The Sun.
London, England, 1842-05-27 00:00:00

NATIONAL BANK OF IRELAND.

The Seventh Annual General 'Meeting of the Share-
holders of the National Bank of Ireland was held Wed-
nesday, at their office, 13, Old Broad-street.
At one o'clock the Right Hon. Daniel O'Connell, M.P.,
entered the room, accompanied by the Directors.
The Directors present were, the Right Hon. Daniel
O'Connell, M.P., Colonel the Hon. Leicester Stanhope,
Maurice O'Connell, M.P., T. Lamie Murray, Robert
Sutton? jun., S. P. Rickman, John Joseph Keene,
J. C. Ruding, Fowler Newsam, A. R. Johnson, E. F.
Green, George Moffatt, James Reade, Esqs.; and amongst
the Proprietors we observed the following, viz.: Captain
Scallan, the Rev. Thomas Madge, James Hutchinson,
Charles Bia,nconi James Lowe Wheeler, Francis Frith,
James Johnston,John Robins, Arthur Buckley, Daniel
Maclaurin, James Ruffell, Esqrs., and others.
The RIGHT HON. GENTLEMAN in taking the Chair
said, I•take the Chair at present merely as a Proprietor,
.as. I this year go out of office by rotation. I will proceed,
therefore, in the first instance, to have your attention
called to supplying the place of those Directors who go
. out by rotation ; and the notice in the Gazette, conven-
ing the present meeting, will be read by the Secretary.
'The notice having been read.
The CHAIRMAN said I now call upon the Secretary to
read that paragraph in the Report which mentions the
names of the Directors who go out by rotation, and who
are eligible for re-election.
The SECRETARY then read the following names, viz.,
Right Hon. Daniel O'Connell, M.P. ; T. Lamie Murray,
.Esq. ; John C. Ruding, Esq., and James Reade, Esq.,
.the gentlemen who retire by rotation.
The CHAIRMAN said, I am not in a position to put the
names of any other persons to be elected as Directors.
If we had any other candidates, I could put their names
.to the meeting, but as no other gentlemen have been
proposed for election,. I .will now put the names of those
four to the meeting, . and you may negative the appoint-
.ment of any of those of whom you may disapprove. I
propose that the four retiring Directors be re-elected.
The question was then put, and the four retiring Di-
rectors were unanimously re-elected.
The CHAIRMAN—I can now take my seat as Gover-
nor, and I now call upon the Secretary to read that
'paragraph of the Report respecting the Eifth Director,
referred to in the advertisement in the Gazette,' and
whose election you are now called upon to confirm.
'rho SECRETARY then read the name of Fowler New-
sam, Esq.
The CHAIRMAN—I put it to the meeting that they
tiNould confirm the appointment of Fowler Newsam,
Baq., as a Director of this Bank, in the room of J. R.
Elmore, Esq., who has retired.
The question having been carried,
The CHAIRMAN said, I declare that this Court has
confirmed the appointment of Fowler Newsam, Esq.,
The SECRETARY then read the 'Report as follows :
REPORT of the Directors of the National Bank of
Ireland, made to the Proprietors at the Seventh
Annual General Meeting, held at the Office of the
Company, No. 13, Old Broad-street, London, on
Wv...dnesrlay, the 25th of May, 1842.
"It is with renewed satistation that the Directors
meet ;the Proprietors, assembled at the present Annual
Genera I Meeting, more particularly as the favourable
expectations which they felt justified in expressing in
former Reports, respectine, the prospects of the Company,
have been fully realized.
. .

" The Directors have much pleasure in assuring the
Proprietors that the business of the Bank continues
steadily and progressively to increase, which affords the
most gratifying evidence of public confidence, and the
prosperity it has attained will be best shown by the ac-
counts to be submitted to the meeting, embracing the
result of the operations of the past year, which demon-
strate the soundness of the principles and the efficiency
.of the system of management, upon which the affairs of
the establishment are conducted, and whereby the Direc-
tors are now enabled to present to the Proprietors the
following statement :

X s. d.
Undivided profits at December, 1840 22,283 9 6
Net profits for the year ending Dec., 1841 28,798 0 9

