The Sun.
London, England, 1859-08-17 00:00:00

JOINT-STOCK BANKS.

The series of half-yearly meetings of the seven
City Joint-Stock Banks was completed on the 4th
inst. by the meeting of the London and County
Bank, A brief glance at a few of the points pre-
sented in the half-yearly reports of the directors
may not be altogether uninteresting.
First, as the amount of deposits and current ac-
counts :—the figures relating to each Bank are
subjoined:—

London and Westminster
London Joint-Stock
Union Bank of London
London and County
Commercial Bank
City Bank 1,886,532
Bank of London

Total £39,835,242
Compared with the returns made at the 31st De-
cember, 1858, there is an laggregrate increase of
£637,681, or 2 per cent., and compared with those
at the 30th June, 1858, an increase of £646,774,'0r
also about 2 per cent. On the 30th June, 1859, the
Bank of England minimum rate of discount was 3
per cent. ; on the 31st Dec., 1858, 22, and on the
30th June, 1858, 3 per cent. The alteration in the
,value of money during the period embraced in the
comparison has not been of a character to affect
the aggregate amount of deposits.
A comparison of the amount of deposits and cur-
rent accounts held by each bank at the three periods
mentioned shows the following changes :—London
and Westminster Bank, an increase of £230,621,
compared with 31st December last, but a decrease of
£747,309, compared with the 30th June, 1858 ; Lon-
don Joint-stock, an increase of £354,490 compared
with 31st December, 1858, but a decrease of £565,411
compared with 30th June,lBsB ; Union Bank, a de-
crease of £464,402 compared with 31st December,
1858, but an increase of £649,829 compared with
30th June, 1858 ; London and County, an increase of
£355,066 compared with 31st December, 1858, and
an increase of £440,909 compared with 30th June,
1858 ; Commercial Bank, a decrease of £24,523 com-
pared with 31st December, 1858, and a decrease of
£56,721 compared with 30th June, 1858 ; City Bank
anin crease of £136,785 compared with 31st of De-
cember, 1858, and an increase of £634,282 compared
with 30th June, 1858; and Bank of London, an in-
crease of £49,644 compared with 31st December,
1858, and an increase of £291,194 compared with
30th June, 1858. The result of this comparison is
that, of the older Banks, the London and County
are making the most satisfactory progress as regards
the extent of general business. The London and
Westminster and London Joint-Stock during the
first six months of 1859 have only partially re-
covered the business lost during the last six months
of 1858. The Union Bank, on the other hand, have
parted with two-thirds of the sum which was
added to their balances at the 30th June, 1858. The
progress of the young City Bank is remarkably
rapid; the increase in the deposits, &c., since the
30th June, 1858, amounts to fully 50 per cent. The
Bank of London have increased their balances by
27 per cent. within the same period. Each of these
two Banks was established in the year 1855. The
paid-up capital in each case is the same as that of
the Commercial—viz., £300,000. An inquiry into
the means by which the two young establishments
have already far outstripped the Commercial, fifteen
or sixteen years their senior, might be interesting
to the shareholders in the latter.

As regards dividends, the principal feature con-
sists in the inability of the London Joint-Stock
Bank to make up the rate of dividend (122 per cent.
per annum) declared at the corresponding period of
last year without resorting to the objectionable plan
of drawing upon the guarantee Lund. to the extent
of £4,762. At the corresponding period of last year
we may remark, the dividend and bonus together
were at the rate of 22#,- per cent. per annum, and for
the last six months of 185$ at the rate of no less
than 321 per cent. per annum, making thus
272 per cent. for the whole year 1858. The cir-
cumstance that the profits for the last six months
are inadequate to a dividend at the rate of 122 per
cent., and allow of no bonus at all, seems to demand
some explanation beyond that assigned by the di-
rectors, viz. ; the depreciation in the market value
of the " Government and other available securities
held by the Bank." In any case the serious fluc-
tuation in the dividend impresses the necessity of
adopting a different mode of valuing these securi-
ties. Bank dividends ought not to be thus closely,
dependant upon the " ups and downs" of the mar-
ket. The guarantee fund of the establishment,
after the deduction of £4,762, amounts still to
£201,147 ; but this sum is not large in relation to
the sum of £9,722,212 due by the Bank to their
customers. Most persons hold the opinion that a
Bank guarantee fund ought not to be drawn upon
in order to make up dividends. The fall which
took place in the price of the shares upon the an-
nouncement of the directors' recommendation indi-
cates that a good deal of disappointment was occa-
sioned. A more legitimate mode in which large
accumulations under the head of guarantee fund
may be dealt with is that pursued by the Union
Bank of London, who have this half year capitalised
£120,000 of their reserve fund, representing £2 per.
%are, whereby the total paid-up capital entitled to
dividend is increased from £600,000 to £120,000.
It must be remarked, to the credit of the Union
Bank, that they have atoned for former shortcomings
by adding, for the last 12 months, the very large
sum of £45,000 to the reserve fund. After the capi-
talisation of £120,000, the balance at the credit of
this fund consists of £108,152 Consols, worth now
upwards of £lOO,OOO. Some other Banks that we
know of would have announced a large addition to
the dividend, though aware that the increase would
not be permanently maintained, and that it would
occasion injurious fluctuations in the price of the

