8
Colonial Treasurer Incorporated (Sections 365 to 372).
• valuable additional safeguards.
This affs an
A
I do not feel competent to comment in
detail on this Ordinance, but I would venture some
general criticisms.
(1) The Governor's power under Section 353
(3) to cancel any licence under the Ordinance in
his absolute discretion and without cause stated seems
to me to give him very wide powers, though it follows
Section 3 of the Palestine draft Ordinance.
(2) Section 4 which provides for the separate
winding up in the Colony of a branch of a company which
has also carried on business elsewhere. Under it the
Court on the application of the local liquidator
may order that the local affairs of the company may
be wound up separately and that the local assets
shall be applied in the first instance to the payment
of local debts. This no doubt particularly refers
to Chinese institutions with branches in Hong Kong
such as the Wing On Company. The powers given are
no doubt most desirable but it may be that difficulty
will be caused by the determination of exactly what
constitutes a local asset.
(3) The provision in Section 355 (2) that
no action or proceedings shall be maintained against
any member of the Banking Advisory Committee in
respect of any advise given or any statement made by
him to the Governor in Council or the Examiner of
Banks may permit a rather large discretion if members
of the board of any one bank are appointed to sit on
the Committee and are consequently free to make
statements about other banks.
(4)
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9
See Miscellaneous
euch to t
No.451.
mackonald's circula
of 3. 111·35.
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(4) Section 362 provides that the
accounts of every company conducting savings
bank business shall be kept entirely in English.
I should have thought that this provision might
be difficult to enforce. It is, however,
largely a matter for the local Government, and
is them I presume that we need not comment further.
(5) Section 364 prescribes the maximum
deposit which may be made in a Savings Bank at
any one time and the maximum amount of deposits
This follows
name
which may stand to any one man.
the recommendation of the Departmental Committee
appointed by the Secretary of State. The
Committee recommended (see paragraph 32) that
such maximum limits should be prescribed, but
that in order to allow some elasticity they
should not be fixed by Ordinance but by rules
made and if necessary altered from time to time
by the Governor in Council. The present
Ordinance does not allow the Governor such
to alter the amoun
power, and I think some such provision for the
alteration of the limit might be inserted in the
Ordinance.
(6) Sections 365 to 7 require the
deposit by every company conducting savings
bank business with Colonal Treasurer Incorporated,
securities to the value of $50,000, and in
addition to the value of one half of the aggre-
gate amount of savings bank deposits for the
time being held by the Company. The Ordinance
provides that the securities should be valued
according to their market price. I do not know
how far it may be thought desirable to consider
the alternative of valuation by cost price or
market
ge 9
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10
market price, whichever is the less, as I believe is
/
done in this country.
? at this stage all we need do is to send a the despatch
copy of the Ordinance and of Mr. Young's letter
(1 on 53671/35) to the Treasury, the Crown Agents and
the Board of Trade for any observations which they
may have to offer and to the Foreign Office for
information telling each.
I do not thukk
any the
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at the moment,
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