Audited and found correct according to the books, vouchers, and securities at the head office, and to the certified returns made by the several branches in South Africa.

JAMES GLEGG,
WILLIAM WHITEFORD,

Auditors.

UNION BANK OF SCOTLAND.

FORTY-NINTH annual report. · ·

The directors present herewith the usual abstract statement of the bank's affairs made up as at 2nd instant. This statement, together with the balancesheet on which it is founded, has this year been certified by independent auditors, as afterwards more particularly explained. The year will long be remem bered for its banking and commercial disasters, and for the calamitous results that have followed the collapse of a neighbouring institution, which had engaged in operations and modes of finance having no relation whatever to legitimate banking business. By these exceptional disturbances the bank has been but little affected. The balance at credit of profit and loss account, after providing for rebate on bills discounted, and for all bad and doubtful debts, amounts to £131,433. 16s. 10d., to which there has to be added the balance brought from previous year, £10,974. 16s. 5d., making a total of £142,408. 13s. 3d. Out of this the directors recommend that there be set aside for dividend, at the rate of 12 per cent. per annum, free of income-tax, payable in equal proportions, on 10th May and 10th November next, £120,000; that there be applied in reduction of bank offices £5,000; and that there be carried forward in profit and loss account £17,408. 13s. 3d.: £142,408. 13s. 3d. The bank's rest, or surplus profits, stands at £330,000, exclusive of the whole year's dividend and balance in profit and loss account, which together amount to £137,408. 13s. 3d. The directors have to report that the extension of the head office in Glasgow and the new head office in George Street, Edinburgh, which have been in progress during the last three years, have now been completed; and greatly improved accommodation for the conduct of the bank's business has thus been provided. Besides the valuable properties at the head offices, the bank owns, in freehold, the premises at 79 branches throughout Scotland, and the amount now standing in the account for offices in the occupation of the bank represents the original cost, less about 25 per cent. written off in past years. The bank's property in Cornhill, London, was acquired on favourable terms: and besides affording convenient accommodation for the branch, will yield a fair return from the portions let off. The directors have to report, with much regret, the death of Mr. Samuel Hay, who for many years was manager in Edinburgh, and latterly sat as a member of the board; and that Mr. Dalglish, who, with occasional intermissions, has served as a director for thirty years, resigned last year on account of failing health. There also retire at this time, by rotation, the Lord Provost of Edinburgh and Mr. Frederick Pitman. To fill up these vacancies, the directors recommend the election of Mr. Seton Thomson, insurance broker, Glasgow, in room of Mr. Dalglish; of Mr. John Young Buchanan, 10, Moray Place, Edinburgh, in room

of Mr. Hay; and the re-election of the Lord Provost and Mr. Pitman. The question of instituting a system of audit of the accounts of joint-stock banks, independent of the ordinary management, has been much discussed during the past six months, and the board, after giving the subject their most careful consideration, have resolved to recommend its adoption by the bank. A resolution making the necessary alteration on the contract of co-partnery will be submitted to the meeting, and if approved, a special general meeting of proprietors will be held on an early day for its confirmation. In the meantime, and in order to the audit being brought into operation at this year's balance, the board requested Mr. Crum Ewing, the deputy-chairman of the bank (in the absence, through indisposition, of the chairman), to nominate auditors, he being, by the bank's contract, the official representative of the proprietors, and as such precluded from taking any part in the ordinary management. This duty Mr. Crum Ewing kindly undertook, and after conferring with some of the largest holders of the bank's stock, he appointed Mr. James Haldane (of Lindsay, Jamieson, and Haldane, Chartered Accountants, Edinburgh), and Mr. William Mackinnon (of M'Clelland, Mackinnon, and Blyth, Chartered Accountants, Glasgow), to act as auditors at the present time. These gentlemen have, accordingly, been in attendance at the bank, and have received every facility for the efficient performance of their duty. Their report is appended to the abstract state of affairs.

Abstract State of Affairs of the Union Bank of Scotland, 2nd April, 1879.

Total liabilities to the public

Capital paid up, £1,000,000; rest account, £330,000; profit and loss account, 2nd April, 1878, balance brought forward, £10,974. 16s. 5d.; profit and loss account, 2nd April, 1879, £131,433. 16s. 10d.; total liabilities to the partners

ASSETS.

Cr.

Bills of exchange, local and country bills, cash credits, and other advances

£7,477,029 16 2

283,672 5 1

75,523 2 0

Bank offices: Glasgow, Edinburgh, and branches
London property

Notes of the City of Glasgow Bank

Consols, money at call, and short loans in London,
£1,860.490. 178. 5d.; other securities in investments
£685,963. 10s. 8d.; gold and silver coin and notes of
other banks: at head offices, £368,775. 16s. 10d.; at
branches, £191,825. 178. 6d.

