VICTORIA
Bank of New South Wales 1824, 20 Spanish dollars
Ann Mash c. 1812 promissory note
National Bank of Australasia 1910 one pound note, superscribed
A brief history of Australian banknotes W
hen England decided to send convicts to Australia, it gave virtually no thought to establishing a system of currency. While the Commissariat was responsible for feeding, clothing and housing the convicts, the military, administrators and free settlers needed to buy food, clothing and other necessities. Despite the mixture of coinage brought from England and Europe, the settlement soon ran out of small change. A few years passed before the first paper money was developed.
PROMISSORY and currency notes Within the first 40 years of the colony nearly 100 traders in Sydney and Van Diemen’s Land (Tasmania) issued their own small change paper notes. Their buying power (as opposed to their face value) depended on the reputation of the issuing individual or trading house, that is, whether the merchant could back notes by specie, higher value notes such as bills of exchange, or credit in goods. The early notes date from 1803 (M Robinson, Sydney) to 1828 (W Lamb,
Hobart). Currency and promissory notes are rare and usually in poor condition. Denominations vary from Spanish dollars, shillings and pence, to English pounds sterling, shillings and pence.
COMMISSARIAT notes Commissariat notes were store receipts used as a form of currency. They were regularly redeemed for bills drawn on the English Treasury. Many were discounted by holders who could not wait three months for payment – they endorsed the notes to another who in turn advanced the original holder funds, less a discount: the recipients of Commissariat Notes read like a Who’s Who of the colonies. Commissariat notes became obsolete by the 1840s and its accounts branch was abolished in 1846.
PRE-FEDERATION or private banknotes Between 1817 and 1901 private or preFederation banks provided paper currency for the colonies, states and commerce. The Bank
of New South Wales, established in 1817, was the first; by 1841 another 23 banks had been formed, including branches of some London banks. From the 1850s gold rush to 1888, a further 32 banks opened. During the 1893 banking crisis most banks collapsed, but notes from still surviving banks were legal tender and could be exchanged for gold at the bank’s head office. The New South Wales and Queensland governments issued Treasury notes. Yet only nine banks remained operating, from over 50. Most private or preFederation banknotes are rare.
SUPERSCRIBED notes A superscribed note was printed by a private bank, sold to a government that then overprinted it as a temporary measure during delays in issuing paper currency. The rarest superscribed notes are those from eight private banks, re-issued by the Queensland Government in 1893 and gradually withdrawn and destroyed as it issued notes early in 1894. Following Federation and the Australian Notes Act of 1910, notes from private banks were overprinted with ‘AUSTRALIAN NOTE’ and the promise to pay the bearer in gold on demand, until the Commonwealth Government produced notes. Superscribed notes from smaller banks are even rarer, especially in higher denominations.
PRE-DECIMAL notes The first official Federation paper currency was in 1913 when the 10/- (ten shillings), £1 and £5 notes came into circulation. The £20 note issued in 1914 was the first and only of its type, circulating until 1938; there was a single issue of £50 (1914-1940) and £100 notes (1914-1945). The £1,000 note, issued in 1914 was initially available to the public, but within a year it was used only for exchange between banks.
Cerutty Collins 1916 five shilling note, unissued
UNISSUED notes In 1916 the Australian Government prepared a 5 shilling note to counter the shortage of silver coin, but destroyed most in 1922 with only four specimen notes surviving. This occurred again in 1946. A £1,000 note ordered in 1922 languished until 1928 when the Government decided not to proceed: just one note is known, sold in 2008 for AUD$890,000. One pound notes commissioned in 1926 were destroyed because the printing was unsatisfactory – only two sheets and 12 individual notes remain of 7,000,000. Some designs were never made: 1934 designs for £50 and £100 notes were not printed because of insufficient demand. The £1 note featuring Edward VIII remained unissued because of his abdication from the throne on 16 November 1936.
DECIMAL notes 1966-1996 Australia changed to decimal currency in 1966 when 10 shillings became $1, £1 equalled $2, £5 became $10 and £10 became $20; in 1967 the $5 note was introduced, $50 note in 1973 and the $100 note in 1984.
Fraser Cole 1991 five dollar note
POLYMER notes 1995 - to date Collins Allen 1913 ten shillings note
STAR replacement notes In 1948 the American system was introduced of printing a hollow 5-point star after the serial number to indicate it was a replacement for a mistaken serial number. Pre-decimal star notes are rare with none above £5. This practice continued on early decimal notes (1966-1969) until technology could identify and remove faulty notes.
Australia led the world with the polymer $10 in 1988. The $5 followed in 1992 through to the $100 note in 1996. Collectors of polymer banknotes can obtain yearly sets, first day of issue and collector folders.
Fraser Evans 1995 polymer fifty dollar note
Exhibition and Auction The 1810 ‘Hannibal Head’ Holey Dollar is regarded as the most famous of all Holey Dollars. It is a tantalising example of the riches soon to be released for collectors and investors at the Coinworks’ ‘Eminent Colonials’ Exhibition and Auction. For information, or to receive a catalogue, see coinworks.com.au or phone 03 9642 3133
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COINWORKS AUSTRALIAN RARE COINS AND NOTES 03 9642 3133 info@coinworks.com.au www.coinworks.com.au