The Sun.
London, England, 1835-03-05 00:00:00

than they should be found to occupy it on upright and honour-
able terms.—( Hear, hear.)
Mr. M. B. RENNIE, one of the Directors, here read the
report :

" REPORT
"OF THE DIRECTORS OF TIIE LONDON AND WESTMINSTER
BANK, TO THE PROPRIETORS, AT THEIR FIRST ANNUAL
MEETING, HELD MARC!! 4, AT 38, TIIIIGGMORTON-STREET.
" The directors have much pleasure in meeting the proprietors
for the first time, and in reporting to them the progress of the bank
since its formation.
" It was established in consequence of a clause in the Bank
Charter Renewal Act, declaring it to be legal for any body politic,
or corporate society, or partnership, although consisting of more
than six persons, to carry on the business of banking in London,
provided such partnership was not a bank of issue.
" The preliminaries having been arranged, and the deed of set-
tlement drawn, the bank was opened for business, in Throgmorton- •
street, and in Waterloo-place, on the 10th of March last. Its
progress has been marked by a gradual increase of public confi-
dence, and a steady improvement in business.
" The number of shares taken up at its commencement was
10,000, the number required by the deed of settlement. Since
that period further shares have been taken, and the total amount
is now 17,713. 'these are held by 502 proprietors, and represent
a capital of 1,771.3001., upon which 151. per share have been called
up, and the sum actually received, to this day, is 244,9451.
" Many more shares were allotted, and would have been taken,
but for the representations of parties interested in giving a cheek
to the establishment of jointstock banks in London. The absurd
fears and unjust prejudices which were generated by those represen-
tations are, however, gradually subsiding, and must of necessity
soon disappear.
" The accounts of the bank have been made up to the 31st of
December last. The profits from the 10th of March to that period
have enabled the directors to comply with the 70th clause of the
deed of settlement, which provided that out of the first divisible
profits, interest at the rate of 2 per cent. per annum should be paid
upon all instalments received previous to the 31st of December,
1834. After paying this interest and the current expenses of the
establishment, a surplus remains, which may serve as the nucleus
of a reserved fund, or be applied in payment of a portion of the
preliminary expenses.
" The preliminary expenses are those which attended the forma'
tion of the bank. It is provided by the deed of settlement that
these shall be spread over a period of ten years. • They amount to
£ , the particulars of which will be found in the annexed
abstract.
" The directors will now advert to the difficulties they have had '
to encounter. These have been of no ordinary kind. They base, •
been caused by an opposition. in some degree natural, but carried
to an unfair extent, by existing interests, and likewise by the unite-
countable course adopted by Government, who seem to have been,
deterred by the same interested parties from giving effect to thew
own law.
" The opposition of the private bankers was manifested at an
early period, by their refusal to permit any clerk to attend at the
clearing-house on behalf of this establishment. The clearing-house
has been in existence for upwards of sixty years, and, although
founded in the first instance for the accommodation of such London
bankers as chose to avail themselves of it, yet it has become en-
twined with the mode of settling accounts in several branches of
business, and is, for all practical purposes, a public institution. ,
" The opposition of the Bank of England began by their refusal
to grant to this bank the common convenience of a drawing ac-
count, a convenience granted, as a matter of course, to every re-
spectable firm who may choose to apply for it. But their hostility,
as well as that of the Government, was more strongly shown by
their opposition to the bill introduced to Parliament for facility of,
suit. This, it was conceived, was a course that no party could
adopt after the explicit manner in which the law had been laid doo9
in the preceding session of Parliament.
" The clause upon the subject of joint-stock banks in London,
introduced into the Bank Charter Renewal Act, and that, too, with
the consent of the Bank itself, was not only declaratory that the
law, as previously existing, did not extend to the prevention of pleb
banks carrying on business in London, but it enacted that for the
future they should be able to do so. An enactment being made, it
is to be presumed that it will be carried into effect in the ordinal •
manner. A technical difficulty which requires that all parties to a
suit shall be named in the record exists as an impediment to the
IJ
legal operation of large companies.
"It has been the invariable custom of Parliament, which ha,
not provided by any general law for the removal of this obstruction
to grant to all companies, on special application, a right to sue and
be sued in the name of one or more of its officers. The directors
therefore applied to Parliament for this power, as a necessary con-
sequence of the clause legalizing the company.
" They were early assured by eminent counsel that the bank
could be carried on legally and substantially by means of trustees ;
but when there were two modes of conducting the same proceed'
ing—one well known to the public, the other comparatively un-
known--the Directors naturally took that course which best ac-
corded with the public habits and understanding. Although the,
Bill was opposed with a zeal and tenacity rather out of the usual
course of Parliamentary proceedings, it was carried in the sense •
House of Commons which a few months previously had passed the
Bank Charter Act, by large majorities, through each successive
stage—viz., on the second reading, by a majority of 108 ; in Coto:
mittee, after the fullest and ablest argument by counsel on both
sides, by a still greater proportionable majority ; and again, On the
third reading, by a majority of 97.
" Notwithstanding these majorities in the House of Common°'
the opposition was continued in the House of Lords.
Counsel were heard at the bar of that House, and upon the
suggestion of the Government, questions were framed for the con-
sideration of the Judges, who declined answering them. Under
these extraordinary and inexplicable circumsta:nces, and the See-
sion drawing to a close, it was deemed impossible to bring on the
second reading with any chance of a fair consideration of the
question.
" The active opposition of the Bank of England has been aOn
lately revived, by its giving notice within these few days of its in-
tention to try the question of our power to accept bills of exchange
at a shorter date than six months. Several months ago the Bank
of England was aware of the proceedings of the London and West"
minster Bank in these respects, but not until now has any step been
taken.
The Directors of the London and Westminster Bank are Most
ready to meet the Bank of England in any Court of Justice on the
subject, for the Directors, having the best legal advice on the ques-
tion, feel quite confident of a favourable result. They have no tie-
sire to infringe the privileges of the Bank of England, but they, are
equally determined to protect the rights of the London and I'vest-
minster Bank.
na-
" The Directors congratulate the Proprietors that, notwithsta
ing all this opposition, they have not only been able to stem the
torrent, which, it must be evident, springs from private, and n°"
in any degree, from public considerations, but they have seen, frera,
the progressive advancement of the establishment, that they °calls,
a more favourable position in public opinion ; and whether the or-
dinary power to sue and be sued be granted or not,—whether the
courtesies and facilities usual amongst all competitors in business.oe
reciprocated or not, they entertain no doubt of the prosperity of TO
establishment, founded, as it is, upon advantageous and liberal prin-
ciples, and upon a broad basis of security."
Appended to the Report was a balance-sheet showing the
statement of the Company's affairs, from its commencement to
March, up to the 31st of December, 1834.

