The Sun.
London, England, 1858-01-20 00:00:00

COMMACIAL BANK OF LONDON.

Yesterday a half-yearly meeting of this company,
called in compliance with a request expressed at the
annual general meeting held last July that the
proprietors should be called together half-yearly,
was held at the offices of the bank iieLothbury,
Mr. M. HUNTER, the chairman, presided.
A SHAREHOLDER suggested that notice of the
meeting should have been sent to the shareholders
besides advertising in the papers.
The CHAIRMAN said that ;the directors had com-
plied with the deed of settlement, which required
that 21. days' notice should be given of every meet
ing by public advertisement ; and judging by the
attendance, he should say that that advi rtiserneut
had been extensively read. There could, how-
ever, be no possible objection to complying with
the suggestion ; and in future circulars would be
sent to the proprietors apprising them of the met-
ing. (Hear, hear.)
The following report and balance-sheet were road
by Mr. A. R. CUTBILL, the manager, viz. :
" The present is the first half-yearly meeting
held by this bank, and is called in compliance with
the wish generally expressed by the proprietors at
the annual general meeting in July last. The
directors have therefore to submit the balance-sheet
for the last six months ending 31st of December
last, which exhibits a net profit of 15,4651. 18s.
lld , after deducting all expences, making provi-
sion for bad and doubtful debts, and paying
10,7051. 9s. 23. interest to customers during the
half-year on deposit accounts. The directors have
now to declare a dividend of 3 per cent. for the
half-year, free from the income-tax. They propose
to add the sum of 5361. 6s. 63. to the guarantee
fund, which will then amount to 75,000/. being 25
per cent. on the paid-up capital, and as they con-
sider this au ample reserve, they do not propose
to increase it further for the present. After allow-
ing 3,6251. 10s. 93., required for rebate on bills
discounted and not yet due, there will remain
2,3041. ls. Bd. to carry forward to the profit and
loss account for the current half-year.
"Balance sheet.—" Dr. : Capital subscribed,
1,500,0001. ; capital paid up 201. each on 15,0001.
shares, 300,000/. ; guarantee fund, 73,272/. 19s.
106. ; add interest for six months, 1,190/. 13s. 83.
—74,463/. 13s. 6d ; balances due to the customers
of the bank, 821,6261. 78. 10d. ; balance carried
down after paying income tax, and deducting all
charges and expenses, including 10,7051. 9s. '2d.
interest to customers, and making provision for bad
and doubtful debts, 15,4651. 18s. 11d. ; io•al,
1,211,556/. 3d. Cr.—Cash in the bank and at call
at the Bank of England, Exchequer Bills, India
Bonds, and Consols, 290,2621. ls. 7d. ; Bills dis-
counted, loans on stcck and other securities,
918,293/. 18s. 83. ; Strong-room fittings and fur-
niture (premises held on lease), 3,000/. ; total,
1,211,556/. 3d.

"Dr.—Dividend at the rate of 61. per cent. per
annum for the half-year ending 31st December,
1857, 9,000/. ; rebate of interest on current bills
carried to profit and loss new account, 3,6251. 10s.
9d. ; carried to guarantee fund, making that fund
75,0001., 5361. Gs. Gd. ; balance carried to next
half-year, 2,3041. ls. BJ. ; total, 15,4651. 18s. 11d.
Cr.—Balance brought down, 15,4651. 183. 11d. ;
total, 15,465/. 18s. 11d."

