The Sun.
London, England, 1844-06-05 00:00:00

BANK OF AUSTRALASIA.

On Monday the tenth annual meeting of the Share-
holders in this Banking Company took place at the offices
of the establishment, Moorgate-street.
J. S. Brownrigg, Esq., M.P., in the chair.
The Secretary (Mr. Millikin) having read the adver-
tisement convening the meeting, and some preliminary
observations having been made in reference to reading
the report before the re-election of Directors,
The CHAIRMAN said that before he read the report, he
wished to state to the Proprietors that the Directors on
the present occasion met them with great anxiety ; be-
cause, they were desirous of laying before them some
specific information as to the general state of affairs of
the Company. In the present report he thought they
would find that such specific information was afforded,
and when he had read it he should beg to be allowed to
make a few observations on various points, to remove any
doubts that might arise in the minds of Shareholders.
However, before doing this, he should wish to advert
shortly to what had occurred at the last annual meet-
ing. There were two or three points suggested then for
the consideration of the Directors which had received
their anxious attention. Some of those suggestions
would be found and alluded t2_ in the course of the re-
port, and there was oulf one upon which they
(the Directors) had not thought it their duty
to act. That one was the suggestion that the re-
port should be printed and published some few
days before the meeting took place. They had given
their best consideration to that subject, with great anxiety
to comply with the wish of those who advocated the
plan, but they remained of the same opinion as at the
last meeting, namely, that it would be impolitic for the
interests of the Company to do so. There were no doubt
a great many arguments in favour of the course pro-
posed ; but, in the minds of the Directors, and in addi-
tion to reasons formerly urged, they did not do away
with the objection that the publication of the report
might be brought to act .upon the value of the shares,
and the parties on the spot have an advantage over
those who resided at a distance. Besides, there was the
other important objection, that the minds of Shareholders
might be unduly prejudiced by the publication of a re
port without necessary explanations, and hence so long
as the Directors were allowed a discretion on the sub-
ject they thought it would be best to adhere to the pre-
sent course of laying the report before the Shareholders
at the meeting, to whom it was competent to move an
adjournment for its consideration, if they thought proper.
The CHAIRMAN then read the reports which was re-
ceived with much apparent satisfaction :
" The Tenth Annual Report by the Directors oethe Bank of
Australasia to the Proprietors, assembled at the Meeting
held at their Office, No. 2, Moorgate-street, on Monday,
the 3d June, 1844.
"In laying before the Proprietors the result of the transac-
tions of the Bank for the year of account ending on the 16th
October, 1843, at this the Tenth Annual Meeting, held in
compliance with the provisions of the Charter of Incorpora-
tion, the Directors are desirous of reel in ding them, that in their
last two reports the distressed state of the Australasian
Colonies was adverted to in strong terms. It is with feelings
of disappointment and regret that they have now to inform
the Proprietors that the severity of the pressure then noticed
had since augmented to an unparalleled degree, shaking the
credit and involving the ruin of large classes of the commu-
nity, and had continued to the date of the latest advices with
but little mitigation.
" Proprietors, will, therefore, not be surprised to learn that,
in the general distress this Corporation has not escaped with-
out heavy losses, and its interests might have been more
seriously affected, but for the precautions taken by the Di-
rectors at the commencement of its business, and since stea-
dily adhered to in the accumulation of considerable reserves
to meet such adverse circumstances, inseparable, even in ordi-
nary times, from large and distant operations like those of
this Bank.

" The Directors have, however, the satisfaction of stating
that the accounts which they have received from the various
managers of branches, carefully revised in each case by the
Superintendent, and examined by themselves, enable them to
assure the Proprietors that the irrecoverable losses are more
than amply provided for by the funds set apart for that pur-
pose, and that the debts due to the Bank of a doubtful cha-
racter, though it is feared they may prove of considerable
amount, are not expected to be of a magnitude, even under
the most unfavourable view that can at present be taken of
them, to involve any serious impression on the rest.
"The Directors think it necessary to advert, in this place,
to a large advance made, in March, 1843, to the Bank of
Australia, at Sydney, under circumstances of a peculiar cha-
racter, which was joined in by this establishment, to the ex-
tent of 150,0001., the knowledge of which, at the time, caused
much anxiety.

" It is not now necessary to bring under review the reasons
which induced the superintendent and local board at Sydney
to take this important step, but it• is incumbent on the
Directors to assure the Proprietory that arrangements have
been entered into for the repayment of the advance, of the
perfect safety of which they entertain no doubt; and to add
that, immediately they received accounts of this transaction,
they issued instructions to prevent the recurrence of any
similar ones, taking occasion at the same time to reiterate
their previous orders limiting the amount of accommodation
to all parties within moderate bounds.
" The experience which the Directors have now had of the
general working of the Bank having satisfied them that the
smaller branches are not productive of benefit commensurate
with the capital they absorb, and that they also divert the
attention or the Superintendent from duties of greater im-
importance, authorised Mr. Hart to withdraw from those
districts, which, in his opinion, did not afford a sufficient field
field for banking operations.
" Acting under these instructions, Mr. Hart had made ar-
rangements for closing the Bathurst branch on the let of
March last, and he would probably adopt a similar course at
Maitland.

"By these measures the Directors hope to effect a reduc-
tion in the expenditure, and, by concentrating the business,
to place it on a safer footing than when sprctd over a wider
surface.

" During a period of such unexampled distress and com-
mercial embarrassment as that which has prevailed in the
Colonies for such a length of time, it required a person of no
ordinary ability, prudence, and judgment to watch over the
interests-of the Corporation ; and the Directors have much
satisfaction in stating that the Superintendent, Mr. Hart, has
proved himself tp possess those qualifications in an eminent
degree, and to be thoroughly competent to the discharge o f
the important trust confided to him.
" Impressed with a deep sense of the importance of a due
superintendence of the Bank's affairs, and of the serious in-
convenience which might arise from a temporary suspension
of the office, the Directors have deemed it expedient to send
out to the colonies a person competent to assist the Super-
intendent in the performance of his onerous duties, and who,
in the event of casualty, could temporarily administer the
affairs of the Corporation, until other arrangements could be
madefrom home.

"The gentleman appointed to the office is Mr. James John
Falconer, a person of .considerable mercantile experience, and
to whose character and qualifications most satisfactory testi-
monials have been received.
"The Directors have now to present the usual statement of
the accounts for the year ending the 16th of October, 1843,
from which it will be seen that the profits have exceeded,
those of the preceding year, but the Directors have deemed it
advisable to appropriate out of them this year as large a sum
to the Bad-debt Fund, as is compatible with the payment of
the dividends.

£114,413 1 6