COMPANY MEETINGS
THE UNION BANK OF AUSTRALIA
DIVIDEND 7 PER CENT.
THE annual general meeting of the Union Bank of Australia, Limited, was held on January 29th at 71, Cornhill, E.C. Major-General Sir John H. Davidson, K.C.M.G., G.C.B., D.S.O., chairman of the bank, who presided, said: Our financial year ended on August 31st and war was declared on September 3rd. The Period under review, therefore, is the year immediately preceding the outbreak of war. It was marked by many adverse factors. The disturbed cordition of Europe and the recurring crises of an increasingly dangerous character have had a very unsettling effect on trade and industry. In suite of all the adverse factors, Australia showed a surprising economic buoyancy, which must be ascribed partly to the development of her existing secon- dary industries and the establishment of new industries, and partly to Government and other expenditure in certain important directions connected with nroduction for defence requirements. The absence of industrial and political disturbance and the prudent control of credit by the Commonwealth Bank were contributing factors towards economic stability. Undoubtedly, Australia weathered a difficult year remarkably well.
As a result of the outbreak of war, measures were adopted to control both imports and exports and the monetary exchange in relation thereto. The exchange mobilisaf on system was abolished at the end of August, and, in substitution therefor, all exchange operations were placed under the control of the Commonwealth Bank, the trading banks acting as agents for the central bank. The new system is working well and smoothly.
The British Government has agreed with the Commonwealth Government to purchase the whole of the wool clip for the period of the war and one year thereafter.
The balance-sheet of the bank shows an expansion of business which may be considered satisfactory, especially seeing that it has been achieved during an extremely difficult year.
Gross profits are up by £9,000, while expenditure is up by £29,000. The resultant balance is £225,087, and to this amount must be added the sum of £157,263 carried forward from last year, making a total available of £382,350. Deducting the interim dividend of 3 per cent., less tax, which absorbed £98,000, there is left £284,350. From this sum we have declared a final dividend of 4 per cent. less tax (making 7 per cent., less tax, for the year), which will take £127,000, leaving £157,350 17s. gd. to be carried forward.
The report and accounts were unanimously adopted.
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