REPORT BY THE AUDITORS.

82,958 0 0

3,107,056 2 5

£11,026,239 5 8

We, the undersigned, being the auditors appointed on behalf of the proprie tors of the Union Bank of Scotland, having had full access to the books of the bank, and to the returns from the branches, beg to report as follows:

(1.) We certify that the preceding state of affairs, as at 2nd April, 1879, cor. responds with the books of the bank.

(2.) We have examined the securities and documents representing the reserves of the bank, and its investments entered under the head of consols, money at call, and short loans in London, amounting to £1,860,490. 17s. 5d., and other securities and investments, amounting to £685,963. 10s. 8d., and are satisfied of the accuracy and value thereof.

We also certify that we have examined the cash at the head offices in Glasgow and Edinburgh, amounting to £368,775. 16s. 10d., and found it correct.

NOTE.-On this occasion we were not able to test some of the items under this head at the exact date of the balance (2nd April), but from our examination at the date of the present report, we are satisfied that these were then in order.

(3.) We have satisfied ourselves that the system of continuous audit main. tained by the bank is sound and efficient.

(4.) The returns prepared for and submitted to the board and its committees throughout the year, are, in our opinion, well calculated to enable the directors to superintend the business of the bank.

JAMES HALDANE, C.A.

Glasgow, 21st April, 1879.

WILLIAM MACKINNON, C.A.

Communications.

To the Editor of The Bankers' Magazine.

COLLECTING BILLS ON AUSTRALIA.

SIR,-Will you kindly reply to the following inquiry ?—

A manufacturer sells goods to a customer in Australia, aud draws a bill in a set of three for the money at sixty days' sight. This bill he can sell at a discount of 6 per cent. Is there no better way of collecting the money than this? Yours truly,

JUNIOR.

[He could send it for collection through one of the Australian banks at a charge of per cent., and the exchange on remitting to London; this would involve the loss of the use of the money for a considerable time.ED. B.M.]

PER PRO ENDORSEMENTS.

[Bank Cashier may look for a reply in our next number.-ED, B.M.]

TENDERS FOR BILLS ON INDIA.

TENDERS were received at the Bank of England, 30th April, for £250,000 in bills on India. The amounts allotted were:-To Calcutta, £213,700; and to Bombay, £36,300. Tenders on both Presidencies at 1s. 7 3-16d. will receive about 14 per cent. ; above in full.

Tenders were received at the Bank of England, 7th May, for £250,000 in bills on India. The amounts allotted were:-To Calcutta, £112,600; to Bombay, £104,000; and to Madras, £33,400. Tenders on Calcutta and Madras at le. 74d. will receive about 64 per cent.; and on Bombay at that price in full.

Tenders were received at the Bank of England, 14th May, for £250,000 in bills on India. The amounts allotted were:-To Calcutta, £205,200; to Bombay, £44,800. Tenders on both Presidencies at 1s. 7 1-8d. will receive about 41 per cent.; above that price in full.

Tenders were received at the Bank of England, 21st May, for £250,000 in bills on India. The amounts allotted were:-To Calcutta, £245,800, and to Bombay, £4,200. Tenders on both Presidencies at 18. 7d. will receive about 83 per cent.

BANKING MOVEMENTS.

THE recently nominated committee of influential shareholders of the Oriental Bank Corporation have, with the concurrence of the directors, selected Mr. Alexander Forrester Brown, formerly of Messrs. Parry & Co., of Madras; Mr. Bazett David Colvin, of Messrs. Colvin, Cowie, & Co., of Calcutta; Mr. Andrew Richard Scobie, late Advocate-General of Bombay; and Mr. Hugh David Sandeman, of the Bengal Civil Service, as the most fitting candidates for the ensuing election of directors.

The following circular has been issued by Messrs. Wilkinson & Kendall, of Leeds, to their customers, their bank having been in operation about nine years:"Borough Bank, 11, Albion-street, Leeds, May 1st, 1872.-Dear Sir,-In consequence of the great stagnation in trade, we have determined to discontinue our banking business. We shall be glad to pay over to you on application the balance of your account now in our hands. Allow us to take this opportunity of thanking you for past favours.-We are, dear sir, yours truly,

"WILKINSON & Co."

After a lengthened service, Mr. Patrick Campbell has resigned the appointment of chief manager of the Oriental Bank Corporation, and will be succeeded by Mr. W. Mather Anderson, who has been for twenty-six years an officer of the bank.

The retirement on a full pension is announced of Mr. Henry Gerald Aylmer, the chief accountant of the Bank of England, after a service of nearly forty-three years. Mr. Samuel Octavius Gray, the deputy-chief cashier, has been appointed by the court of directors to succeed Mr. Aylmer.

