The statement and balance sheet adopted at the eighth annual meeting, held March 2, 1841, showed: "that, after defraying all the current expenses, and after making ample allowance for all bad and doubtful debts, the net profits of the year amounted to 51,300l. 0s. 9d. Out of these profits the directors had paid in September a dividend for the half-year ending the 30th of June, at the rate of six per cent. per annum, on the capital of 597,280l., and they then declared a dividend at the same rate, for the half-year ending the 31st of December, upon the increased capital of 786,300l. After the payment of these dividends, which together amounted to 41,507l. 8s., there remained from the profits of the year a surplus of 9,792l. 12s. 9d., which added to 46,215l. 3s. l1d., the unappropriated profits of former years, made the surplus-fund, arising solely from Banking profits, amount to 56,007l. 16s. 8d.

Profit And Loss

Dr.

£.

s.

d.

Payment of the dividend on the 10th September, 1841, at the rate of 3l. per cent. on a capital of 597,280l........

17,918

8

0

Payment of the dividend now de-

clared at the rate of 3l. per cent on a capital of 786,300l. . . .

£.

s.

d.

23,589

0

0

Balance of unappropriated profits

56,007

16

8

97,515

4

8

Cr.

Balance of unappropriated profits 31st December, 1840 ....

46,215

3

11

Net profits of the year 1841, after defraying the total expense of management, and making provi-sion for all bad and doubtful

51,300

0

9

97,515

4

8

1842, Jan. 1.

Balance of unappropriated pro-fits brought down ....

56,007

16

8

The popularity and success of the London and Westminster Bank brought a competitor into the field in 1837, when the London Joint-Stock was advertized, and soon after began business. The nominal capital of this company is three millions, in 60,000 shares of 50l. each; 58,070 of these have been issued, and two calls of 5l. having been paid upon them, the actual capital is 589,700l. When Hammersley's failed, the London Joint-Stock Bank took their premises in Pall Mall, and established in them a west end branch. At the ninth half-yearly meeting, held January 12th, 1842, the assets and liabilities, up to December, 1841, appeared to be -

Dr.

£.

s.

d.

To capital paid up, viz., 58,970 shares, at 10l.. each . . . . . . . . .

589,700

0

0

Amount due by the Bank . .

1,403,188

18

11

Amount of the guarantee fund, 30th June, 1841 . . . . . . . .

72,412

19

10

Six months' interest thereon, at three per cent, per annum . .

1,086

3

11

Amount carried to profit and loss account . . . . . . . . . . . . . .

43,660

2

2

2,110,048

4

10

Cr.

By exchequer bills, government stock, and India bonds . . .

171,417

11

10

Bills discounted, loans, and cash

1,902,755

13

0

Building, furniture, etc., in Princes-street . . . . . . . . . . .

24,000

0

0

Ditto, ditto, in Pall Mall . . .

11,875

0

0

2,110,048

4

10

The Union Bank of London, which started in 1839, has a nominal capital of 3,000,000l. sterling, in 60,000 shares of 50l each; 42,280 of these shares (on each of which 10l. has been paid, making the ready-money capital 422,800l.) are in the hands of 730 proprietors. It has three establishments, - a head office in Moorgate-street, and two branches, one in Argyle-place and the other in Pall Mall East, taken when the Metropolitan Bank withdrew from business. At the general meeting held July 12th, 1841, the affairs of the Bank6 appeared to be -

Liabilities.

Dr.

£.

s.

d.

Paid up capital, 10l. per share, on 42,270 shares......

422,700

0

0

6About the best thing a joint-stock Bank can have is a good manager, and perhaps the most valuable talent he can possess is the faculty of judging, when a bill is offered to him for discount, whether it is legitimate or not; that is to say, whether it represents a bond fide transaction between the parties to it. A friend of mine, a bill-broker in the City, tells me, that of all the men he has met in the course of business, the general manager of the Union Bank possesses this talent in the most extraordinary perfection. The moment a London bill is shown him, he can tell whether a transaction to its amount can have properly passed between the parties; and will give off hand the most minute and extraordinarily correct information regarding the means and credit of the drawer, accepter, and endorsers.

