The Secretary to the Treasury forwards for advice the following memorandum by the Governor of the Commonwealth Bank of Australia:

I have the honour to request that you will be good enough to ask the Honourable, the Attorney-General, to favour me with an opinion as to whether the Commonwealth Bank would be safe in opening an account for the Australian Metal Company, under the conditions set out in a letter received from them, dated 17 November 1914, copy of which I enclose herewith. I should be glad to have this opinion during the day as the Company wish to open an account forthwith.

The attached letter referred to is as follows:

Referring to Mr F. Wallach's interview with you yesterday afternoon as to the above Company opening an account in your Bank, it is desired to repeat the assurance then given you as to the operations of such account.

This appears to be necessary or desirable by reason of the fact that this Company and its affairs have formed the subject of criticism and comment in the press here, and you may like to receive the assurance referred to.

The Company, as has been stated, is a British Company, incorporated and registered in England, carrying on business in the Commonwealth, having its chief office in Melbourne. We, the signatories to this letter, are its Attorneys and Agents. The Company is duly registered here. Mr F. Wallach is its public officer.

The account will be utilised during the war for the receipt of moneys due and paid to the Company in respect of its business which it carries on in Australia, and the payment out of salaries and wages to its staff, workmen and to others throughout the Commonwealth, and other payments to persons within the Commonwealth in respect of goods or products purchased.

The Company's business is to deal in ores and metals, to import and manufacture locally machinery, electrical appliances, and other articles, and it employs a considerable number of men in its offices and workshop in the Commonwealth.

It is not anticipated that any money will be remitted for the present outside the Commonwealth at all and, of course, there will be no dealings whatever by us with Germany or any enemy country, directly or indirectly, during the war.

We desire to give you the most absolute assurance that the account will not be used or operated upon, or any steps whatever taken to remit money directly or indirectly to any of the King's enemies.

Further, in order that you should have no doubt whatever about this position, we will be quite ready, at all times, to give you any further assurance or information you may require as to any cheques drawn or other payments sought to be made.

I understand that the explanation of the request is that the Union Bank has ceased to act as banker to the Company.

It is well known that the Australian Metal Company, though registered in England, is substantially owned and controlled by the Merton-Metallgesellschaft group, whose headquarters are at Frankfurt.

There is nothing illegal in the proposal to open an account on the conditions stated, and the Bank would be safe in doing so. The policy of doing so is a matter for the Bank, on which no opinion is expressed.

[Vol. 13, p. 121]