Page 53 - Demo

In March 1922, the Union government declared martial law and sent in an armed force to quell the rebellion. The resultant fighting left more than 200 people dead and over 1 000 injured.
In 1918, the South African Native Congress, later named the African National Congress (ANC), was formed. Interestingly, although some of its leaders were involved in organising some of the strikes that took place between 1918 and 1919, they opposed the call for a general strike in 1918.
Equally noticeable is that the ANC and the SACP were on opposing ends, with the latter representing white workers. Over 70 years later, the ANC and SACP, having become political allies, would negotiate a position on the independence of the SARB. (CROSS-REFERENCE).
These are some of the backdrops against which the SARB was established: labour strikes, political strife, and profound scepticism about the role of a central bank in the newly formed Union of South Africa. The bulk of Clegg’s early addresses and speeches to stockholders and the press were dedicated to explaining the SARB’s functions, and why the institution was a necessity in the light of the Union having well-established commercial banks.
“Between central banks and commercial banks there are certain fundamental differences, which are established by tradition in older countries, but which in a country like this, where tradition has little weight, should be established by law,” Clegg said while addressing stockholders on 8 June 1927 at the seventh general ordinary meeting.
“These fundamental differences are three in number – (1) a central bank should never allow interest on deposits; (2) it should never allow unsecured advances on overdrafts; (3) it should never make advances on fixed property,” said Clegg (1921−1929, p 13).
Crucially, “... [with] these restrictions tying up its hands a central bank could not be the sort of universal credit provider to its customers which an ordinary bank is,” noted Clegg (1921−1929, p 13).
“Between central banks and commercial banks there are certain fundamental differences, which are established by tradition in older countries, but which in a country like this, where tradition has little weight, should be established by law,”
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