WAR LOAN.
No. 18 of 1920.
An Act to authorize the raising and expending of the sum of Twenty million pounds for War purposes.
[Assented to 29th May, 1920.]
BE it enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—
Short title and citation.
1. This Act may be cited as the War Loan Act 1920.
Authority to borrow £20,000,000.
2. The Treasurer may from time to time, under the provisions of the Commonwealth Inscribed Stock Act 1911-1918, or under the provisions of any Act authorizing the issue of Treasury Bills, borrow moneys not exceeding in the whole the sum of Twenty million pounds.
Purpose for which money may be borrowed.
3. The amount borrowed shall be issued and applied only for the expenses of borrowing and for War purposes.
Overview
The War Loan Act 1920 was enacted by the Australian Parliament to provide the necessary financial resources for the nation’s involvement in the First World War. Authorised by King George V, the Senate, and the House of Representatives, the Act enables the Treasurer to borrow up to £20 million, which is to be used exclusively for war-related expenses and borrowing costs. This legislation was a critical measure to support the Commonwealth's war efforts, reflecting the urgent need to mobilise financial resources during a time of national crisis. The policy objective of the Act was to ensure that sufficient funds were available to meet the substantial financial demands of participating in the war, thereby supporting the war effort and the nation's strategic interests.
Scope and Application
The War Loan Act 1920 applies to the Commonwealth of Australia and authorises the Treasurer to borrow up to £20,000,000 for war purposes. This borrowing is to be conducted under the provisions of the Commonwealth Inscribed Stock Act 1911-1918 or any Act that authorises the issue of Treasury Bills. The borrowed funds are intended to cover the expenses associated with borrowing and for war-related expenses. The Act does not explicitly state who or what it applies to beyond the financial framework it outlines, nor does it mention any exclusions, exemptions, or thresholds. The scope of the Act is limited to the borrowing and application of funds for war purposes within the specified amount. The Act may extend its application through subordinate instruments that align with the borrowing and expenditure provisions outlined in the primary legislation.
Key Provisions
The War Loan Act 1920 (sections 1-3) establishes the legal framework for the Commonwealth of Australia to borrow up to Twenty million pounds for war purposes. The Act explicitly allows the Treasurer to borrow this sum under existing legislation, such as the Commonwealth Inscribed Stock Act 1911-1918 or any Act that authorises the issuance of Treasury Bills. The funds raised are intended solely for the expenses related to the borrowing process and for war-related expenditures.
The Act imposes specific obligations on the Treasurer and other relevant parties. For instance, the Treasurer must ensure that the borrowed funds are used strictly for the purposes outlined in the Act, which includes the expenses of borrowing and war-related expenses (section 3). This requirement ensures accountability and transparency in the use of public funds for a specific and authorised purpose.
Violations of the Act's provisions can result in severe consequences. While the Act does not explicitly state the penalties for breaches, under general legal principles and other relevant Acts, breaches of financial and administrative provisions could lead to criminal charges, fines, or other legal repercussions. The severity of penalties would depend on the nature and extent of the breach, as well as any additional laws that may apply.