MARTINS BANK LIMITED

COMPANY MEETING

EXPANSION TO NEW HIGH LEVELS HOME TRADE PROSPERITY SIR RICHARD D. HOLT AND WORLD COLLABORATION

THE one hundred and seventh annual general meeting of shareholders of Martins Bank Limited was held at the Bank's Head Office, Liverpool, on Tuesday, Januatt 18th.

Sir Richard D. Holt, Bart., LL.D., Chairman, who is suffering from eye strain, was prevented from attending. His place in the chair was taken by Lord Colwyn, P.C., D.L., LL.D., one of the deputy chairmen, who read Sir Richard's speech, as follows :— Mr. Orme, our Chairman, passed away in November to the sorrow of us all. He joined the Board in 1924. The interest he took in the Bank was intensified during his Chairmanship from 1934. We shall miss him from our councils.

The Board have honoured me by election to the post of Chairman. I will do all in my power to further the interests of the Bank.

GREATLY IMPROVED RESULTS.

Increasing business has led to an increase of £83,578 in our profit, which is £853,566. To this must be added £296,048 brought in from last year. We have, therefore, £1,149,614 available for distri- bution. In July a dividend of 7 per cent. was paid, and we propose to repeat that for the December half-year, making 14 per cent. for the year. This will require £582,406. The Bank's centenary took place in 1931 at a time of unexampled depression. Payment of a centenary bonus was discussed, but postponed to a more suitable time. In our view that time has arrived, and we propose to pay a centenary bonus of 2 per cent. That will cost £83,201. We have also declared a centenary bonus of 5 per cent. upon all salaries and pensions, including those to widows, and also a bonus to all wage-earners.

£75,000 has been added to Premises Redemption, £100,000 to Pensions Fund, and we carry forward £309,007. Published Reserve has been increased to £3,500,000 by a transfer of £200,000 from our Investment Reserve.

You will notice the Bank's liquid position. Cash in Hand and at the Bank of England represents 10.6 per cent. of our liabilities to the public, while our total cash items are 22.7 per cent. of those liabilities. Investments stand at £31,223,000, some £1,590,000 less than twelve months ago. Bank Premises and rentable properties show an increase of £50,000 at £2,646,000.

The movement in foreign trade is indicated in the item of Accep- tances, endorsements, &c., which at £9,818,000 exceeds last year's figure by £1,967,000. Deposits art at the high water mark of

£95,508,000. -

How ADVANCES ARE UTILISED.

Advances amount to £42,429,000. Last year we recorded the very large increase of almost £12,000,000 in this item ; expansion then indicated developed, and the net increase today is £1,143,000. The advances are widely spread, 86 per cent. of the total number being for amounts of £I,000 or less. The overdraft for personal and professional purposes accounts for one-half the number of borroWers and one-fifth of the amount lent.

It is interesting to know in which industries increases have taken place. Food provides the largest increase, indicating the greater spending power of the people and the betterment of conditions. This is followed by textiles—cotton, wool and silk all participating— another pointer to improving circumstances. Engineering, shipbuil- ding and iron and steel, together with agriculture, building, and general produce, have all been factors in the increase.

DEPRESSION TALK DEPRECATED.

The result of our year's operations is satisfactory, but we discern signs warning us against over-confidence. We notice hesitancy in trade, but I deprecate untimely references to impending depression. In this country there should be little justification for pessimism, when we observe the results of _the majority of trading concerns and the spending power of the wage-earners. If there are ways of passing from prosperity to quieter times less violently than hitherto let us adopt them, if we can do so without interfering with fundamental principles, but the essential requisite is a wider world collaboration than we possess at present. There is no reason to suppose that in this country the position is not closely watched and that wise steps are not being taken to deal with economic problems. We have proof of this in our national position today.

BASIC TRADES' ACTIVITY.

A survey of the industries of this country provides cause for satisfaction, but I emphasise that we must not lose sight of the dangers of over-development inherent in expansion.

The problems of two of our most important industries—cotton and coal mining—are at present receiving attention by the Govern- ment. Both are still organised on the basis of a large number of

comparatively wall. competing units. In the cotton trade an approach to unanimity has been reached, and Government support for the trades agreed proposals will doubtless be forthcoming. The industry in general has had a more successful year than for some time.

The position as regards the new Coal Bill is not so satisfactory. Before it is passed in final form means should be found of securing the willing acquiescence of the more efficient owners, for it is clear that without their co-operation the task of the Coal Commission will be difficult. The past year has been one of progress, and there appears no reason why this should not continue.

The Iron and Steel industry has also had a busy year due to activity in shipbuilding and general engineering and increasing Government orders. The output of steel ingots was a record at 13,000,000 tons. Demands upon the industry are such that heavy expenditure on installation of new rolling mills has been needed. As this comes into operation, the capacity to produce finished steel will be greatly increased.

Shipping, generally, has had an excellent year, particularly in the cargo carrying class, due to co-operation. By following that policy the best results will be obtained. Shipbuilding has been active, but high costs and inability to obtain delivery of steel have created difficulty. Those owners were fortunate who placed orders early in the trade recovery.

World supplies of wheat are not excessive and the trading position is satisfactory. Conditions in agriculture have improved and pros- pects are good. In the wool textile industry a period of activity met with a set-back in the autumn. Buying for home trade has since adjusted matters, and the outlook is good, but world complica- tions are disturbing features.

HOPE FOR EXPORT REVIVAL.

Sufficient has been said to indicate that our home trade is still satisfactory. If a further upward swing is to come we may ask how it is to be achieved. - In previous speeches from this chair emphasis has been laid on the necessity for the revival of international trade and the encouragement of our export trade. That continues to lag, but is improving. The year just ended resembled its predecessor in that we have had prosperous internal trade. I stress the point that we should aim at fostering a wider world collaboration. Recently we have seen a step forward in the approach to trade collaboration with America, and if it leads to better understanding between the two countries immense good should accrue. With extension of such agreements, followed by the freer flow of world trade, our Lancashire cotton industry, so dependent upon exports, should, for example, benefit materially. Let us hope that the coming agreement with America will be the beginning of a new era. (Applause.) The report and accounts were adopted.