17 OCTOBER 1931, Page 34


The directors of the Bank have taken carefully into con- sideration the effect of the exchange depreciation upon the capital of the bank, which is so largely employed in South America, and it has been decided to transfer from the reserve fund an amount of £2,275,000 to the credit of a special reserve for depreciation of capital employed abroad, and other possible losses. This still leaves the ordinary reserve at £1,000,000. Moreover, it should be noted that this provision does not simply take account of the depreciation reflected in exchange movements as at June 30th last, but covers the subsequent fall right up to date. * * *