The Sun.
London, England, 1824-09-17 00:00:00

COURT OF BANK PROPRIETORS.

Yesterday a General Quarterly Court, as well
as a Half-yearly Court of Bank Proprietors, was held according
to the Charter, for the purpose of considering. what Dividend,
should be declared for the half year next ensuing. The Court
was very numerously attended.—At twelve o'clock the Chair-
man, Cons;Emus it, Esq. entered, accompanied by
the Court of Directors.--The Secretary having read the Minutes,
The CHAIRMAN stated to the Court that the Court of Dine-
' tors, having fully considered the present affairs of the Bank,
had thought proper to recommend that a dividend of four per
cent., profit and interest on their capital and stock, should be
declared for the half' year next ensuing. He now therefore pro-
posed this In the shape of a Resolution.
Mr. Youxo here rose, and said he presumed they were as-
sembled there for the purpose of giving or withdrawing, if they
thought proper, their consent to the measure now proposed to
them ; but he for one, before the Resolution was put, wished
to obtain sonic data on which to finind their consent. Ile was
never an advocate for the production or exposure of accounts;
but he thought it his duty to obtain every information as to
measures which extensively affected their interests. A con-
siderable sum had, he understood, been advanced by the Bank
on mortgages, and farther advances of the same nature were, he
understood' in
.progress. Ile had upon this subject to put to
the worthy Chairman a question—which was, What was the
amount intended to be advanced upon mortgage, and what was
the sum actually advanced ?
The CHAIRMAN said he believed it had been already stated
that it was not the intention of the Court of Directors to advance
more than two millions on mortgage. Ile could not say exactly
how much had been alrdlidy advanced, but he conceived that
the full sum of two millions would probably be made' up in a
very short time.
upTonheSctOiCika(a
,Lt
Mr. Young begged to know how much had been advanced
—Nothing of any consequence.
Mr. You xu—l am informed that a considerable sum is
about to be issued for advances on stock. May Ibe informed
what is the intended extent of those advances ?
The CHAIRMAN (as we understood him) replied that he
could give no information on that head.
Mr. You sic—Have the advances already made exceeded
500,0004 ?
The CHAIRMAX..." They have not amounted to quite so
much as 500,0001."
Mr. YouSIG said, thetas they were met to consider of a divi.
dend, they might legitimately question the propriety of such ad-
vances, and whether they were not exceeding mischievous and
ruinous in rendering capital too cheap. It was, he contended, a
very serious consideration of the effect of forcing so much capital
into the market, which must inevitably operate to increase the
value of property. In a time of peace when there was no press.
ing necessity for such a course, no emergency which demanded
it, such an artificial system ought not to be resorted to, as it
was pregnant with danger. In the case of any political ange
taking place, the effects would be most ruinous, and in these
veering times they ought to calculate upon such changes. The
course pursued by the Couit of Directors in adopting such mea.
sures, without consulting the Court of Proprietors, was highly
inconvenient, and ought not to be persevered in. It was com-
plained of loudly when it was first resolved to advance money
upon mortgage, and since then the Court of Directors had in the
same manner adopted a Resolution to advance money upon
stock, in which, lie was happy to hear, they had not been suc-
cessful. Ile now strongly protested against this system, and
for one would express his hope that no measure of the kind
would in future be resorted to, without specially convening and
obtaining the concurrence of the Court of Proprietors. Al-
though we might hope, yet we could not expect to remain
, always in a state of peace, and whenever that peace was dis.
turbed, the consequences of the system now pursued must be
disastrous. It rendered moneyed property of no use, and enor-
mously advanced the price of other property.
The Citatuatax made sense observations, stating, that if the
Court of Directors.had intended to employ only .a small portion
ofiltlire.iri%apuiNtaal ininttleiartrtmtpaten(ni etirieatccomiiirripnearac,eaniti.dinsatem lresit
e—did not
understand the course of his argument, which was, that pro-
ceedings of such an important nature ought not to be taken
without convening that Court, and submitting them to the con-
sideration of the whole body of Proprietors.
The CHAlnmAtt said, that for many reasons, which it was not
necessary to enumerate, the Court of Directors had adopted the
course now complained of in the confidence that it would have
the sanction of the great body of the Proprietors: that sanction
they had always hitherto received, and he had no doubt that
the Proprietors would continue it.
Mr. ts. Dixox said, if his opinion was worth any thing. (and
he lied lived many years in the world), he, would say lie (lid
m(hamLathahjkioegbnhiliiyinn egfuosdrunctlhmh ea
((innvlaealnloc'
fewstlhloel
nal
rhnbt lweistettgCsaoeguccur t;r
jotiiftespDirectors
of Hear, hear !)

