Announcing the Auction of the first commonwealth banknote

23 march 2006 hotel intercontinental sydney australia

NOBLE NUMISMATICS PTY LTD The first Commonwealth banknote

Foreword

We are immensely pleased to be offering Australia’s first Commonwealth banknote, Ten Shillings M000001, at our forthcoming auction 22-24 March 2006 in Sydney. The offering is unprecedented in Australian numismatic auction history and with a pre-sale estimate of $1.2 million the note is by far the most valuable of any Australian numismatic object offered at auction.

For these reasons we decided to produce this special booklet in addition to our usual catalogue to explore and disseminate the history and importance of the note. For information on viewing the note or to arrange a confidential consultation please refer to the details on page 8.

Thanking you for your attention,

Jim Noble (Managing Director)

‘The time has arrived’

The origins of the first Commonwealth note issue can be found consultation with the banks raised unequivocal opposition. in the Australian Constitution, enacted at Westminster in 1900. It was the Labor Prime Minister, Andrew Fisher, who revived Section 51 (xii) granted parliament the power to legislate with the concept in a policy speech at Gympie, Queensland on 30 respect to ‘currency, coinage and legal tender’. March 1909 and reported in The Argus the following day. In his address Fisher declared ‘The time has arrived when the Support for Commonwealth Commonwealth should have a note issue of its own.’ paper currency began soon after federation. The existing To Fisher it was clear the young Commonwealth required a system of private bank and stable, unified federal paper currency to facilitate its economic Queensland Government growth. issues was perceived as detrimental for a variety of reasons, including its impediment to the free

NATIONAL LIBRARY OF AUSTRALIA, NLA.PIC-AN 23302975 LIBRARY NATIONAL flow of commerce due to cross-border exchange Rt Hon Andrew Fisher c.1910 costs. Additionally, the banking crisis of 1902-3 saw many banks close their doors with a resultant depreciatory effect on paper. A bill proposed ‘Wildcat’ money − a Confederate States of America fifty dollars in 1907 with the view to authorising a Commonwealth issue of notes ‘payable on demand’ was dropped after confidential

The first Commonwealth banknote 2 To be offered at auction 23 March 2006 Early resistance

Labor’s victory in the election of 1910 delivered to the party a majority in both houses of Parliament and saw Australia’s (and the world’s) first majority federal Labor government. Fisher’s previous statement of policy was brought to action in the form of the Australian Notes Bill, which was read and debated in parliament following the election. Opponents were fuelled partly by the common perception of Labor’s naivety in matters of finance. An editorial in The Argus on 20 July 1910 alleged ‘whenever Governments have issued paper money they have never known where to stop, and disaster has followed in every case’ and described the ‘thirst for legal tender notes’ as ‘alcoholism in the body politic’. The bad paper money of wild-cat republics in Spanish-America, the Confederate States One pound superscribed on Bank of Victoria form of America and the Romanov monarchy were all cited as historic precedents. Commonwealth’s unpreparedness to effectively circulate a currency issue meant proclamation was deferred until 11 July 1911. Australian Notes Act

Despite opposition, the Australian Notes Act was proclaimed The Superscribed issues on 1 November 1910. The act banned state-issue currency The first ‘Australian notes’ circulated on 1 December and authorised the Treasury to issue Australian notes in 1910 were not original designs but rather Government denominations of 10s, £1, £5, £10 and any other multiple of superscriptions printed on private bank forms. The ten pounds. An obligation to hold a gold reserve of not less denominations of sixteen different private banking institutions than one fourth of the total value of issued notes was put upon were used resulting in dozens of varieties. the Treasury. Then, in order to force out existing currency, the Bank Notes Tax Act was assented on 10 October 1910 and As an aside, it is a curiosity that the Government relied heavily on stipulated a tax of ten percent per annum on private bank notes private banks to circulate its own legal tender issue, and in doing not redeemed. The strength of the measure coupled with the so sought to destroy the banks’ existing currency.

The Empire’s first paper ten shillings

Adding to this note’s legend is its status as the first paper ten shillings to be produced by authority within the British Empire (the Bank of England’s first paper ten shillings was issued in 1928). Where banknotes were hitherto the domain of society’s wealthy, the ten shillings denomination, approximate to an anverage day’s wages, greatly expanded potential circulation.

Opposition to the new ‘egalitarian’ notes was voiced by some concerned citizens who feared the note’s wider exposure, particularly to sordid elements, would lead to a small-pox outbreak among those normally insulated from the lower classes. This reaction expresses the levelling effect of the new, lower denomination. Criticisms also took the old line of gold being preferable to paper. An editorial in The Argus (5 September 1913) stated ‘No man is likely to throw half a sovereign (a gold coin) into the fire, mistaking it for his tailor’s bill; but he might easily do this with the 10/- note. His feelings would be painful when he next found the bill and realised he had 10/- less to pay it with.’

