Holey dollar

Last updated

A New South Wales "holey dollar", the first distinct currency of Australia. Holey dollar coinage NSW 1813 a128577 02.jpg
A New South Wales "holey dollar", the first distinct currency of Australia.

Holey dollar is the name given to coins used in the early history of two British settlements: Prince Edward Island (now part of Canada) and New South Wales (now part of Australia). The middle was punched out of Spanish dollars, creating two parts: a small coin, known as a "dump" in Australia, and a "holey dollar". This was one of the first coins struck in Australia. [1]

Contents

Spanish dollar

From 1497, the Spanish government started to mint a large silver coin that, through wide circulation, became known as the Spanish dollar. It was also known as the peso of eight reales, or Piece of eight royals.

Prince Edward Island (Canada)

Around the end of the 18th century, the Spanish dollar was in constant circulation in Eastern Canada and the United States. The value of the coin varied in different centres but was highest in Halifax. Therefore, whenever the merchants of Prince Edward Island (PEI) secured them, they sent them to Halifax to take advantage of the higher rate. The resulting shortage of money in PEI prompted the governor in 1813 to gather in all the Spanish dollars he could and have their centres punched out. Both the central plug and rims were stamped with a sunburst. The punched centres passed as shillings and the outer rims as five-shilling pieces. The combined value of the mutilated coins was thereafter 20 per cent greater in PEI than outside the island (and the individual components less valuable), so as a consequence, the coins became the official currency in PEI.

British colony of New South Wales (Australia)

When the colony of New South Wales was founded in 1788, it ran into the problem of a lack of coinage. Foreign coins – including British, Dutch, Indian and Portuguese – were common in its early years, but much of this coin left the colony by way of trade with visiting merchant ships. [2] Barter was a necessity amongst the colonists, with the most popular, rum, becoming an unofficial currency. One of the first attempts to restrict the practice was by Governor King, who on 19 November 1800 set an arbitrary price for foreign coinage, but there was never enough of it. To try and resolve the shortage, he requested the supply of sixpences to be used as shillings, but failed to get a hearing. [3] The practice of using rum as a currency was prohibited by Governor Bligh in 1806, [4] eventually culminating in the overthrow of the government in the Rum Rebellion.

To overcome this shortage of coins, Governor Lachlan Macquarie took the initiative of using £10,000 in Spanish dollars sent by the British government to produce suitable coins in a similar manner to that described above. These coins to the value of 40,000 Spanish dollars came on 26 November 1812 on HMS Samarang from Madras, [5] via the East India Company. [6]

With the shipment of currency were strict instructions to prevent the newly arrived coinage from leaving the country, so after consultation with the Judge Advocate and other officials, [7] Governor Macquarie had a convicted forger named William Henshall cut the centres out of the coins and counter stamp them, [2] thus making them useless outside the colony. The central plug (known as a dump) was valued at 15 pence (i.e., 1 shilling, 3 pence, or 1s 3d), and was restruck with a new design (a crown on the obverse, the denomination on the reverse), whilst the holey dollar received an overstamp around the hole ("New South Wales 1813" on the obverse, "Five Shillings" on the reverse). This distinguished the coins as belonging to the colony of New South Wales, creating the first official currency produced specifically for circulation in NSW. [6] The combined nominal value in NSW of the holey dollar and the dump was 6s 3d (6 shillings, 3 pence), or 25 per cent more than the value of a Spanish dollar; this made it unprofitable to export the coins from the colony.