51,081 10 3

Deduct half-year's dividend to
the Proprietors for Midsum-
mer, 1841
Ditto, ditto, for Christmas, 1841 10,500

21,000 0 0

Leaving amount of undivided profits at
December, 1841
" Notwithstanding the serious commercial embarrass-
ments which have prevailed during the past year, it will
be observed from the foregoing statement, that after de-
fraying all the current expenses, and providing for bad
debts, the net profits of the year ending December, 1841,
amounted to 28,798/. Os. 9d., and that after the pay-
ment of the half-yearly dividends, for Midsummer and
Christmas, at the rate of six per cent., per annum, a sur-
plus remained of 7,7981. Os. 9d., which sum, added to
the previous undivided profits, left a total of unappro-
priated profits of 30,081/. 10s. 3d., at the credit of the
Shareholders' Reserve Fund, in December last.
"It will be a source of considerable gratification to
the Proprietors to find that the National Bank of Ireland
is deriving those advantages it was fairly entitled to ex-
pect, in return for the great benefits it has conferred on
those districts of the country where its branches have
been established, and in congratulating the Proprietors
on the prosperous condition of its affairs, the Directors
are confident that they will not be disappointed in the
anticipations they have formed connected with its future
success.
" There are now to be elected four Directors in the
room of the Right-Honourable Daniel O'Connell, M.P.,
Thomas Lamie Murray, Esq., John Clement Ruding,
Esq., and James Reade, Esq., who retire by rotation,
all of whom are candidates for the office, and eligible to
be re-elected.
" Since the last Annual General Meeting, the Court
of Directors have appointed Fowler Newsam, Esq., as a
Director, to fill a vacancy in the Direction occasioned by
the retirement of John Richard Elmore, Esq., and which
appointment will require the confirmation of the present
meeting.
" Approved by the Court,
4' May 18, 1842. T. LAIIIE 'MURRAY, Chairman."
` The CHAIRMAN—If any
.gentleman wishes to have
the Report read over again, it shall be done.
31r. BIANCONI—As no person seems desirous of having
the Report read again, I beg to propose that the Report
be adopted. In doing this, I have great pleasure in com-
paring this, our seventh annual meeting, with the same
annual meeting of the shareholders of the Provincial
Bank of Ireland. At this our seventh annual
meeting, it appears that we have a rest of over
30,0001. At the seventh annual meeting of the
Provincial Bank of Ireland, it appeared that their.
rest was about 32,000/. From their accounts it appears
that they only paid up to that period dividends of 4 and
5 per cent. while we have paid dividends of 5 and 6 per
cent. Therefore we are in a better position to-day than
the Provincial Bank of Ireland were, if they had paid
similar dividends.
An HoN. PROPRIETOR wished to ask what were the
profits of last year ?
The CHAIRMAN—I would suggest to the lion. Pro-
prietor that it would perhaps be better that he should
defer his questions until I have given the details of our
transactions, and then he will be able to ask any ques-
tions upon points on which he may not be satisfied. I
would now wish to direct your attention to the statements
an the Report, and in doing so I beg to say that I depre-
cate comparison with any other body in a spirit of rivalry.
Mr. BIANCONI—I beg at once to disclaim anything
like disrespect in the comparison which I instituted with
the Provincial Bank.
The CHAIRMAN—It is an historical fact, and as an
historical fact, we may be at perfect liberty to refer to it,
in congratulating ourielves on the present state of our
affairs, that they are now more prosperous than
those of the Provincial Bank were at a similar
period of their history. No institution, however, can be
better conducted than is the Provincial Bank of Ireland.
may therefore allude to the Report of that Bank, who
have stated the situation of Ireland during the last year.
I dare say there is no gentleman present who has not
read that Report ; it has shown the difficulties in which
the agricultural and commercial interests in Ireland
have been placed ; these interests depend in a great
measure on agriculture, as there is scarcely any
manufactures there. The Provincial Bank in their
:Report have gone fully into the causes of depression ex-
ng in Ireland, giving, if we wanted it, an ample
'apology for our making a more unfavourable balance for
the last year than we have done ; but there is no neces-
sity for such an apology, for, notwithstanding the de-
pression in Ireland, and notwithstanding that the effect
sof the tariff has been to strike down in price every arti-
oie in which Ireland dealt, and to cause an apathy—
, cessation of dealing—a. falling of price, unusual in any
odier period of commercial history--notwithstanding we
haves
had to contend with such a state of public affairs,
it for us to come before the Proprietors'
it is c
favourable view than with a wore n on any former oc-
casion.- —(Hear, , hear.) I will now apply myself
to the
the question of one of the
Proprieto rs
with respect to the account of profit
and loss, ,pint suggested in
Tom the year 1838 to the present period.- The
Provincial . sank has had this advantage over us—for a
great many' years, nothing in the nature of domestic
calamity ha s pressed upon its resources, or pre•
Tented its springs from extending throughout
circumstanced—we
the land. 'We were differently
scarcely carnse into existence before the Agricultural
Bank failed and stopped payment, and the consequence
..of that was, that a suspicion was created against every
Bank, a run took place upon every Bank, and the con-
,sequence was a great accumulation of expense in meeting
that run. It is true that we had better means than per-
haps any concur: of meeting those expenses, because I had
previously thrown out that it was my conviction that
the Agricultural Ban:: could not continue, judging from
the manner it was going on. The stopping of that Bank
caused naturally a run of; our Bank ; we met every lia-
bility in every localitWheers)—and the result was,
-that that which was iny—convein.vit and expensive in the
`first instance, established us in the Dilblic mind, when they
' found and saw that at an early peia:ld of our Institution,
we were able to meet every demand ; so that that which
was at first a source of weakness, becalm a source of
strength. For one half year we made n o dividend ; we
_made one, however, in 1838, and eve! 'V year since.
The nett profits, in 1838, were 20,7971.; :he dividends
were 17,500/, ; and that left, as a- reserved fund, the
-sum of 5,297/. In December, 1839, lar profits
• increased to 27,336/., the dividends, at 5 five. per cent.,
were 17,500/., leaving to the reserved fund t',8361. in
.s,ddition to the former. In 1840 we increased ti:e divi-
dend to six per cent., that increased our expenditure in
5001. Our the payment of dividends by the sum of 3
_profits in that year were 27,7454 and the dividends
'were 21,0004 and we added to the reserved
"find 6,7451., which would have been increased to
upwards of 10,000 L if the dividend had not been in-
creased to six per cent. • so that instead of falling off
our; profits had increased. In 1841 the profits were

