World War II ended 75 years ago on 2 September 1945. The war for Australia feels like a remote distant memory that is revisited at memorials to honour the fallen and the efforts of those who fought against tyranny and fascism. This post will discuss the economic impact of the war on everyday people, how the government sought to try and raise funds for the war, and the lasting impact on Australia’s economic and social welfare after this event.
The challenges faced now are very different to what they faced through the 1920s-1930s but there are still lessons to be learnt from this dark period of the world’s history.
Relics of the past offer glimpses to how people past lived and made the best they could with a difficult situation. One such relic are the old signs and certificates detailing how the Australian people rallied to raise funds for the war effort.
World War I ended on 11 November 1918. The impact of the war was far reaching, one of the biggest impacts of the war was the Treaty of Versailles. The Treaty sought recompense from Germany for the Allied Forces. The amount was 269 billion or 100,000 tonnes of gold. This was an almost impossible amount for Germany to repay.( To give context and scope of the debt owed by Germany, Germany has only now repaid the debt as of 3 October 2010.) The war reparations were meant as a way for the Allied forces to get revenge and to punish Germany for starting the war.
The world's economy faced turmoil when in 1929, The Wall Street crash brought nations to their knees. This was particularly disastrous for Germany. The country had been up till then, existing on American loans to get the economy back to stability, but American banks demanded the loans to be repaid when Germany could not possibly repay it. This would lead to war as the Nazi Party took over Germany and eventually engulfed the entirety of the world in war again.
The Great Depression reached Australia’s shores and the impact was profound. Australia’s unemployment reached a peak of 32 percent in 1932. The outbreak of war in 1939 meant the government of the time needed to raise funds quickly to pay for supplies. In a depression with people barely able to afford food and basic supplies for life, funds were not going to be easily forthcoming. The Australian Government created a means for the public to support the war effort that would also benefit the people at the same time: war saving certificates. These were bonds that could be purchased for very little money but redeemed after seven years for the amount printed on the certificate. These could be bought for as little as sixteen shillings (approximately $19.64 AUD today) but could then be cashed in for £5 (or $613 in today's Australian money) by purchasing the certificates and then holding them for a period of time.
1942 Commonwealth of Australia War Savings Certificate. Courtesy of the Australian War Memorial.
£5 was an enormous amount when so many were left unemployed. The public helped pay for supplies for the war effort. These certificates started selling faster than the government could print them, having run out of bond paper they printed the certificates on banking note paper. The banks were overrun with people, staff often had to stay back and work later extra shifts.
To help meet the public demand for these certificates, the government setup in various states War Savings Streets. These were set up in community centres and churches to encourage groups to pool their resources and buy more certificates. The certificates were particularly advertised to average wage income earners, the government needed them to get onboard with the scheme in order for it to work. The government was desperate to keep the inflation down by encouraging many people to buy the certificates.
This sign is from 1939-1945 and is from the Commonwealth Bank. On the back, very faintly, the sign says Portrush Road Barr Smith.
Burnside Local History Collection 2021.140.
Below are some of the costs of the supplies that were needed on the front lines:
- Sixpence for three .303 bullets
- £4 for 18lb cartridge
- £150 for a Bren gun
- £250 for a Vikcers machine gun
- £8,000 for an anti-aircraft gun and £300 for the equipment to go with it.
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£17,000 for a field ambulance outfit that contained 13 lorries, water cart, eight ambulances, five motorcycles, and general medical equipment.
The impact of the war and depression on the Australian economy can still be felt today. In 1942 income tax was made federal to enable the government to have greater control over the funds without having to negotiate with state premiers. In 1944 unemployment and sick leave benefits were introduced, and full employment became a focus and a goal for both political parties. In 1949, when the Liberal government formed under Robert Menzies, a conservative government, they carried on many of the policies and focuses of the previous Labour government. These included greater support and focus on public housing, research and development, and higher education.
The war savings certificates are a small glimpse into the history of the impact of the Second World War on Australia. The war seems so abstract and far removed in Europe as Hitler’s armies marched across the continent, Australia can often be forgotten in the history of this complicated event. Australia played a vital role in the war that would not have been possible without the support from back home, Australians supporting each other as they always have.
Written by Chloe Price, Burnside Local History Volunteer.
Bibliography:
Australian War Memorial, https://www.awm.gov.au/ , accessed November 2021.
History Monash, http://www.historymonash.org.au/?artwork=3557, accessed November 2021.
Victorian Collections, https://victoriancollections.net.au/items/5b0a5e7b21ea6812fca862c3, accessed November 2021.
Olivia Lang, BBC, ‘Why has Germany taken so long to pay of its WWI debt’, 2 October 2010, https://www.bbc.com/news/world-europe-11442892, accessed November 2021.
Erin Blakemore, History, ‘Germany’s World War I Debt Was so crushing it took 92 years to pay off”, https://www.history.com/news/germany-world-war-i-debt-treaty-versailles, accessed November 2021.