The Sun.
London, England, 1850-05-23 00:00:00

LONDON,

NATIONAL BANK OF IRELAND.

The fifteenth annual general meeting of the
proprietors of the National Bank of Ireland was held
yesterday, at one o'clock, at the office of the society,
13, Old Broad-street, when, pursuant to the deed of
settlement, four of the directors went out of office,
which created four vacancies in the office of director
to be filled up.
On the motion of T. LAMIE MURRAY, Esq.,
OCTAVIUS OMMANNEY, Esq., was called to the chair,
who requested the Secretary to read the advertise-
ment calling the meeting, and the report of the
directors.

The SECRETARY read the report as follows :
REPORT OF THE DIRECTORS OF THE NATIONAL
BANK OF IRELAND, MADE TO THE PROPRIE-
TORS AT THE FIFTEENTH ANNUAL GENERAL
MEETING, HELD AT THE OFFICE OF TIIE
COMPANY, No. 13, OLD BROAD-STREET, LON-
DON, ON WEDNESDAY, THE 22:fm MAY, 1850.

The directors have pleasure in meeting the proprie-
tors, and submitting for their approval the usual state-
ments of the bank's accounts for the past year.
The general result of the harvest in Ireland in the
last year was on the whole fa►ourable, in respect to the
abundance and average quality of the grain crops, but
Ireland being essentially an agricultural country, the
ruling low prices of its products have had a depressing
tendency upon the farming interest generally.
The loss, however, from the disease in the potato
crop has proved less than was at one period anticipated.
After four years of unexampled depression and suf-
fering amongst all classes and interests, it affords the
directors much gratification in being enabled to state
that there are symptoms of improvement, and indica-
tions of returning confidence, which, although slow in
their operation, are on that account, perhaps, not the less
secure.

The directors have deemed it prudent to transact a
restricted business; it is their intention to continue in
this watchful coarse until the restoration of credit and
confidence has produced its effect on the trade, agricul-
ture, and commerce of the country.
oney has been abundant with a limited field for its
legitimate employment, and consequently but a low rate
of interest could be obtained for a large amount of sur-
plus capital of the bank.

All tie ascertained bad debts of the bank have been
written off, and the half-yearly dividends, at the rate of
5 per cent. per annum, have been paid.
The undivided profits at December, 1848, were :
Reserve fund £50,105 4 4

Balance of profit and-
loss for 1848 3,990 12 10

£54,095 17 2

Net profits for the year ending Decem-
ber, 1849

19,338 1 3

73,433 18 5

Deduct half-year's dividend to Mid-
summer, 1849 11,250 0 0
Ditto ditto Christmas-11,250 0 0
Balance of profit and loss
carried to that account
for 1850 B2B 14 1

23,328 14

Leaving amount of undivided profits
to the credit of the reserve fund at
December, 1849 , £50,105 4 4
The favourable aspect in political affairs generally has
been productive of very beneficial results to the trade of
the United Kingdom, which continues to exhibit the

most marked evidences of improvement; and it is hoped
that Ireland will, ere long, largely participate in the ge-
neral prosperity.
There are now to be elected four directors, in the room
of Thomas Laurie Murray, Esq., Sir Ralph Howard,
Bart., M.P., John Clement Eliding, Esq., and James
Reade, Esq., whose term of office has expired, but who
are re-eligible, and offer themselves accordingly.
Approved by the Court,
(Signed) T. LAMIE MURRAY, Chairman.

