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The Commonwealth Bank of Australia Were Observing the Mora­ Torium

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The Commonwealth Bank of Australia Were Observing the Mora­ Torium ~be <tommonwealtb :fl3ann of 1:tustralia. The Late SIR DENISON MILLER, K.C.M .G., Governor of the Commonwealth Bank. Ube \.tommonwealtb:fBank of Bustralia. A Brief History of its Establishment, Development and Service to the People of Australia and the British Empire UNDER S I R D E N I S O N M I L L ER, K. C. M. G. Governor. JUNE 1st, 1912-JUNE 6th, 1923. By C. C. FAULKNER With the Collaboration of the Bank's Officers. 0~ CJ [CO PYRI GHT.] Published by Authority. Sydney, 1923. WHOLLY SET UP AND PRINTED IN AUSTRALIA BY JOHN SANDS LTD ., SYDNEY . In the interests of the people of A usiralia, no effort will be spared to make this national institution, the Commonwealth Bank, one of great strength and assistance in maintaining the financial equilibrium on safe lines, so that its expansion may be con­ current with an ever-increasing volume of wealth of the Commonwealth of .J]ustralia. SIR DENISON MILLER . Foreworo N this book the story of the Commonwealth Bank of A itstralia, dU,ring the period in which the late Sir I Dem·son 1'v.liller was Governor, is outlined, with the object of recording bri~fiy the pr1·ncipal achievements of the Bank d1tring that period. The book was commenced during the lifetirne of the late Governor, and with certain modifications his views have been followed in its compilation. For the information of readers outside Australia 1·tm£ght be explained that the Bank, though State-owned, is in no sense a political institution. The Governor by statutory enactment was placed beyond the influence of ministers and parties, so that, though Governments have changed, the Banh has been able to proceed uninterruptedly with its war!? on the wi dest National basis. It will be noted that the relations between the Common­ wealth Banll and the private banks have always been most friendly, and this apportunity is taken to express appreciation of the cordial co-operation of the latter during the severe crisis through which the world has passed in recent years. The policy of the Commonwealth Bank has necessarily varied at times from the policies of private banks, but any ex­ planation given of the reasons which caused the Governor to adopt a certain policy is not 1·ntended to be cn·tfral af a policy which was more acceptable to any other · bank JAMES KELL, Acting Governor, Co1nmonwealth Banh of A 1tstralia. Sydney, Nove1nber 1st, 1923. c; CONTENTS. PA GB FOREWORD xi CHAPTER I. - GEXESIS OF THE BANK 1 The Id ea of an Australian State Bank - T'aryiug Local Laws - Provision of Constit1llion- F irst Governor-G'encral' s Sp eech- Bill s of Exchang e Act- Aii stralian Not es Act - Bank Proposal KqJt Alii· c- Political R e­ ferences-C omnwnu·ealth Bank Bill in Parliam ent- Ratabl e Debaters­ Powers of the Bauk - Pr emi ers and Prim e llfin i8ter- Appointm ent of Governor. CHAPTER TI.- THE GOVERNOR 'S TASK .. 11 'Pwenty-thr ee Banks Operating- .llfodest B eginning - Hundr eds TVant Positions- N iicleus of a Sta/ /- A ctivities in P erspective- C:overnor on Tour - Obligations on Bank - Offers to Stat e Governm ents- Th e Coms e Clear. CHAPTER III. - THE SAVINGS BARK 21 Reasons for Establishment- Taking Over the Post Offic es- A i-oiding Competition with the Stat es- Int erest Rat es Compared- B eginning in l'ictoria - 1'he Fir st A ccounts- Queensland- North ern T erritory- 1'as­ mania Co-operates- N ew Soillh Wales, South A11stralia and Western Aiistral ia - Prim e .Minist er's Sati sfaction - Amalgamation with Queensland- A 1Vondrou s G'ro1cth. CHAPTER IV.- GENERAL BANK.TKO BUSINESS 33 Commencement of C:eneral Ranki ng Bu siness- Sy stem Standardis cd­ II ead Office Opened- C:overnor's Sp eech- C:overnm ent Mak es First Deposit- Fir st Privat e Accounts - A C:ood Day' s B 11siness- C:overn- ment Cheques and Exchang e - Abolishing Charges for Accounts - Non-comp etitiv e Policy - Attit ude Tmuards Social Bodi es - K eeping Down Rat es- Pri vate Bank s Co-operate. CHAPTER V.- BAKKTNG FOR TRAN'S-AUSTRALIAN RAILWAY WORKERS 51 1Vilds of Central A ustralia- 1solation of Workers- Th e Bank er App ears- Start o;i Kalgoorli e End - Difficulti es in the Way - Th e Tra velling Bank - Follozuing the Payma ster- Primiti ve Banking Jll etlwds- 60,000 1.ll iles in Thr ee Y ears- Saf eguarding the Caslt- Oambling Out oj Fashion- lVhat the Bank 1ll eant to the Work ers. CHAPTER VI.- THE OUTBREAK OF WAR.. 63 Financial Position in Eiirop e- British .llloratorium- Not Avail ed of by Commonwealth Bank -- Paym ents Without I nterruption - Oovernor Con/ ers with 111ini sters- Pr eparations for TVar P eriod- Plans in Case of Ru sh- Dealing With Depositors- Prim e .lllin ister's Tribut e. CHAPTER VIL - HELPING THE :i\IEN OF THE A.I.F . 