Australia’s very first gold coin, the 1852 Adelaide Pound is one of the nation’s classic numismatic rarities – standing proudly alongside ‘greats’ such as the 1930 Penny and 1813 Holey Dollar & Dump. Indeed, the 1852 Adelaide Pound is unquestionably one of the most desirable coins in collecting. It is also a compelling, genuine artefact of Colonial Australia and the Gold Rush – a coin with so many tales to tell.
The 1850s Gold Rush…
Imbued with an indefinable aura, symbolising a unique combination of beauty, wealth and power, gold has for millennia captured our imagination. From the rarity to the purity, from the colour to the durability, the entrancing qualities of this eye-catching mineral have made it the world’s favourite precious metal. With this in mind, it’s no wonder that the discovery of gold throughout time has inevitably led to an outbreak of ‘gold fever’ – such as that witnessed in Australia during the 1850s.
A seminal moment in the course of Australian history, the 1850s Gold Rush saw population numbers explode. Around 405,000 people inhabited the colonies in 1851 – by 1861 it had risen to over a million. In Victoria alone, the population rose from 75,000 to 540,000 in just 10 years. ‘Gold fever’ was all-consuming. Men of every age, of every occupation, dropped what they were doing, left their families, left their jobs, and headed to the goldfields in the east, dreaming of the untold wealth that was within their grasp. Many regions prospered of course, but, for others, the Gold Rush created sheer chaos.
South Australia and the Gold Rush ‘crisis’
In South Australia, the exodus to the eastern goldfields was huge – and devastating.
It was estimated at the time that, from an overall population of 50,000, more than 8,000 men headed east. One consequence was a labour crisis, with various industries grinding to a halt due to lack of manpower. Another was a potentially catastrophic currency shortage, with those leaving taking as much coinage as they could get their hands on. This left the colony on the brink of bankruptcy.
South Australia was in a desperate situation, and while an influx of gold from the east gave the locals hope, they needed hard currency. Merchants and traders put pressure on Sir Henry Young, the Lieutenant-Governor, to establish a mint. Sir Henry was faced with a serious problem, however. To authorise the creation of coinage would contravene the Royal prerogative to issue currency, but to seek British approval would take months. If he waited to act, the colony would likely collapse. It was a very tricky situation.
Sir Henry’s solution!
Sir Henry understood that he was prevented from authorising legislation that would affect the currency of the colony. However, he was also aware that Britain would allow colonial authorities to authorise the issue of currency if ‘urgent necessity exists’. Having consulted South Australia’s legal boffins, Sir Henry saw to it that a bill was hastily passed into law as the Bullion Act, authorising the issue of stamped strips of gold to back the issue of paper currency by banks. Although it was an excellent plan, and to some extent successful, the ‘Adelaide Assay Office Gold Ingots’ were destined to be short-lived.
Although it was never envisaged that the ingots would be used for daily transactions, the irregularity of size, weight, shape and even colour still created an outcry when first released. The ease with which they might be forged also caused consternation. As a result of the public and commercial pressure springing from these concerns, South Australian authorities lurched to another potential solution to the Gold Rush inspired cash crisis – the 1852 Adelaide Pound.
Australia’s first gold coin…
Although the issue of contravening Royal prerogative once again reared its ugly head, authorities knew that, rather than ingots, the colony needed recognisable, consistent coinage. Thus, the Bullion Act was amended in November 1852 to enable the issue of 10/-, £1, £2 and £5 gold coins. Although many believe the £5 was struck, records indicate that only the £1 denomination was ever struck for issue – the iconic 1852 Adelaide Pound.
A local engraver and die-sinker named Joshua Payne – who had only arrived in the colony in 1849 – was employed by the Adelaide Assay Office to create the dies for South Australia’s new gold coinage. The first attempt at producing the Adelaide Pound was thwarted by a die-crack, with only a tiny number of what is now known as the 1852 Adelaide Pound Type I being struck. It is thought perhaps 30 or so exist today. The second die had no such problems, and in less than three months (from November the 23rd 1852 to February the 13th 1853) approximately 24,000 Adelaide Pound coins were struck.
Outraged British authorities act! Just a little bit late…
While authorities in Britain had reacted favourably to Sir Henry Young’s original show of initiative at a time of crisis, they were not so pleased when news of the creation of the legal tender 1852 Adelaide Pound arrived in London. Indeed, orders were dispatched to Adelaide demanding that the Bullion Act be repealed. Just as the laborious nature of mid-19th century communication had initially created a problem for Sir Henry, now it was his ally. By the time British demands reached South Australia, the colony had been saved from the financial crisis, the Adelaide Assay Office had been closed and the Bullion Act had been revoked!
One of Australia’s greatest rarities…
As for the coin itself, the fate of the 1852 Adelaide Pound was sealed by a rise in the price of gold. At one point containing gold worth nearly two shillings above face, most were melted down for the intrinsic value. As a result, the 1852 Adelaide Pound is known by approximately 200 examples today, and is rightly considered to be one of the rarest, most important coins in Australian numismatics.
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