The Secretary to the Treasury has forwarded the following memorandum for advice:

I append for the information of the Secretary, a copy of a memorandum received from the Governor, Commonwealth Bank of Australia, under date the 7th instant:

I have the honour to request that you will be good enough to ascertain from the Attorney-General whether in his opinion it is necessary for this Bank to take out gold-buying licences in the event of its managers buying gold at various gold centres in the different States.

2. I shall be glad to receive an opinion regarding this matter as soon as possible.

The Constitution confers on the Commonwealth power to legislate with regard to banking, and in exercise of that power the Commonwealth has created the Commonwealth Bank.

By section 7 of the Commonwealth Bank Act 1911 the Bank is empowered to deal in exchanges, specie, bullion, gold-dust, assayed gold, and precious metals.

The Commonwealth having, in the exercise of its legislative powers, empowered the Bank to deal in gold, the Bank is under no liability to obtain a licence from the State before exercising the power so conferred.

To hold otherwise would mean that the State could, by refusing a licence, prevent the carrying out of powers within the legislative competence of the Commonwealth Parliament.

In my opinion, the Governor of the Commonwealth Bank need not take out a licence before entering into the business of gold buying.

[Vol. 15, p. 177]