arrangements of the London and Westminster Bank tend to localise their branches, so as to give them as much as possible the character of independent institutions, combined with the additional security and accommodation to be obtained from a more extended and wealthy establishment.-Illustrated London News. THE SOUTH SEA COMPANY. THE dividend declared on Thursday, the 4th January, at the court of the South Sea Company was 1 per cent., free from income tax. The sub-governor (Mr. C. Franks) explained that the advantageous employment of the funds belonging to the corporation enabled the directors to maintain the old rate of distribution. The assets, it is estimated, will produce £119 3s. per £100 South Sea Stock, when they shall ultimately be divided, and in the meanwhile the board are prepared to relieve those who may wish at once to retire, by purchasing their interest at £118. In this estimate the building is still valued at £25,000, but it is expected to realise a much larger sum. The amount of South Sea Stock now in the hands of the public is about £2,100,000, the original capital having been £3,662,000, and the company possessing, through purchases, £1,528,000. With regard to the general arrangements for winding up, the directors state considerable progress to have been made, and that they will be prepared shortly after July, when their Exchequer bills will have been paid off or sold, to divide, if not the whole, the greater portion of their assets under their control. In the £2,700,000 of unfunded debt, the property of the company, a reduction has lately taken place, through sales, &c., of about £1,000,000, the present amount being £1,675,000. The sale of the building is fixed for February, and, if that shall be completed without any impediment, then the entire assets can be appropriated. It is stated that it is the unanimous desire of the directors to have the affairs of the corporation liquidated with all possible despatch, and that that one object, with a due regard to the maintenance of the dividend, has solely occupied their attention since the last half-yearly court. The annexed accounts exhibit the position of the company at the latest moment :State of the South Sea Company's affairs on the 5th January, 1855. Amount of the company's bond debt Interest computed to be due thereon Half a year's interest on South Sea Stock.. Arrears of dividends on ditto £4,326,756 9 1 1,783,187 11 1 £4,500 0 0 64,098 14 6 21,403 5 6 2,097 16 3 95,039 10 8 4,326,756 9 1 2,543,568 18 0 Carried forward £4,421,795 19 9 Sundry public securities belonging to the company:- 1,832 10 5 £1,783,187 11 1 ..1,675,600 0 0 496,193 3 1 271,047 19 2 100,000 0 0 47 12 0 £26,747 16 3 On Exchequer bills, computed to On Exchequer bonds, computed to 32,571 16 7 2,780 16 5 On Loans, computed to January 5.. 64,813 16 11 0 15 3 476 12 6 23 12 9 25,000 0 0 170 0 0 £4,421,795 19 9 An account of the clear Revenue and Profits of the South Sea Company for the half-year ending 5th January, 1855. (Made out pursuant to Act 6 George II.) THE HALF-YEARLY MEETINGS. THE success of joint-stock banking enterprise is being more rapidly developed than might have been expected. Although it was well known that the profits of the principal establishments had largely increased during the last six months, it was scarcely anticipated that they would have permitted such large rateable distributions. With dividends ranging from 14 to 20 per cent., the extension of operations is made so manifestly apparent that the most sceptical must now be satisfied that the system has not only taken deep root in the metropolis, but that also it is in a most flourishing and satisfactory position. The results of the various meetings, reported in extenso under the proper head, exhibit the progress of business, and the statistics presented in the balance sheets. The London and Westminster, on its capital of £1,000,000, pays a dividend at the rate of 16 per cent.; and the London and Joint-Stock Bank even exceeds that amount, by declaring one at the rate of 20 per cent. The meetings of the London and County and the Royal British Banks have not yet taken place, but there is nevertheless every reason to believe that the amount of profits will allow satisfactory dividends. The Union Bank of London and the Commercial Bank of London not holding half-yearly meetings, have made their usual official announcements-the one declaring a payment at the rate of 15 per cent., the other supporting a favourable position. With trade depressed in Australia, and the apprehension that losses may be incurred through the failures which have taken place, the Union Bank of Australia is enabled to divide at the rate of 30 per cent., and leave, irrespective of its reserve fund, a margin of £66,000 for contingencies. The enormous returns of this establishment, one of the best managed of the colonial banks, show the vast strides of commerce in New South Wales and Port Philip during the last three years, which, although it is likely to be checked by the re-action now experienced, will not be permanently damaged, when the first effects of ephemeral speculation shall have passed away. The dividend of the Colonial Bank is at the rate of 4 per cent., with an intimation that there may