STATUTORY RULES.
1918. No. 77.
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REGULATION UNDER THE WAR PRECAUTIONS ACT 1914-1916.
I, THE GOVERNOR-GENERAL in and over the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulations under the War Precautions Act 1914-1916, to come into operation forthwith.
Dated this twentieth day of March, 1918.
R. M. FERGUSON,
Governor-General.
By His Excellency’s Command,
G. F. PEARCE,
Minister of State for Defence.
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Amendment of the War Precautions (Supplementary) Regulations.
(Statutory Rules 1916, No. 97, as amended by Statutory Rules 1916, Nos. 112, 122, 128, 129, 135, 167, 218, 219, 250, 253, 254, 255, 263, 271, 272, 289, 293, 298, 300, 301, 303, 328, and Statutory Rules 1917, Nos. 12, 17, 37, 56, 65, 73, 94, 182, 196, 211, 222, 243, 254, 281, 282, and Statutory Rules 1918, No. 56.)
After regulation 37 of the War Precautions (Supplementary) Regulations the following regulation is inserted:—
Investment of trust funds in War Loans.
“38. Notwithstanding anything contained in any State Act or in any Rules, Regulations, or By-laws, or in any charter, memorandum, or articles of association, or in any deed of settlement, will, or other instrument creating a trust, any corporation, society, club, or association, or any trustee or body of trustees may borrow money for the purpose of investment in any loan raised by the Commonwealth for the purposes of the war.”
Printed and Published for the Government of the Commonwealth of Australia by Albert J. Mullett, Government Printer for the State of Victoria.
C.4491.—Price 3d.
Overview
The Statutory Rules 1918 No. 77, issued under the authority of the War Precautions Act 1914-1916, were enacted to address the financial needs of the Commonwealth during the First World War. These regulations were issued by the Governor-General in Council, with the intent of facilitating the investment of trust funds in war loans to support the war effort. The policy objective was to ensure that financial institutions could readily invest in war loans without being constrained by existing state laws, trust deeds, or corporate charters. This was a crucial measure to mobilise resources efficiently and effectively during the war.
Scope and Application
The War Precautions (Supplementary) Regulations, made under the War Precautions Act 1914-1916, extend their application to any corporation, society, club, association, or trustee or body of trustees within the Commonwealth of Australia. The regulations provide these entities with the authority to borrow money specifically for the purpose of investing in any loans raised by the Commonwealth for war efforts, superseding any contrary provisions in state acts, rules, regulations, charters, memorandums, articles of association, deeds of settlement, wills, or other instruments creating trusts. This legislation aims to streamline and facilitate the mobilisation of financial resources at the national level for wartime purposes. The scope of the Act is comprehensive, covering a broad range of entities and instruments, and it operates within the jurisdictional reach of the Commonwealth of Australia, ensuring uniformity and expedience in the execution of wartime financial strategies.
Key Provisions
The War Precautions (Supplementary) Regulations, as amended by Statutory Rules 1918, No. 77, introduce a specific provision that permits certain entities to invest trust funds in war loans issued by the Commonwealth. Regulation 38 allows corporations, societies, clubs, associations, and trustees to borrow money for the purpose of investing in war loans. This provision overrides any conflicting state laws, regulations, or trust instruments (Section 38).
These entities must adhere to the requirements set forth in the new regulation, which permits the use of borrowed funds for the sole purpose of investing in Commonwealth war loans. This means that the financial activities of these entities must be aligned with the overarching war effort, facilitating the flow of funds into the war economy (Section 38).
The regulations impose a clear obligation on the mentioned entities to ensure that any borrowed funds are used strictly for purchasing war loans, thus channelling resources towards the war effort. This requirement aims to mobilise financial support for the Commonwealth’s war activities by leveraging the financial capabilities of various organisations (Section 38).
The War Precautions Act 1914-1916 and the supplementary regulations do not explicitly state penalties for non-compliance with these investment provisions. However, breaches of the War Precautions Act could potentially lead to criminal or civil consequences under the general provisions of the Act, which include fines and imprisonment. The severity of these penalties would depend on the specific circumstances and the nature of the breach (Section 46). The absence of a specific penalty for this regulation may reflect the importance placed on compliance to support the war effort, with potential for broader enforcement actions under the Act.