The project to convert the 40,000 Spanish coins took over a year to complete. Of the 40,000 Spanish dollars imported, 39,910 holey dollars and 39,910 dumps were made, with the balance assumed to have been spoiled during the conversion process. [8] On 1 July 1813 Governor Macquarie issued a proclamation "that the said Silver Money shall be a legal Tender" and that set their value. [9] The converted coins went into circulation in 1814. [2]

From 1822 the government began to recall the coins and replace them with sterling coinage. [6] By the time the holey dollar was finally demonetised in 1829, most of the 40,000 coins in circulation had been exchanged for legal tender and melted down into bullion. [2] Experts estimate that only 350 holey dollars and 1500 dumps remain. [10] The rarity of the Australian holey dollar ensures that even those in relatively poor condition are valuable. There are many stories of holey dollars being found in unusual circumstances. [11] [12] [13]

One of the most notable holey dollars is the Hannibal Head, a one of a kind coin that features the portrait of King Joseph I of Spain. It was found in 1881 alongside other holey dollars in what is believed to be a Bushrangers hoard in Tasmania and has since been held in private collections. The coin was sold in 2018 at the Eminent colonial auctions through Coinworks, valued at an estimated $450,000 and sold to a private collector for $500,000. [14]

The holey dollar is the logo for the Macquarie Group, an Australian investment bank. [15]

Similar coins

Although not known as "holey dollars", several British colonies in the Caribbean used the same method for producing coins from Spanish dollars. They include British Guiana, Dominica, Grenada, Saint Vincent, Tobago and Trinidad. The holed coins and plugs circulated alongside various other coins made by cutting Spanish and Spanish colonial coins into sections. These coinages were denominated in either shillings and pence or bits, worth nine pence. (One dollar was made up of eight bits. At 9d the bit, this meant that the eight bits were worth 6s in their markets, or 20 per cent more than a Spanish dollar.)

Principality of Hutt River

The Principality of Hutt River issued a commemorative $1 coin in 1977 to commemorate Queen Elizabeth II's Silver Jubilee. In 1978, another issue of the Hutt River Province Principality's $1 coins was issued. This has no commemorative inscription. These coins are also known to numismatists as holey dollars.

See also

Related Research Articles

<span class="mw-page-title-main">Coins of the pound sterling</span> British current and historic coinage

The standard circulating coinage of the United Kingdom, British Crown Dependencies and British Overseas Territories is denominated in pennies and pounds sterling, and ranges in value from one penny sterling to two pounds. Since decimalisation, on 15 February 1971, the pound has been divided into 100 (new) pence. Before decimalisation, twelve pence made a shilling, and twenty shillings made a pound.

<span class="mw-page-title-main">Spanish dollar</span> Coin of the Spanish Empire

The Spanish dollar, also known as the piece of eight, is a silver coin of approximately 38 mm (1.5 in) diameter worth eight Spanish reales. It was minted in the Spanish Empire following a monetary reform in 1497 with content 25.563 g (0.8219 ozt) fine silver. It was widely used as the first international currency because of its uniformity in standard and milling characteristics. Some countries countermarked the Spanish dollar so it could be used as their local currency.

<span class="mw-page-title-main">Australian pound</span> Former currency of Australia

The pound was the currency of Australia from 1910 until 14 February 1966, when it was replaced by the Australian dollar. Like other £sd currencies, it was subdivided into 20 shillings, each of 12 pence.

Australian coins refers to the coins which are or were in use as Australian currency. During the early days of the colonies that formed Australia, foreign as well as British currency was used, but in 1910, a decade after federation, Australian coins were introduced. Australia used pounds, shillings and pence until 1966, when it adopted the decimal system with the Australian dollar divided into 100 cents. With the exception of the first Proclamation Coinage and the holey dollars, all Australian coins remain legal tender despite being withdrawn from circulation.

<span class="mw-page-title-main">Jamaican dollar</span> Currency of Jamaica

The Jamaican dollar has been the currency of Jamaica since 1969. It is often abbreviated to J$, the J serving to distinguish it from other dollar-denominated currencies. It is divided into 100 cents, although cent denominations are no longer in use as of 2018. Goods and services may still be priced in cents, but cash transactions are now rounded to the nearest dollar.