THE BANK'S ACCOUNTS.
Mr. N. GIINDRY requested the Proprietors to remember the
circumstance that took place at their kfalf-Year_ly Meeting in
September two years, ago, when the Court of Directors were
asked whether they could afford the dividend or five per cent.
nut of the then profits. They answered in the affirmative ,• yet
at the next meeting they .reduced the half-yearly interest' from
five to four per cent• wit moat assigning any
reason. Just before
that time they made a bargain upon an annuity, by which'they
were to advance to Government a million .and a half of money
(as we understood the. Hon. Proprietor) upon an annuity for
orty-fbur years. Now he wished to know from the Chairman
whether the interest was reduced from five to four per cent in
consequence of that bargain.
The CuAinmAN—When the Court of Directors propoSed
that Resolution for the reduction of the interest from hve to
four per cent. they did so in the same manner as they have pro.
posed the Resolution at present before the Court—upon a full
consideration of all the affairs of the Corporation.
Comas said, that one million anti a halfof money was
then taken out of tho general profits of capital, which he con.
Pry
tended ought to have been divided in the shape of a dividend
amongst the Body of the
of capital was most unjust, and those who caused it were untie.
serving of confidence. Proprietors. Such an appropriation
The Cuarn max said, it was an employment of capital which
was authorised by the very Constitution of 41w Corporation. •
Mr. 0 tiNDItY, with much warmth, denied that u was to be
justified. lie had spoken to the best informed persons on the
subject, and they all joined in condemning it.
The Oralll,3lAX said, that before the Court of Directors made
that agreement they took the opinions of Counsel, who all
agreed in considering it• a proper and legal employment of capi-
tal. Some further observatiohs were made on the subject, when
The CHAIRMAN again put the Resolution for declaring a
dividend of four per cent.
Mr. GUNDItY, as an amendment, moved that the dividend
for the half year ensuing 'dwelt' be five instead of four per cent.
lie did this for the purpose of compelling the Court of Direc-
tors to furnish to their constituents a proper account of their
affairs.

Mr. SELWYN, the Barrister, seconded the motion. In taking
this step lie begged to disclaim any hostile feelings towards the
Court of Directors. With the exception of one, to whom he
was bound by ties of gratitude as well as of esteem, they were
utterly unknown to him as lie was to them. But he came
forward on a principle of duty, for the purpose of arraigning
their conduct in office. They had heard that men loved dark-
ness when their deeds were dark, and the anxiety which was
manifested to conceal every thing was in itself a strong imputa-
tion. He, however, disclaimed any personal imputation on the
Directors ; for they pursued this system of darkness because
their predecessors for the last SO years had pursued it, altkough
Court after Court their attention was called to its injustice and its
mischiefs. If, however, instead of following blindly the system
which others had pursued, they were to consult their own excel-
lent understanding', their Charter and theirilyc Laws, and the
Statutes on the subject, they would give up the practice, which
was unwarrantable either by law or sound policy. In the 12th
Section of the Bye Laws it was ordained, " that twice in every
year a general Court shall be called and held for considering the
state anti condition of this Corporation, and for the making of
dividends out of all and singular the produce and profit of the
capital, stock, and fund of this Corporation, and the trade
thereof." They were there assembled under this very Bye law ;
but the notice which convened them together told them that they
were only assembled for the purpose of declaring a dividend,
without saying one word about their being assembled to take into
consideration their state and condition. This course pursued by
the Court of Directors, he contended, was both an absurdity and
an anomaly ; it was a system which all should join in petting an
end to. What could be more absurd than that the vast body
of Proprietors should he assembled to give their consent to a
dividend, without any accounts being submitted to them on
which they could found their consent ? An ingenious architect
might so fashion that Court, as to produce one echo of consent
to the Chairman's proposition ; and such an erection would be
a desirable improvement, as it would save them all the trouble
of attending. The practice was an anomaly; for it was part of
our public System, that the great body of those whose money
was expended should have some check on the expenditure.—
Such a check in the House of Commons was the great gafe..
guard of our liberties. Should not that check or controul exist
in the present instance ? Should so small a Body as the Court
of Directors have the unrestrained disposal of twelve millions
of money without any controul whatever ? He contended that
it was the first principle in the Charter, that the Court of Pro-
prietors should have such a controul ; and was highly
necessary
that they should exercise it. Every body there witnessed the vast
alterations that were making round that house; and he would
not arraign their style, for that was a matter of taste, But they

