T FI E CUBA REVIEW 19 



t ' 



Proposed General Banking Law, Including 

 Reserve Bank Act 



Report of Doctors Cosme De La Torriente and Santiago Gutierrez 

 De Celis to the National Commission on Banking Legislation 



(Translation by L. L. Gonzalez) 



An Act of the Cuban Congress of January 31, 1921, provided for the appointment 

 of a Commission to draw up a project of banking legislation, its members being the 

 Secretary of the Treasury, two Senators (Drs. Cosme de la Torriente and Antonio 

 Gonzalo Perez, who were elected President and Vice-President, respectively), two 

 Representatives (Dr. Carlos M. de la Cruz and the late Rafael Martinez Alonso), and 

 one member in representation of each of the following: Cuban Chamber of Commerce 

 (Dr. Santiago Gutierrez de Cells) ; Association of Sugar Mill Owners and Cane Growers 

 (Dr. Miguel Arango) ; Association of Tobacco Manufacturers (Sr. L. S. Houston) ; 

 Association of Havana Real Estate Owners (Dr. Manuel Enrique Gomez); and of the 

 Bankers (Sr. Porfirio Franca). The following were appointed Secretaries: Sr. Luis 

 Marino Perez and Sr. Jose de Junco. 



The Commission, after determining the general character of the legislation to be 

 drawn up and having before its consideration three detailed projects submitted, respec- 

 tively, by Sr. Sebastian Gelabert, Secretary of the Treasury, by Senator Cosme de la 

 Torriente and by Dr. Santiago Gutierrez de Celis, designated the two latter to report 

 on a general banking law, including a Reserve Bank similar to the Federal Reserve 

 Banks of the United States. This report, as approved by the Commission, is printed in 

 full below. 



The Commission considered that it was necessary to hear the opinion of the bankers 

 and of other interests in the country, who would be directly affected by the proposed 

 legislation and, therefore, did not submit the report of Drs. Torriente and Gutierrez de 

 Celis to the President of the Republic as a definite recommendation, but as a pro- 

 visional or tentative proposal, in order that an opportunity might be given to all parties 

 to study it and express their views thereon. To make this possible, the Commission 

 requested the President to insert the project in the Ofiicial Gazette, and to make it 

 known that the Commission would consider carefully all opinions and objections sub- 

 mitted to it before the first of November this year, and then make a final report to 

 the President of the RepubHc, as the Act of January 31, 1921, provides. 



Report 



Havana, May 3. 1922. 

 To the National Commission on Banking Legislation: 



The report which we have the honor to render, contains the general principles 

 and ideas which the Commission has discussed and accepted at the several meetings 

 held up to the present time, and which were developed in the projects which we had 

 the honor of submitting to this Commission during the past year. 



Our report is divided into four parts: the first, relative to the National Banking 

 Commission; the second, to the Reserve Bank of Cuba; the third, to the provisions 

 applicable to banks, bankers and saving societies for their organization and operation 

 and for the official inspection of the same; and the fourth, to suspension of payments 

 and reorganization and liquidation of banks. In the third title of the project, a chapter 

 has been inserted on the check, a matter on which we have deemed it proper to propose 

 legislation. Although we have not included it in our report, we understand that it 

 would be convenient to insert in the project which will be definitely remitted to the 

 Executive power, precepts for the organization of a corps of auditors or public account- 

 ants in relation with the service of banking inspection. 



