CO129-555-6 Banking crisis 24-9-1935 - 18-10-1935 — Page 62

6%

Committee;

and then, on a recommendation to that effect

by the Committee, the High Commissioner should have power

to make an Order closing down the bank or cancelling or

suspending its licence to do banking business.

There is

a precedent for such an arrangement, I believe, in the

States, though in this country fortunately nothing

United

of the kind is needed.

Palestine the Inspector

In the case of credit banks in

applies to a Court for a winding-

up order, but there the question is whether the credit

bank has contravened the provisions of the Ordinance or of

its own constitution, whereas in the case of a commercial

bank probably no such tangible charge could be brought

against it and the procedure suggested via the Advisory

Committee seems more appropriate.

5.

I am not quite clear as to the effects of the recommendations in § 47 and § 49, but I suggest that a

sound general principle to work on would be that no

company, society, or firm should be allowed to use the

term "bank" or "banking" in its title unless banking is

its sole business. Subject to this, trading and other companies need not (and should not) be restrained from

accepting deposits in the way that Harrods and other

stores in this country, for example, accept them.

6. I have referred above to the publication of

balance sheets as one of the most valuable safeguards for

the protection of the public, but I see from a closer

examination of the report that there is no provision for

publishing the annual balance sheets but only for their

submission to the Registrar. I see no reason why

publication in the Gazette should not be required; it is

required in other countries, e.g. in South Africa

(Act