Editing Harold Holt (section)

===Treasurer (1958–1966)===
[[File:Holt and Menzies.jpg|thumb|right|Holt with Prime Minister [[Robert Menzies]]]]
In December 1958, following the retirement of [[Arthur Fadden]], Holt succeeded him as [[Treasurer of Australia|Treasurer]].<ref name = ADB /> Holt had little knowledge or interest in economics, but the job cemented his position as Menzies' likely successor.<ref>{{cite news |title = Harold Holt: urbane treasurer |first = John |last = Hawkins |work = Economic Roundup Issue 1, 2012 |publisher = The Treasury |url = http://www.treasury.gov.au/~/media/Treasury/Publications%20and%20Media/Publications/2012/Economic%20Roundup%20Issue%201/Downloads/05%20Hawkins%20Harold%20Holt.ashx |page = 63 |url-status = dead |archive-url = https://web.archive.org/web/20140212121321/http://www.treasury.gov.au/~/media/Treasury/Publications%20and%20Media/Publications/2012/Economic%20Roundup%20Issue%201/Downloads/05%20Hawkins%20Harold%20Holt.ashx |archive-date = 12 February 2014 }}</ref> As Treasurer, Holt relied strongly on the advice of Treasury secretary [[Roland Wilson (economist)|Roland Wilson]].<ref>{{cite news |title = Harold Holt: urbane treasurer |first = John |last = Hawkins |work = Economic Roundup Issue 1, 2012 |publisher = The Treasury |url = http://www.treasury.gov.au/~/media/Treasury/Publications%20and%20Media/Publications/2012/Economic%20Roundup%20Issue%201/Downloads/05%20Hawkins%20Harold%20Holt.ashx |pages = 63–64 |url-status = dead |archive-url = https://web.archive.org/web/20140212121321/http://www.treasury.gov.au/~/media/Treasury/Publications%20and%20Media/Publications/2012/Economic%20Roundup%20Issue%201/Downloads/05%20Hawkins%20Harold%20Holt.ashx |archive-date = 12 February 2014 }}</ref> His achievements included major reforms to the banking system (originated by Fadden){{spaced ndash}}including the establishment of the [[Reserve Bank of Australia]]{{spaced ndash}}and the planning and preparation for the introduction of [[decimal currency]]. It was Holt who convinced Cabinet to call the new currency the "dollar" rather than the "royal".<ref name="Hawkins 66–67">{{cite news |title = Harold Holt: urbane treasurer |first = John |last = Hawkins |work = Economic Roundup Issue 1, 2012 |publisher = The Treasury |url = http://www.treasury.gov.au/~/media/Treasury/Publications%20and%20Media/Publications/2012/Economic%20Roundup%20Issue%201/Downloads/05%20Hawkins%20Harold%20Holt.ashx |pages = 66–67 |url-status = dead |archive-url = https://web.archive.org/web/20140212121321/http://www.treasury.gov.au/~/media/Treasury/Publications%20and%20Media/Publications/2012/Economic%20Roundup%20Issue%201/Downloads/05%20Hawkins%20Harold%20Holt.ashx |archive-date = 12 February 2014 }}</ref>

The economy Holt inherited was growing strongly, aided by the opening of new iron ore mines.<ref>{{cite news |title = Harold Holt: urbane treasurer |first = John |last = Hawkins |work = Economic Roundup Issue 1, 2012 |publisher = The Treasury |url = http://www.treasury.gov.au/~/media/Treasury/Publications%20and%20Media/Publications/2012/Economic%20Roundup%20Issue%201/Downloads/05%20Hawkins%20Harold%20Holt.ashx |pages = 64–65 |url-status = dead |archive-url = https://web.archive.org/web/20140212121321/http://www.treasury.gov.au/~/media/Treasury/Publications%20and%20Media/Publications/2012/Economic%20Roundup%20Issue%201/Downloads/05%20Hawkins%20Harold%20Holt.ashx |archive-date = 12 February 2014 }}</ref> However, in 1959, inflation was running at 4.5% and Treasury was alarmed. Holt was reluctant to act, but in November 1960 introduced a deflationary package of tax changes. He also reluctantly agreed to an interest rate rise by the Reserve Bank. The [[credit squeeze]] was nicknamed the "Holt jolt". The economy went into recession, and unemployment rose to three percent, which was considered high for the time and contrary to the government's policy of [[White Paper on Full Employment in Australia|full employment]].<ref>{{cite news |title = Harold Holt: urbane treasurer |first = John |last = Hawkins |work = Economic Roundup Issue 1, 2012 |publisher = The Treasury |url = http://www.treasury.gov.au/~/media/Treasury/Publications%20and%20Media/Publications/2012/Economic%20Roundup%20Issue%201/Downloads/05%20Hawkins%20Harold%20Holt.ashx |pages = 65–66 |url-status = dead |archive-url = https://web.archive.org/web/20140212121321/http://www.treasury.gov.au/~/media/Treasury/Publications%20and%20Media/Publications/2012/Economic%20Roundup%20Issue%201/Downloads/05%20Hawkins%20Harold%20Holt.ashx |archive-date = 12 February 2014 }}</ref><ref>[http://www.smh.com.au/business/its-half-a-century-since-australia-received-the-holt-jolt-20100222-orwn.html It's half a century since Australia received the Holt Jolt], ''[[The Sydney Morning Herald]]'', 23 February 2010. Retrieved 15 December 2017.</ref>

The credit squeeze brought the Coalition dangerously close to losing the [[1961 Australian federal election|1961 election]], with the Coalition being returned with a precarious one-seat majority. There were calls for Holt to be sacked, but he retained Menzies' support.<ref>{{cite news |title = Harold Holt: urbane treasurer |first = John |last = Hawkins |work = Economic Roundup Issue 1, 2012 |publisher = The Treasury |url = http://www.treasury.gov.au/~/media/Treasury/Publications%20and%20Media/Publications/2012/Economic%20Roundup%20Issue%201/Downloads/05%20Hawkins%20Harold%20Holt.ashx |page = 66 |url-status = dead |archive-url = https://web.archive.org/web/20140212121321/http://www.treasury.gov.au/~/media/Treasury/Publications%20and%20Media/Publications/2012/Economic%20Roundup%20Issue%201/Downloads/05%20Hawkins%20Harold%20Holt.ashx |archive-date = 12 February 2014 }}</ref> He later described 1960–61 as "my most difficult year in public life". Most of the deflationary measures were reversed in 1962,<ref name="Hawkins 66–67"/> and unemployment dropped down to 1.5 percent by August 1963.<ref>Frame (2005), p. 119.</ref> In later budgets, Holt retreated to his Queensland holiday home while it was being prepared.<ref>{{cite news |title = Harold Holt: urbane treasurer |first = John |last = Hawkins |work = Economic Roundup Issue 1, 2012 |publisher = The Treasury |url = http://www.treasury.gov.au/~/media/Treasury/Publications%20and%20Media/Publications/2012/Economic%20Roundup%20Issue%201/Downloads/05%20Hawkins%20Harold%20Holt.ashx |page = 68 |url-status = dead |archive-url = https://web.archive.org/web/20140212121321/http://www.treasury.gov.au/~/media/Treasury/Publications%20and%20Media/Publications/2012/Economic%20Roundup%20Issue%201/Downloads/05%20Hawkins%20Harold%20Holt.ashx |archive-date = 12 February 2014 }}</ref> He said that the 1965 budget "has had the best reception yet of any in the series I have presented".<ref>Frame (2005), p. 127.</ref>