In view of the near-panic that overtook the banking business towards the close of last year and because of the re-adjustment that is being contemplated by the Government and private financiers, it is a remarkable fact that there are over 5,000 banking institutions (including branches) in the country. Even more remarkable is the fact that nearly one half of these are small houses, comparable with Chinese money-changing shops, and the existence of these petty places is, naturally, a menace to the healthy development of the money market. The Government has become aware of this and is planning radical measures to neutralize these dangerous traits in the financial world and is at present considering two ways of tackling the matter—(1) to reform the present legislation regarding banking; (2) to retain the legislation, but to make additional clauses that will enable the banks to be adequately and regularly superintended by Government auditors, at the same time encouraging amalgam mations and combines. It is doubtful whether the authorities can afford the additional expense that the employment of a large number of superintendents would entail. The enactment of legislation forcibly closing several of the more doubtful and weak establishments is also considered unfeasible, and it is generally presumed that the authorities will call on all the bankers concerned to ce-operate with the Finance Department in forming amalgamations, thus reducing the number of banks and at the same time placing -the amalgamated establishments on a sounder and firmer footing.
Text read from the printed page and cleaned; old type leaves the occasional error.