A New Currency: 1900–1920

Summary

From 1901 the Commonwealth Government had constitutional power over currency matters and was keen to have a nationally-acceptable currency.

Legislation for an Australian currency was eventually enacted in 1910 and, in 1911, a government-owned bank – the Commonwealth Bank and forerunner to the Reserve Bank – was founded.

It took some years, however, to establish a unique set of Australian currency notes and a settled institutional framework for the note issue.

The first currency notes reflected Australia's heavy dependence on the land and rural activities.