Messrs. Hammond & Co., Canterbury Bank, inform us that they have made arrangements for Mr. John McMaster to join their firm, which will consist of Messrs. William Oxenden Hammond, Charles John Plumtre, Thomas Hilton, George Furley, and John McMaster.

Messrs. Beckett and Co., York & East Riding Bank, give notice that in consequence of Messrs. Swann, Clough & Co. having closed their bank, they have opened a branch bank in York, and having arranged with the receiver of Messrs. Swann, Clough & Co. for the purchase of the premises of the York Bank, they will carry on business there in future.

THE INSTITUTE OF BANKERS.-The inaugural address was delivered by the president, Sir John Lubbock, Bart., M.P., on 22nd May, and is printed in extenso in our present number. Mr. R. H. Inglis Palgrave will read a paper on "The Three Great Banks of Europe," at the London Institution, on Thursday, 19th June, at 5.30 p.m. The subject of the essay, for which a first prize of £20 and a second prize of £10 will be awarded at the January Meeting of the Institute, 1880, is, "The Progress and Development of Banking in the United Kingdom from the year 1800 to the present Date.' The closing of the list of original members is extended to 30th June. For further information, address the secretary, Mr. G. Dayroll Reed, 11 and 12, Clement's Lane, E.C.

Ir is with regret that we have to announce the resignation by Mr. David Davidson of his appointment as treasurer of the Bank of Scotland, on account of the state of his health. Mr. James Adams Wenley, manager of the Glasgow branch, has been appointed by the directors to succeed Mr. Davidson.

GILBART LECTURES.-We are obliged by want of space to postpone printing the last of the course till next month.

MONTHLY CHRONOLOGY.

April 29.-Prince Battenburg was elected Prince of Bulgaria by acclamation. May 1.-The Bank of Bengal has reduced its minimum rate of interest and discount from 8 to 7 per cent.

2. The tenders for the New South Wales Government loan for £3,249,500 were opened to-day at the Bank of New South Wales. The amount tendered for was £7,860,900. All tenders at £98. 88. will receive about one-third of the amount applied for, and those above that price in full.

6.-Cape of Good Hope 4 per cent. debentures for £2,615,600 were disposed of by the Crown Agents for the Colonies. Tenders at £98. 2s. 6d. participated to the extent of about 90 per cent., and those at and above £98. 3s. received in full.

7.-Trade returns for April showed a decline of about a quarter of a million on imports and upwards of a million and a half on exports.

7. The stoppage of the York Bank (Messrs. Swann, Clough & Co.), announced.

8.-Lord Bury announced that Lord Chelmsford had applied for further reinforcements.

8.-Bank of England reserve, 51 per cent.

8.-Yakoob Khan arrived at the British camp at Gundamuk, and telegraphed to the Viceroy his wish for peace with India.

9.-Dr. Siemens gave £10,000 towards the erection of a building for the use of the societies who cultivate applied science.

12. The tenders for the new Indian four-and-a-half per cent. loan for five crores of rupees were opened at Calcutta. Tenders at 94 and upwards receive in full; 40,545,000 rupees have been allotted.

15.-The Bank of Bengal has reduced its minimum rate from 7 to 6 per cent. The Bank of Bombay has also lowered its rate from 9 to 8 per cent.

15. Bank of England reserve 51 per cent.

19. The Ameer of Afghanistan accepted a basis of peace.

19. The Durham collieries resumed work after a protracted strike.

19.-Congress in Paris to consider a proposal to connect the Atlantic and Pacific by a canal.

22.-Bank of England reserve 51 per cent.

23.-The Bank of France lowered its discount rate from 3 to 2 per cent. It was raised from 2 to 3 per cent. on the 16th October last.

24.-Queen's birthday, a holiday on the Stock Exchange.

26.-Signature of the Afghan Treaty of Peace.

26.-Sir Garnet Wolseley appointed to the supreme civil and military command

in South Africa.

Monthly Notes.

Messrs. Fenton, of the Rochdale Bank, announce the payment of a second dividend of 2s. 6d. in the pound.

The Bank of New South Wales, at the half-yearly meeting, held in Sydney, declared a dividend and bonus, at the rate of 17 per cent. per annum. The reserve has also been increased by £10,000, and will now stand at £470,000.

Fresh evidence of the recovery of prices in the iron trade has just been furnished. The City of Paris had invited tenders for the supply of 4,000 tons of pipes for the water service in the capital, in three lots. The Fourchambault, Commentry, Terrenoire, and other large manufactories competed, but the prices submitted, which ranged from 210f. to 230f. per ton, were all above the maximum fixed by the City, and the adjudication was postponed.