The Sun.
London, England, 1844-07-12 00:00:00

REPORT.

"In accordance with the assurance iven by the Chair-
Than of the last general meeting of Shareholders that,
as the question of allowance of interest to customers on
enre,:nt accounts had received, so it would continue
to -eceive the best consideration of the Board, the Di-
rre.( rs have now tu inform the Proprietors that, after
mature deliberation they came to a resolution in Feb-
ruary last, ' That from and after the Ist of March, the
interest allowed by the bank to customers on their mini-
mum balances be one per cent„, except on ,accounts, the
monthly minimum balance" of which on the average of
time half-year shall be under two hundred pounds ;' and
it is a source of great gratification to them to be able to
add that, with but few exceptions, the alteration was re-
ceived by the customers of the bank with that feeling of
liberality which evinced their intimate acquaintance,
with the extremely depressed state of the money mar-
ket, and their willingness to conceda a fair remunera-
tion to their bankers.
" By the accounts which accompany this report,
it will be perceived that, after providing for current ex-
penses, bad debts, rebate of interest, &c., the net profit
for the half-year ending the 30th June last, amounted
to 16,0401. 7s. 2d.
" Although this sum alone would not be sufficient for
the purpose, the Directors have not hesitated to declare
a dividend for the half-year at the rate of 61. per centum
per annum, free from the deduction of income-tax, as
the Guarantee Fund' (after taking from it sufficient to
make up the deficiency) will still leave to its credit the
sum of 89,2182 Bs. 11d., being only 612/. ss. sd. less than
on the 30th of December last.
" The Directors cannot close their report without ex-
pre:;sing the deep regret they feel at the loss they have
sustained by the recent decease of their much-esteemed
fru nd and colleague, Joshua Scholefield, Esq., M.P.
This lamented event will render it necessary to call the
Proprietors together again shortly for the purpose of
electing a successor.
" The dividend will be payable on and after the 18th
ieetaut."
The SECRETARY then read the statement of accounts
for the current half-year.
Mr. T. MOORE observed that the sum charged for
current expenses was larger than it had been during the
preceding half-year.
The CHAIRMAN replied, that it had been as large a
sum on previous occasions. On the 30th of June, 1842,
it was 11,7091. 10s. 10d., a larger sum than during the
present half-year ; but of course the amount would vary
according to circumstances. He moved that the report
be received, printed, and circulated among the Pro-
prietors.
Mr. BoRRODAILE wished to know if the serious losses
which it had been stated the bank had suffered in con-
sequence of their connection with Call, Thompson, and
Co., were included in the sum allowed for bad debts ?
The CHAIRMAN said it was not their bank, but another,
which had suffered those losses. The London Joint-
stock Bank had no connection with Call, Thompson,
and Co., and had never suffered any loss, as had: been
stated. In makir's the allowance for bad debts the
Directors were careful to err on the safe side.
Mr. G. B. HARRISON asked if the number or new
accounts opened since the reduction of the interesi was
equal to the average of new accounts opened duri? the
same period of former years?
The CHAIRMAN could only state generally tl
large number of new accounts had been opened
new accounts were being opened weekly.
Mr. G. B. Haeetsos—Can the Chairman assur
meeting that the number of new accounts has not
creased since last year ?
The CHAIRMAN—There are a great many morel
accounts now than there were at that time.
Mr. G. B. HARRISON would not go deeply int
matter, but he thought there was a want of court:
the sudden manner in which the circular of the
rectors had been issued so soon after the
meeting at which the feeling exhibited was decide.
opposition 'to the reduction of the interest.—(
hear, and No, no.) Had he pressed his amendm•
that occasion he felt certain that he should have c
it, and many persons had left the room under a
feeling that the Proprietors were not advocates
alteration. It was with some surprise, therefore, t
nad received the circular of the Directors within a .
after that meeting. He had no wish to limit the .
of the. Directors -; he had no doubt that they had
actuated by an intention of doing what they consi
the best for the interests of the Shareholders ; b
thought they would have done better not to ha
duced the interest until an absolute necessity aro-
so doing.
Mr. Alderman HUGHES HUGHES defended the c
which had been adopted by the Directors. He had
listened to any information with greaterpleasure in h
than he had listened to the statements contained
report on the subject of the reduction of the intere•
would have been a declaration of insolvency if I
present state of the money market they had hel.
the lure of giving two per cent. for money whe
could obtain any amount of capital they chose a,
and-a-half per cent. If, as he understood, the n
of accounts which had been withdrawn in conseq
had hien tinder ten, he should like to ask the qu
whether the number of accounts withdrawn, o
number of new accounts was the greatest ? He h
the last meeting drawn their attention to this su
because he felt that the nearer they approached t
legitimate manner in which banking was carried
the City the better. A more wise and judicious c
could not have been adopted. The Directors had
well and wisely, and if ever a vote of thanks was df
them, it was due to them that day.
Mr. GREGORY thought the question hinted a
the worthy Alderman was a most important one,,
he would at once ask, if the number of the old accte
w.thdrawn since the alteration had been less that)
new accounts opened ?
The CHAIRMAN believed that the accounts withdrawn
on that account did not exceed three or four, while the
new accounts exceeded one hundred. He could aesure
the meeting that the accounts bad greatly in-
creased since the alteration.—(Cries of " Hear.")
As to the time at which the alteration had been made,
the Directors, after what had taken place at th+ last
meeting, had felt it their duty to give the subjectitheir
serious consideration, and, in consequence, they had
made the alteration.
Mr. BORRODAILE considered the alteration as good for
the Proprietors and bad for the depositors. It was not
keeping good faith with the public, when money was dear,
to offer them this interest to induce them to become
customers of the bank, and then when money became
cheap to turn round upon them with this alteratio
Major BL'CLIANAN reminded the meeting tha the
Scotch banks, on the model of which they were fo med,
were frequently altering the rate of interest al wed
according to the state of the money market.
The CHAIRMAN had recently received a notifies
from the British Linen Company, a Scotch ban;
their intention of reducing the rate of their in
How was it possible by any legitimate banking,
present state of the money market to pay the expel
their establishment, if they allowed their cust
2 per cytit ? ,
arr. G. B. HatnitusoN—lf money is high, do the
banks giie more than two per cent. interest ?
The CHAIR)IAN—Yes.

