The substantial increase shown in the profits of the Royal
Bank for the year is the more noteworthy because although in accordance with the arrangements Williams Deacon's stockholders will share in the dividend just announced on Royal Bank of Scotland stock, the profits do not include the results from the operations of Williams Deacon's which will be expressed, of course, in the dividends to be announced on the shares of that company at the end of December this year and of June in next, and these will come into the Royal 13ank's profits for next year. The balance-sheet of the Royal Bank is strong in every way not least as regards the Rest or Reserve Account. Out of the premiums emerging on the price at which the new Royal Bank stock was issued after meeting the expenses of the transfer, writing down the values of the shares and (the italics are my own) adding materially to the inner Reserves of the Bank there remains a sum of £600,000 to be added to the Rest Account which now stands at £8,580,926 being well ahead of the capital of the bank. Moreover, since the date of the Report further capital Stock, amounting to £407,902 has been Issued or is in course of issue to meet transfers of remaining shares of Williams Deacon's Bank, and out of this premium on the additional Stock, after writing down the value of the shares, it is proposed to add a further Substantial s to the inner Reserves and to carry 1200,000
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