The Sun.
London, England, 1842-07-25 00:00:00

COMMERCIAL BANK OF LONDON

The general meeting of the Proprietery of the
" Commercial Bank of London," took place a few
days since at the banking-house of the Company, in
Moorgate-street. The Report read, being the secon
since the establishment of this banking institution
exhibited a favourable view of the Company's opera
tions. A dividend at the rate of 5 per cent. was de
Glared, leaving a balance to be carried to the gua
rantee-fund. of 2,3921., and for "rebate on curreut
bills." After writing off all bad and doubtful debts,
the • profits were stated at 7,2031., of which the
dividend would absorb 4,000/. The business of this
Company appears to be carried on upon a sober and,
therefore, in the long run, upon the most profitable
principle. The more remarkable part of the pro-
ceedings consisted, however, in an observation of the
Chairman, in reply to one of the Shareholders, who
inquired whether it was not proposed to increase the
capital of the Bank by calling up more instalme is
upon the Shares. The answer was substantially that
no more capital would be called up at present, looking
at the depressed state of trading affairs, and the
difficulty of employing capital at once safely and
profitably. But, remarked the Chairman emphatically,
he had learned from experience the
complicated em-
barrassments, arising from a redundancy of capital in
banking concerns, beyond the requirements of legiti-
mate banking business. The Manchester Banks, with
which he had some practical experience, were
a case in point. Large paid-up capitals had
been accumulated in those establishments under
the mistaken calculation that, whilst adding to
their security and extending
their credit, they would
serve to increase business indefinitely and so lead to
the return of larger dividends to the Shareholders.
In the result, however, both Directors and Share-
holders were most miserably disappointed. For the
former found themselves with hundreds of thousands of
capital beyond the wants of any secure and legitimate
banking operations, and, therefore, they became
tempted, and yielded to the temptation, to extend
credits and increase their transactions beyond any
safe control, in order, at whatever risks, to be able to
meet their Shareholders with a flourishing account of
profits and dividends. They were only too ready to
make advances and squander discounts upon
men notoriously of straw, upon the sole re-
commendation of their being shareholders in the
bank. All this arose from being so flush of
money as to be unable to find safe investment or use
for it in the regular way of business, whilst at the
same time it was felt that for the credit of the bank it
was necessary to keep up a large rate of dividend upon
a capital much too large for the limited range of pru-
dent employment. The shareholders who looked to
the splendour of a large paid-up capital as a certain
source of credit and profit, and looked no further,
were gratified in the commencement with the
payment of large dividends and the show of large
profits, only to be awakened at last to the miserable
reality of shoals of bankrupt bills and customers, the
discontinuance of dividends and finally a wind up of
the bank, with not always a perfect liquidation of
accounts. As the Chairman properly remarked,
the " Commercial Bank" enjoyed as much paid-up
capital as for the time served all the pur-
poses of profitable management and returns ;
when times were more propitious, and as the circle of
action could be more extended benifieially and cau-
tiously, then would arrive the occasion when, in the
interest of the Bank, it would bp found advisable to
enlarge capital to meet the growing (greatness of its
operations. Such management, it may be observed,
is the part of sound judgment and wise discrimination.
As it is, the Bank enjoys no inconsiderable command
of means.
head of " balances to
Although its paid-up capital amounts only
underts,
te,thineporary
to 80,0001. upon a capital stock liable to be called up
tcoustlo
and of a more
the large sum of
permanent nature, nearly
247,0001.
max be found, and a large proportion of these deposits
is Of course available as so much capital stock for dis-
counts, advances on securities, and other business car-
rerf,"ootlhlt yisetdeposi
car-
rying profit. —2llO • Herald.
Morning

the Giraffe, from Rotterdam, arrived off the Custom
House yesterday with the Dutch mail.
Sot
f.
characters,Yit one being a
The General Steam Navigation Company's
vessel
MR. OXBERRY'S BENEFIT.--This excellent come-
dian. whose benefit is announced for next Wednesday, at the
English Opera House, hasp repared a rich and varied enter-
s, and Capers and
tainment for his friends and patrons on the occasion. In Yel-
low Kids, he himself is to figure as the fantastic dancing-mas •
tceor.ronlents,Ghr.
eizealll
se
0, °ern:
titled grandee, and the other a.j.esting servant, into which he
will doubtless infuse that exquisite humour of which he is so
.c.ttsCgalmbdf:a6cfe
great a possessor. Mr. Wieland andother grotesque 'dancers,
with songs by that charming vocalist, 'Mrs. H. p. Grattan,
form also a part of the lirogamme ; while the effective aid of
Harley, Vining, 0. &BAN Niss Faithrother, and Mrs. Humby,
will doubtless make the evening gv off ;with mare than uival
.eclat. We wish Mr. Oxberry every success that his own moit
sanguine expectation would desire.
NEW NODE OF DYlNG—Bylying flat upon a mill-
stone while performing its evolutions, sleep is soon produced,
and death without pain would be the result if the experiment
were greatly protrached.—Philosophy ,:f Sleep.
The General Steal* Navigation Company's steam-
ship, Rainbow, landed her passengers at the Brunswick
Wharf, Blackwell, this morning, after
a passage of 17
hours. Had she not been detained by f014,-...,
she would
have accomplished the passage in 15i hours. Several
families of distinction have already secured cabins for
her next passage.
Sir John Orde and family arrived from the Con-
tinent yesterday by the mail packet Giraffe, from Rot-
terdam.
When all is done, human life is, at the best, but
like a froward child, that . must he played: with and
.. ~
humoured a little to keep it quiet till it fella asleep, and
then the care is over.—Sir IV Temple.