The collapse of the Graaff-Reinet board of executors during the great depression (1929-1934)

Abstract

The world-wide economic depression of 1929-1934 also bore down heavily on small-town financial institutions. A case in point was that of the Graaff-Reinet Board of Executors (established 1856) and the Midland Agency and Trust Company of Graaff-Reinet. A severe blow to their financial viability had been Great Britain's going off the gold standard on 21 September 1931. The Midland Agency was able to survive but the Board of Executors collapsed - the first such instance in South Africa during the great depression. It closed its doors on 20 October 1931 and was thereafter placed under judicial management. One result of this collapse was the introduction of the Companies Amendment Bill into the 1932 parliamentary session by Dr K. Bremer, MP for Graaff-Reinet.