Copy.
75176/35.
Colonial office,
Downing Street, S.W.1.
26th February, 1935.
80
Report.
Dear Bridges,
Among the many problems with which the Palestine
Government is faced is that of protecting the public
against the operations of banks with inadequate share
capital and reserves, which nevertheless attract customers
by offering competitive rates of interest.
increase in the number of such banks in recent years has
been causing concern to the High Commissioner, and he has
come to the conclusion that some measure of Government
control is necessary.
The rapid
As a first step a Committee was appointed, with
the concurrence of the Secretary of State, "to consider
ways and means of establishing the banking of Palestine on
sound principles so as to afford protection to the banking
profession and safeguard the financial reputation and
credit of the country".
The Committee's report is now available and I
Fr.H.Cr. 10.11.34 enclose a copy, together with a copy of the High
Commissioner's covering despatch.
The Secretary of State
is disposed to allow the Palestine Government to try out
the scheme of control recommended by the Committee and the
High Commissioner. It is realised that it may be found
difficult to give effect to some of the measures proposed
and that some of them may excite local criticism, but the
Secretary of State has no doubts as to the necessity for
restrictive action on the lines now proposed, and feels
E.E. BRIDGES, ESQ., M.C.
that
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