The CHAIRMAN said the report had so fully entered

into every subject connected with the bank that little
was left for him to do but to congratulate the meet-
ing on the state of the accounts during the past year.
Although the directors had not been able to receive
so large an amount of profit as in the previous year,
yet he thought he might fairly use the term congra-
tulation with reference to their transactions, when
they took into account the calamities which had
fallen upon the country in which their operations were
oarried on. It would be needless and out of place
for him to enter upon any consideration of the state of
Ireland, which was so perfectly well known to most
of the gentlemen present ; but he could not forbear to
state that, during a period of extreme depression and
suffering, with which it had pleased Divine Provi-
dence, doubtless for wise purposes, to afflict the
country, it was matter for congratulation to see the,
he might almost say, unexampled forbearance and
resignation with which every class of society had
endured their afflictions. When a body suffered the
members also suffered with it, and perhaps banks,
which were most sensitive members of a commercial
community, were the first to feel any disorganization
or disorder in the body. Their circulation became
restricted, and their means were abstracted or diverted
to supply .the necessities of society. It had been a
matter of prudence and necessity with the directors
of the National Bank of Ireland to preserve the capital
of the bank intact, and with that view they had lat-
terly had recourse to a restricted business, but they I
had not restricted the business so as to bring
loss on individuals connected with the bank
and the country generally, but they had so restricted
it with reference to every application for an account
with the bank where the directors thought they could
not grant those applications with safety. That restric-
tion had necessarily trenched on the profits of the
bank during the last year. The directors, however,
had been enabled to preserve the rest and undivided
profits of the bank at the same amount as they were
last year, namely, 50,000/. odd, which was sufficient
to meet any emergency that might arise in this bank,
and was equal in proportion to those of any bank in the
United Kingdom, not excepting the Bank of England
in proportion to the dividends. It was a matter of
difficulty to place out the superabundant capital of
this bank upon safe investments which would
yield a good return ; but the directors had
inscribed the word "security" on their banner,
and they would adhere to it in all their trans-
actions with unflinching scrupulousness. The ex-
penses of the bank had had some little influence on
the profits recently, for where they had suddenly left
off doing a very extensive business, they could
not as suddenly reduce their officers without doing
great injustice to several of them. They had, how-
ever thought it prudent not to take new hands into
their employment, but to endeavour gradually to bring
down their expenditure to the standard of the business
which they were at present transacting, which would
make a very considerable difference in their favour
for the future. There was another matter to which
he might refer, and that was the expense of their local
directors in Ireland. Some apprehension appeared to
have existed that they were extravagant in
that respect ; but when he stated that the
expenses of their local directors did not
amount to 9001. a year, he thought the meeting would
agree with him in thinking that was a small sum. It
afforded the directors and himself pleasure to state
that the resources of the bank at the present time
exceeded those of any prior period.—(Hear, hear.)
There really seemed a sort of inclination among the
public in general to favour this bank, if, he might
judge from the repeated applications to the directors by
persons doing buainses with other banks to come over
to this bank, and there, appeared to be a greater de-
gree of confidence placed in it than at any previous
period of its existence. He might add that the di-
reCtors had closed the branch at Parsotistown, as
it had ..not answered their expectations. It would
be needless for him to enter into any statement
as to the future, but he was glad to perceive
signs of improvement in the agricultural and
commercial prospects of the country, and
as that improvement seemed to be gra-
dual, he hoped it would be permanent also.
He thought the transactions of the Incunabered Es-
tates Commission would tend greatly to improve the
country, as they would open up a field for the
investment of capital and the proper employment of
the labouring classes. The directors, entrusted as
they were with the management of the affairs of the
bank, were glad to catch at the slightest ray of light
which broke upon the darkness which for some years
bad pervaded Ireland ; and he sincerely hoped when
the clouds dispersed it would not be attended with
the cry of " Breakers a-head," but with the full view of
a haven in prospect, to which be trusted the vessel
would be safely guided.—(Hear.)
Mr. NEWSAM had occupied a seat on the direction
with their excellent chairman, and he was satisfied,
from experience, that any questions that might be put
to him would be answered in a straightforward
manner.—(Hear, hear.) Two years ago he and Mr.
Johnson were ousted from the board to make room
for Mr. John O'Connell and another gentleman,
without the slightest complaint being' made against
their previous conduct, but, at the sugges-
tion of several proprietors, he had sacri
ficed his own feelings, and had abstained since
then from taking any part in the proceedings of
the bank. The time, however, bad now arrived when
he felt that he could consistently break his silence and
ask a few questions, without laying himself open to
tmhoetiviems.—put(aHtioenar,
hear.)
ofbeing
aasscitnugatetdhen by improper
improper
the re-
port which had just been read, he would take
leave to ask whether or no be was right in
considering that the gross earnings of the
bank for 1849, after deducting the bad debts,
amounted to 19,338/. ? He had already mentioned
that he was removed to make way for Mr. John
O'Connell.