The first Commonwealth banknote 3 To be offered at auction 23 March 2006 Creating new notes

Prior to the introduction of Superscribes, however, planning was already underway for original design banknotes. A public competition for designs was announced in the Commonwealth of Australia Gazette on 5 November 1910. Despite several winning entries being selected and prizes of £50 paid, none were deemed suitable and the task was contracted to the world-renowned engravers Bradbury Wilkinson & Co of Presentation of ten shillings M000001, 1 May 1913 London. The selected location of physical infrastructure for printing and storing banknotes was King’s Warehouse, Flinders Street Extension, Melbourne. Preparation, including the installation of machinery and security devices, was carried out during the years that followed.

Commemorating the first issue

A ceremony to commemorate the first distinct Commonwealth issue took place at King’s Warehouse at 3.00pm on 1 May

1913. The gathering included many of Australia’s most Printing banknotes, May 1913 eminent public figures, including Governor General Denman and family, Prime Minister Andrew Fisher, Minister for Customs (Mr. Tudor), Acting Post-Master-General (Senator Governor-General Denman’s young daughter Judith was Findley), Vice-President of the Executive Council (Senator given the honour of numbering the first note, pulling the McGregor), Melbourne’s Lord Mayor (Mr Matthews) and lever and impressing the red serial M000001. The note was Governor of the Commonwealth Bank (Mr Denison Miller). then presented to little Miss Denman by the Prime Minister. Once the printing process had been demonstrated and a Approximately equal to a day’s wages, ten shilling was a batch of ten shillings notes prepared, the task of numbering generous souvenir, even for the relatively privileged Judith. the notes by machine-press was handed over to the assembly. To this day, the note is found together with an envelope inked ‘Judith’s 10/-’. NATIONAL LIBRARY OF AUSTRALIA, NLA.PIC-AN 6589392-91-V LIBRARY NATIONAL

The first Commonwealth banknote 5 To be offered at auction 23 March 2006

The Denman provenance and newspaper baron. In 1903 Gertrude married the politically sympathetic Thomas, allowing her husband to enter politics by Judith Denman, recipient of ten shillings M000001, was the way of his new found wealth and influence. When Thomas was fortunate daughter of Australia’s fifth Governor General, appointed Governor-General, Gertrude joined him travelling to Thomas Denman (1874-1954). His tenure began after arriving Australia with their two small children. As part of her official from England in July 1911, at a time when the role of the duties she named Canberra at a ceremony on 12 March 1913. Queen’s Australian representative was significantly different Following her return to England Gertrude kept active as a to that of the present. The Governor-General was duly treated public figure. From 1917-1946 she held the post of President with great ceremony and formal accord – a visit to Sydney in of the National Federation of Women’s Institutes. Other 1913 was a front-page affair. The political closeness between important posts included first Chairperson of the Family Australia and Britain also strengthened the esteem of the Planning Association, President of the Ladies Golf Union, a position. Trustee of the Carnegie United Kingdom Trust, and a Director As the most politically liberal of Australia’s Governor-Generals of the Westminster Press and the Women’s Land Army. of the period, Denman was particularly cordial with the Labor Ten Shillings M000001 remained in the possession of the Party and its leader Andrew Fisher. His tenure is probably Denman descendants in England until 1999 when the decision best remembered for the role played in the political instability was made to part with the item. It was subsequently sold of 1914, when Cook’s Liberal government was hamstrung by privately for $1 million to the current owner, a private Sydney- Labor’s retention of the senate. A double dissolution lifted the based businessman. crisis however the pressures of the job coupled with his wife’s homesickness saw him resign and return to England later that Thomas Denman (left) and Gertrude Denman at the naming of Canberra, 1913 year. Remaining a firmly committed liberal, Denman could hence not attain further office in England and led a relatively quiet life. His successor as Governor-General was Sir Ronald Munro-Ferguson.

Judith’s mother, Lady Gertrude Mary Denman (née Pearson) (1884-1954) was born into a wealthy family; her father Weetman Pearson (later Baron Cowdray) was an oil magnate NATIONAL LIBRARY OF AUSTRALIA, NLA.PIC-AN 11030057-215-V LIBRARY NATIONAL

Goulburn Weir: Reverse design of the first ten shillings issue

The scene on the reverse of the note depicts and authored by the Water Conservancy improving agricultural efficiency. Goulburn Weir, Victoria, which is still in use Board. Problems with cost and construction At 212 metres in length, 16 metres high today. The Goulburn River (Aboriginal name saw progress stall and it was not until 1887, and costing £104,862, the Goulburn Weir ‘Bayunga’), on which the weir is situated, is subsequent to a Royal Commission, that represented one of the great, and most Victoria’s largest river, flowing north-west a masonry weir construction contract was expensive, engineering achievements of from the Great Dividing Range near Mount signed. Stuart Murray oversaw the advanced Colonial Australia. In the context of other Singleton to meet the Murray at Echuca. engineering project, which involved hauling early Australian note designs, the ten shillings The weir’s necessity came about as a result massive quantities of granite from Mount follows a consistent theme of agriculture and of agricultural development in the Shepparton Black (24km distant) by dray and required mining, underlining the importance of these region and several droughts between 1877 importation of all concrete from England. The commodity based industries to the Australian and 1881. The first official proposal for a weir was finally completed in 1889, allowing economy. timber weir was dated 27 September 1880 an extensive irrigation system and greatly

