four principal foreign Banks.
45
The second view is that if
the Committee were composed solely of representatives of the
large Banks, the Co-operative movement, the small Banks and
the public generally might not have entire confidence in the
disinterestedness of the advice of the proposed Advisory
Committee. We, therefore, think that an Advisory Committee,
composed as we suggest, will ensure that the advice will be
expert and that due consideration will have been given to
urban and rural interests. We have thus considered that
knowledge of banking affairs and not representative banking
interests must be the main qualification for membership of
the proposed Advisory Committee. It must be borne in mind
that decisions on the advice of the Committee rest with
Government and that it is not suggested that the Committee
should have executive powers. Dr. Smoira, however,
endorses the view expressed by the Registrar of Co-operative
Societies that the Advisory Committee should include a
representative of Co-operative Credit Societies.
37. With regard to (d) of our terms of reference,
namely to consider the practicability of and to make
recommendations regarding giving retroactive effect to any
recommendations, we feel strongly that our recommendations
would be entirely stultified if they cannot be applied to
existing Banks of inadequate financial standing and doubtful
antecedents. Yet much as we may think undesirable the
incorporation of many of the small Banks, we do not desire
to invalidate their incorporation or any act legally done
by them but we have recommended certain standards to which
we think they should be required to conform in future.
making our recommendations we have, as far as possible,
avoided anything which might be held to hinder bona fide
bankers in legitimate banking transactions.
In
38. We have also considered whether by permitting the
incorporation of these Companies or Co-operative Societies
they