1810s
The colony of New South Wales was found very wanting when Lachlan Macquarie arrived as Governor.
Business was being run with barter, promissory notes, fraud and forgery, one of Macquarie's first concerns was to implement local banking to the colony, unfortunately the authorities in London would not permit this to take place at the time.
Some years later after introducing Spanish dollars and various other monetary forms, the Bank of New South Wales was established in 1817 and followed with the New South Wales Savings Bank in 1819.
Thus was established Commercial and Savings banks for the nation to set the pattern for Australian banking for the next 100 years.

1820s
Exploration and pastoral expansion produced prosperity in the 1820s with the needs of the Tasmanian colony adding to the banking needs of the nation, A further eight banks were added in this period.

1830s
A number of British Banks arrived during the 1830s bringing foreign investment to the colony to plunder the wealth of the expanding nation.
The Bank of Australasia opened in 1835, the Bank of South Australia came in 1836 with the Union Bank of Australia Limited in 1837. The Royal Bank of Australia also made a brief appearance from 1839 until 1850.

1840s
Unemployment and business failures in 1840 prompted an Insolvency Act at the end of 1841, the crisis deepened with banks also suffering losses.
The year of 1843 brought an end to the pastoral boom when extensive bankruptcies and unemployment deepened in Australia, this prompted government intervention in protection of depositors funds.
Banks to close during this period were the Bank of Australia, the Sydney Bank and the Port Philip Bank.
By 1844 the colonies were recovering from depression, the press and the legislatures were demanding government control of banking to alleviate the role played by the private banks during the hard times.

1850s
Gold discoveries in New South Wales and Victoria produced four decades of rapid expansion with immigration trebling in the first ten years, these coming decades were to introduce several more British banks and over 30 colonial banking institutions.

1870s
By the 1870s local banking had overtaken the British banks in deposits held and in numbers

1880s
By the end of this period, over 1000 banking branches had been spread through the colony, thus establishing branch banking as an accepted method of banking.
Expansion of rail services matched the economic boom in Victoria and New South Wales, Victoria's protected manufacturing base also showed economic benefits for the State.
During 1887, feeling that land prices were unsustainably high, banking began to withdraw from lending against real estate, new financial were established to fill the void, competition between banks led to a downturn during 1889 with failures in banking and finance leading to a widespread economic depression for some years to come.

1890s
During April and May of 1893, 13 of the 22 commercial banks suspended operations, half of the deposits of the colony were also frozen.
In Victoria there was a five day bank holiday declared by the Government, when operations resumed, depositors found that a third of their funds had been converted to shares, the balance of their deposits had been frozen for up to five years, many were forced to dispose of their savings at a huge loss to survive.
The banking issue again come under the scrutiny and criticism of the public, many banks were thought to have saved themselves at the expense of the depositors.

1911
In October 1911 a Bill was introduced for the establishment of a Commonwealth Bank under the control of one man called the Governor of the Bank.
Of particular note was the power to given the Governor of this unique bank,he would have complete and final say, he would not be answerable to a board nor to any member of the Government, no political interference other than inspection of the financial statements was the agreement with Denison Miller.
The Commonwealth Bank Act was framed to introduce a new facet to Australian banking, one bank that would combine both savings-banking as well as general-banking business.
In November 1911, Andrew Fisher introduced the Commonwealth Bank Bill into Federal Parliament

1912
Mr Denison Miller resigned from the Bank of New South Wales and took up his appointment as Governor of the Commonwealth bank on the 1st June 1912, operations commenced on the 15th July at a branch in Collins St. Melbourne, Victoria also banked through 489 agencies in money-order post offices.
Miller's aim was to build a good sound bank on quiet safe lines, he intended achieving this by consent and goodwill rather than compulsion and war, he set interest rates for depositors below the rates offered by the State banks,
The money invested in the savings accounts was to raise capital without incurring debt.

