The Commonwealth Year Book, 1973, No. 59 page states as follows: “The general functions of the Reserve Bank are set out in Section 10 of the Reserve Bank Act 1959-1966, which states: ‘It is the duty of the Board, within the limits of its powers, to ensure that the monetary and banking policy of the Bank is directed to the greatest advantage of the people of Australia and that the powers of the Bank under this Act, the Banking Act 1959, and the regulations under that Act are exercised in such a manner as, in the opinion of the Board, will best contribute to, (a) the stability of the currency of Australia; (b) the maintenance of full employment in Australia; and (c) the economic prosperity and welfare of the people of Australia’.”
The people who framed the Banking Act and those who passed it were fully aware that the worthy aims listed could be achieved through the manipulation of finance. The fact that the reverse has taken place only means that incorrect financial policies are being followed. As the Australian Government has embarked on an immigration policy in order to increase the population it is worth noting that in the Government publication Review of Australia ’s Demographic Trends 1983, page 2, that in spite of a very low birth rate the percentage increase of the population through immigration between 1949 and 1980 has been much less than through natural increase. It seems therefore that more should be done to promote natural increase than to promote population increase with an expensive immigration program. A reduction in confiscatory taxation would also help.