shares.
After all, however, the real criterion of the rela-
tive degree of security offered to their customers by
these establishments rests with the amount—whether
in cash, money " at call," or Government securities
—held immediately available for any emergency,
however sudden. Regarded from this point of view
the balance-sheet of the London Joint-Stock Bank is
decidedly the least satisfactory of any. Pursuing
their practice of giving as little information as pos-
sible, the managers record that they hold £1,387,038
in " Exchequer-bills, India Bonds and Debentures,
and Government Stock," but when we look further,
with a view to ascertain what amount of cash they
have likewise available to meet the £9,722,212 of
customers' balances and deposits, we are left to
gather such information as we may from this por-
tentous entry—" By cash, loans, bills discounted,
and other securities, £9,166,546." The practice of
the London Joint-Stock Bank in this respect is dis-
countenanced by that of every other establishment.
The London and Westminster Bank, against
£11,696,436 of deposits, &c., show £1,978,867 in
Government-stock, Exchequer-bills, and India
Bonds," and £895,237 " cash in hand," making to-
gether £2,874,104, or equal to 25 per cent. of their
liabilities to the public. The Union Bank show
" cash in the bank, at the Bank of England, and at
call, £1,711,745 ;" also " Government Stock,
vt£he2re,in4r m2dBae,
n7pdt4osssalettes or.
securities,
call,"
Banka
su Indiam o
eDebentures, Exche-
quer-bills,
and City Bemis, £717,000" (besides the
The
amount of the guarantee fund), making together
likewiseLondoneubaelnto
ttour2e3shs a, pval
peener,
rd cnc ean, th
cent. G.
ioon
hand and
of
-f
their liabilities, and the Commercialei a sum equal to
27 per cent. n the case of the City Bank, the
amount held in " Exchequer 13'11
-s, India Bonds, cash
in hand, at Bank of England,
and
at call," is equal
to only 18 or 19 per cent. of the deposits and cur-
rent balances. The inference is that the managers
consider themselves warranted in retaining in
hand a relatively smaller cash reserve than that
held by either of the other banks. The Lyndon
and County Bank, however, occupy by far the
strongest position, and issue the most detailed
and most satisfactory balance-sheet. They show
" By cash on hand, at head office and branches,
£550,926 ; cash placed at call and at notice,'
£329,837 ; investments in Government and gni-
ranteed stocks, £462,945 ; ditto in other stocks
and securities, £118,036." These sums make an
aggregate of £1,961,745, being equal to no less than
42 per cent. of their liabilities.—Daily News.

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The screw corvette Wasp, 13, having completed
her repairs at Chatham dockyard, was floated out
of No. 1 dock at spring tide, and is ordered to be
attached to the steam reserve fleet in the Medway.
The Tartar, 46, one of the old class of frigates for
many years used as a receiving hulk to the guard-
ships of ordinary at Chatham, was yesterday hauled
into the first dock for the purpose of being broken

The Benbow, 74, is in dock at Chatham under-
going the necessary alterations to fit her as a coal
depot for the steam reserve at Sheerness.