On the debtor side of the account were the following items
Due to the public on account of lodgments and in-
a 10
terest on deposit receipts - 0
Due to proprietors for capital paid up 182,255 0 6
Balance in favour of the Bank 3,540 6
£366,175 16
_ _

On the creditor side—
Due to the Bank on account of investments in

Government securities, bills discounted, &c., 6
and cash in hand £355,540 3 jo
Preliminary expenses , 10,635 12_,,,
------ £366,175 16 4

The profit and loss account was as follows :
On the debtor side—

Total current expenditure from March 10th to 4 g
December 31st, 1834
Interest due to the public on deposit receipts
Balance in favour of the Bank 8,438 1
On the credit side—
Balance of interest account
The account of the items of the preliminary expenses we;
then read, and the report (after some conversation of 34
particular interest) was received and agreed to, and ordered
to be printed (with the accounts) for the use of the pr°'
prietors.
A PROPRIETOR, after eulogizing the seal, diligence, le!
assiduity of the directors, and observing that the conlPaeolf
was not yet in a condition to pay them, as the directors
other commercial bodies were paid, suggested, that a VI,
not exceeding 2,0001. should be set apart, to be useaf-r
the discretion of the directors- themselves, as a fund 1,
their payment, in case the establishtnent should go on Pr°

perously.
0-
A short discussion occurred on this, in which seyeral Prs.
prietors took a part. Some thought it premature at presen ;
others, that a special meeting should be called for the pull,
of considering the matter ; but there seemed to be no

ference of opinion as to the great merit of the directors.
The CHAIRMAN put an end to the subject by observq't
that the directors would take as payment in full for all tnhe
they had done to forward the interests of the company 100
kind demonstration of its regard which this short disenssbt
had elicited. He agreed that the subject, if ever brouegrit
forward, should be by special notice ; and that in the pr
any,
slender though decidedly prosperous state of the cornPa't
they would do best if they allowed the question to lie dortui-eb
for the present, and without relinquishing any claim to wh ed
the directors might hereafter be considered entitled, be he,Pay
that at their next meeting they might be in a condition
them (the directors) as handsomely as they could %cis"'
(" Hear," and a laugh.
ctorli
A PROPRIETOR asked if it was the intention of the Dire-A be
to apply again to Parliament for a Bill for leave to sue an
sued by one of their officers
The CHAIRMAN replied that their application would dePpy
on their being able to ascertain beforehand whether Faro-
ment would decide the question on the plain and obvious Ineere
mg of the Act (for the renewal of the Bank Charter.)
seemed some understanding, which he could not explai ~,bn' ete-
tween some members of the late Government and soine,let be
bers of the house (the Bank of England) over the way, ne,,„eet
had hopes that some members of the present Governi
!"—u;ot
would look at the question of their application to Parli,a
more considerately. The opinion of Mr. A. Baring
pressed to the effect that he saw nothing in the Act in (l the
tion which should prevent the grant of that power for wine pt‘v
company had sought. The expense of an application to it
'lament was very considerable, and they would not underrecido
unless they saw a fair prospect that Parliament would
by the Act, and not by the mysterious understanding to "
he had alluded. ed t°
A PROPRIETOR—The Duke of Wellington was OPP°
your bill last year.
The CHAIRMAN—And so was Earl Grey. t
of
our
The PROPRIETOR---If the Duke had influence to defenbt to
object, he has much greater influence now ; so you °oo
look well around you before you incur the great e%Pe
of
again applying to Parliament.
The CHAIRMAN—Then there is no doubt that the House of
Commons would assent to the Bill, as they had done
but the case may be very different in the Lords. und
the Bank was now going to oppose them (on the gr?es then
their issuing bills of excange payable at shorter date
oteet
six months), but they (the company) would be ready