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Mr. G. B. HARRISON—That was not the case here.
If a depositor-were to adc when "money was hig , for
than his two per cent., he would he refused and
referred to his contract, and if so, the bank
,ought to
abide by it when money was cheap.
The CHAIRMAN—If he were to transfer his money to
the deposit account he would be enabled to get all the.
interest he. was entitled to.
Afier a few words from Mr. John Ilackblock- and Mr.
_Alderman Hughes Ilui;lies, the report was ordered. to he
received.
Thu CminotAN had sent for a statement of the !num-
ber of accounts before and since the alteration, which he
would read to the meeting. The number of accounts
up to the Ist of January, 1844, was 2,589, and on the
lst of 'fitly, 1844, it was 2,704.
Ar. T. Moons, in reference to a motion of which he
had given notice, would ask if J. P. Darthez, jun., Esq.,
a Director, of the bank, had returned to England ?
The CHAIRMAN—No.
.Mr. T. MoonE would ask when he had last attended
ass Director ? •

Air. Alderman fluor/Es HircuEs rose to order. It
was not a meeting for the election of Directors, and the
question could not, he apprehended, be entertained. •
Mr. T. MoottE had given regular notice of a motion
which he would notyppropoloe ;—" That if any Director be
absent from England for any period exceeding six
months, he shall be disqualified ; and the Directors shall
give notice for tilling up the vacancy, in conformity with
the provisions of the deed of settlement."
Air. T. S. Ssmersoox seconded the motion.
_Mr. Alderman Huonts HUGHES hoped the motion
would receive no support. There were many sentle-
Jaen sitting there as Directors, of whose services he
should be very sorry to be.deprived because they might
happen to be detained in the country by sickness, per-t
haps for more than six months. With regard to Mr.
Darthez, no one had been more useful to the bank than
he had ; and his. absence in Spain might be productive
of much good to the bank, as he might induce many
Spanish merchants to join them.
The CHAIRMAN said that very severe indisposition had
occasioned the absence of Mr. Darthez.
,Mr. T. MoortE—But not for two years. It was now
three or four years since he had been present.
The C;HAIRMAN-,—NO, two years.
Mr.
AloortE always liked to offer the most stre-
nuous opposition to the commencement of abuse or mis-
rnanagetnent, and 'it certainly was a great abuse that a
Director should be absent from his post for three or
four years, more particularly in a bank, where the D.
rectors were the only check spon each other, as they had
e auditors. Now, what cheek could Mr. Darthez be,
7;esiding as he did at Cadiz, upon his brother Directors.
No doubt Mr. Gladstone had this very came in his eye,
when he introduced a clause in his Bill to prevent this
ocvirring in any new
.companies, The gentleman in
question was a most respectable man he did not deny
it. lie had been of great use to that bank he admitted,
bat still hi thought there bad been a little management
on the part of the Directors to securo his re-electio n. A
letter bad been read An that occasion, ;toting that
he was coning to England. Now, it did not appear
that be had the slightest intention 4,f coming to England
at all. The 20th R 125,100 of the deed pf settlement
directed that if a Director oltonld be absent without
leave from the Board for three nio4th4, he should bedis-
qualified. It might be asked why lie did not oppose his
re-election/ He did not know of it until It was too
Ile could not help thinking tbeAs had been seine manage.'"
talent to procure his re-election.