SCOTTISH BANKING PROGRESS.
It does not always follow that an increased dividend even in the case of a banking company is succeeded by the publi- cation of a Report and Balance-Sheet showing that the higher distribution to shareholders is consistent with a sound conser- vative policy. In the case of the Royal Bank of Scotland, however, where the dividend during the past seven years has steadily risen from 10 up to the present level of 151 per cent., the advance may be said to have been due to a combination of enterprise with thoroughly sound management. Among the Scottish banks which retained their independence of London control the Royal Bank was the first to open an office in the West End of London, and, moreover, accompanied that departure by the very fine stroke of acquiring the old-estab- lished business of Drummond's. Even before that develop- ment, however, the business activities of the bank materially expanded, while the Report for the past year constitutes a record in the turnover in business, the total of deposits, the profits secured and the amount at the credit of Rest or Reserve.
- * - * * * A feature in the latest balance-sheet is the material addition in the Loans and Advances showing that the bank has played its part in aiding commercial activities, and one result is seen in the advance in the Deposits of over 21,000,000. Sometimes the criticism is levelled against Scotch banking of a little over- leaning in the direction of an unduly large holding of gilt- edged securities and an inadequate use of deposits in trade advances. In that, as in some other respects, the " Royal " seems now, however, to be giving a good lead, and there is little doubt that in the increased activities of the bank the London offices play no small part. Of course, in noting the bank's figures over a series of years, some allowance must be made for the absorption of Messrs. Drummond's, but inasmuch as the Deposits of that bank at the time of the absorption were a little under £4,000,000, the general growth of the business of the Royal Bank of Scotland during the past seven years may be gathered by the fact that the Deposits have risen from £29,000,000 to nearly £41,000,000, while notwithstanding the material increase in the capital in connexion with the absorp- tion of the business of Drummond's, the present total of the Rest is within a few thousand pounds of the entire paid up capital, whereas seven years ago it was only about one-half.
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