BANK FOR INTERNATIONAL SETTLEMENTSFIRST ANNUAL REPORTFOR THE BUSINESS YEAR ENDED MARCH 31, 1931BASLEFIRST ANNUAL REPORTTO THE ANNUAL GENERAL MEETING OF THE BANK FOR INTERNATIONAL SETTLEMENTS, Basle, May 19, 1931. Gentlemen: As provided by the Statutes, there is submitted herewith for your information and approval the Annual Report of the Bank for International Settlements covering the first fiscal year which began May 17, 1930 and terminated March 31, 1931. This year of 10% months has been one of steady development of ourinstitution in each ┛f its spheres of action. Not only has the Bank been fortunate in contributing to the advance of cooperation betweenCentral Banks！ a field in which there remains, vast room _ for gradual progress ！ but it has also helped to provide additional facilities for international financial operations and capital movements ！ another domain where the opportunities for constructive service are almost boundless. In this same connection, it has discharged functions as Trustee or Agent under various international settlements enu^ merated below, the machinery of all of which has operated through the Bank without difficulty, interruption or delay, all the sumsinvolved having been punctually and regularly received and equally punctually and regularly distributed. These subjects will be returned to laterj but before doing so it is desired to lay before you the business results of the first fiscal year and to call your attention to certain statistics which^ by themselves, reveal the Banks material growth. Opening our fiscal year with shareholders of seven nationalities, namely, those the Central Banks or other banking institutions of which founded the Bank for International Settlements and filed subscriptions to 112,000 shares of thecapital stock*, we terminated the year with 23 shareholding institutions of diff└rent nationalities with a total of 165,100 shares outstanding, in addition to which 6,000 shares were authorized for delivery to the Central Banks of Yugoslavia and Portugal as soon as the currencies in these countries were legally stabilized. Annex I gives the full list of the participating banking institutions as of March 31, 1931, and the number of shares, twenty-five percentum paid in, originally allotted to each, with the dates of the respective allotments. Starting with deposits of 220,000,000 Swiss francs and total assets and liabilities of 300,000,000 Swiss francs, our* Sixteen thousand shares each were subscribed by the Banca dItalia, Bank of England, Banque de France, Banque Nationale de Belgique, Reichsbank, Industrial Bank of Japan heading a Japanese group, and J . P. Morgan & Co., the First National Bank of New York and the First National Bank of Chicago constituting the American group.-2-monthly Statement of March 31, 1931, disclosed the growth of deposits to 1,780 million Swiss francs and the increase of total assets and liabilities to 1,900 million Swiss francs. In Annexes III and IV you willfind, for the purposes of detailed comparison, our first monthly statement, as of May 31, 1930, and the statement as of March 31, 1931. While profit making hasnever been a primary object, ordinary business foresight and sound economic principle have dictated thrift in expenditure and care in our investments, which have been made with, through or with the knowledge and without the objection of the Central Banks concerned in 26 countries ofthe world. Our operating staff, recruited from ten nationalities, has been kept within moderate limits, as is shown by the table ofpersonnel set forth in Annex II.NET PROFITS. The net profits for the 10% months, after writing off all installation expenses, cost of furniture and supplies, and after necessary provision for contingencies, is, as approved by the Auditors, 11,186,521.97 Swiss francs at par, which is the money of account in which the books of the Bank are kept. It is for the General Meeting to consider a declaration of dividend and its amount andto make appropriations to Reserve and to Special Funds. After providing for the LegalReserve Fund that is required by Article 53 of the Statutes in an amount equal to 5% ofthe net profits, that is to say, 559,326.10 Swiss francs, it is proposed that the General Meeting consider the declaration of a dividend at the rate of 6% per annum, payable forthe period between the respective dates of payment of the capital stock subscribed and March 31, 1931. Such a dividend would require 5,156,250 Swiss francs, leaving still available for distribution in the manner described in Article 53 of the Statutes the sum of 5,470,945.87 Swiss francs. Exercising the discretion vested in it by Paragraph (c) of Article 53, the Board of Directors has determined to place to the credit of a Special Dividend Reserve Fund, for use in maintaining the cumulative 6 % dividend provided for by the Statutes, the sum of 1,094,189.17 Swiss francs, which is the maximum amount which it is permissible, under the Statutes, to set aside for this purpose out of the net profits of the year. After making provision for the foregoing items, you are requested, from the balance still remaining, to make an appropriation tothe General Reserve Fund of the Bank in the manner stipulated by Paragraph (d) of Article 53, in the sum of 2,188,378.35 Swissfrancs. The same article of the Statutes lays down the distribution of the sum finally remaining, namely, 2,188,378.35 Swiss francs, between such of the Governments or Central Banks of Germanyand the countries entitled to share in the annuities payable under the New Plan, defined in the Hague Agreement of January, 1930, as shall have maintained time deposits at the Bank subject to withdrawal in not less than five years. No Central Banks have such time deposits at present, but the following Governments have such deposits and are entitled, on the understanding that their several deposits continue for at least five years, to participate in the residual amount of 2,188,378.35 Swiss francs, in the following sums:！g French Government Guarantee Fund in accordance with ArticleXIII of the Trust Agreement German Government non-interest-bearing deposit in accordance with Article IX of the Trust Agreement . Creditor Government minimum deposits in accordance with Article IV (e) of the Trust Agreement:！ France 639,125.02 Great Britain 245,533.61 Italy 119,520.21 Belgium 67,594.72 Rumania 10,839.01 Yugoslavia 53,062.46 Greece 2,319.97 Portugal 7,665.71 Japan 8,459.27 Poland 224.43452,593.31581,440.631,154,344.412,188,378.35The accounts of the Bank and its first Annual Balance Sheet have been duly audited by Messrs Price, Waterhouse & Co.,Chartered Accountants, Paris. The Balance Sheet will be found in Annex IV, as well as the certificate of the Auditors to the effect that they have obtained all the information and explanations they have required and that the Balance Sheet exhibits a true and correct view of the state of the Banks affairs as shown by its books. The Profit and Loss Account and the Appropriation Account are reproduced in Annex V. DEPOSITS AND INVESTMENTS. The originof the funds deposited with the Bank for International Settlements is explained by the very nature of its functions. Created in connection with the arrangements relative to the German annuity payments, for the promotion of international financial facilities, and as an intermediary between Central Banks to advance their cooperationand to simplify transfers from one currencyto another, the Bank during the current fiscal year has accepted, in addition to the Government deposits envisaged by the Hague Agreements of January, 1930, only deposits from Central Banks, either for their own account or for the account of their Governmental Treasuries. Neither individuals nor private banks are so far among the Banks depositors. Speaking in round figures, besides the 103 million Swiss francs paid in on account of capital, the Bank has received, in conformity with the Hague Agreements, the noninterest-bearing deposit of some 155 million Swiss francs deposited at long term by the Treasuries of the Creditor Powers, as well as the sum of 77% million Swiss francs deposited by Germany o
Posted on: Tue, 29 Jul 2014 23:19:50 +0000
Trending Topics
Recently Viewed Topics
© 2015