The CHAIRMAN, previous to moving that the re-
port and accounts be adopted and circulated,
remarked that the reason they had hitherto held
their meetings annually only was that the deed of
settlement prescribed that as the course which
should be followed ; but the moment the proprie-
tors expressed a wish that they should he called
together half-yearly—there being no reason to the
contrary—the directors acceded to it. (Rear,
hear.) Probably on the present occasion there was
some advantage gained by the half-yearly rueeting.
As most of the proprietors were aware, the last few
mouths had been a time of difficulty and anxiety,
and they would naturally be glad to know that
this bank had passed through without any serious
losses that ordeal, as he supposed he must call it,
which had been common to all monetary and com-
mercial establishments in the City. He did not
mean to say that they had entirely escaped loss—
that was not to be expected—for several of their
customers had, he wassorry tosay, like many others,
failed ; but their losses had, notwithstanding the se-
verity of the pressure, been inconsiderable. During
the period of difficulty the directors had necessarily
been subject to considerable anxiety and care, or
the loss would have been much greater. But there
was no credit due to the managers of this bank in
especial on that account—for he believed that all
the metropolitan banks, public and private, stood
in the same position—(hear)—and it reflected great
credit upon them that in consequence of their
watchfulness and prudence they had been enabled
to pass through the period of panic without diffi-
culty. (Hear, bear.) This was the more important,
because, if in the month of November any bank
of standing had gone down, the consequence would
have been most serious to the commercial body
generally. (Hear, hear.) In so far, therefore, as
it had been the means of making; this statement to
the proprietors, the present half-Yearly meeting was
satisfactory. (Hear, hear.) Although the direc-
tors of the Commercial Bank had experienced
nothine, to try them more than other banks had,
they had found it necessary to exercise great vigil-
ance and care in order to do what was right to their
shareholders on the one hand and their customers
on the other, and they had so far succeeded that
while they had never been without an ample reserve
fund to meet every demand that could be made
upon the institution, to customer was a position to
complain that such accommodation as ho was fail ly
entitled to had been withheld from him. They had
exercised caution as they were bound to do, and
they had said to the customers of the bank, " Don't
come to us for money at this time unless you really
want it : limit your operations as far as you can,
and do not in your trade, if you can help it, have
long bills." (Hear.) The chief restriction (continued
the chairman) that we put upon them was that they
should shorten their credits as much as possible,
both for their sakes and ours. And beyond that
no one can complain that he was denied that ac-
commodation which he could fairly ask at our
hands. (Hear, hear.) Of course, having to keep
up such a large reserve, we could not realise such
large profits as if the reserve had been small ; but
we felt that the first thing for us to look to
was the security of the proprietors. (Hear, hear.)
I believe that caution has been appreciated, and
that the public will hereafter, in judging of a bank,
look not so much to the extent of business done as
to the manner in which that business is carried on,
and to the amount of the reserve fund which is set
apart for the protection of its customers, as well as
its shareholders. (Hear.) And with regard to
ourselves, though we may have realised less profits
by the policy we have pursued than perhaps we
might have done had we taken a different course,
I believe it will be found that that policy will ulti-
mately turn out to our advantage, because every-
body will feel that if they come here or bring their
friends here as customers they will be safe. (Cheers.)
That is an important point. I can assure you we
have not been without temptation. I remember
after the last meeting a gentleman, a director, came
up to me and asked, "Is it really necessary that
we should keep so large a reserve in the till ? could
we not make more profit if we had less ?" I replied,
" Of course we could ; but that is not the only con-
sideration, and it will be found in the long run that
it will be for our benefit that we have been thus
careful and prudent, and have kept our resources
in hand, to use if they should be wanted." (Hear,
hear.) Now, as to the amount of the reserve, we
are of opinion that a sum equal to one-fourth of the
paid-up capital is ample—(hear, hear)—and then
we propose to stay until an increase in our business
may render a further addition to our reserve neces-
sary. As regards the dividend, looking to the
extraordinary reaction which has set in, seeing that
money is worth only from three to four per cent.,
we thought it better to carry on a good balance to
the current half-year than to divide all up to
add
31st of December. (Hear, bear.) I ought to
that our balances in the bank show some diminu-
tion. Towards the end of the month of December
many of our customers, finding money at the esioiore
mous rate of 10 to 12 per cent., and perhaps m
of them feeling the want of moneythemselves,ekin
diminished their balances ; but every week
January, I am happy to say, the balances have
increased, and upon the whole I see no reason why
we should not be satisfied with our position. (Hear,
hear.) We should be glad to do more business,
and are prepared to do it, awl no doubt we shall,
as the public become more and more convince(' that
we carry on our business prudently and carefully.
(Cheers.)
Mr. GEO. RENNIE moved the adoption of the re-
port, which he considered very satisfactory, much
more so than they could have anticipated. It
showed the prudence exercised by the manage-
ment, and must enlist public confidence in favour
of the institution.
The report having been seconded,
Mr. HUT ClNSO'ought the directors might
have divided very safely h
up closer. They might
have divided at the rate of 7 per cent. and still
have carried over a balance, and it must be re-
membered that the public out of doors rarely looked
into the accounts, but to the dividend.
A PROPRIETOR moved that the dividend be 3i
per cent. for the half-year.
Mr. HUTCHINSON would do nothing so discour-
teous to the directors. If they had thought it right
to recommend 34, he would have supported them,
but he had no doubt they hart recommended what
they considered was the most prudent. (Hear.)
Mr. FISHER entirely concurred with the recom-
mendation of the directors, who had acted he
thought with commendable prudence. Ee wished