Australia's 1916 Specimen Coin Set - The Nation Adapts to the Ravages of War
The 1916 specimen coin set is a truly exclusive representation of the first Australian coins struck on Australian soil. It embodies a major milestone in Australia’s economic security, one that was brought forward by the ravages of WWI. Just 60 of these sets were produced, only 41 were ever distributed, and only a fraction of that number survive intact today.
From 1873 to 1916: The Genesis of Australia’s National Coinage
David Charteris McArthur was Superintendent at the Bank of Australasia in 1873 - he had “…started the first bank and floated the first loan in Victoria...”,[1] so was regarded as a very senior figure in Australian banking in the latter half of the 19th century. On behalf of the Victorian banking community, McArthur lobbied the Victorian colonial Treasurer regarding the need for silver coinage. Specifically, McArthur requested “…that the Mint already established in Melbourne for the purpose of coining gold be also employed for coining of silver.”[2]
For two years, this initial push for Australian self-sufficiency in silver coinage was explored through several streams of correspondence between representatives of the Victorian banking community; the Victorian colonial government; the Colonial Office in London, and the Melbourne Mint.
These discussions came to an abrupt halt in 1875, when Edward Langton, the Victorian Colonial Treasurer, announced “It has not been deemed necessary to proceed further with this matter at present.”[3]
From 1890 ~ 1898: Preliminary Discussions and Agreements Laid Down
The subject of domestic coinage in silver and copper was next briefly probed by Duncan Gillies, who was the Premier of Victoria in 1890. The Deputy Master of the Melbourne Mint advised Gillies that several logistical challenges would need to be addressed if silver coins were to be produced by a mint on Australian soil.
The trail went cold again shortly after that until it was very briefly discussed at the Conference of Premiers, held in Melbourne in 1898. The minutes showed that the Conference “… consents to the Governments of these colonies, which nowhere or may hereafter have a branch of the Royal Mint in their territory, making application to the Imperial authorities for the necessary authority for the coinage of silver at the respective branch mints, on conditions similar to those on which silver is coined in England."[4]
That decision was presumably aimed at ensuring the authorities in London were clear there was an agreement between each of Australia’s colonial governments on the need for a token Australian coinage.
From 1901 to 1910: Discussions Begin in Earnest
The subject of Australia’s national coinage was explored in earnest from 6th June 1901, when the “Select Committee on Coinage” sat for the first time, with the aim of “…inquiring into and report upon the desirableness and expediency of the Commonwealth coining silver and copper coins, and adopting a decimal system of coinage…”[5]
The Committee delivered their report on April 3rd 1902 and advised “That the silver and bronze or other coins (exclusive of gold) required for the initiation and continuance of the new system be obtained from the Royal Mint, under arrangement by which the seigniorage will be received by the Commonwealth, until such time as it may be considered desirable to alter the arrangement, by the establishment of a Commonwealth Mint, or otherwise.”[6]
It is important to note here that the Report did not recommend that a “Commonwealth” (national) mint be established for Australia, nor specifically that the branch mints be directed to strike silver and copper coinage for Australia. The Commonwealth government’s bureaucratic wheels continued to drive the nation towards a uniform coinage in the years that followed - in 1904, the Deakin Commonwealth government announced it had “…made arrangements with the British government for the coinage of silver for Australia…”[7].
In 1908, the Commonwealth Treasurer “…announced his intention of initiating the coinage of silver in the near future…”[8] This action took place just before the Commonwealth House of Representatives passed “An Act relating to Currency, Coinage, and Legal Tender” in September 1909.
Australia’s First National Coins Were Struck in the United Kingdom
Most Australian politicians at the time thought the production of Australia’s silver coins could easily be taken on by either one of the Royal Mint branches already operating on our shores or a new Mint established solely for that purpose, either move was far from realistic.[9]
The volume of coins required was a fraction of what would be necessary to justify the establishment of a standalone “Commonwealth” mint, and the existing branch mints did not have the equipment required to efficiently and effectively strike large quantities of coins larger than a sovereign.