71 Th e Soldi er's Fri end- TVh en 11[is fortu ne Came- In Au stralian Camps­ Branch es · and A gencie.s- Over £5,600 ,000 Pa id in- Deposits Availabl e Anywh ere- Cairo, Salonika, Pal estin e-- llli ssion to Egypt - Strain on London Office- 1,000 Callers a Day - 3,000 L ellers and T elegrams- 00.YTEN'l'S Jlany Telegraphic R emittances-Services to Dependents - Cashi11g Aii~tralian Notes-Notes on 'l'ransports - Pri soners of War- Int erned Enemy S11bjects-Si1bmarine Attacks - Aicaiting Demobilisation­ Travellers via .America-Use of Cheques Abroad-Redeeming Bank of England Noles-Deferred Pay - TVar Gratuities-Mimition Workers- Distribuling Canteen Funds - Other Patriotic Fimds. CHAPTER VJJI.-THE NAVY AND J\1ERCANTILE l\IARINE . 9.3 K aval JJIen's Alternatives-Savings Agency at Flind ers Base-Training Ship '1.'ingira-The War ships - Seamen's Banks Ashore-State-owned JJferc hantm en. CHAPTER IX .-RAIS ING THE WAR LOANS 101 Unknown and Untapped R esources- War's C-JalrnnisingInflu ence-Ten Campaigns J'ield £257,307,903-High Water JJlark-E ff ect of Internal Borrowing-Low Cost of Flotation-The Fir st Loan -Prime JJIinister Calls Conference-£:.3,000,000 Asked for-JJlr. Fisher Explains Conditions -Remarkable R esponse-Near ly Thirt een JJ1illion Received-Parlia­ mentary Satisfaction-Bank Deposits Incr ease- War Loan Branches of Bank-Second War Loan -£ 10,000,000 .Asked, £21,655,680 Subscribecl -Deep Impr ession in London - Third War Loan -102,04-2 Individiial .Applications-Fourth War Loan also Over Subscribed-War Savings Certificates-Fifth ("Liberty") Loan -Decreased Number of .Applica­ tions-Sixth War Loan -Question of Taxation-Military Reverse II elps the Loan -Banks Assist Clients-Appeals in Theatres-The Prize Lottery-14-3,870 Applications 'l'otalling £42,944,360-Seventh Loan­ Systematic Organisation-District Challenges-Compulsory Subscriptions X ot Required-One Applicant per Seven JJlale .Aditlts-£.!4,072,6-!0 Contributed-First Peace Loan -Airmen Assist-Again Over Subscribed -Second Peace Loan-Difficulties in the Way -Prince of Wales Sub­ scribes-Repa triation Object L essons-Ten th ("Diggers") Loan -A Final Success-The Loans Summarised. CHAPTER X.-F INANCING WAR-Tll\IE POOLS 161 1- \YH EAT: Australia's Primary Products Feeding the Allies­ Enormous Tran actions-Over £437,000,000 Paid to Producers­ Record Wheat Crop-Farmers' A wku:ard Position-Pooling of Shipping Considered-Fur ther Di/ fiwlties-First Wheat Pool­ Australinn Wheat Board-First Paym ent 2/6 a Bushel-Bank's Place in the Scheme-TV orld' s Record Sale-3,000,000 tons for £26,000,000-Second Pool-Commomcealth Bank Sole Financiers- What the Farmers have Received. 2-HANDLI-XG THE ,vooL Cur: A Million Bales Left Over-Imvcrial Gover·nrnent's Purchases - JJJethod of T'aluation-Commonzccalth Bank's Operations-A Il eavy Task. 3-ExPORT OF ~!EAT : State Governments ancl Companies-Common­ icealth Bank and Associatal Banks Share. -!-Bu'l"l'ER A:N"D CHEESE: Win ter l'uol-Bank Provid es £100,000 Oi-erdraft-Refrigerating Space Scarce-Scale of 30,000 tons of Biitler. 5-R.rnnrrs FOR BmT.\L, : Conference of Exp0! ters-Ba-sis of Financial .Arrangements-Accumulation in Odd Storw:;e. CONTENTS xv PAGE 6 UGAR: Prices Abnormal-Export Prohibit ed-Pooling and Dis- tribution - Bank Makes Advances-Importing N ecessai y-C ommon­ wealth Withdraws from Pools. 7- FRUIT: Why Supply Exceeds Demand - Settling Soldiers on Orchard La nd-C ann ers Cease Operations- Growers' Only Hope-Pool of 1920-21-Second and 'l'hird Pools, 1921-22-23- N eed of a Mark et­ Local Pri ce R educed- Scope of Various Pools- Total Amounts Advanced. CHAPTER XL - BUYING A FLEET IN WAR-TIME 199 Dearth of Shipping - Mr. Hitghes' Representations - Sudd en S ecret Deal - Request lo Bank - £3,500,000 in Readiness - Fift een St eamers Pur­ chased-Prime Minist er Jiibilant-Ships Get Busy - Substantial Profits. CHAPTER XII.-SHIPPING GOLD IN WAR-TIME 205 E xport Prohibit ed- Associated Banks' Request-" Lift the Embargo"­ T esting a Policy - Secret Shipments by Commonwealth Governm ent­ Co-operation with the Navy - F ear of German Raiders - Shipm ents for Bank of England -C onsignm ents to India - Gold from the East ­ Sovereigns for Bitllion - Exchanging with Africa - Gold Producers' Association - Th e Only Authorised Export ers. CHAPTER XIII. - THE COl\fivIONWEALTH BAl~K IN THE CAPTURED GERJ\1AN POSSESSIONS 221 Britain App eals to Australia--Governor of N ew Guinea Surrenders­ Trading Firms the Only Bank ers- Proclamation to Nativ es- Australians Paid in Marks - Chinese '11rade in Sovereigns- Minist er for Defence' s R equest to Commonwealth Bank-Starting the Bank - R edeeming German Currency-C ommonwealth Bank a Monopoly - Troops and '11heir Savings - Effect of Peace Tr eaty- Ext ending Bank 's Activiti es.
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