Page:The Cyclopedia of India (Specimen Issue).pdf/81

 states that the Times 0/ India at Avril mm in that car, to m at r e d that " the pit oi

“Bombay opens ior business this "day. three years a nd nearly "tour months having elapsed Slllt‘l‘ "the ﬁrst subscription to it, and “alter surtnnuiiting a series ut such “dithculties and tiltstut'lea as We "believe no similar Institution ever "encountered lit-tore. and such “as We may safely predict. no Insti- “tution tor the public good will “encounter again."

The Bank was started with a capi- tnl of so lakhs of rupees, at which Government subscribed three Likhs. and was incor inmted under Act Ill 01 1840. (wing to the great demand for shares the ca ital was increased to 52} lakh; he priv‘r lege of note issue was granted to the Bank to the extent of twu crores oi rupees. but when the pre- sent Government Department at Paper Currency was inaugurated iii 1862 the. right at issue Win: with- drawn. an arrangement being made. by way oi compensation. where- by the Bank received charge oi the Government TreuMiry and Public Debt Ofﬁce. which it still returns. The Bank has now no connection with the Currency arrangements oi the country.

Owing to heavy losses incurred during the disastrous liquidatinns iollowing on the period of «nor- mous simulation Wltli‘lt distin- guished loinhay during the years 1861 to t8t15. popularly remem- bered its “the time oi the share mania." the Bank was reconstruct- i-d early in 1808. Since then its career has been marked by great irosperity. and it is now .1 strong inﬂuential Institution. Worthy at its position as the leading Bank in the Western Presidency.

The Government reused in be .i shareholder in 1875. and in [870 the Presidency Banks' Act was pass-d, nndorwhich the Bank is now eonsti. tutcd and regulated. and luv which its sphere oi activity is confined to lndia.

lts capital lully paid up, .imoiinN to Rs. r.m,i.oo.ooo and the Reserve Fund. accumulated mainly trom proﬁts. now stands at Rs. 87,m,ooo or 87 per cent oi the capital. and is all invested in Goverrr ment or other authorised public securities. at low rates.

THE CYtTLOPElﬂA OF INDIA

The t‘apitul and Reserve Fund combined represented 24 per cent oi the average of the total deposits tor the year endinv 3H! [Member No.1. and With the Cash Reserves maintained constituted an excep- tionally high degree of protection to dermiturs‘

Government transact their or- dinary Banking business through the Bank—their lulutite .it the Head ﬁiee is maintained Within fairly Well-defined limits. the prac- tice being to repleniSh it when it falls below a certain limit from the Government Reserve Treasury, and to transfer thereto accumu- lations beyond a Certain point. At the Branches. the Government Deposits Consist mostly of the Cash

Mir ’1‘“ Bloom.

Balances maintained tor ordinary Local Treasury requirements but at twn Bramhes. under special arrangements. the Bank also under- takes the remittance oi surplu; revenue collections to Head- unr- ters in Bombay. “('Sttlrs com net- trig ordinary Banking Accounts. and recriving at ililt‘ft‘t-t deposits i’iiied tor various periods not ev- cecdiiig twelve months. the Bank reteives deposits on the principle oi the Savings Bank. This system was introduced in who and has met the Banking nreds oi lurgv numbers oi the community tor whom the Post Ofﬁce Savings Bank is too circum- scribed. The nature of the Bank's

investments is strictl limited by the Presidency Banks’ Xct. which was designed to attain a hi h standard ul liquidity. The Ban 5 can pur- cliaée only Government Securities, Guaranteed Railway Stock. and De- bentures ot public bodies issued under the authority at Government, and can advanCe only against these securities. and bullion. goods. and Billsot Exchange or endorsed Pru- niissory Notes. In the ruse oi the last of these securities there is a limit, comparatively low for an important and wealthy centre hke the capital oi Western India. placed on the amount which can he ad~ vanced to an individual or firm. which also applies to the diseaunt or purchase of Bills. In addition, all advanccs and discounts are restricted by the Act to a period of three months. The Bank maintains Branches zit Ahmedabad, Akola. Ammoti. Broach. Karachi. Fauna. Sukkur. and Surat. A statement oi its affairs is published weekly. Formerly the Bank's rate at interest wzu subject to severe ﬂuctuations and at times reached a high level. In recent years the runge oi the rate has been narrowed and the matti- mum lowered. To some extent this may be attributed to thc lar or amount oi funds now controlled y the. Bank. but the main reason is to be intian in the altered circum‘ stances oi the Currency system at the country. one important result of which has been the removal from the money market at the embar- rassments induced by an unsettled sterling exchange. The recent ﬂourishing static oi the balance oi trade has also assisted in bringing about lower charges tor interest. The Dividends paid by the Bank have gradually risen from an aver- age oi 7] per cent tor the decade ending [87!) and 9 per cent [or the next ten years. to ml per cent [or the period "hm-tn. and it per cent tor the past ﬁve years. her later results are notewurtby. as they have synchronisal with lower rates at interest and discount than in previous years. While gradually increasing its Dividends. the Bani: has not been unmindiul oi the duty it owes to item” of steadily adding to its Reserve Fund. No doubt that policy will be continued in view oi the sustained growth at its business.