CO129-555-6 Banking crisis 24-9-1935 - 18-10-1935 — Page 45

four principal foreign Banks.

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The second view is that if

the Committee were composed solely of representatives of the

large Banks, the Co-operative movement, the small Banks and

the public generally might not have entire confidence in the

disinterestedness of the advice of the proposed Advisory

Committee. We, therefore, think that an Advisory Committee,

composed as we suggest, will ensure that the advice will be

expert and that due consideration will have been given to

urban and rural interests. We have thus considered that

knowledge of banking affairs and not representative banking

interests must be the main qualification for membership of

the proposed Advisory Committee. It must be borne in mind

that decisions on the advice of the Committee rest with

Government and that it is not suggested that the Committee

should have executive powers. Dr. Smoira, however,

endorses the view expressed by the Registrar of Co-operative

Societies that the Advisory Committee should include a

representative of Co-operative Credit Societies.

37. With regard to (d) of our terms of reference,

namely to consider the practicability of and to make

recommendations regarding giving retroactive effect to any

recommendations, we feel strongly that our recommendations

would be entirely stultified if they cannot be applied to

existing Banks of inadequate financial standing and doubtful

antecedents. Yet much as we may think undesirable the

incorporation of many of the small Banks, we do not desire

to invalidate their incorporation or any act legally done

by them but we have recommended certain standards to which

we think they should be required to conform in future.

making our recommendations we have, as far as possible,

avoided anything which might be held to hinder bona fide

bankers in legitimate banking transactions.

In

38. We have also considered whether by permitting the

incorporation of these Companies or Co-operative Societies

they