Due by the Bank on current accounts, deposit receipts, (inclu-ding interest accrued,) and for bills at six months' date . . .

£.

s.

d.

503,550

5

8

Reserved fund, invested in three per cent. consols., as per contra

2,032

13

0

928,283

18

8

Surplus profit . .

24,573

3

8

952,856

2

4

Assets.

Cr. Cash in the Bank, in the Bank of England, loans, exchequer bills, and bills discounted ....

919,032

14

0

2,213l. 4s. 11d. three per cent, consols, (reserved fund) . . .

2,032

13

0

Bank premises, including freehold building in Argyle-place, and purchase of premises, 4, Pall Mall East.......

15,290

15

4

Preliminary expenses ....

16,500

0

0

952,856

2

4

Appropriation Of The Surplus

Dividend five per cent on paidup capital, viz.:

Twelve months on 211,350l. Six months on . 211,350l.

£.

s.

d.

15,851

5

0

Set apart as an addition to the reserved fund . . . . . . . . . . . . .

2,000

0

0

______ proportion of preliminary expenses . . . . . . . . . .

500

0

0

Undivided profit - carried to profit and loss, new account for bad debts, and rebate of interest on

6,221

18

8

24,573

3

8

Profit, as above, after deducting all expenses paid or due, and interest (7555l. 11s. 1d.) al-lowed to customers on their deposits and current accounts .

24,573

3

8

The Commercial Bank of London is the last of the London joint-stock Banks that came into the field. It differs in point of constitution from its competitors in having its shares of so large an amount as 1000l. each. When Messrs. Wright & Co. failed, the Commercial Bank purchased the house in Henrietta-steet, Covent Garden, and being joined by several new trustees and directors, connexions of the extinct firm, added a West-end branch to its establishment in the city.

By the annexed account laid before the general meeting of the shareholders, July 19, 1841, it will be seen that, after deducting current expenses, and bad and doubtful debts, a balance of 5,658l. 2s. 7d. was left at the disposal of the meeting, from which the directors proposed to declare a dividend of four per cent, on the paid-up capital, to be calculated from the opening of the Bank, and from the day of the payment of the respective calls. This amounted to 2684l. 14s. 3d., leaving a balance for rebate of interest upon bills not due, and to commence the formation of a guarantee fund of 2,973l. 8s. 4d.

Balance Sheet.

Dr.

Subscribed capital . . 400,000£.

£.

s.

d.

Paid-up ditto .........................

80,000

0

0

Balances due to customers of the

Bank ..................

168,977

19

5

Balance carried down after paying current expenses and deducting bad and doubtful debts, being profit . . . .

£.

s.

d.

5,658

2

7

254,636

2

0

Cr.

Cash in hand and government securities..............................

85,566

16

1

Bills discounted, loans to cus-tomers on securities, etc. . .

162,413

6

0

Preliminary expenses ....

6,655

19

11

254,636

2

0

Dividend at four per cent from the opening of the Bank . .

2,684

14

3

Vote to directions........................

1,000

0

0

Balance to profit and loss new account for rebate of interest on bills not due, and to com-mence a guarantee fund . .

1,973

8

4

5,658

2

7

Balance, profit, and loss brought down........................................

5,658

2

7

Account of the Aggregate Amount of all the Notes of Private and Joint Stock Banks in England and Wales in Circulation on the last day of every Week7, from the passing of the Act 3 & 4 William IV, c. 83, to the 28th March 1840.

Date of Weeks.

Private Banks.

Joint Stock Banks.

Total.

No. of Returns

Amount.

No. of Returns.

Amount.

1833.

£.

£.

