24
(See Misc. No. 451, Enc. to
The G.P.0. state that an annual limit has
been imposed in the British Post Office Savings Bank,
but that there is no total limit. The prescription
of a maximum limit is the result of the recommendation
Mr. MacDonald's of the Departmental Committee appointed by the Secre- circ. desp. of 3/8/35.)
(See para. 32 of above.)
Reportion should
be had to accept deposit's above the $5000 limit:
witvest shoned be credited had such
witeet shoned not
ва
regarded as
eaching interest: 17
annemt kikost acornes on
he reaximum of
It showed
$5000 only
18 necessary
not be he
withdraw the excess over the maxim
$5000.
aximum
This would
eleany
41.
'Wi)
tary of State. The present Ordinance, however, fixes
the limit, whereas the Committee recommended that
such maximum limits should be prescribed by rules
made under the Ordinance, and if necessary, altered
from time to time by the Governor in Council, in order
to allow some elasticity. I think we should suggest
such a course.
The G.P.0. say that this clause presumably
allows a depositor to leave $5,000 in the bank, the
interest on which could be credited to the account
from year to year, but without earning interest, and
ask whether steps would be taken to compel the
depositor to withdraw the interest, or receive payment
direct. Whereas it would be easy to refuse to accept
deposits over $5,000, in the case where this sum was
exceeded by accumulation of interest, it is not clear,
I think, whether the depositor would be compelled to
withdraw the surplus or not. There are certain
difficulties in compelling him to do so, but if
maximum deposits are to be limited to $5,000, such
a step will presumably be necessary, and provision
should be made for it in the Ordinance.
Section 366. Both the B. of E. and the G.P.O.
point out that there is no restriction imposed on
savings banks as to how their deposits are to be
employed or invested beyond the securities to the
value of 50% of deposits which they are required to
deposit with the Colonial Treasurer Incorporated.
securities have to be approved by him. The B. of E.
Such
suggest