COMPANY MEET NG
BARCLAYS BANK LIMITED
EXTREMELY LIQUID POSITION
THE following is an extract from the statement by the chairman Mr. Edwin Fisher, on the report and accounts for the year ended Decem- ber 31st, 194r, -to be submitted at the 47th ordinary general meeting of the shareholders, to be hekl.at the- head office of the bank, 54, Lombard Stree-, London, E.C. 3, on Monday, January 26th, 1942: For the convenience of shareholders, it is intended that the pro- ceedings of the annual general meeting shall be formal in character, and accordingly, instead of my customary address, this brief statement on the bank's affairs for the year ended December 31st last is being circulated with the report and accounts.
The balance-sheet as at December 3111, 1941, reflects, as is only natural, the influence on financial conditions of the intensified war effort of the country, which has been so marked during the past twelve months. The total of our surrent, deposit and other accounts has attained a record figure of £645,185,397, against £546,914,676 at the end of 1940. This further expansion conforms to the general pattern of banking figures during the past twelve months.
Due recognition can Well be givcsi to the great service which the banking system of this country renders in mobilising the credit re- sources of the country in a manner which enables Them to be utilised for the benefit of the community in peace or war.
It would be idle to pretend that the rise in our deposits has not helped our earning power, but the extent to which we have benefited should not be allowed to get out of true perspective, for when we come to examine the incteased cost of administration, the special war-time expenditure and the heaviet taxation which has to be borne, it is perhaps not surprising that there has been a diminution in the net profit. It is not surprising that the total of our bills discounted is lower at £40,343,437, against £61,822,742 twelve months earlier. ..11 the total of bills discounted at the end of 1941, no less than £32,080,000 consisted of Treasury Bills. Nevertheless, our specially liquid assets total £315,694,392, a ratio of 49 per cent, of our current, deposit and other accounts. It will tie seen, therefore, that our posi- tion is extremely liquid. Our advances total £174,234,477, representing 27 per cent. of our current, deposit and other accounts' whereas our investments (excluding those in subsidiary banks) total £168,219,936, representing 26 per cent, of those accounts. Timc was when we looked to lend so per cent. of our deposits in the form of advances.
ImeoarANcE OF NATIONAL SAVING
By heavy taxation of income- by the drive for new savings, by rationing and by price control, the Government has been able to keep in check the dangers of inflation. No small part of this success has been due to the energy and leadership of those directing the National Savings Movement. We must, however, at all times be alive to the possibilities of inflation, which are ever present, and in this connection one has only to look at the high level of banking deposits and at the mounting total of the note circulation.
The rise in the note circulation is no doubt very largely due to higher amounts paid out in wages to individual workers and to the great increase in the numbers of people employed, which is shown not only by the fall to an insignificant level of the total of persons regis- tered as unemployed, but also by the bringing into active employment of those not previously engaged in industry. Part at least of the in- crease in the note circulation may represent additional money in the Pockets of the people, which would be better employed if invested in National Savings Certificates or some other Government security, and it is the duty of each one of us to see that money does not he idle to the detriment of the war effort. We, as citizens, should con- tinue to give every support to the Government by providing funds, through savings, to equip the fighting Forces with the weapons they need and our efforts in this direction, coupled with the other measures Which the Government has taken, should enable this country to emerge from the war without having to face the very serious difficulties Which inflation on a large scale would assuredly bring in its train.
The net profit amounted to £1,353,302, which compares with the figure of £1,525,665 for the year 1940. The sum of L546,7o4 was brought forward from December 31st, 1940, making a total to be dealt with of Lx,9,)0,006. Interim dividends at the rates of 5 per cent. on the " A " shares and 7 per cent, on the " B " and " C ' shares, ess income-tax in each case, were paid on August 8th last, amounting to k520,734. The directors now recommend the payment of final dividends of 5 per cent., making o per cent, for the year, on the shares, and 7 per cent., making 14 per cent for the year, on tar " " and " C ' shares, less income-tax, involving a sum of
fI-52o 734 , and leaving a balance of £508,538 to be carried forward. hone that shareholders will feel satisfied with the results which we ave been able to show, having in view the increased taxation which the gross profit had to bear.
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