The Sun.
London, England, 1857-02-07 00:00:00

TO THE EDITOR OF THE SUN.

SIR, —The whole controversy between the advocates
for convertibility and non-convertibility hangs upon the
wording of the Bank note issued.
If the note is to run " I promise to pay," of course,
unless a fraud is covertly intended, gold must be retained
in sufficient quantities to honour every note. In this
case let us adhere to Peel's Bill, for it carries out this
intention as far as is practicable, with the very f xistence
of the nation, and to the utter prostration of trade every

five years.
But if the note is to be inconvertible into gold, let it
say so on the face, and let it run as follows :—" Know,
a'•l men, that this note is legal tender for all debts and

taxes."

As for the middle men, who wish to issue more paper
promising to pay gold, their logic is only equalled by
their honesty.

JAMES HARVEY.

NATIONAL DISCOUNT COMPANY.

Yesterday afternoon the first annual meeting of the above
company was held at the London Tavern; Mr. F. W. Russell,
M.P., chairman of the board of directors, in the chair.
The following were the principal heads of the report, viz. :
" The directors have the pleasure of submitting to the
shareholders a statement of the affairs of the company, on
the 31st of December last, together with an abstract of
the profit and loss account, which shows a net profit of
7,766/. 14s. 10d., after the payment of current expenses,
and providing for bad and doubtful debts. The directors
recommend that a dividend of 3s. per share on the original
shares, with a proportionate dividend of 3d. per share on
the deposit upon the new shares, together amounting to
6,376/, 55, 3d., be declared, and the balance, 1,3901. 9s. 7d.,
be carried forward to next account. It is suggested that the
liquidation of the preliminary expenses shall be spread over
a series of years ; no appropriation towards them is proposed
at this early period, but they have been held in view in the
amount of the balance to be carried over. The directors
have to express to the shareholders their satisfactio a with
the progress of the business, the bills discounted to 31st
December having amounted to 5, 926,413/. 16s. id., and the
number of accounts opened being 845. The results would
have been still more favourable but for the sudden advance

in the rate of interest in October, and the great scarcity
of money which has since prevailed. It mist also be
kept in mind that the growth of every business is gra-
dual, and the forming a connection a work of time, while
the expenses of an efficient establishment are immediate
yet indispensable, The capabilities of the office have been
necessarily adapted to transactions of a much greater ex-
tent, but as the business increases the expenses will each
year become a comparatively lighter burden on the profits.
The offices at present occupied by the company, though
sufficiently central, are most inconvenient, and the access to
them has been much complained of ; but the directors are
happy in being able to announce that after several protracted_
and ineffectual negotiations they hate at length secured a
most eligible site in Cornhill, ou which they propose to erect
a building which will afford suitable accommodation fer the
business of the company."
The CHAIRMAN, in moving the adoption of the report, ob-
served that if the directors had so desired, they could have
put the company forward in a more favourable light had they
delayed the meeting, for, in point of fact, their business ope-
rations extended over seven months only. Under those cir-
cumstances, the results were most satisfactory; when the
company commenced business, interest upon money stood
at 4 per cent. ; but later, in the month of October, that
rate suddenly rose, and continued high, and thereby
the profits of the undertaking had been diminished. It
. .

would be seen, therefore, that the business had been
steady and progressive ; and, considering the prejudices that
first prevailed on the subject of limited liability, he thought
the shareholders had good reason to congratulate themselves

upon their early operations. With respect to the assets of
the company, the auditors bad gong fully through them, and
found them to be perfectly safe and correct, while the stare
registers had also undergone an equally searching examina-
tion, and they also were found to be perfectly straightfor-
ward. _ _ _ _ _

Some discussion took place upon the subject of the preli-
minary expenses set down in the capital account at 5,6141.
10s. 2d., the item in the profit and loss account of 8,0321.
15s. for current expenses, directors' remuneration, and re-
serve fund to meet losses on unpaid bills, and the cost of the
proposed new offices in Cornhill, but ultimately the report
was adopted and the dividend declared.
The retiring directors were re-elected, and thanks having
been voted to the officials, directors, and the chairman, the
proceedings terminated.