<span class="mw-page-title-main">Trinidad and Tobago dollar</span> Currency of Trinidad and Tobago

The Trinidad and Tobago dollar is the currency of Trinidad and Tobago. It is normally abbreviated with the dollar sign $, or alternatively TT$ to distinguish it from other dollar-denominated currencies. It is subdivided into 100 cents. Cents are abbreviated with the cent sign ¢, or TT¢ to distinguish from other currencies that use cents. Its predecessor currencies are the Trinidadian dollar and the Tobagonian dollar.

The Saint Helenapound is the currency of the Atlantic islands of Saint Helena and Ascension, which are constituent parts of the British Overseas Territory of Saint Helena, Ascension and Tristan da Cunha. It is fixed at parity with sterling, and so both currencies are commonly accepted and circulated within Saint Helena. It is subdivided into 100 pence.

This glossary of numismatics is a list of definitions of terms and concepts relevant to numismatics and coin collecting, as well as sub-fields and related disciplines, with concise explanations for the beginner or professional.

The coins of the South African pound were part of the physical form of South Africa's historical currency, the South African pound. Prior to the Union of 1910, various authorities issued their own pounds, some as independent entities. After the Union but before 1923, coins in circulation were mostly British, but the coins of Paul Kruger's South African Republic remained in circulation. In 1923, South Africa began to issue its own coins, adopting coins that were identical in size and value to those used in Great Britain: 12 pence (12d) = 1 shilling (1s), and 20s = 1 pound (£1). On 14 February 1961, the Union of South Africa adopted a decimal currency, replacing the pound with the Rand.

The pound was the currency of Bermuda until 1970. It was equivalent to sterling, alongside which it circulated, and was similarly divided into 20 shillings each of 12 pence. Bermuda decimalised in 1970, replacing the pound with the Bermudian dollar at a rate of $1 = 8s.4d., equal to the US dollar.

The following lists events that happened during 1812 in Australia.

The history of currency in the British colony of Dominica closely follows that of the British Eastern Caribbean territories in general. Even though Queen Anne's proclamation of 1704 brought the gold standard to the West Indies, silver pieces of eight continued to form a major portion of the circulating currency right into the latter half of the nineteenth century.

<span class="mw-page-title-main">Coins of the Australian pound</span>

Pre-decimal Australian coins arose when the Federation of Australia gave the constitutional power to Commonwealth of Australia to mint its own coinage in 1901. The new power allowed the Commonwealth to issue legal tender rather than individually through the six former British self-governing colonies of Queensland, New South Wales, Victoria, Tasmania, South Australia, and Western Australia.

The history of currency in the British colony of St. Kitts closely follows that of the British Eastern Caribbean territories in general. Even though Queen Anne's proclamation of 1704 brought the gold standard to the West Indies, silver pieces of eight continued to form a major portion of the circulating currency right into the latter half of the nineteenth century.

The history of currency in the British colony of Saint Vincent closely follows that of the British Eastern Caribbean territories in general. As such, it should not be considered in isolation. In order to get a broad overview of currency in the region, see the article British West Indies dollar.

<span class="mw-page-title-main">Shilling (Australian)</span>

The shilling, informally called a "bob", was a type of silver coinage issued by the Commonwealth of Australia, that circulated prior to the decimalisation of Australian coinage. The Australian shilling was derived from the British pre-decimal sterling pound system and was first issued following the passing of the Australian Coinage Act 1909, which established Australia's first formal currency system. The shilling was issued as part of Australia's silver coinage, which included the two-shilling (florin), the sixpence and the threepence. The shilling was minted from 1910 until 1963. During this period there was one significant modification to the design of the Australian shilling, the change in its reverse design, which occurred in 1938 when the design was altered from the Australian Coat of Arms (1910-1936) to the visage of a Merino ram’s head (1938-1963).

