
Proprietors coming in would be entitled to all future bonuses,
reserved funds, and bonuses on local shares. For instance,
the Waterford Branch has at present a bonus of tierce thou-
sand pounds arising from an increased issue of shares, one-
half of which they were entitled to. Next year many of the
Branches might feel it necessary to double their present capi-
tal, the premium upon which would also be divided in the same
way. The Proprietors on coming in would be entitled to a
participation in'all these bonuses.
Mr. RICKARDS, the Solicitor, having read the resolution for
the increase of the capital,
Mr. L. MURRAY continued—They would sec that the first
object was to increase the capital. These shares would not be
issued, except at a certain premium, as the Directors were in no
hurry. Out of this there would be a reserved fund equal to a half
year's dividend upon all the capital. The sum set apart for this at
each particular increase, may be five, ten, or twenty thousand
pounds. It depended on the amount of the previous capital
at the time the increase was made. That sum could also be
added to the other reserved fund. By this process the re-
served fund would be ultimately large ; and the larger it is,
the higher value would the public place upon the resources of
the Company. The object of the reserved fund was, that in
any contingency, when any thing unfavourable might occur to
reduce the amount of profits, then the reserved fund would be
available under such circumstances. The principle of fixing a
reserved fund could not be too highly prized, and it ought to
be dealt with very cautiously ; at least left undivided until its
amount was very large. As before stated, to secure the pro-
prietors coming in, it was proposed that no increase of the ca-
pital of the Company should take place, until by the activity
of the directors, in the formation of additional branches and
the increase of business, they had a surplus income amounting to
half a year's dividend. There was no doubt that they would now
be able to divide six per cent., and perhaps eight per cent.
However there would be no' further increase of the capital
until that event would take place, so that the right of the in-
coming Proprietors would be secured against any new Pro-
prietors coming in. These were the main principles of the
proposition, and he was quite willing to discuss the question
of admitting a larger body of men Leo the Company, and the
occasional paying hick of bonuses to the Proprietors, because
if they took any other institution they would find that these
bonuses were few and far between ; but it was a great
stimulus to increase their business, because here it was made
conditional that the business should be increased before the
capital could be increased; and the effect of these resolutions
would enhance the value of Shares of the Company to a con-
siderable extent. He considered that the best mode of making
the property of the ;Company valuable, -that which benefited
the Proprietors, and at the sense time gave an additional
security to the public.—(.Hear, hear.)
A PROPRIETOR begged to know what the per centage would
he upon the new shares ?
The CHAIRMAN—Fifty per cent. upon the deposit. •'
A PROPRIETOR—Not upon the entire share ?
The CHAIRMAN—No, only upon the ten pounds deposit.
A pitor RIETOR—If the call is made for 12/. 10s. will the
per centage be increased ?
The CHAIRMAN—Yes, it will then be 6!. ss.
Mr. Meeeee— We shall decide before hand what the amount
of the deposit shall be, but I believe the opinion of the Di-
rectors is that the deposit should be 101. and not Pl., 10s., the
aura now paid up on the original shares ; and that they should
be sold for 1:4., or whatever higher suns they may bring.
A PROPRIETOR—It will then be a fixed premium ?
The CHAIRMAN—It will be a fixture of a naninium—of
course it comes into the market with any increase that can be
got upon it. The impression of the Directors is that the
deposit shall be 101., and that these shares shall not be issued
under 13/.
A Peernteroe—l wish to know if the deposit is increased
beyond 101., whether the premium to be paid will also be 'in-
creased ?"
Mr. O'CONNELL—Yes.
Mr. MURRAY—No, no.
Mr. O'CONNELL—I beg pardon—l misunderstood the ques-
tion. The shares will be issued at 10/., but if any further call
is made, that would ride over the original fund as well as
these shares, and in that case no further premium will be re-
quired after the premium on the deposit has been paid.
A PROPRIETOR--Will the new shares be issued to the origi-
nal Proprietors at the same tate ? •

Mr. MURRAY—We shall treat every application as coming
from the public. Of course sac than treat the old subscribers
with all the courtesy in our power. We look upon every new
Proprietor as a new Mend, but at the sane time the Directors
will be as liberal as possible in the distribution of shares to the
old Proprietors.
The CIIAIRMAN—We eanno!. make one selection. The old.
Proprietors can expect no more from us than the usual accom-
modation which we would give cur friends. You have now
heard these resolutions read, and is is my duty to submit them
fer your adoption.
The Resolutions having been seconded by Mr. ROSKELL,
were then put from the Chair, and agreed to unanimously.
Mr. MURRAY, in answer to a question, said the accounts
will be published in the Newspapers, and the Report of the
Directors will be also printed and circulated among the pro-
prietors.
The CHAIRMAN—The Report, and the statement of the ac-
counts which has been real, Will be inserted in all the papers,
and copies will also be printed, and sent to each proprietor.
A PROPRIETOR begged to move the thanks of the meeting to
O'C, nnell for his conduct in the Chair that day, and also
for the eminent services he had rendered to the Company. He
felt that he should but ill discharge his duty, if he did not re-
mind them of the claims which that Gentleman had nFon the
gratitude of the Company.—( Cheers. )
The; resolution of thanks to the Chairman, was carried by
acclamation.
Mr. Merrarr—Before we adjourn I beg to make a
sugeestion. There is no one more fuliy agrees in the vote of
thanks to our Chairman than myself; but I think the thanks
of the Proprietors arc also slue to the Board of Directors for
their long and arduous duties during the past year.—( Hear.)
Thu Report, which we have heard read, is the warmest cute-
gium that can be passed upon them, and any praise that we
might offer would perhaps appear idle and lame beside that
Report. However, lam sure that ell of the Proprietors pre-
sent will agree with me that the warmest thanks of the Pro-
prietors are due to the Court of Directors for their very effi-
cient conduct during the past .year.—( Hear, hear.)
The Resolution having been seconded,
Mr. O'CONNELL—I shall feel no delicacy in putting the
resolution, although I happen to be one of the Directors my-
self.. I have other avocations, and have not been able to de-
vote so much time to the details of the Company as other gen-
tlemen, and I therefore appear as a disinterested and faithful
witness to you, when I state that no set of gentlemen could
possibly attend to the management of any concern with more
minute attention to all its details, with more temper or more
gentlemanly courtesy, or more solicitude for the promotion of
the best interests of the establishment, than the present Direc-
tors of this Company.—( Hear.)
The resolution was then put and carried unanimously ; after
which the Meeting separated, highly gratified with the result
L of the proceedings.