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PUBLIC

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RECORD.OFFICE

19

wwimmimmC.O.537

Reference:

33

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO

7.

25 all

Chartered

MERCANTILE BANK OF INDIA, LONDON, AND CHINA.

(INCORPORATED BY ROYAL CHARTER)

CAPITAL PAID UP, £750,000.

COURT OF

REPORT

TWENTY-FIRST ANNUAL REPORT

OF THE

DIRECTORS TO THE SHAREHOLDERS.

The Directors now present the Annual Balance Sheet, Profit and Loss Account, and Reserve

Fund Account, made up to 31st December last,

The Profit and Loss Account, which showed a profit for the first half of the year, shows for the second half, after providing for bad and doubtful debts, a loss which has been transferred to the debit of the Reserve Fund Account.

This result is chiefly owing to the great fall in the price of Silver, of which the Bank was a large holder, Apart from this loss, and the depreciation in the value of Indian Government Securities, the workings of the Bank for the past half-year would have shown a profit. Under these circumstances the Directors deeply regret that, for the first time in the history of the Bank, they are unable, for the past half- year, to declare a Dividend.

In the accounts as made up, the system that has been adopted since the incorporation of the Bank, of treating the Capital as fixed in the books at the par of exchange, has been continued. Following the usual custom, the floating balances employed in exchange operations have been adjusted at the rates current at the close of the year. Such portion of the sterling liabilities due to the public as in permanently employed in the East, stands in the books at par as hitherto; but, owing to the continued fall in the value of silver and exceptional depression in exchanges, the Directors have thought it advisable, as shown in the accounts, to make special provision for any eventual loss thereon. The sanic causes, aggravating the strain upon the finances of India, have exceedingly depressed the value of Indian Government securities; and the Directors, not looking upon this great decline as permanent, have thought it prudent to make special provision also for the depreciation in those securities since the 30th June The provision, in both these cases, has been made by carrying the balance of the Reserve Fund to a Special Reserve Account, which is considered the best and proper course to adopt-any eventual loss being contingent and not realised.

Jast

The Directors need hardly assure the Shareholders of the great disappointment and regret

they feel at having to present these unfavourable accounts; at the same time they are hopeful that with a revival in trado and a

looked for.

more settled value of silver, a return of former prosperity may be

For some years past the returns by the China and Japan Branches of the Bank have been unsatisfactory, and the Directors have resolved upon working the China Branches on a reduced scale for the present, and on closing the Branch at Yokohama.

The Directors retiring by rotation are Mr. J. N. Bullen and Mr. W. Scott, who, being eligible, offer themselves for re-election, and the Court recommend them accordingly.

The Shareholders will have to appoint Auditors for the current year.

Oriental Bank Corporation.

The Court of Directors do hereby give notice that

next, at one o'clock p.m. precisely.

the City of London, on THURSDAY, the 17th day of April be held at the Cannon Street Hotel, Cannon Street, in

the ANNUAL GENERAL MEETING OF SHAREHOLDERS, Will

P. CAMPBELL,

Chief Manager.

29th March, 1879.

No. 65, OLD BROAD STREET,

GEO. G. NICOL,

C'hairman.