The Holey Dollar & Dumps of New South Wales .

 

In November, 1812, Lachlan Macquarie, the governor of the fairly remote colonial outpost of New South Wales in Australia , received a shipment of £10,000 in Spanish milled dollars - or 40,000 coins - aboard the H.M.S. Samarang . New South Wales had a dire need for circulating coinage but such dollars in their "whole" state would soon leave the colony in the course of trade. It was for this reason that Macquarie and his council decided to make them into an over-valued "token" coinage which would ensure their remaining in New South Wales , any export being done only at a loss.

 

The services of convicted - and transported - forger William Henshall were used to sink coinage dies and the operation finally resulted in the dollars having a circle punched out of them and the resulting "dump" made into yet another coin. This was not a truly original invention since similar operations had been carried out in a number of other British colonies in the Caribbean, going back to those of Dominica and Tobago in 1798. And although Macquarie couldn't know it, a very similar "punched dollar" coinage was being carried out on the other side of world in Prince Edward Island at almost exactly the same time.

 

 

New South Wales "Holey Dollar", 1813. (on Mexico 8R, 1805)

Obv.: NEW SOUTH WALES / 1813 within circles around central hole.

Rev.: FIVE SHILLINGS and foliage sprig within circles around central hole.

 

There were several innovations that ensured the success of this issue and saw their circulation until at least September, 1829. In part measure, this was due to the fact that the "New South Wales Mint", primitive as it was, was still the only one around. Then the government used the services of the best engraver available, forger Henshall, who under other circumstances might have been their main competitor.

 

Technically, a couple of good moves were also made. The "raw" dollar had the "dump" punched from it at the same time as the designs encircling the hole were applied, both the shoulder of the punch and the receiving "table" obviously suitably engraved. Then the resulting "dumps" had the underlying designs totally obliterated by new dies; as well, these had milling applied to protect them from "shaving" - and in a separate "edging" operation since the reeding exists both highly diagonal and nearer to straight.

 

New South Wales , 15-Pence "dump", 1813. (enlarged)
Obv.: St. Edward's Crown surrounded by NEW . SOUTH . WALES / 1813
Rev.: FIFTEEN / PENCE (with small H sometimes visible at exact center -
believed to be Henshall's mark and visible only on the earlier strikes.)

In contrast to the New South Wales "holey dollars", those of contemporary Prince Edward Island were largely unsuccessful. In the latter case, Gov. Smith simply punched out dumps and circulated both parts "as-is" save for a simple counterstamp of "sun rays", easily counterfeited. And they were - wholesale. Nor could he do anything about it since he didn't have permission from the British Treasury either. As well, the P.E.I. center dumps were circulated as shillings - a fair value in 1813 but when the price of "coin silver" rose in the next year, most were melted down. By contrast, Gov. Macquarie overvalued the dollar-ring by continuing to call it the original 5-shillings; as well, the dumps were also overvalued by 25%, making them pass at 15-pence. This "value cushion" ensured their not being melted down for bullion value.

 

The New South Wales pieces were finally called in some time after September, 1829 having done their job exceedingly well. It is recorded that in 1832, the Royal Mint received a weight of 1,762 pounds of them for melting - believed to have been composed of about 28,500 dollars and 10,500 "dumps". Today, it is believed that fewer than 200 dollars remain and somewhat fewer dumps.

Wayne Jacobs is numismatic expert. He is the award winning author of numerous articles. He is the secretary and editor of the "Mid-Island Coin Club Numismatic Journal"of Nanaimo, Vancouver Island , British Columbia. The MICC journal are hosted here: MICC webpages Copyright 2006 Wayne Jacobs. This article may be reprinted freely for non commercial purpose only if the resource box is left intact, linking back to us.