(Signed) |.f,TnS G } The President, in moving the adoption of the report and balance-sheet, said : Before moving the adoption of the report and balance-sheet, I shall, ns u-ual, offer a few remarks on the figures presented in them, and on the general state of business. As far as the figures in the report are concerned, you will observe that the conditions have not been favourable for the acquisition of en larged profits. 'I here has been no buoyancy in business during the half-year; and, though by the reduction in deposit interest the margin of profit is somewhat enlarged, we have scarcely yet begun to feel the benefit. We have, besides, considered it prudent to continue the conservative policy which when I last addressed you I reported had been adopted, preferring in these times to maintain strong reserves rather than seek fuller em ployment for our resources. You will conse quently observe a marked strengthening in various items in the balance-sheet, represent ing the immediately available resources of the Bank—a result attained partly by contract! n of advances and partly by an increase of de posits. We are therefore in the best position to take advantage of the first opportunity which offers to augment business, and from present indications it may reasonably be hoped the opportunity will not be long de layed. The accounts received from branches

generally favour the idea of an early return to more active operations, and that the cloud 'which has so long overshadowed business is gradually dispersing. Such a period of un exampled depression, however, cannot be ex pected to have passi-d away without leaving a very distinct track behind it, and it is, there fore, a matter for congratulation that in past more successful years we have been enabled to build up a Reserve Fund which, according to the provisions of our deed of settlement, is specially meant to provide for occasional losses. This provision under the original deed of settlement was confined to 20 per cent of

the capital, which on the present capital of the Bank would represent £200,000, and might be reduced to 10 per cent, or £IOO,OOO. 