Australia's Currency Heritage

It's not often we consider the money that changes hands each day in Australia. Not the value behind it, or the financial markets that drive this value, but the actual, physical currency itself. Who makes it? Who are the people illustrated? How did it all come about?

Not just for coin collectors, the history of a nation's currency can paint a valuable picture in the evolution of that nation.

New South Wales was established in 1788 as the first Australian colony. At the time, many settlers and military personnel could only obtain their supplies from communal stores. Much of this was bartered for with rum, which made trading all the more difficult. The convicts fared even worse with no wages or bartering goods paid to them at all. It soon became quite evident that a more genuine currency was needed.

English currency was the first money used in Australia, along with some Spanish dollars that came on the early ships to the colony. Governor Macquarie feared the Spanish currency would be taken back to Europe, so from 1813 he had all coins altered to have holes cut through the middle of them, and new stamps put on the pieces. English government-supported notes of credit were also used at this time, but were vulnerable to counterfeiting and were thus phased out.

The establishment of the Bank of New South Wales in 1817 made it much easier for currency to be created and monitored. The bank issued the first banknotes in Australia, which consisted of the English system of shillings, pounds and pence. Coins were subsequently introduced in 1825.
The first 'Australian' coins appeared in 1910 with the issue of silver coins. Bronze pennies followed in 1911, though English coins were still in use at this time. The first Australian banknotes were issued two years later, with their value based on the British sterling standard.
The current Australian currency was first introduced in February 1966, when dollars and cents replaced British-style currency.

Some interesting facts about Australian currency:

Paper notes were replaced with polymer in 1996, to prevent counterfeiting - the polymer technology was originally developed in Australia.
The $1 and $2 coins are made of copper (92%), aluminium (6%) and nickel (2%).
The $100 note shows an illustration of Dame Nellie Melba, a famous soprano opera singer from the early 20th century.
The reverse side of the 50c coin features the Australian Coat of Arms.
The Royal Australian Mint has the capacity to produce more than 2 million coins per day.