THE RELATIONS BETWEEN BANKING AND THE STATE IN THE UNION OF SOUTH AFRICA, BY ARNOLD PLANT, B.Sc. (ECON.), B.COM., PROFESSOR OF COMMERCE, UNIVERSITY OF CAPE TowN

ONJulyIst,1925,inaccordancewiththeprovisionsofthe CurrencyandBankingActAmendmentActNo.22of 1923,thegoldcertificatesissuedbytheSouthAfrican TreasurybecameconvertibleintogoldandtheUnion wasbackoncemoreonthegoldstandard.Inthispaper theconsequencesofthatchangeupontheconductof bankingoperationsinSouthAfricawillbereviewed.It willbenecessaryinthefirstplacetodescribethecourse ofeventswhichhasresultedinthepresentsituation; secondly,inviewofthepersistenceofthedemandfor increasedStateintervention,toexaminetheeffectiveness oftheexistingbanksinperformingthefunctionslegitimatelyrequiredofthem;andfinallytoconsiderwhether theusefulnessoftheSouthAfricanReserveBankmight beincreasedbyanyfurtheramendmentsofitsconstitutionandpowers.