1913
The Bank opened in January with an injection of additional capital belonging to the Commonwealth Government transferred from the private banks.
The Savings Bank was also amalgamated with the Tasmanian State Savings Bank thus giving a boost to total deposits
A savings bank was established in London in June 1913

1914
To maintain economic control, the Federal Government created an increase in the note supply to the States for public works programs, the States lodged 25% of the value in gold, the remainder being fixed term loans, this arrangement enabled the Federal government to meet overseas commitments for gold payments.
Between June 1914 and June 1915, there was a 300% increase in the note supply, this was criticised in the press as financing the War effort through the printing press despite the conversion of gold into notes.
The Bank financed the Australian war effort with 350,000,000 pounds

1916
The bank made funds available in London to purchase 15 cargo steamers to support Australia's growing export trade.
Banking operations were expanded to New Guinea with a branch in Rabaul and followed up in 1917 with 11 agencies to meet the needs of Australian servicemen

1918
The Bank by 1918 had captured 13% of all savings-bank deposits and 16% of the trading-bank amounts.
By the end of Wartime, the Bank was handling the business of the Governments of Western Australia, South Australia and Tasmania

1920
In 1920 the Bank was amalgamated with the Queensland Government Savings Bank, this arrangement doubled the Banks savings deposits.
In 1920 the Commonwealth Bank Act was amended to create a Note Issue Department, this was to bring the Bank nearer to the central-banking role intended by the founders.
This Act also required the Bank to hold gold reserves equivalent to 25% of all notes on issue.

1923
A British embargo on gold exports prevented banking funds that were being held in London from being used in Australia to finance exports and advances. The Note Issue Board refused to advance notes against the reserves considering that such action would be inflationery.
Sir Denison Miller died in June, thus removing the major impediment to the private banking brotherhood.

1924
The Commonwealth Bank Act was amended in October 1924 to transfer control of the note issue responsibility to a Bank Board, this consisted of eight members including a Governor, the secretary to the Treasury, with the remaining six being from agriculture, commerce, finance or industry.
Changes were made to pool the financing for wool and wheat, thus solving much of the liquidity problems of 1923.
The change was opposed in the press, the feelings were that the board could be subjected to political pressure, and that private interests could conflict with board responsibility
With the Board now running the Bank, the Trading Bank lost much of it's market share, a non competitive approach was adopted which actually supported the private banks.

1925
With the liquidity problem of 1924 resolved, 1925 promised good financial results for Australia, protective tariffs ensured successful results for manufacturing
Despite the downturn of trading business, the Board created a Rural Credits Department to provide farmers with short term finance for marketing assistance, this enhanced rural exports thus promoting the Australian economy.

1927
Unemployment was starting to worsen and deficits in trade were depleting Australia's international reserves.
The Federal Government, being concerned about interest and loan repayments, secured an agreement from the States to control and co-ordinate official borrowings, this move to curb Australia's debts was welcomed by all States.
The Bank became the first Australian Bank to to open an agency in New York, it was mainly established for public loans via the New York market. The Commonwealth Bank (Savings Bank) Act of 1927 replaced the Savings Bank Department with the Commonwealth Savings Bank of Australia, this body had wider investment powers and it placed the management of the new body with three Commissioners, this was shortly after amended to leave the new Savings Bank under the control of the Board of the Commonwealth Bank of Australia.

1928
The newly created Savings Bank commenced business in June 1928

1930
The Federal Government introduced a Central Reserve Bank Bill in April 1930, this was to provide for a complete central bank distinct from the Commonwealth Bank, the Bill was delayed in the Senate and allowed to lapse.

1931
Early in 1931 the Government Savings Bank of New South Wales closed its doors and froze the savings of hundreds of thousands of depositors, later in December 1931 the failed Bank was amalgamated with the Commonwealth Bank. This made the Bank the largest savings institution in Australia, deposits now captured 60% of the nations savings. At the same time the West Australian State Savings Bank was suffering heavy deposit losses also and found amalgamation with the Commonwealth Bank a viable proposition.

1934
Prior to the Federal election, the promotion pamphlet for the seat of Fremantle and John Curtin strongly criticised the loss of the peoples bank: Restrictions imposed upon the Commonwealth Bank in 1924 by the Bruce-Page Government will be removed, and the bank freed to enter into vigorous competition with the private banks to secure for the people the profits and priveliges of banking which are now practically monopolised bt private banking companies... The main purpose of securing national control of banking and credit is to utilise the credit of the nation for the benefit of the people.
Why should Governments pay heavy interest charges to private banks for the right to operate on credits which belong to the whole community?

