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Lloyds Bank, Ltd. I

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Lloyds Bank, Ltd. I THE YEARLY MEETING. I The 58th ordinary general meeting of the shareholders of this Bank was held on Wednes- day, the iind February, 1916, at the Grand Hotel, Colmore Row, Birmingham. The Chairman (Mr. R. V. Vassar-Smith), in moving the adoption of the report, said- Ladies and gentlemen, a year ago, at our annual meeting; I mentioned the financial pre- cautions and the remedial measures taken to meet the difficulties created by the advent of the war. These proved of great value, and en- abled us to solve the constantly changing pro- blems of 1915 with comparative ease and less- ened anxiety. Of the remedial measures adop- ted in 1914. that of the bills discounted by the Bank of England for the relief of the accepting houses, the amount of 300 millions has been re- duced to about 50 millions; that the pro-Mora- torium loans to the Stock Exchange have been to a large extent repaid; that many of the mi- nimum prices have been removed; that the assistance given to the exporting houses has been satisfactory and that the more general use of currency notes has contributed to the maintenance of the reserves of gold. After dealing with the various items in the Balance Sheet, the Chairman said: The report first deals with the availaole pro- fit, about which a resolution will be submitted to you. I should point ou t that the net profit for' the year is shewn after the income tax has been deducted, the tax being clearly a I charge against profits. Allowance should be made for this in comparing the amount this vear with last year. You will notice that, with the £ 250.000 voted last year, the Bank's in- vestments will be written down by zC660,000, and I may add that further provision has also been made in our contingency account. fi The exchanges have been a source of difficulty and anxietv during the year. The normal rate of the American Exchange is $4.86. Soon after the declaration of war. owing to the indebted- ness of America to Great Britain, it rose ra- pidly until it reached $6.50. It afterwards de- clined, and till July remained at a fairly level rate. Then it declined again, reaching as low as $4.51. After much consultation, it was ar- ranged to send a large sum in gold to Ottawa, the Treasury, the Bank of England, the Joint Stock Ba.nks, and the Bank of France all joining —for the purpose of assisting the Exchange. The Government afterwards decided, in the autumn, to send a Commission, with Lord Reading at its head, to the United States, to discuss the position with the American bank- ers. The financial control there is not so com- pletely centred in New York as it is in London; and the members of the Commission had to visit other large cities, to ascertain the bank- ers' opinions at these centres. Ultimately an Anglo-French loan of 100 millions sterling was arranged, to be divided equally between the two countries. On the return of the Commis- sion, as the loan filled but partially, what was required, frequent meetings of bankers were held, and very serious attention was again given to this question, and other additional arrange- ments were made. A substantial Bankers' Credit was set up in New York, and the Gov- ernment decided to borrow further money up- on the securing of American bonds, to be ac- quired either by purchase or loan. Permanent committees have now been established in Lon- don and New York for the purpose of control, and the rate of Exchange has much improved. It has been disappointing that no improve- ment has been possihle with regard to the Russian Exchange, but it is hoped that some alleviation may1 be made for a Banking Credit in London. This is in the opposite direction to what was required for America. Your Bank has taken part in both arrangements. A few offices have been opened during the year, most of them necessary for nTiKtary re- quirements. Last year I mentioned the number of our staff who had joined the colours. This number is now much larger. For national reasons, in common with nearly all the Banks, we allowed all our remaining eligible staff to be attested under Lord Derby's scheme. Obviously a great strain is placed upon the permanent members of the staff who remain, and it is fitting that we should recognise that this service is given most willingly, and is deserving of our gratitude and praise. (Applause.) Up to the present time. five of your Direc- tors and no less than 1,662 members of the staff have left the Bank for military duty. The latter number shows that over 38 per cent. of the total staff, of all ranks and ages. at the beginning of the war, and over 53 per cént. of those who were eligible for active service, have already gone. Others are about to go, and it will probably not be long before we can say that the Bank is represented by the equiv- alent of two battalions. And they are making good soldiers, too. Some 39 of the number have already made the supreme sacrifice by giv- ing their lives in their country's service, and some 86 have been wounded. One member of the staff has had the great honour of receiving the French Military Medal and the English Distinguished Conduct Medal for carrying a wounded comrade out of action, under heavy fire, while badly wounded himself. Still another of our men has been awarded the Military Cross, four have been mentioned in despatches, including two Directors, Captain George Lloyd and Captain Moreom. one has been specially commended by his commanding officer, and one has received the medal of the Royal Humane Society. We are continuing to give to those who are away the difference between their ser- vice pay and their salaries, making special al- lowances to many who take commissions. (Ap- plause.) From the commencement of the war we have had to carry on our business without guidance from the experience of the past, with manv of our financial theories broken down, and have been meeting, with what judgment we had, the daily changing course of events Questions affecting the financial, commercial, and economic position of this empire after the war are receiving serious attention. We want not only to maintain our present financial su- periority, but largely to extend OUT commerce, at the same time wresting what should have belonged to us-t-he business carried on bv our enemies. I new beg to move:—"That the report just taken as read be received and adopted, and that in accordance with the recommendations of the Directors t herein a dividend for the half-year ended the 31st December last of 14/6 per share, being at the rate of IS J per cent. per annum on the paid-up capita! of the Company, be declared, such dividend to be payable on and after the 8th .Fe bruary, less Income Tax. (Anplause.) The report having been unanimously adopt- ed. the retiring Directors re-elected the Audi- tors re-appointed, and the usual votes of thanks to the Chairman and the staff, the proceedings terminated. At a subsequent extraordinary meeting a re- solution was passed sanctioning an increase itl the directorship from 20 to 24.

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