Abstract
South Africa's adherence to the Gold Standard while many other countries abandoned it, placed the country in a difficult position. This was exacerbated by the worldwide economic depression that resulted in the sharp decline of primary commodity prices, a decrease in demand and unemployment.
The commercial banks in South Africa were obviously also affected by the prevailing circumstances and the position of one of them, Barclays Bank (Dominion, Colonial and Overseas) will be the focus of this study. One of the most important questions that will receive attention is to what extent the bank was affected by the gold standard crisis. Linked closely to this is the question of the nature of the problems encountered by the bank and the measures, if any, it took to overcome these difficulties. In this regard it will be necessary to investigate the most important areas of the imperial banks' business and the type of customers they served.
Another question or issue to be investigated is the relationship between the two British banks on the one hand and the South African Reserve Bank and the government on the other. The establishment of the Reserve Bank was not openly welcomed by the imperial banks as they feared competition from the Bank while, with their considerable balances overseas, they were not convinced that there existed a need for a central bank in South Africa. In this respect, the question of co-operation between the two banks will also receive attention.
Prof. G Verhoef