1935
The Federal Government of J.A. Lyons appointed a Royal Commission to investigate Australia's banking and monetary systems.

1937
The Royal Commission of 1935 handed its report to the Government in July 1937, legislation was commenced to incorporate the central-banking recommendations in the report.

1940
The Bank organised some interesting tasks during the war years including a secret salvage operation when a large shipment of gold being consiged to the United States was lost when the RMS Niagara sunk off the New Zealand coast after striking a mine.
The Bank also secretly transferred gold belonging to the Nation as well as reserves of other countries to a deserted jail in Broken Hill.

1943
During the war years a Mortgage Bank Department was created as recommended by the Royal Commission.

1945
A further concept of the Royal Commission was adopted when a Commonwealth Bank Bill was introduced into Parliament in March 1945, this meant that banks would now require licensing, and also gave the Commonwealth Bank control over interest rates and policies of the private trading banks.
It also directed that the Banks policies should advantage the people of Australia with the maintenance of full employment, and economic prosperity and welfare for the people.

1947
On March 20th, the Bretton Woods Agreement was ratified by the House of Representatives with the treacherous International Monetary Agreeements Bill being passed, the Senate enacted it 5 days later thus surrendering Australian economic sovereignty over money and banking.
Following the legislation of 1945 was the problem of Section 48 of the Banking Act, this made it illegal for private banks to conduct business for a State or for a State authority, including local authorities, without the approval of Treasury.
In May 1947 some 200 local authorities were instructed to cease business with the private banks. A successful challenge in the High Court was lodged by Melbourne City Council and Section 48 was ruled invalid.
Ben Chifley then retaliated by seeking legal advice on the possibility of nationalising the banking system, on the 16th August 1947, only three days after the High Court ruling, the nationalisation issue was approved by Cabinet, bitter conflict followed and the matter was dealt with in the High Court resulting in a loss for the Government that was echoed by the Privy Council in London.
The private banks had won the right to continue in the financial system

1950
New banking legislation was introduced in March 1950 to repeal the 1947 Act and to establish a new Bank Board under the chairmanship of a Governor.
The Labor Party , not wishing to see the Bank Board restored, used their Senate majority to force a double-dissolution of Parliament.
When the Liberal and Country Party were returned in both Houses, the Commonwealth Bank Bill was reintroduced and became law in August 1951.

1953
Under the Commonwealth Bank Act 1953 the General Banking Division was transferred to a new body named the Commonwealth Trading Bank of Australia.
Another major piece of treachery against the Nation occured on the 26th November when the International Taxation Bill 1953 was introduced to allow foreign investors to repatriate their profits without paying their share of the taxation burden.
Of course, foreign investment was never required during the existence of the CommonWealth Bank under the direction of Denison Miller!

1957
Many far reaching changes ocurred in 1957, four major Bills and ten minor Bills were introduced to completely change the Banks structure, the Commonwealth Bank of Australia became the Reserve Bank of Australia, this body would take over the central-banking type functions including note issue and the Rural Credits Department.
The rest of the Bank now included the Commonwealth Banking Corporation, the Commonwealth Trading Bank, the Commonwealth Savings Bank and the Commonwealth Development Bank. These bills would linger for two years before being passed.

1959
In February of 1959, the 1957 Banking Bills passed through Parliament with only a few minor changes, the mammoth task of reconstructing the bank was completed on the 14th January 1960 when the Reserve Bank of Australia and the Commonwealth Banking Corporation finally commenced operations.

1960
Post war expansion to the end of the 50s resulted in the Bank having over 650 branches and more than 6,500 agencies with over 14,000 people employed.
Following legislation commenced in 1957, the Comonwealth Bank's operations were divided between the Commonwealth Banking Corporation and the newly created Reserve Bank of Australia.
Unemployment in Australia from war end to 1960 averaged only 2%, during the same period total bank deposits more than doubled.

Biblio
Commonwealth Banking Corporation. Its Background, History and Present Operations.1980

A Bank For The People. A history of the State Bank of Victoria.
Robert Murray & Kate White.1992

The Story of the Commonwealth Bank.
D. J. Amos. 1948

Australia 2000: What will we tell our children?
Jeremy Lee. 1997