The paddlewheel sloop Hydra, 6, Com. Hamilton,
which left Ascension July 19, and Sierra Leone
Juiy 26, arrived in Plymouth Sound yesterday. Up
to the date of her departure the deaths by yellow
fever among the crew of the Trident, at Ascension,
amounted to 43 officers and men, including the
paymaster, master's assistant, two warrant officers,
and five engineers ; the remainder were recovering,
and no more deaths expected. The Tortoise, Mo-
hawk, Trident, and Conflict were at Ascension.
Admiral Sir J. Grey, in the Boscawen, sailed from
the island on July 18 for the Cape of Good Hope.
The Surprise was up the river Gambia. The Falcon
and Sharpshooter, the I:w.ly ships at-Sierra Leone,
wera appointed to leave July 27, in consequence of
the prevalence of fever and smallpox in the town.
The crews of the Falcon and Sharpshooter were
healthy. Corn. R. W. Courtenay, of the Conflict, 8,
has been promoted to the command of the Archer,
13, in consequence of the death of Capt. J. Sander-
son. The Hydra brings passengers Mr. H. Phipps,
Mr. Coddington, mate, and nine invalids. She was
commissioned June 4, 1857, and was ordered home
in consequence of the sickness of her crew, 100 of
whom were at one time suffering from fever; she
spoke the barque Emerald Isle 30 leagues south of
the Lizard.

The Poictiers, troopship, for Ceylon with troops,
put ;back to Portsmouth yesterday, making 18 inches
water per hour. She had been struck by a heavy
sea off Ushant.

• The screw steam corvette Cossack, 20, Capt. R.
Moorman, arrived in Plymouth Sound yesterday
morning. Off the coast, between Portsmouth and
Portland, on Tuesday morning at 4 o'clock, she
passed a Russian two-decker going up channel.
The Cossack is bound to Vancouver's Island, with
the gunboats Grappler and Forward, which were
in the Sound waiting her arrival.
The paddlewheel steam-vessel Pigmy, 3, William
Johnston master, from Portsmouth, arrived on Sun-
day at Plymouth with supernumeraries for different
ships.
It is reported at Plymouth that the Lords of the
Admiralty will make an early inspection of the
various naval establishments in that port. •
The transport Liverpool, of Liverpool, is hourly
expected at Plymouth with troops from the East
Indies, and orders have been sent to Plymouth for
her to land them there should she be spoken off the
port. She has on board one troop of Lancers, whose
head-quarters are at Exeter, and two companies of
the 10th Regiment, recently quartered at Devon-
port.
_ _ _

Her Majesty's royal yacht Victoria and Albert,
Capt. Hon. James Denman, arrived in Portsmouth
harbour yesterday from Cowes, in company with
the Fairy, screw steamer, Commander the Prince of
Leiningen, and Fire Queen, steam tender, Master-
Commander Paul, to replenish coal, &c.
The Emerald, 51, screw frigate, Capt. A. Cum-
ming, arrived at Spithead yesterday morning from
Cowes Roads, on her return from escorting the
Queen to the Channel Islands.

The Imperieuse, 51, screw, Capt. R. B. Maguire,
had her crew paid advance of wages at Spithead
yesterday.
The Pearl, 21, screw, Capt. W. Edmonstone, was
yesterday taken out of No. 1 dock at Portsmouth,
placed alongside the Sheer jetty, and commenced
masting by the crew of the Dauntless.
The Vulcan, screw troopship, Commander Strode,
was swung yesterday ^ Portsmouth harbour for
the adjustment of her co►?passes.
The Colossus, 80, screw, is being fitted in the
steam .basin at Portsmouth with a furnace for the
filling of hollow shot with molten metal, &c.
The Mersey, 40, screw, Capt. Caldwell, C. 8., will
shortly make a trial of her altered screw, at the mea-
sured mile in Stokes-bay ; the leading corner of each
blade of the screw having been cut off, in conse-
quence of the results obtained from the late experi-
mental trials of the Doris,• a affecting the ship's
vibration.

The following appointments were made yesterday
at the Admiralty :—Lieut. John A. F. Luttrell to the
Mars; Lieut. Guy 0. Twiss to the Neptune; Basil
E. Cochrane, midshipman, to the Edgar ; J. E.
Scudamore, Master, to the Pearl; John T. C. Webb,
Master, to the Dauntless ; John D. Switzer, Master
additional, to the Minotaur ; John Bishop, Assistant
Surgeon, confirmed to the Centurion : and P. W.
Rouse, Clerk, to the Pearl.