The Institute of Bankers. JUNE, 1883. REPORT of the COUNCIL for the FINANCIAL YEAR ended 31st December, 1882, and for the Session 1882-83, to the 30th April last, to be presented at the FIFTH ANNUAL GENERAL MEETING of the INSTITUTE OF BANKERS, held in the Theatre of the London Institution, Finsbury Circus, E.C., on the 16th May, 1883. J. HERBERT TRITTON, Esq., in the Chair. This number of the Journal has been delayed for the insertion of the results of the late Examination. The next number will probably be issued in October. 5 Life Associates, 498 Associates, 901 Members, 1,773 as compared with the total of 1,771 at the corresponding period of last year. A glance at the previous reports will shew that while the number of Fellows and Associates has been in a marked degree progressive, there has been some fluctuation in the number of Ordinary Members. The total strength of the Institute, however, exhibits a nominal advance (the effect being an increase of income, at a reduced expenditure). The following figures shew the net income of the Institute during the four years of its existence : The Council take this opportunity of reminding Ordinary Members that even the increased subscription of half-a-guinea does not meet the average cost of their grade, and they trust that those Members who have, since their election, become eligible as Associates or Fellows, will submit themselves for election to the higher grades. Since the last annual general meeting eight ordinary meetings have been held, at which the following papers were read :— SESSION 1881-82. Wednesday, 17th May, 1882.-Mr. ROBERT W. BARNETT read a paper on "The National Banks of the United States of America. The Annual General Meeting was held previously to the reading of Mr. Barnett's paper. SESSION 1882-3. Wednesday, 18th October, 1882.-Mr. EDWIN BRETT read a paper on "The History and Development of Banking in Australia." Wednesday, 15th November, 1882.-Mr. M. D. CHALMERS read some Notes on the Bills of Exchange Act, 1882." 66 Wednesday, 20th December, 1882.-Mr. WILLIAM FOWLER, M.P., read a paper on "The Circulation of Notes under £5." Wednesday, 17th January, 1883.-Mr. J. S. FLEMING, F.R.S.E., read a paper on "The Theory and Practice of Banking in Scotland." Wednesday, 21st February, 1883.-Mr. R. H. INGLIS PALGRAVE read a paper on "The Deficiency of Weight in our Gold Coinage, with a proposal for its Reform." Wednesday, 25th March, 1883.-Mr. JOHN SMITH read some "Notes on the Government Bankruptcy Bill of 1883." Wednesday, 18th April, 1883.-The Right Hon. GEORGE J. GOSCHEN, M.P., delivered an address on "The Probable Result of an Increase in the Purchasing Power of Gold." In the Journal will be found a full report of the discussions which have arisen upon the subjects of the several papers. THE BILLS OF EXCHANGE ACT. In their last Report, the Council sketched the action they had taken in regard to this Bill, which was prepared under the joint auspices of the Institute and the Associated Chambers of Commerce, and they now record with pleasure the successful result of the efforts that have been made. It will be remembered that at the time the last Report was issued, a Select Committee of the House of Commons was engaged in considering the Bill, and to complete its history it is only now necessary to add that on reaching the House of Lords it was there referred to a second Select Committee and again carefully examined. On the last day of the Session it received the Royal Assent and the Act came into immediate operation. A copy of the Act was published in the Journal for November last, and at the November meeting Mr. M. D. Chalmers, the draughtsman of the Bill, traced the Parliamentary history of the measure in its progress through the two Houses. A report of this meeting and the attendant discussion will be found in the Journal for December last. The Council do not hesitate to congratulate the Members on the success which has attended the action of the Institute. The Bills of Exchange Act is the first instance of codification in the Statute Book, and the consolidation of the law which it effects cannot fail to be useful to the mercantile community. The thanks of the Institute are due to the President, Sir John Lubbock, who introduced the Bill into the House of Commons, and to Mr. R. B. Martin, Mr. A. Cohen, Sir Farrer Herschell, Mr. Whitley, Mr. Cohen, Mr. Lewis Fry, Sir Hardinge Giffard, Mr. Monk, Lord Bramwell, Lord Fitzgerald, and others, who were instrumental in effecting the passage of the Bill through both Houses. THE BANKRUPTCY BILL. The action which the Council have taken to procure an amendment of the law relating to bankruptcy has been detailed in previous reports, and in the Journal for February last a recapitulation was published of the former action of the Institute in the matter. In the March number of the Journal reference will be found to a Bill, entitled "The Bankruptcy Bill No. 2," which has been drafted by Mr. M. Muir Mackenzie, under the instructions of the Institute, with the object of giving the creditors more power over the property of the debtor. The Bill has been introduced into the House of Commons by the President, Sir John Lubbock, and was read a second time on March 19th, and on the following day the House went into Committee, the further consideration being deferred. THE GOLD COINAGE. The deterioration of the gold coinage has several times occupied the attention of the Institute, and