£.

August 31 ..

220

5,667,963

30

1,061,007

6,728,970

September 7

235

5,989,958

30

1,087,018

7,076,976

October 5 ..

246

6,646.129

31

1,197,346

7,843,475

November 2

249

6,874,275

32

1,242,777

8,117,052

December 7

250

6,355,129

34

1,203,610

7,558,739

1834.

January 4..

258

6,507,120

36

1,224,056

7,731,176

February 1

259

6,638,682

39

1,294,231

7,932,913

March 1....

259

6,444,023

39

1,407,874

7,851,897

April 5 ....

259

7,017,085

39

1,486,521

8,503,606

May 3.......

259

7,004,781

43

1,519,641

8,524,422

June 7 .....

263

6,526,314

44

1,475,909

8,002,223

July 5 ............

265

6,341,756

45

1,531,902

7,873,658

August 2 ..

265

6,369,863

46

1,513,623

7,883,486

September 6

266

6,463,578

48

1,607,420

8,070,998

October 4 ..

268

6,906,588

48

1,765,999

8,672,587

November I

268

7,054,164

48

1,854,843

8,909,007

December 6

268

6,464,587

48

1,750,102

8,214,689

7 The original return (Report 1840; Appendix, pp. 265-270; Report 1841; Appendix, pp. 281-282.) from which this account is abridged, is made up for the last day of every week - I have thought it enough to give here the circulation on the last day of the first week in each month.

Date of Weeks.

Private Banks.

Joint Stock Banks.

Total.

No. of Returns.

Amount.

No. of Returns.

Amount.

1835.

£.

£.

£.

January 3..

271

6,523,445

50

1,760,795

8,284,240

February 7

271

6,750,187

50

1,881,924

8,632,111

March 7 ......

271

6,554,401

50

1,915,386

8,469,787

April 4 ....

270

6,839,456

50

2,015,794

8,855,250

May 2......

270

7,052,291

50

2,168,962

9,221,253

June 6 ....

272

6,663,842

50

2,169,121

8,832,963

July 4......

275

6 500,008

50

2,108,105

8,608,113

August 1 ..

275

6,544,808

50

2,110,392

8,655,200

September 5

276

6,413,353

52

2,130,176

8,543,529

October 3 ..

276

6,797,961

52

2,299,843

9,097,804

November 7

276

6,970,255

52

2,415,352

9,385,607

December 5

276

6,608,850

53

2,354,200

8,963,050

1836.

January 2 ..

276

6,619,151

56

2,335,694

8,954,845

February 6

277

6,914,329

56

2,608,253

9,522,582

March 5....

277

6,819,975

58

2,794,322

9,614,297

April 2 ....

278

7,277,905

59

3,000,846

10,278,751

May 7 ___

279

7,359,199

59

3,224,984

10,584,183

V

June 4 ....

281

6,772,042

63

3,130,530

9,902,572

July 2......

281

6,658,109

73

3,253,224

9,911,333

August 6 ..

282

6,701,142

75

3,510,969

10,212,111

September 3

282

6,579,598

77

3,612,624

10,192,222

October 1 ..

281

6,810,934

78

3,866,380

10,677,314

November 5

281

7,022,495

84

4,093,460

11,115,955

December 3

281

6,700,680

84

3,774,374

10,475,054

1837.

January 7 .....

281

6,772,002

84

3,629,092

10,401,094

February 4

281

6,838,711

84

3,636,159

10,474,870

March 4....

281

6,551,451

83

3,568,403

10,119,854

April 1 ....

281

6,856,653

83

3,705,310

10,561,963

May 6......

283

6,922,041

83

3,721,582

10,643,623

June 3 ....

283

6,466 058

83

3,510,523

9,976,581

July 1.......

283

6,202,125

83

3,355,703

9,557,828

August 5 ..

283

6,210,379

85

3,356,367

9,566,746

September 2

284

6,240,719

86

3,439,453

9,680,172

Private Banks.

