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44
35.
On the other hand we feel that something more
must be done to cope with the dangers to which depositors
may be exposed, and we recommend that an Advisory Committee
on Banks in Palestine should be appointed under the
Chairmanship of the Treasurer, consisting in the first
instance of Mr. A.P.S. Clark; Mr. S. Hoofien;
Mr. L. Le Bouvier; a representative of urban industries
and a representative of agricultural interests. The
Committee would carry out a periodical examination of the
statements submitted by Banks and report thereon to the
The Committee would also be available
High Commissioner.
for offering advice to the High Commissioner on any other
banking matters which might be referred to it. We think
that the appointment of such a Committee would create a
favourable impression locally and that most probably no
Bank would care to ignore the advice of such a Committee.
We also think that the High Commissioner should take power
under the Ordinance to enforce, if and when occasion
necessitated, the form and extent of liquidity to be
maintained by local Banks.
36.
As regards our recommendations for membership of
the Advisory Committee in our discussions two clearly
defined points of view were expressed. The first was that
the composition of the Advisory Committee must be
determined with regard to the specialist nature of the
advice which such a Committee would have to tender
Government and the confidence which Government might
repose in that advice. On this view, which we adopt, the
majority of the Committee must for the present be
representative of expert banking opinion and in this
connection it must be borne in mind that three-quarters.
of the deposit-banking of Palestine is in the hands of the
four