ought to have a voice, and say Whether or not the erections were
necessary. They had,. however, no opportunity of knowing
anything upon the subject. And here he would ask, whether,
although the Member of the Court of Directors might be men
Ofire_eat knowledge, their information was so universal, that they
odd not by any possibility veceive any useful suggestion from
.the able and experienced Gentlemen who sat in the Court of
Proprietors ? No man, he positively asserted, .could read the
Bye-laws without being convincid .it was intended that the
Court of Directors should have the benefit of the wisdom of
the Court of Proprietors ? In fact any other system would in
itself be absurd. Ile was bound to-discuss the objections that
were made to the system for which he contended. It was said
you ought to have confidence in your Directors. But however
honourable these Gentlemen might be, anti lie admitted that
their honour was unassailable, had they not all had too much
reason to deny that they were hound to repose confidence in any
men ? Confidence might and had been abused. The nature of
man finbatie confidence. He did not allude to recent circum-
stances; but they should remember the great breach of confi.
dence that had been committed in 1797, when in consequence
of rash loans—( Here loud cries of Order ! were made from all
parts of the Court.)
Mr. YOUNG rose to order, and said that if the Directors
were upon their trial for what was done by their predecessors in
1797, the Learned Gentleman might be in order; but, as they
were not, it was proper that he should be confined to the pre-
sent affitirs of the Court.
Mr. GUNDftY warmly contended that his friend was in order.
The CUAIaMAN said, the question now before the Court
was, whether the dividend should be five or four per cent., and
he begged the Hon. Proprietor to confine himself to it.
Mr. SELWYN contended that he was in order, and lie should,
if he were, not interrupted,have proceeded to shew that the mat-
ter related to the making of a dividend. Ile was about to re-
sume the same course of argument, when he was interrupted
by renewed cries of " Order !'
The CITAIRMAN submitted to the Hon. Proprietor whether,
after his (the Chairman's) view of the point of order had been
seconded by this manifestation from the great majority of
the Proprietors, it would be adviseable to continue in the same
course ?

Mr. Srt.wirx said, that from his respect to the Chairman,
and those Proprietors who had thus expressed their opinion, he
would consent to be, silent, although he did it with the convic-
tion that he was perfectly in order.
After some observations from Mr. YOIT WO. the amendment
was put and negatived by a considerable majority.
The original Resolution, that the next half-yearly Dividend
should be Four per Cent., was then carried, and the Chairman
announced, that Dividend %%grants would be ready on the
11th of October next.

111 r. Clutanty invited the Proprietors present who had voted
with him to sign a demand fora Ballot.
A Proprietor submitted to Mr. Gundry, whether, after the
experience which he had had of a ballot, it would be of any
avail to trouble the Proprietors by calling for one on the present
occasion.

After some further conversation, Mr. Gundry gave up his
intention.

LOWERING THE RATE OP DISCOUNT.
Mr. Youwn begged to know from the Chairman whether it
was the intention of the Court of Directors to lower the rate of
discount. Such a proceeding must have very serious effects on
the commerce of the country and on the interests of themselves
as individuals; e.nd if there was any intention to adopt it, they
should be first informed of it. lie now, therefore, asked, was
it intended to lower the present rate of discount ?
. The CItAIIIKAN said, the question he considered to be very
injudicious, and it would be equally injudicious for him to make
any answer.—( Hear, hear !)
Youso then asked whether if' such a step abould be
considered as necessary by the Court of Directors, they would
previously to putting it into execution convene a eneral Court
of Proprietors ?
The CMAIRMAN said, he had no authority to promise to
convene a General Meeting of' the Proprietors.
Mr. Youwn said, he had received such an answer before,
but the subject was one of the deepest importance to them,
anti he hoped that such a proceeding would not be taken with. 1
out giving them an.opportunity of discussing it in a General
Court? • , .

The CIIAIRMAX said he could only give the general promise
that the Court of Directors, would act conscientiously for the
good of the Company conformably to circumstances.
Mr. 110T1I8C1111.1)tose to address the Court. The greatest
attention was immediately iven to him, but he spoke in so
confused .a manner that we-had great difficulty to collect hie
observations, the purport of which were that no Proprietor had
a right to demapd of the Court of Directors what were their in-
tentions.