Figure 1.--Here a city officual (probbly Melbourne ir Sydney) present a boy Liberty Loan check during March 1943. It was opart if the 'Come om Australia -- Lets Fill the Liberty Loan' .

Australia not only had to produce, but also finance the war effort. Australiaat the time of Federation (1901) had almost no public debt. Australia was arare county in which revenues exceeded expendutures. The first subtantial public debt ws incurred ti build a railway (1911). South Australia helped finance aailway in the Northern Territories, rail line from PortAugusta to Oodnadatta railway was passed. The debt was assumed by the Australian National Governent, the ustralian Office of Financial Management (AOFM). World War I brought the need for massive public financing for the first time. This led to the first public bond issue (1915). War bonds reffered to as War Savings Certificates were sold to individuals. As a result, Australia found itself with a debt of about 50 percent of GDP. A sustantial portion of this was raised in London finanxial markts. The Government began paying down until the Depression hit (1929). In the inter-War era, the Australian Government turned to foreign borrowing. Australia was paying down the World War I and Deoression debt to about 40 percent of GDP when World war II broke out (1939). This time the war needs were much greter and were largely met by domestic borrowing. Again War Savings Cerifucates were old. The Givernmnt also issued Austerity war loans. By the end of the War, the Gross Australian Government debt increased some 120 per cent of GDP (1945). [Dimarco, Et. al..]

Sources

Di Marco, Katrina, Mitchell Pirie, and Wilson Au-Yeung. "A history of public debt in Australia" (Budget Policy Division, the Australian Treasury). The authors work for the Australian Tresury, but the documnt is a private undertaking and not an official ustralin Treasury publication.

Created: 7:48 AM 12/27/2013
Spell checked: 7:23 PM 12/27/2013
Last updated: 1:06 AM 3/12/2015