Commonwealth Bank Act 1929

Overview

The Commonwealth Bank Act 1929 was enacted by the Parliament of Australia to amend the Commonwealth Bank Act 1911-1927, addressing the need to control gold holdings and exports during an economic crisis. This amendment was introduced to safeguard the currency and public credit of the Commonwealth. The Act provides the Treasurer with the authority to require individuals to disclose their holdings of gold coin and bullion and, if deemed necessary, to exchange such holdings for Australian notes. Additionally, the Act allows the Governor-General to prohibit the export of gold, subject to specific conditions and exemptions. The overarching policy objective is to maintain financial stability and control over the nation’s gold reserves during a period of economic uncertainty.

Scope and Application

The Commonwealth Bank Act 1929 amends the Commonwealth Bank Act 1911-1927, introducing specific measures concerning the control and regulation of gold within Australia. The Act applies to any person holding gold coin and bullion within Australia, as well as any entity or individual wishing to export gold. The geographic scope of this Act is national, covering all activities and transactions related to gold within the Commonwealth of Australia. The Act allows the Board to require individuals and entities to furnish particulars of their gold holdings and to exchange gold for Australian notes when deemed necessary by the Treasurer to protect the currency and public credit of the Commonwealth. The Act also includes provisions for the Governor-General to prohibit the export of gold from the Commonwealth, subject to certain conditions and approvals by the Treasurer. There is an exemption allowing individuals to carry a limited amount of gold (not exceeding Twenty-five pounds) out of the Commonwealth. The Act may extend its application through subordinate instruments, such as regulations and proclamations, made by the appropriate authorities under the authority of the Act.

Key Provisions

The Commonwealth Bank Act 1929 introduces several key provisions aimed at regulating the handling of gold within Australia. Section 7b (subsections 1 to 4) empowers the Treasurer to require individuals or entities to disclose details of their gold holdings and, if deemed necessary for the protection of the currency or public credit, to exchange their gold for Australian notes. The Board of the Commonwealth Bank is authorised to issue written notices to individuals to provide these particulars or to exchange their gold. Failure to comply with these requirements constitutes an offence, with penalties including a fine of up to One hundred pounds or imprisonment for one year for individuals, or a fine of up to One thousand pounds for corporations. Section 7c outlines the process for prohibiting the export of gold from Australia. Upon receiving a recommendation from the Board, the Governor-General may issue a proclamation to restrict gold exports, with specific exceptions. Individuals wishing to export gold must apply in writing to the Board for the Treasurer's approval. The Treasurer has the discretion to approve or deny these applications. Those who export gold without approval are guilty of an offence, facing a fine of up to One hundred pounds or imprisonment for one year, or a fine of two per centum of the gold's value for corporations, with a minimum fine of One thousand pounds. Additionally, section 7d provides a limited exemption from the export restrictions, allowing individuals to carry gold worth up to Twenty-five pounds out of the Commonwealth. The Act imposes clear obligations on individuals and entities to report their gold holdings and seek approval for export, while establishing a framework for the Treasurer and the Board to manage these processes. Breaches of these provisions result in specific penalties, reinforcing the legal consequences of non-compliance.