Clear heads within the government and the Mint bureaucracy had clearly been planning appropriately, as no less than 14 days after the Coinage Act was passed in Canberra, the first coins (shillings) were dispatched by the Royal Mint to Australia.[10] Those shillings arrived in Australia on February 24th, 1910,[11] each of the other denominations were in circulation by June 1910.[12]
The Royal Mint also struck Australia’s first pennies and halfpennies in 1911, those coins were in circulation by the middle of the year.[13] Over the next three years, the Royal Mint outsourced portions of the production of Australia’s silver and copper coinage to the Heaton Mint in Birmingham.
Following the outbreak of the First World War, the production of Australia’s silver and copper coinage was pushed even further afield, to the Calcutta Mint in India. Both of these tactical moves lessened the Royal Mint’s burden but did little to reduce the risk that Australia’s daily economic activity could be significantly disrupted if inbound shipments of coinage were delayed or lost.
The threat posed by Germany’s infamous submarines to Allied maritime trade was so great that the transport of all shipments out of England was seriously reconsidered.
Melbourne Mint - "Prepare for Silver Coinage"
On November 1st, 1915, the Melbourne Mint was instructed by London “…to prepare for silver coinage.”[14] Dies for each denomination were sent from the Royal Mint in London[15] later the same month, the dies for Australian shillings were received on 24 December 1915[16].
Problems with several of the dies mean each denomination was struck in different stages across 1916. The shillings were the first to be produced, the first was struck[17] in an official ceremony by the Governor of Victoria, Sir Arthur Stanley on January 10th, 1916.
“At the stamping machines Sir Arthur Stanley struck the first shilling produced in Australia for circulation, but the coin is not likely to go into actual currency. The Governor was allowed to have it and he will doubtless keep it as a memento of a notable event.”[18]
Although the exact dates on which the other denominations were struck across 1916 are not yet known, the Annual Report for the Melbourne Mint for 1915 (written in April 1916) included the note that “…it is expected that the florins will be available for issue shortly."[19]
In his seminal 1921 book on the history of Australia’s coinage, Dr Arthur Andrews wrote that sixpences were struck “…by the middle of the year…”[20], and further that the threepences were struck “…in December.”[21] Dr Andrews did not cite any primary reference for those dates, so they may not be as accurate as we’d like them to be. Vince Verheyen identified a note in the Melbourne Mint Museum records that “Specimen pieces 1916 coinage” were set aside for the Melbourne Mint Museum[22] on November 1st, 1916. That note, therefore, indicates the threepences were most likely put into circulation around October 1916.
Specimens - Struck Before Each Production Run and Set Aside
Collectors rightly expect modern coins housed in the same set to have a uniform appearance, yet that expectation is a high bar for Melbourne’s silver coinage of 1916. These were literally the very first coins of their type struck in this country - Melbourne Mint staff did not have the luxury of experimenting and testing with the dies and machinery until they were satisfied with the outcome, they needed to meet the Royal Mint’s high standard from the very first strike.
Their machinery had been installed more than four decades earlier, they had never worked with silver before, and in the case of the florin, had never struck a coin that size before. That these coins look as good as they do is a solid testimonial to the diligence and skill of the Melbourne Mint staff.
In his publication covering the history of the Melbourne Mint, Bill Mullett noted that “In January 1916 specimen shillings of the first striking of silver coin were sent to London.”[23] No further official records account for the specimens of the other denominations until the Melbourne Mint Museum note of November 1916.
When coupled with an exhaustive study of Melbourne’s silver coinage of 1916 by Vince Verheyen, Mullett’s note indicates a very select number of specimens of each denomination were struck before each production run, while the dies were still fresh. The records then indicate the specimens were compiled into sets and stored - ready for sale to collectors; for exchange with other public collections and for presentation to dignitaries.