The first Commonwealth banknote 6 To be offered at auction 23 March 2006 A unique opportunity

Australia’s record-breaking note Banknotes as an investment When sold privately in 2000 for $1 million (Sydney Morning Banknotes have for some time been recognised as a solid Herald, 1 Feb 2000) this banknote set a new record for any investment. Access Economics’ Asset Price Survey 1992-2002 Australian numismatic item. It is now to be offered at auction revealed Australian banknotes as the top performer of for the first time. As such, it presents an unprecedented any category during the period (see below). Recent price opportunity to acquire the premier Australian banknote. movements indicate this trend has not abated. The strong demand for Australian banknotes can be attributed to a World-class rarity variety of factors, including the guarantee of limited supply and, to a large extent, increasing general cultural awareness Further underlining the note’s rarity is the fact that very few with concomitant interest in objects of Australian heritage. first national notes from other countries have survived – and Consider, for example, the Bank of New South Wales ten even fewer are in private hands. Australia, as one of the shillings of 1817 which was purchased for a few dollars in the world’s oldest democracies, is particularly fortunate to have 1970s and sold at our November 2005 auction for $283,095. retained such an important part of its economic history. Access Economics Asset Price Survey 1992-2002 National significance Australian Banknotes The condition of the note has remained practically unchanged since its production over 90 years ago. Crisp, flat and with Australian Wine

good colour, its pristine countenance is a fitting distinction for International Shares this national treasure. Melbourne Houses

Ten shillings M000001 is indisputably the most important Australian currency item and therefore stands among the 0 100% 300% 500%

COURTESY ACCESS ECONOMICS most prized objects of Australiana. To own the first of literally billions of banknotes produced since 1913 by the A notable record

Commonwealth assures the successful buyer an acquisition of The illustration below shows another record-breaking the highest prestige. banknote; the United States one thousand dollars ‘Grand Watermelon’ (one of three known in private hands), which sold at a Lyn Knight Currency Auction in November 2005 for a record USD 1,092,000 (or AUD 1,480,000) . For further information or to arrange a confidential consultation with one of our experts, please refer to the information on the rear of this booklet.

Information in this booklet extensively referenced from the

definitive source on Australian paper currency: COURTESY LYN KNIGHT CURRENCY AUCTIONS (USA) Michael Vort-Ronald, Australian Banknotes, 1979, Adelaide

The first Commonwealth banknote 7 To be offered at auction 23 March 2006 Auction of the first Commonwealth banknote

Important Australian and World Coins, Medals & Banknotes

Our forthcoming auction of Important Australian & World Coins, Medals catalogues / enquiries & Banknotes is highlighted by the first issued Commonwealth banknote, Ten Catalogues available online or printed ($45 each) Shillings M000001. The auction will also feature over 4,000 other lots of rare and Sydney +612 9223 4578 ▪ Melbourne +613 9600 0244 important coins, medals and banknotes. public viewing This important sale will be staged at Hotel InterContinental, Sydney from 22-24 March 2006 and we are anticipating a record attendance for the Thursday evening On 15th-17th & 20th-21st March 2006 From 10.00am to 5.30pm each day session (commencing 7.30pm) which will feature the highlight banknote. At Ground Floor, 169 Macquarie Street, Sydney

auction

Sydney (02) 9223 4578 On 22nd, 23rd & 24th March 2006 Melbourne (03) 9600 0244 From 9.30am each day At Hotel InterContinental, Macquarie St, Sydney

Auctioneers & Valuers of Coins, Medals & Banknotes Since 1976

Noble Numismatics was originally a wholly excess of $150 million and achieving numerous Victoria, numerous universities and several owned subsidiary of Spink & Son Ltd of Australian and world auction records. government departments at state and federal London, founded 1666. The company was The company has handled many of the country’s level. established in Sydney as Spink & Son Australia most important collections and deceased estates. The company is also sole Australian member in 1976 by the current managing director, The firm’s expertise is backed by an experienced of the world leading numismatic association, W. James Noble. A Melbourne office was staff and its Sydney office is home to one of the The International Association of Professional later opened in 1982. world’s major numismatic libraries. Numismatists. Since opening Noble Numismatics has conducted Noble Numismatics has also acted as valuator Today the company continues its strong tradition eighty major public auctions, realising in for the Australian Museum, the Museum of by offering the highest standard of service.

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