CO129-561-6 Companies Amendment Ordinance draft bill- correspondence 18-1-1937 - 6-7-1938 — Page 55

C. O.

Mr.

Mr.

Mr.

Sir H. Moore.

Sir G. Tomlinson.

Sir C. Bottomley.

Sir J. Shuckburgh.

Permt. U.S. of S.

Parly. U.S. of S.

Secretary of State.

DRAFT.

FURTHER ACTION.

55

maximum. This should be made clear in

the Ordinance.

Section 366. There is under this

section no restriction on savings banks

as to how their deposits are to be

employed or invested beyond the

securities to the value of 50% of

They

deposits which are required to deposit

hare

with the Colonial Treasurer Incorporated.

It is desirable that savings banks

should at least be prohibited from

certain operations, such as speculation

in foreign exchange or unsecured loans

to private persons. The section should

be amended accordingly.

Section 371. It is presumed that

tnis clause would only operate in the

event of a company getting into

difficulties, and that normally the

ordinary withdrawal facilities through

the company would suffice.

It is not clear that under

tais Bill the activities of savings

bank

("2132-150) Wt. 42270-82 15,000 4/38 T.S. 695