CO129-561-6 Companies Amendment Ordinance draft bill- correspondence 18-1-1937 - 6-7-1938 — Page 24

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(See Misc. No. 451, Enc. to

The G.P.0. state that an annual limit has

been imposed in the British Post Office Savings Bank,

but that there is no total limit. The prescription

of a maximum limit is the result of the recommendation

Mr. MacDonald's of the Departmental Committee appointed by the Secre- circ. desp. of 3/8/35.)

(See para. 32 of above.)

Reportion should

be had to accept deposit's above the $5000 limit:

witvest shoned be credited had such

witeet shoned not

ва

regarded as

eaching interest: 17

annemt kikost acornes on

he reaximum of

It showed

$5000 only

18 necessary

not be he

withdraw the excess over the maxim

$5000.

aximum

This would

eleany

41.

'Wi)

tary of State. The present Ordinance, however, fixes

the limit, whereas the Committee recommended that

such maximum limits should be prescribed by rules

made under the Ordinance, and if necessary, altered

from time to time by the Governor in Council, in order

to allow some elasticity. I think we should suggest

such a course.

The G.P.0. say that this clause presumably

allows a depositor to leave $5,000 in the bank, the

interest on which could be credited to the account

from year to year, but without earning interest, and

ask whether steps would be taken to compel the

depositor to withdraw the interest, or receive payment

direct. Whereas it would be easy to refuse to accept

deposits over $5,000, in the case where this sum was

exceeded by accumulation of interest, it is not clear,

I think, whether the depositor would be compelled to

withdraw the surplus or not. There are certain

difficulties in compelling him to do so, but if

maximum deposits are to be limited to $5,000, such

a step will presumably be necessary, and provision

should be made for it in the Ordinance.

Section 366. Both the B. of E. and the G.P.O.

point out that there is no restriction imposed on

savings banks as to how their deposits are to be

employed or invested beyond the securities to the

value of 50% of deposits which they are required to

deposit with the Colonial Treasurer Incorporated.

securities have to be approved by him. The B. of E.

Such

suggest