<span class="mw-page-title-main">Sixpence (Australian)</span> Australian coin

The Australian sixpence circulated from 1910 up until the decimalisation of Australian Currency in 1966. The coins were initially minted in England; however, Australia began to mint their own from the year of 1916 at branches of the Royal Mint in Sydney and Melbourne. The coins which made up Australia's pre-decimal currency were identical to British currency in the characteristics of weight and size. The Coinage Act of 1909–1947, authorised the issue of Australian coins in the select denominations, including the sixpence. By 1916 all silver denominations, including the sixpence, could be minted at the Royal Mint branch in Melbourne. Unique Australian currency was created with decimalisation in 1966.

<span class="mw-page-title-main">Newfoundland 2-dollar coin</span>

The Newfoundland 2-dollar coin was issued in intermittent years between 1865 and 1888. It was the only circulation gold coin issued by a British colony. Although few coins were issued, it was broadly used in Newfoundland and eastern Canada. The coin became scarce in 1894 because of hoarding following the collapse of Newfoundland's banks and monetary system.

Prior to European colonization, early Aboriginal Australian communities traded using items such as tools, food, ochres, shells, raw materials and stories, although there is no evidence of the use of currencies.

<span class="mw-page-title-main">Hannibal Head Holey Dollar</span> Australian currency

The Hannibal Head Holey Dollar is a one of a kind holey dollar coin made from a Spanish eight Reale coin that bore the image of Joseph Bonaparte. The coin was sold by Coinworks to a private collector in July 2018, fetching $500,000.

References

  1. "1813 Holey Dollar and Dump". Coinworks. Archived from the original on 18 March 2021. Retrieved 12 June 2014.
  2. 1 2 3 4 National Museum of Australia collection highlights: Holey dollar
  3. "MONEY". Townsville Daily Bulletin . Vol. LXX. Queensland, Australia. 22 September 1950. p. 7. Retrieved 5 March 2017 via National Library of Australia.
  4. "Early Day History". Lachlander and Condobolin and Western Districts Recorder . 27 February 1935. p. 5. Retrieved 5 March 2017 via National Library of Australia.
  5. "Sydney". The Sydney Gazette and New South Wales Advertiser. 28 November 1812. Retrieved 23 February 2010. Described as "... with treasure for the use of government."
  6. 1 2 3 Ian W. Pitt, ed (2000). Renniks Australian Coin and Banknote Values (19th ed. ed.). Chippendale, NSW: Renniks Publications. ISBN   0-9585574-4-6
  7. "OUR FIRST COINAGE". The Sydney Morning Herald . No. 29, 118. 2 May 1931. p. 9. Retrieved 5 March 2017 via National Library of Australia.
  8. "Coinworks, The History of Australian Coinage −1813 Australia's first coins". Archived from the original on 18 June 2014. Retrieved 23 January 2012.
  9. "Proclamation, By His Excellency LACHLAN MACQUARIE, Esquire, Captain General, Governor and Commander in Chief, in and over His Majesty's Territory of New South Wales and its Dependencies, &c. &c. &c". The Sydney Gazette and New South Wales Advertiser. 10 July 1813. Retrieved 8 April 2013.
  10. Mira and Noble (1989), as cited in Pitt (2000), p. 9
  11. ""HOLEY DOLLAR" FOUND". Western Star and Roma Advertiser . No. 6820. Queensland. 18 January 1939. p. 3. Retrieved 5 March 2017 via National Library of Australia.
  12. ""Holey" Dollar". Windsor and Richmond Gazette . Vol. 43, no. 2251. 27 March 1931. p. 10. Retrieved 5 March 2017 via National Library of Australia.
  13. "RARITY". The Sun . No. 6298. Sydney. 17 January 1931. p. 8 (LAST RACE RESULTS). Retrieved 5 March 2017 via National Library of Australia.
  14. "The 1813 Hannibal Head Holey Dollar". coinworks.com.au. Retrieved 5 January 2022.
  15. "Macquarie and the Holey Dollar". Macquarie Group. Archived from the original on 27 May 2013. Retrieved 17 July 2013.