The Sun.
London, England, 1858-02-06 00:00:00

LONDON JOINT-STOCK BANKS.

(Franz the Daily News)
The whole of the London-Joint Stock Banks
having now held their meetings, it becomes into-
resting to glance at the general results. A power
which is possessed of some 45 millions of money
(including deposits and paid-up capital) must ever
command a large share of attention. The more
carefully the Joint-Stock Banks are watched, the
more likely are they to prove of real utility to the
public, and the more remote will be the contingency
of the diveraion of their enormous funds into mis-
chievous channels. Examining the accounts just
rendered by the seven principal London banks, we
arrive at the following facts.
The London and Westminster Bank, with a nomi.
nal capital of five millions, of which one million is
paid up, are liable for 13,889,0211. on deposits, cir-
cular notes, ckc., being 24,0371. less than on the
30th June last, but 2,450,5601. more than on the
31st Dee., 1856. The dividend and bonus for the
half-year ending the 31st December last are at the
rate of 14 per cent. per annum, against 18 per cent.
per annum for the previous six months; but for
the whole year 1857 the distribution is equal to 16
per cent., against 17 per cent. in 1856, 15 per cent.
in 1855, 14 per cent. in 1844, and 10 per cent. in
1853. The dividend for the last year is conse-
quently only 1 per cent. below the highest ever
paid by this bank. The stun added to the " Rest"
or surplus fund is 3,8681., by which the total is
raised to 158,5961. The addition made for the
whole year 1857 is 8,5961.
The London Joint Stook Bank, with a capital of
three millions, of which 600,0001. is paid up, have
10,737,581/. of deposits and current liabilities, being
39,0511. more than ou the 30th* June last, and
3,513,0531. more than on the 31st December, 1856.
The dividend and bonus for the half-year ending
the 31st December last are at the rate of 22i per
cent. per annum against 22i per sent. for the pre.
vious six months. The distribution for the whole
year 1857 was, consequently, 22i per cent., against
25k per cent.- in 1856, Ng per cent. in 1855, 20i per
cent, in 1854, and 13/ per cent. in 1853. With the
single exception of the year 1856, the dividends for
last year are the highest ever reached by this Bank,
which has made a larger annual distribution than
any other in London. The Guarantee Fund now
stands at 187,014/., the total addition made for the
last half-year being 18,5924, and for the whole year
1857, 21,0811.

The Union Bank of London, with a nominal
capital of throe millions, of which 600,0001. is paid
up, have 9,645,9131. of deposits and current liabi-
lities, being 1,228,7271. less than on the 30th Juno
last; but 600,3061. mole than on the 30th June, 1856.
The dividend and bonus for the half-year ending the
31st December last are at the rate of 15 per cent.
per annum. This bank's financial year terminates
on the 30th J une. For the year ending the 30th
June, 1857, it made a distribution of 20 per cent.
By an addition of 15,000/. on the 30th June last,
its reserved fund was raised to 150,0001. No ad-
dition has been made to that fund since.

The London and County Bank, with a nominal
capital of 2,000,0001. of which 500,0001. is paid up,
hold 3,533,425/. of deposits and customers'
balances, being 323,856/. less than on the 30th
June last, and 10,3991. less than on the 31st Dec.,
1856. The dividend for the half-year ending the
31st December last is at the rate of 12 per cent. per
annum. For the previous half-year it was at the
rate of 10 per cent. per annum. The distribution
for the whole of 1857 is 11 par cent., against 11
per cent. in 1856, 15 per cent. in 1855, 12 per cent.
in 1854, and 10 per cent. in 1853. By an addition
of 5,0001. now made to the reserved fund, the total
is raised to 105,0001.
The Commercial Bank of London, with a sub.
scribed capital of 1,500,000/., of which 300,000/. is
paid, up, are liable for 821,6261. of deposits, arc.,
being 115,098/. less than on the 30th of June last,
and 714,7351. less than on the 30th of June, 1856.
The dividend for the six mouths ending the 31st of
December last was at the rate of 6 per cent. per
annum, and that for the year ending the 301 June,
1857, was 71 per cent. During the year 1857
4,176/. has been added to the reserved fund which
is thus raised to 75,0001. ,
The Bank of London, with a nominal capital of'
600,0001,, of which 300,0001. is paid up, have..
1,114,8431. of deposit and current accounts, being
90,163/. less than on the 30th of June last, and
141,7821. less than on the 31st Dec., 1856. The
dividend declared for the last six months of 1857
is at the rate of 5 per cent. per annum. For the
first six months of that year no dividend Was
declared. The reserved fund, including interest, •
is now 4,5871.
The City Bank, with a nominal capital of -
600,000/., of which 300,0001. is paid up, . have
1,388,933/. of current and deposit accounts, being .
140,7421. more than on the 30th June last, and
444,458 f. more than on the 31st December, 1850.
The dividend for the last six months of 1857 is at
the rate of 5 per cent, per annum. That for the
first six months of 1857 having been at the ratUot
7 per cent. per annum, the dividend for the whole
year was 6 per cent. The reserved fund of thia
institution is 28,000/.
The aggregate of deposits and current accounts
hold by the seven banks above mentioned is
41,131,3421., being 1,602,088/, less than on the
last.L London
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The
withdrawals have been principally from the
Union Bank. The total pail-up capital of the
seven banks is 3,600,000/., and the aggregate of the
reserved funds is 708,197/. The ratio of paid-up
capital to deposits is about 81 per cent. The ratio
of reserved fund to deposits is about 11 per cent.
Adding together the capital and reserved funds,
the ratio to deposits is scarcely 10i per cent. Pur•
suing this branch of the inquiry, we find that the
accounts of the several banks present the following
results, viz,

Ratio of paid.
Ratio of paid- Ratio of re• up capital and
up capital to served fund reserved nand
(leposits. to deposits. to deposits.
London and Westminster 7'4 per ct. IN per ct. 8% per et.
London Joint-Stock • 5!4 ~ 1.% „ 7% ~
Union of London ...• 64 ~ I % .. 7% ..
London and County l4 3 Pt 17 ..
Commercial 36!..4 „ 9 ~ 45% „
Bank of London 27 ~ 0.4 „ 27 ..
City

The general inference deducible from the com•
parisons above given is,
that the last half-year bas
been one of great trial and difficulty to all the
Joint-Stock Banks, most of which have failed to
maintain the high rates of dividend previouelf
reached. In this fact, per Sc, however, there can
be nothing to their discredit. We want to see the
degree of trust attaching to a bank hated,esti not
by the amount of the dividend, but by
gea
character of the management. Neither the rates
of dividend nor the price of the shares should LC
the sole guide.