Mr. E. SMITHWICK observed that no. reproach at-
tached to the direction for that, as it was the act of
the shgeholdegs, And not of 09 directore,—(UM)

THURSDAY

Mr. NEwsAm did not think it necessary then jto
say more about it, but, adverting to the subject of pro-
fits, he must remind the directors, that in
1848, when Mr. Lamie Murray filled the post of
chairman, that gentleman told the proprietors that
his calculations led him to beliere that the ensuing
year's profits would reach to 61,0001. Now, to his
(Mr. Newsam's) mind, the sum now mentioned as
the result of the past year's operations was a most
prodigious decline, and he should therefore be glad if
the Chairman or Mr. Murray himself could give
them some explanation on the subject.--(Hear, hear.)
Did not Mr. Murray make that calculation for the
sake of securing the bonus which was declared that
year ?—(No, no.)
The CHAIRMAN, iu reply to the Hon. Proprietor,
said the bad debts during the past year amounted to
12,4001., but that sum had been deducted from the
profits, so that the net profits were 19,3381. Is. 3d.
The large amount of bad debts was to be attributed
to the unfortunote pressure of the times. Their
capital, however, was intact the same as when first
paid into the coffers of the bank, and there was, be-
sides, a surplus of .50,000/., which bad been acquired
in the shape of profits, and now at credit of
Reserve Fund. A resolution had been passed at
a meeting of the board prohibiting advances being
made by the bank to any of the directors, however
good the security might be which they offered. He
might state with regard to the London and Dublin
Bank, that the amount due by them was 10,0001., but
when he mentioned the name of Sir Ralph Howard,
M.P., as one of the parties who secured the National
Bank, they would agree with him that the money was
safe.— (Hear.) There were also 400 proprietors in the
London and Dublin Bank, on whom they could fall
back, if necesary, and, iiSiddition, the directors held
securities for a large mount, so that no doubt
remained as to the ultimate payment of
the 10,0001. The whole of the bad debts at the
branch banks, which they had taken from the London
and Dublin Company, did not amount to more than
3001., while the profits upon them were very large.
Mr. LAMLE MURRAY entered into an explanation
of the circumstances alluded to by Mr. Newsam, but
deprecated the practice of making the annual meeting
of a bank, which was so extensive and intricate in
its operations, and which affects every vein and
nerve of the society with which it had to deal, the
arena for the discussion of personal questions. He
had stated in 1849 that the bad and doubtful debts