the various papers which have been read on the subject have elicited many valuable suggestions, with a view to its reform. Last session Mr. John B. Martin read an exhaustive paper on the subject, and during the session under review Mr. R. H. Inglis Palgrave read a further contribution at the February meeting. As a result of Mr. Palgrave's paper, and, in pursuance of the resolution passed at that meeting, a committee has been appointed to consider the best means of bringing the subject prominently forward. The Committee have drawn up a circular, which has been sent to every bank in the United Kingdom, inviting them to return, on forms sent them for the purpose, the aggregate amount of gold held by them on a given day. A copy of this circular, and the forms accompanying it, will be found in the Journal for April last. The Committee are now engaged in investigating the returns, made in compliance with the circular. The Journal of the Institute which has now entered upon its fourth volume, was published eight times during the year. As a record of the transactions of the Institute, as a magazine of information on matters affecting bankers, and as a medium for the ventilation and discussion of questions of banking interest, the Journal has proved eminently successful, and the Council are encouraged to believe that it will continue to meet with the same favour that has hitherto been accorded to it. The sale of the Journal amounting during the year to £93, shews an increase over any previous year, a fact which may be regarded as a practical indication of the growing popularity of the publication. The usual index, with a complete list of the Members, a catalogue of the reference library, and other information, were circulated concurrently with the January number of the present year. The Council again record their sense of indebtedness to the Honorary Editor for his valuable assistance. The number of "Questions on Points of Practical Interest" shews no diminution. Answers to the questions received, after careful consideration by the Council, have been duly published in the Journal, and, when necessary, the opinion of the law officers of the Institute has been obtained upon them. The results of the examinations for the Certificate of the Institute, held in May of last year, have been already published. The number of candidates was 34 against 22 in the previous year. In the final examination one member only, Mr. J. A. Hamilton, passed, while in the preliminary examination 10 were successful. A number of candidates presented themselves for examination in some of the subjects only, but their names will not be published until the completion of the entire course. As on former occasions, examinations were conducted by Fellows and Associates of the Institute at Manchester, Liverpool, and other centres, and the thanks of the Council are due to those gentlemen who by kindly superintending the examinations brought them within the reach of Members residing at a distance from the metropolis, who could not otherwise have availed themselves of them. The lamented death of Professor Jevons, who had acted as examiner on Political Economy since the institution of the examinations, caused a vacancy which has been filled by the appointment to the post, of Mr. H. S. Foxwell, Professor of Political Economy at St. John's College, Cambridge. The following is the subject of the Prize Essay for the year 1882, for which a first prize of £20 and a second prize of £10 were offered : "On Possible Improvements in the Practical Details of Banking Business, directed either to simplify Transactions between The Essays sent in competition were not however of a sufficient standard of merit to enable the Council to award any prizes; but the practical character of the subject, and the interest which its careful treatment would attract, have induced the Council to repeat it for the present year. In November last Mr. D. T. Robertson retired from the Council on severing his connection with the Bank which he represented. The Council have elected Mr. Hugh Lewis Taylor, of the Bank of Victoria, to fill the vacancy thus caused. The arrangement with the London Institution remains in force and continues to give satisfaction. During the year some valuable additions by donations and purchase have been made to the Institute's Library, a catalogue of which was circulated among the members in January last. The Council desire to express their continued readiness to receive donations of books in order that the Library may be maintained in an efficient condition. The Treasurer's account which accompanies this Report will speak for itself, and it will be seen that the Reserve Fund has been further increased to its present figure of £325 10s. by the investment of additional life subscriptions. The income from investments has increased in like measure. A balance sheet of assets and liabilities at the 31st December, 1882, is also appended, and from it the financial position of the Institute may be fairly gauged. The Council feel assured that the successful results of the past year, both as regards the financial position of the Institute, and the value and utility of the work undertaken, will be satisfactory to the Members. The prediction of continued progress which found expression in the last report has been abundantly fulfilled, and in point of prosperity, the present year bids fair to prove no exception to any of its predecessors. |