28,7981, while in 1838,they were ouly 22,797/, and that i
increase you mutt remember has taken place in one of
the worst years for commercial purposes in Ireland. The
dividends for the last year were 21,0001, and we added
to the reserved fund 7,7981., so that the total
amount of the reserved fund is now 30,081/. You have,
therefore, a progressive increase of profits, and an in-
crease of the dividend. And lam enabled to assure you
that that dividend will not be lessened in future ; that I
am enabled to state, positively, to the Shareholders.—
(Cheers.) I have endeavoured thus to explain, as far as
I understand the point put by the Hon. Proprietor, and
if he seeks any further information, I shall be happy to
give it him.—(Cheers.)
The Rev. Mr. MADGE considered, when the meeting
took into account that they had had for several years
upwards of 20,0001, as a rest, which was not locked,
up, and that all their preliminary expenses had been
paid, that there was not so much cause for congratulation.
The CHAIRMAN said, it was true, all the preliminary
expenses had been paid off, but another extraordinary
expense, tantamount to them, in the last year, had
fallen to be paid. To this he did not wish, to refer,
except to assure the Hon. Proprietor, and to show him,
that there had been one particular payment which,
though it could not occur again, accounted for more
than the difference created by the cessation of
the annual deduction of anything on account of
the preliminary expenses. They had the satis-
faction of knowing that all the preliminary expenses
had been paid ; they had also the satisfaction of know-
ing that there was no probability of any such extraor-
dinary expense falling on them again.
Mr. JOHNSTONE inquired if the adoption of the Report
had been seconded ?
Mr. J. HUTCHINSON seconded the motion, that the
Report be adopted. '
MR. JOHNSTONE thought they had not the information
they ought to have received at this meeting. This
was the only opportunity the Shareholders had of
looking into the affairs of the Bank, and, from
the meagreness of the Reports annually presented,
they went away with as little information as to the state
of the Bank as if they had no Report at all. It was true
that they had stated the amount of the rest, the rest for
the year, and the amount of the profits. But they had
no statement of their liabilities or of their assets, and
he considered, that, as in the case of every other
Bank, they ought to have some detailed report
of the working of the establishment. They ought
to be informed how the liabilities and assets stood com-
pared to each other, that they might see if they were,
really in the prosperous state they were said to be. He
thought that every Shareholder of an establishment of
this sort, whose property was involved, and who was re-
sponsible for the debts of the Bank, should have a
full opportunity of becoming acquainted with the,
working of the concern. He complained of the
meagreness of the present Report, as well as of that
of last year. They ought to have something more than
a statement of the amount of the profits of the year,
and of the dividend paid. He, therefore, as a large
Shareholder, and having a deep interest in the welfare
of the Bank, which he conceived was one of great im-
portance to Ireland, though he had a perfect confidence
in its stability, and in the Company itself, still he thought
they ought to have more information. The Shareholders
ought to have an opportunity of inspecting the accounts
of the Bank ; he thought they ought to have auditors
to inspect the accounts. He should, therefore, propose
that auditors be appointed. It appeared to him, that in
the Report submitted they had not the statement. they
ought to have, according to the Deed of Settle-
ment itself. He drew the attention of the meeting
to the 105th clause of the Deed of Settlement,
which provided that in the Report laid before the Annual
General Meeting there should be a statement of their
receipts and disbursements up to the preceding 31st of
December ; they ought to have a statement of the assets,
