OMPANY MEETING

MARTINS BANK LIMITED

EXPANSION OF BUSINESS

THE one hundred and eighth annual general meeting of members of Martins Bank Limited was held at the head office, Liverpool, on Tuesday, January 24th.

Mr. Frederic Alan Bates, the chairman, presiding, said : To succeed Sir Richard Holt, who has retired for reasons of health, the directors have appointed me chairman and have elected me to the London board. Conscious of the responsibility of my office, I shall serve the bank to the best of my ability. Mr. Furniss, our general manager, who is already a member of the London board, has been elected to the general board. I should like to add my tribute to his qualities and personality, which have been of the greatest value in conducting the bank's affairs.

RECORD DEPOSITS

Our net profit of £872,929 is an increase of £19,363, due to further expansion in our business. With £309,007 brought forward, we have available for distributiory£I,181,936. An interim dividend of 7 per cent. was paid in July. For the December half-year we propose to increase the dividend to 71 per cent., making 14} per cent. for the year. We have added k50,000 to reserve fund, bringing it up to L3,550,000, £X00,000 to premises redemption account and £ toopoo to pension fund. £328,730 is carried forward. The bank's liquid position is maintained. Cash in hand and at the Bank of England amounts to L11,142,000, 11.07 per cent. of our liabilities to the public. Total cash items represent 21.42 per cent. of those liabilities. Investments at L33,395,000 are an increase of £2,172,000. Deposits have again expanded, and with an increase of £4,530,000 have established the new high record of D00,038,000. Advances have also increased. At £44,421,000 they are £2,001,000 more. There have been increases to agriculture, shipping and transport, retail trades, iron and steel manufacturers, furniture manufacturers and distributors, to private customers, and in connection with housing.

EXPORTS AND RE-ARMAMENTS

The influence of restriction schemes preventing excessive accumu- lation of stocks had a steadying effect. We have, therefore, grounds for the belief that not only have we seen the worst, but that some progress has been made in the search for a technique which may limit the severity of trade recessions in future. We cannot escape the conclusion that re-armament has had some effect on the export trade of our industries by placing government contracts at their doors. Added to this is the fact that foreign debtors are out of favour. Our foreign loans in the past laid the foundation of our world trade, but where can we lend money abroad nowadays for the purpose of creating the power to purchase our manufactured goods- with any assurance that it would be safe ? Many loans made in the past are in default. If for the purpose of creating purchasing power for our goods we lend money abroad which is lost, we are, in effect, making the countries to which they are shipped a present Of our goods.

Concentration upon re-armament and activity in those of our industries producing goods for home consumption have not absorbed our unemployed. It is essential, therefore, that we should look ahead to the time when work upon re-armament will diminish, and that we should use every appropriate means to expand our export trade. We cannot afford to rely upon methods which were adequate when trade flowed normally, but must adjust our actions, consis- tently with sound procedure, to 'meet the tactics of countries that, under the influence of strained economic conditions, adopt measures inimical to British interests. The Anglo-American trade agreement is evidence that governinents on both sides of the Atlantic are co-operating to their mutual advantage.

HOME INDUSTRIES' PROSPECTS

The cotton industry is looking for stimulation in its export trade as a result of that agreement, but it is realised that the agreement will benefit only a section of the industry. The Cotton Enabling Bill will make some contribution to revival of the trade, but material recovery can only be expected from settled world conditions and the trade's ability to develop new lines.

During the year industry as a whole has done moderately well. There have certainly been disappointments. The steel industry passed through a difficult year, and exports, due partly to the establishment of further steel works abroad, have suffered. The industry was also affected by the decline in shipbuilding, Lloyds register recording that orders placed for new tonnage were only half of those of the preceding year. Shipbuilding and shipowning are so closely related that it may be deduced from the fact that merchant shipbuilding had a difficult year so also had shipowning. This was disappointing. A combination of factors common to all industries, such as exchange difficulties, political disturbances and lack of con-

fidence, resulting in inactive commodity markets, has reduced the demand for tonnage in all trades. The British shipping industry thus finds itself in a position where urgent measures may be necessary. In the coal trade, exports and inland consumption both fell, but the sales control committees prevented a heavy drop in prices. Conditions in the wool textile industry over the last two years have presented peculiar difficulties. As a consequence, in practically every category of textile exports the Board of Trade returns reveal the persistence of restricted trade. So long as there is political disturbance throughout the world, and our trade continues to be affected by the methods of certain foreign countries, we cannot look for sustained improvement. It is encouraging, therefore, that the Overseas Trade department is energetically tackling the problem of the country's trade in collaboration with the various industries involved.

BRITISH BANKING STABILITY

The soundness of British banks is taken so much for granted that it is perhaps pardonable to recall the way in which they faced the crisis at the end of September. The service they then rendered to the nation is apt to be overlooked. They had to meet considerable withdrawals of foreign and other deposits for investment in the United States. Simultaneously they were faced at the height of the crisis with a severe fall in the value of stock exchange securities held on account of customers, yet it may be said that in no case did this result in the withdrawal of overdraft facilities during the crisis. The value of such calmness, possible only because of the maintenance of well tried traditions, is surely very great, and that it took place almost without comment is perhaps the finest tribute to the con- fidence reposed in our banking institutions.

The report and accounts were adopted.