Joint Stock Banks.

Date of Weeks.

No. of Returns.

Amount.

No. of Returns.

Amount.

Total.

1837.

£.

£.

£.

October 7 ...

284

6,820,951

86

3,878,902

10,699,853

November 4

284

6,864,925

87

3,940,748

10,805,673

December 2

284

6,452,399

88

3,705,302

10,157,701

1838.

January 6 ..

287

6,587,154

88

3,753,874

10,341,028

February 3

287

6,692,149

88

3,812,376

10,504,525

March 3....

288

6,564,012

88

3,864,637

10,428,649

April 7 ....

288

7,087,154

88

4,301,350

11,388,504

May 5........

288

7,224,697

88

4,442,554

11,667,161

June 2 ....

288

6,890,126

88

4,315,839

11,205,965

July 7 ....

287

6,778,594

88

4,268,890

11,047,484

August 4 ..

287

6,717,001

88

4,208,928

10,925,929

September 1

287

6,672,906

88

4,207,958

10,880,864

October 6 ..

286

7,103,192

88

4,587,571

11,690,763

November 3

286

7,347,362

88

4,732,763

12,080,125

December 1

286

7,113,915

88

4,529,068

11,642,983

1839.

January 5 ..

288

7,374,947

88

4,547,945

11,922,892

February 2

288

7,479,656

88

4,560,061

12,039,717

March 2....

288

7,273,164

88

4,571,060

11,844,224

April 6.....

288

7,689,795

89

4,839,408

12,529,203

May 4 ....

288

7,748,524

90

4,902,757

12,651,281

June 1 ....

288

7,212,658

90

4,508,055

11,720,713

July 6 ....

288

6,946,327

90

4,298,203

11,244,530

August 3 ..

288

6,737,356

90

4,131,718

10,869,074

September 7

288

6,645,097

90

4,073,928

10,719,025

October 5 ..

288

7,258,845

90

4,367,841

11,626,686

November 2

288

7,391,440

91

4,437,973

11,829,413

December 7

288

6,795,663

91

4,036,638

10,832,301

1840.

January 4 ..

281

6,552,621

90

3,896,538

10,449,159

February 1

280

6,605,147

91

3,931,991

10,537,138

Date of Weeks.

Private Banks.

Joint Stock Banks.

Total.

No. of Returns.

No. of Returns.

Amount.

Amount.

1840.

£.

£.

£.

March 7. ...

280

6,354,570

91

3,897,258

10,251,828

April 4 ....

287

6,996,195

92

4,148,317

11,144,512

May 2 ....

287

7,221,242

92

4,268,085

11,489,327

June 6 ....

288

6,685,347

93

4,071,835

10,757,182

July 4 ....

288

6,352,248

93

3,777,693

10,129,941

August 1 ..

289

6,291,093

93

3,576,200

9,867,293

September 5

289

6,207,656

93

3,594,184

9,801,840

October 3 ..

289

6,706,135

93

3,911,915

10,618,050

November 7

290

6,716,806

93

3,921,805

10,638,611

December 5

290

6,251,688

94

3,626,401

9,878,089

1841.

January 2 ..

287

6,130,551

91

3,514,170

9,644,721

February 6

287

6,256,530

91

3,592,332

9,848,862

March 6 ..

287

6,223,647

91

3,656,352

9,879,999

April 3 ....

287

6,600,967

91

3,860,119

10,461,086

May 1 ....

287

6,641,808

91

3,945,429

10,587,237

June 5 ....

287

6,061,945

91

3,619,203

9,681,148

N.B. These two sets of official returns, one weekly and the other quarterly, have been published by the Stamp Office, and printed by order of the House of Commons. They differ in amount as much as two millions, which has been ascribed either to the failure of certain Banks, to their having joined other companies, or to their inability to comply with the directions of the committee.