of the amount of paid-up capital, the amount of bills
in circulation, the balance of profit and loss, the amount
of specie in hand, of the expences of the establishment,
of the amount of the circulation and deposits, and the
balance of the accounts current. Neither of these were
detailed ; in short it was impossible for any Shareholder
to judge of the working of the establishment. He
should, therefore, propose that the Report should not
be received, but be referred back to the Directors, in
order that a detailed statement of these particulars
might be given. He then read a resolution proposing
the appointment of auditors.
The Rev. T. MADGE begged to second the proposition,
and in doing so he would make one observation. The
Hon. Chairman had spoken of the effects which had
been produced by the tariff. He apprehended that those
effects could not have been felt last year, as the tariff had
not then been proposed, and it was impossible for the
public to know what measure Sir Robert Peel would
bring forward.
The CHAIRMAN said, it was quite true that the word
tariff itself,was inapplicable to a former period ; but the
Hon. Proprietor would recollect that the anticipation of
those great changes preceded their actual announce-
ment.—(Hear, hear.) He would find that they had be-
gun to operate sooner than he had given them credit
for ; and he would also recollect that he (the
Chairman) spoke not only of the accounts as they
stood, but that he spoke prospectively of the con-
tinuance of the same dividend, which he did say
after mature consideration of the effect of that tariff.
Now, he did not think that the Directors had any reason
to congratulate themselves upon the way in which the
Hon. Proprietor had treated 'them. The accounts com-
plained of were the same as had been given last year.
There was no complaint then ; no complaint had been
made until the (present moment ; no suggestions had
been made to the Directors to propose more detailed
accounts. The present motion came upon them
with that species of want of candour, which would
not have existed if the accounts of last year had been
I complained of, and the attention of the Directors had
been called to their alleged insufficiency. They had often
• referred to the Provincial Bank—he would recal to their
recollection, that in that Bank the Report had always
been entirely such as had been given by the Directors i
of this Bank.—(Hear, hear.) The Hon. Proprietor was I
quite mistaken in supposing that the account furnished
was the only account offered by the Directors.
If he had asked him for it he would have
given him the very information of the omission of
which he complained. He had taken for granted that
because it was not in the Report, it was not on the table,
which happened not to be the fact. (The Chairman
then read the balance sheet of the Company and con-
tinued.) As to the motion put by the Hon. Proprietor, it
was not for him to remind him what would
be the effect of taking any step from which
it might be inferred that the Directors did not
enjoy the confidence of the Shareholders.--(Hear, hear.)
Auditors were only resorted to in a failing concern, and
theirs, thank heaven, was not a failing concern. He
doubted whether he had power to put the question of
the appointment of auditors, without the notice was sanc-
tioned by, the deed.
Mr. JOHNSTONE said he was not aware that there was
anything in the deed which required that a notice
should be given.
The CHAIRMAN said it was incumbent on the Hon.
Proprietor to show that he had the power.
An HoN. PROPRIETOR said that the Hon. Proprietor
(Mr. Johnstone) was greatly mistaken in supposing that
joint-stock banks in general published complete accounts
of all their proceedings. Neither the Provincial Bank,
nor the North of England Bank, were in the habit of so
doing. Ile would, in short, defy him to state any single
ease in, which it had been done. He thought the
Hon. Proprietor should have taken pains to ascertain the
real truth, instead of venturing to make the statement
which he had done. He knew that in one case of a Pro-

