CO129-555-6 Banking crisis 24-9-1935 - 18-10-1935 — Page 44

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35.

On the other hand we feel that something more

must be done to cope with the dangers to which depositors

may be exposed, and we recommend that an Advisory Committee

on Banks in Palestine should be appointed under the

Chairmanship of the Treasurer, consisting in the first

instance of Mr. A.P.S. Clark; Mr. S. Hoofien;

Mr. L. Le Bouvier; a representative of urban industries

and a representative of agricultural interests. The

Committee would carry out a periodical examination of the

statements submitted by Banks and report thereon to the

The Committee would also be available

High Commissioner.

for offering advice to the High Commissioner on any other

banking matters which might be referred to it. We think

that the appointment of such a Committee would create a

favourable impression locally and that most probably no

Bank would care to ignore the advice of such a Committee.

We also think that the High Commissioner should take power

under the Ordinance to enforce, if and when occasion

necessitated, the form and extent of liquidity to be

maintained by local Banks.

36.

As regards our recommendations for membership of

the Advisory Committee in our discussions two clearly

defined points of view were expressed. The first was that

the composition of the Advisory Committee must be

determined with regard to the specialist nature of the

advice which such a Committee would have to tender

Government and the confidence which Government might

repose in that advice. On this view, which we adopt, the

majority of the Committee must for the present be

representative of expert banking opinion and in this

connection it must be borne in mind that three-quarters.

of the deposit-banking of Palestine is in the hands of the

four