be shortly a slight increase, the course of business in the West Indies having proceeded more smoothly, as far as this bank is concerned, than the directors themselves imagined. In concluding this brief notice of the career of joint-stock banking, it is gratifying to state that, while the material interests of directors and proprietors have so greatly improved, those of the managers and other subordinate officers have not been neglected. Both at the London and Westminster and the London Joint-Stock meetings the question was brought forward, and elicited the warm support of the majority of the shareholders. The expression of opinion in these cases, although it may not immediately produce a direct influence, must eventually have a beneficial effect. The private bankers, while making large profits, have not overlooked the services of their clerks, and several instances are mentioned in which these firms have manifested a liberality deserving of emulation by the whole of the body. Messrs. Jones, Lloyd and Co. have presented £1,000, to be divided among their active staff; and Messrs. Smith, Payne and Smith have increased the salaries of their establishment at the rate of 10 per cent. MERCANTILE SUSPENSIONS. We regret to have to present so formidable a list of mercantile failures since our last number. It appears that, although many establishments at the close of the year found themselves in a very unsatisfactory position, it was not until the month of January that the non-completion of their engagements compelled them to suspend. In the subjoined list, there will be found no less than nine metropolitan firms, the majority holding a highly respectable position, who, through connection chiefly with Australia, have been compelled to wind up. The suspension of Swain, Webb and Co., of Huddersfield, was not announced under this head last month, although it was, at the latest moment, mentioned in our monthly chronology. The American stoppages include houses of reputed wealth and position, all of whom have been overwhelmed by the violence of the panic which has now so long prevailed in the United States. December.-Swain and Webb, Huddersfield and Australia, merchants. Lonergan and Co., London, Spanish and West India Trade. Krohn and Co., London, general merchants. Home, Eager and Co., London, Cape and Australian trade. Millers and Thompson, Liverpool, ship owners and brokers.' Jannary.-Spence and Co., Liverpool, iron trade. Boyd, Lawson and Co., Glasgow, iron trade. Brander and McKenna, New Orleans, cotton trade. W. G. Ray, New York, produce broker. Foster and Stephenson, New York, produce brokers. Horn and Sergeant, Detroit, bankers. G. Lorimer and Co., Detroit, bankers. Howard, Smith and Co., Detroit, bankers. Capron and Lathrop, Connecticut, bankers. With regard to Messrs. Swain and Webb, although it is said their liabilities reach £135,000, nothing certain can be ascertained until accounts are received from Australia. In the case of Messrs. Morewood and Rogers, who are to liquidate under inspection, the debts have been represented at £180,000, and the property at £250,000. A portion of the latter, it is mentioned, consists of Australian estates, but what they will really realise remains to be proved. Messrs. Kesteven Brothers fail for £40,000, and will, according to report, pay 7s. in the pound. Messrs. Aubertin Brothers, through their connection with Messrs. Krohn (here again, difficulties through Australian adventures), have stopped for £76,000, and will pay about 8s. in the pound. Little can at present be ascertained with regard to Messrs. Krohn's affairs, the resident partner in London having absented himself to join his brother at Melbourne. Messrs. Lonergan, it is alleged, fail with liabilities equal to £130,000, and the prospects of liquidation are believed to be favourable. So, again, with Messrs. Rogers, Lowrey and Co., whose debts are put down at about £150,000, the Cape and Australian trade having drained their available resources. Messrs. Home, Eager and Co. have suspended for £130,000, and the assets it is stated will furnish a fair dividend. In connection with Messrs, Abbot, Nottingham and Co.'s failure, there is reason to believe that no great deficiency will be found between the stocks and assets, but it is asserted that the partners refused to proceed immediately they discovered there was not 20s. in the pound. Messrs Millers and Thompson have, like many others, been compromised by the discouraging result of Australian enterprise, and their liabilities amount to £60,000. In their case, the assets will yield a favourable distribution, if they can be realised under advantageous circumstances. The liabilities of Messrs. Spence and Co., and Messrs. Boyd, Lawson and Co., appear to be heavy. While admitting a hope that these favourable prospects may be secured in all instances where they have been alluded to, we cannot, however, neglect reminding our readers that previous experience teaches the futility of placing any strong reliance in such statements. Banking and Commercial Law, ON THE LAW RESPECTING PAYMENT OF CHEQUES, WHERE THE MONEY OF A PRINCIPAL IS LODGED BY AN AGENT WITH BANKERS. THIS is a subject of some importance to bankers, and is not clearly understood. |