The Melbourne Mint Museum cash account book shows that the first 1916 specimen set was sold on March 28th 1917, several more sales are recorded in the weeks that followed. The Melbourne Mint records studied by Verheyen show that a total of 19 sets were sold over the years, and further that 16 complete sets were discovered unsold in the annals of the Royal Australian Mint in the late 1960s.[24] It is believed that the remaining 25 sets out of the total mintage of 60 were either gifted to VIPs or exchanged with other public collections.
Once the production of Australia’s silver coinage began using Australian silver on Australian soil, it meant the lifeblood of the national economy was safe from the threat of Germany’s U-boats.
The quality of these coins is a testament to the diligence and skill of the Melbourne Mint staff, men who played their role under challenging conditions to ensure our nation responded and adapted to the challenges of war.
Bibliography - 1916 Specimen Coin Set
[1] https://www.wikitree.com/wiki/McArthur-990
[2] Henderson; Len, "Australian Silver Coinage 1873 To Federation" in the Australian Coin Review, Volume 14 Number 8, February 1978, p 17.
[3] Henderson; Len, "Australian Silver Coinage 1873 To Federation" in the Australian Coin Review, Volume 14 Number 8, February 1978, p 23.
[4] "The Colonial Mints." The Sydney Morning Herald (NSW: 1842 - 1954) 15 November 1898: p5.
[5] “Report from the Select Committee on Coinage”; Australian Commonwealth Parliament; Canberra; April 3rd, 1902.
[6] “Report from the Select Committee on Coinage”; Australian Commonwealth Parliament; Canberra; April 3rd, 1902; p xii.
[7] Rees; Peter, "Inside the Vault", UNSW Australia, Canberra, 2016, p 68.
[8] "Official Year Book of the Commonwealth of Australia No. 3", Australian Bureau of Statistics, Canberra, 1910, p847.
[9] Sharples; John, "Penny Reverse Master Dies of George V" in The Journal of the Numismatic Association of Australia, Volume 6, 1992, p 22.
[10] Mullett; Bill, "Melbourne Mint - The Establishment", Self-published, Canberra, 1992, p 21.
[11] THE NEW COINAGE (1910, April 5). The Herald (Melbourne, Vic. : 1861 - 1954), p. 5.
[12] IMMIGRANTS BY THE OSTERLEY. (1910, May 26). The Star (Sydney, NSW : 1909 - 1910), p. 6
[13] Mullett; Bill, "Melbourne Mint - The Establishment", Self-published, Canberra, 1992, p 21.
[14] Mullett; Bill, "Melbourne Mint - The Establishment", Self-published, Canberra, 1992, p 21.
[15] Verheyen; Vince, "A Numismatic Guide to Australia’s 1916 Silver Specimen Set" in The Australasian Coin & Banknote Magazine, Year Book, 2009, p 64.
[16] Mullett; Bill, "Melbourne Mint - The Establishment", Self-published, Canberra, 1992, p 25.
[17] "SILVER COINAGE." The Age (Melbourne, Vic. : 1854 - 1954) 12 January 1916: p8.
[18] "COINING SILVER" The Brisbane Courier (Qld.: 1864 - 1933) 12 January 1916: p8.
[19] Royal Mint Annual Report, 1915, Royal Mint, London, 46th Edition, p84.
[20] Andrews, Arthur. Australasian Tokens and Coins – Sydney, Mitchell Library, 1921, p137
[21] Andrews, Arthur. Australasian Tokens and Coins – Sydney, Mitchell Library, 1921, p137
[22] Verheyen; Vince, "A Numismatic Guide to Australia’s 1916 Silver Specimen Set" in The Australasian Coin & Banknote Magazine, Year Book, 2009, p 63.
[23] Mullett, The Establishment, p34.
[24] Verheyen; Vince, "A Numismatic Guide to Australia’s 1916 Silver Specimen Set" in The Australasian Coin & Banknote Magazine, Year Book, 2009, p 66.
