CO129-555-6 Banking crisis 24-9-1935 - 18-10-1935 — Page 26

Copy.

sir,

The Treasury,

Jerusalem.

5th June, 1934.

26

INTRODUCTORY.

In your letter No.CF/78/33 dated the 14th October,

1933, we were appointed as a Committee "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". Our terms of reference are

reproduced below:-

"To consider the practicability of and to make

recommendations regarding

(a) fixing a minimum capital to be paid up within a

year from the date of registration or to

(b)

(0)

recommend some other suitable means of establishing

the financial bona fides of a Bank;

fixing a minimum cash reserve as a percentage

of deposits;

limiting the use of short-dated deposits or

current accounts to short-dated investments;

(a) giving retroactive effect to any recommendations.

To consider the necessity for and to make recommenda-

tions regarding the revision of -

(a) the provisions of the Banking Ordinances, 1921/22;

and

(b) the Credit Banks Ordinances, 1920/1922."

Chief Secretary,

Government of Palestine.

2.