In the early decades of this century there were strong advocates for a central bank along the lines of the Bank of England. Progress, however, was hampered by ideological debates about the role of private banking, and by concern that a central bank would out-compete private banks.
While the Commonwealth Bank did take on some central banking functions in the 1920s, including note issue and the provision of settlement accounts, the watershed was the 1936 Royal Commission. It is here that we return to Professor R.C. Mills.