had then been reduced to 19,0001., and he believed
at that period very few could say they had their
capital intact, with a reserve fund of 50,0001., and
only 19,0001. doubtful debts.---(Hear, hear.) The
statement which be then made was not a personal
one, but was authorised by the board of directors, and
the matter was net one in which he was personally
concerned. On that occasion he stated-what their
profits had been for successive years, and left it for
the proprietors to say what their resources were
likely to be in future years. Of course he could not
prevent the potato rot, or help commercial failures,
neither could he find good security for the surplus
money of the bank, in order to make large profits.
But were the present circumstances of the bank worse
than they had been ? Since the period of which he
spoke the resources of the bank had increased by
230,000/., and yet they had been obliged to be watch-
ful and to abstain from offers to lend money at high
rates of interest, until a more prosperous tide of events
should set in. It might be said he had a personal in-
terest in having a bonus divided ; but if that were ro,
the course which he bad taken must have been detri-
mental to his own interests, for he had always op-
posed every dividend exceeding 5 per cent., though it
was well known he might have put an additional
3001
the position.int?hisPocke of Ireland, pocket by
taking en opposite course.
Considering and the depres-
sion which bad visited alike all classes, it was a mat-
ter of surprise, not that their profits should be so
small, but that the
the capital of the bank should remain
i
Dr. M'Graa said that it seemed to him that they
were not making as much money as they ought to do;
the management was not carried on as economically
as it ought to be, and ithat they incurred more ex-
Dieu well versed in banking
penses than were neceinssaerocy.ietyHtehheadre, lhaatedlytakbeenenthine
nI
pr eploarntdu,n
tnyd ,
of mixingaskin g
affairs of the prospects of this bank, and he did not
find that it was considered to be so useful as had
been considered probable. He did not admire
the great number of inspectors which they em-
ployed; he objected to the over-payment of the
directors ; and he did not think that there
was sufficient Irish sympathy manifested in
the board. The greater part of the capital was Irish,
and he should like to see a greater number of Irish
members on the board. He should just suggest to
the directors always to keep in mind that the capital
of the bank belonged to the proprietors. He hoped
that they would endeavour to carry on the affairs of
the bank with as much economy as possible ; this was
just the time when the directors ought to try to screw
up the expenses as close as possible. With regard to
Mr. Newsam having been thrown' out of the direc-
torship, he thoughtit shosmi.tbe great power which
the Irish shareholders possessed. On the whole, he
considered that the bank was in a very good position,
saving only the item of expenditure.
Mr. SMITHWICK said that he had to apologise to
Mr. Newsam for having been instrumental in
changing that gentleman's position. The reason of
his (Mr. Sthithwick's) conduct in that particular
was that he considered there was a great want of
information in the board of the feelings and position
of Ireland, and not sufficient interest taken in Irish
affairs. He thought that some of the directors ought
to pay an occasional visit to Ireland in order
to ascertain the feelings and wants of that
country more accurately. He entirely mistrusted
the sources from which the board desived their in-
formation at present. More business, he was sure,
might be done if the gentlemen would only make
themselves a little better acquainted with the affairs
of Ireland. This was the reason why he had opposed
Mr. Newsam's re-election, in 'order to change the
constitution of the board, and to infuse a new spirit
into it more in accordance with the wishes and in-
terests of the Irish shareholders.
The CHAIRMAN wished to say a word in answer
to the Reverend Gentleman's (Dr. M`Gee's)
observations. He had already alluded to the
reason why they had not made larger profits,
this year. It was not owing to the losses which
they had sustained, which bad been much less
than they might have been, owing to the vigilant
superintendence of the directors. The question of the
inspectors had already come under the consideration of
the board. As regarded the directors being paid too
much, there, also, he was happy to say they had
anticipated the Rev. Gentleman. They had effected
a reduction of 1,0001. a year, and he must say that
the remuneration which the directors at present re-
ceived was not too much for their unceasing exertions
in the service of the bank. He did not think that
there was the slightest wish on the part of
the directors to underrate the importance of
the Irish interest in the bank ; he considered
that some of the Irish branches of the late London
were decidedly the best paying
The reason was that these
branches had had such a thorough sifting, at the ex-
pense of himself and other proprietors of that bank,
abnradncDheusbliil they Banhic had.
they could not well be otherwise. He did not think
there was any reason for complaint of want of acco-
modation to Irish business ; he considered that they
had always afforded satisfactory accomodation to the
neighbourhoods in which their branches were. No
application had been refused consistent with a proper
attention to the interests of the bank. Mr. Smith-
wick
the board. an anti-Irish feeling in
mr. hadsusiaiTdgivithactiLherNe wao,ls
softened
it down to a
want of information on Irish affairs.
He should conclude by
fo Aciel aAtine—uanWeicimisi 'mw hthat
en other banks had re.
affordedhave T h e
consideredCtodatiornwtlheimohanthesyhohualdd
mfuoseiclin
accommodation.galtlhatthe report be adopted, printed, and cir-
culated among the shareholders.
Mr. RUDING, as an English director, was perfectly
readyhe
did at
not
possessany
confidenceh ls
os
f the Irish eat at that board if
proprie-
tors. He challenged the inspection Of the accounts.
say that he felt
having Want of confidence
and
t eas traeeffrl
ya hi
rahsvui onr ftg theadt devoted
s othhe h muchtime and labour
must
s
thrown against them.
of insulting the
Dr. 341'GEE deprecated'any idea
English directors. That was not their purpose—they
family
in on the
milypar party to
is
considerwer e me t
calmlythere
hest ofw private
ay
ofe
a affairs of the binlr, and all that had been g stated on
that point was-merely to tell them what the feelings
of Ireland were.''
Mr. Rtneises again professed h readiness to resign
if not possessed of the confidence of the Irish pro-
prietors.
Mr. READS only regretted there were not more
Englishmen in the board. The present directors were
most conscientious in the votes they gave, and most
earnest in the interest they took in Ireland.

Mr. SMITE WICK said it was not English gentlemen
whom he objected to, hat he wished to see English-
men in the board who knew the country better.
Mr. POWER had a short amendment to move to the
report. He was convinced
it'
the bank was not
'There
more reporters
properly managed, and that t it were in better hands
the shares would be at a premium, instead of being
otherwise. Ho saw very few English shareholders
present at the meeting ; there v
than English shareholders. inere was scarcely a
amongferenee
w the
a officers of the
s
month passed, too, but some case of absconding or
ebmanbkeziznlelmreelnatndt,oobkut nplaocere
made to those
matters in the report.
The CHAIRMAN said, had the bank sustained any
loss from the defalcations of any officer, the directors
would have mentioned the fact in the report. There
had be‘/' iefale*tim by 411 01ffi ger at Wexford, but