CO129-555-6 Banking crisis 24-9-1935 - 18-10-1935 — Page 22

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Honourable Colonial Secretary.

There are several different proposals in this

filc, and it is necessary to examine them separately.

2.

I said on 27.11.27.

I should like to repeat here two things which

One is that practice is more important

than legislation and that it is useless to provide by law

for a control which we could not, or would not, offectively

carry out.

The other is that a power of control which is

not, or camot, be made effective is worse than useless, because

(a) it creates a false feeling of security, and (b) it throws

odium on the Government in case of failure.

る

3.

Banks in the Colony may perhaps be clarified

as follows:-

(a) Banks established under a special H.K.

Ordinance, e.g., the H.K.^.B.

(b) Banks established under the H.K.

Companies Ordinance, e.g., the Instone

Banking Corporation Ltd.

(c) bans established by or under some other

legislative of executive authority in the

British Empire, e.g.!-

Chartered Bank (Royal

Charter).

Barclays Bank Ltd. (under

general Act of Parliament).

Ho Hon Bank Ltd. (under

Straits Ordinance).

(a) banks which are foreign corporations,e.g.,

the Yokohama Specie Bank Ltd.

All the above are corporations.