§ 4. Colonel Wedgwoodasked the Secretary of State for the Colonies why the banks in Palestine were closed when there was no run on them, in view of the fact that they were not closed in England?
§ The Secretary of State for the Colonies (Mr. Malcolm MacDonald)The right hon. Member's information is not correct. On the 25th August, as a result of nervousness among bank depositors caused by the international crisis, there was a general run on the banks in Tel Aviv, and heavy withdrawals also took place in Haifa and Jerusalem. In the circumstances the High Commissioner decided to proclaim at once a three-day bank holiday. At the end of this holiday all the banks were permitted to reopen, the local institutions being subject to certain restrictions.