vincial Bank the Directors had distinctly stated to the
Proprietors, " It is for your sake, and not for ours merely,
that wo do not give further particulars."—(Hear.)
Mr. HUTCHINSON said that the object of the Hon.
Proprietor had been fully attained by the accounts
having been read. There was a great want of courtesy
in not having given notice of his intention to move for
the appointment of auditors. If any notice of his
intention had been given by the Hon. Proprietor, there
would have been many Shareholders present, who, having
had no idea of the Hon. Proprietor's intention, had not
come td the present meeting.
The CHAIRMAN asked the Hon. Proprietor if he had
found anything in the deed giving them the authority of
appointing auditors.
Mr. JOHNSTONE—There is nothing in,the deed on the
Ibut, subject, I believe that, as a Proprietor, lam autho-

rised at an Annual General Meeting to move for the ap-
pointment of auditors.
An HON. PROPRIETOR trusted that, as the accounts
had been read, the Hon. Gentleman would not press his
motion against the general sense of the meeting.
The CHAIRMAN said that, as the accounts had been pro-
duced, all had been done that could by the deed be required
to be.done. The only question left was, as to the ap-
pointment of auditors, and the gentlemen would see that
they had no authority for appointing any other officers.
Mr. JOHNSTONE thought, that as the meeting ap-
peared satisfied with the information which had been
given, that information ought on every future Reoc-
casion to be inserted in the port itself.
Unless some observation had been made on the
subject, they would have gone away with the mere
Report of the Directors. In all future Reports, a state-
ment should be introduced to the effect that the accounts
were laid on the table.

The CHAIRMAN said the fault was his. At every one
of their Annual Meetings, the accounts had been inva-
riably laid on the table, and, on the present occasion, the
moment the gentleman had alluded to them, he (the Chair-
man) had called for them and had got them. In his opening
address he had not stated that the accounts of the Bank
kind been laid on the table as usual. It would perhaps
have been more correct if he had done. so. Did the Hon.
Gentleman wish to
press his resolution.t
Mr. JOHNSTONE seeing that h
was clearly against him would withdrawesesehoisf
motion.
The The CHAIRMAN regretted the the
meeting
had
suggested, Report hadi t notha that
been read a second time as 11,.
had been done this discussion might probably have been
saved, for the following passage occurred in the Report.ass e
—(The Right Hon. Gentleman then read the
referred to, in which it was stated that the prosperitytag
the
Bank had attained would be best shown by the accounts
to be submitted to the meeting.)
The question that the Report be received and con-
firmed was then put and carried unanimously.
Mr. JOHNSTONE, before the meeting separated, wished
to direct their attention to the conduct of Mr. Cochrane
one of the Officers of the Bank of Ireland, and concluded
by moving for the appointment of a Committee to in-
vestigate that gentleman's conduct.
After a desultory conversation, the Hon. Proprietor's
motion was negatived, three hands only being held up
in its favour.

The thanks of the Proprietors were unanimously voted
to the Governor and Directors, on the motion of Mr.
Bianconi, seconded by Mr. Wheeler.
The CHAIRMAN, having briefly acknowledged the
compliment on behalf of his brother Directors' and
himself,

Mr. WHEELER moved, and Mr. ROBINS seconded, a