The Mortimer Hammel 1852 Cracked Die Adelaide Pound


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The Mortimer Hammel 1852 Cracked Die Adelaide Pound
COIN
The Mortimer Hammel 1852 Cracked Die Adelaide Pound
QUALITY
Uncirculated
PROVENANCE
Mortimer Hammel Collection, sold Stacks New York September 1982
PRICE
$600,000
COMMENTS
This coin is a prized piece. It ticks all the boxes. Quality. Rarity. Pedigree. And historical standing. The 1852 Cracked Die Adelaide Pound has an exalted position in Australia’s currency history as the nation’s first gold coin. Furthermore it was minted in the very first production run of Adelaide Pounds. What we know today is that forty Cracked Die Adelaide Pounds are in collector’s hands and most of them have circulated with more than fifty per cent heavily circulated. The reality is that of the forty known Cracked Dies, only two are Uncirculated and this coin is one of the two, formerly owned by renowned gold coin collector, American Mortimer Hammel.
STATUS
Sold August 2019.
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The miracle that is numismatics.

The intention was that this Adelaide Pound would circulate. And be used in every day commercial transactions, as part of a grand plan by South Australia's Governor, Sir Henry Young, to stimulate his state's ailing economy.

The coin was never given kid gloves treatment during the production process. 

It was struck in what can only be described as a factory, hammered out and hurled down an assembly line, more than likely into a barrel or bucket.

How this coin survived the production process, and more than a century and a half later still be in its pristine original state is impossible to fathom. The coin simply glows.

Also perplexing. This coin is yet another one of the nation's top (very top) colonial coin rarities that left Australia's shores and ended up in one of the very best coin collections in the U.K. and the U.S.A. In the case of this coin, American Mortimer Hammel.

The Adelaide Pound was struck in November 1852 at the Government Assay Office, Adelaide.

The Assay office had opened nine months earlier on 10 February 1852, its sole purpose to assay gold nuggets brought from the Victorian goldfields and to re-shape them into ingots.
No minting expertise was required in the casting of the ingots.

While they conformed to a shape and style, they were crude and rough and ready, the critical element that they recorded the exact purity and weight of the gold supplied so that they could be exchanged for banknotes at a rate of £3/11s per ounce.

Every ingot had its own unique shape and size depending on the weight of gold assayed.
Nine months later, following agitation from Adelaide’s business community, legislation was passed that authorised the Government Assay Office to strike gold coins.

Suddenly precision was required. The design was intricate, created by colonial die-sinker and engraver, Joshua Payne. So, it was always going to be a tough ask for a factory to start churning out currency to a defined weight and design.
In the very first run, disaster struck. And the die cracked.

The coins that survived out of this first run are referred to as the Cracked Die Adelaide Pounds.

They are also referred to as the Type 1 Adelaide Pounds, the numerical reference indicating that the coin came from the very first production run.

The potential difficulties of striking coins must have been anticipated because a second die had been prepared as a back-up. The striking of the Adelaide Pounds re-commenced with a recorded mintage of 24,648.

The coins from the second run are referred to as the Type 2 Adelaide Pounds.

The crack is not the only differentiating feature between the Type 1 and Type 2 Adelaide Pounds. They have a different reverse design.

The Type 1 has a beaded inner circular design on the reverse. The Type 2 has a crenelated inner circle.

What we know today is that forty of the Cracked Die Adelaide Pounds are in collector’s hands. And perhaps six times that figure of the second die examples.

Both rare. But the Cracked Die excruciatingly rare.

With only forty examples available to collectors, the Cracked Die will always be an elusive coin. And most of them have circulated with the biggest proportion (more than fifty per cent) well circulated. In a quality level of poor to Good Very Fine.

The reality is that of the forty recorded Cracked Dies, only two are Uncirculated. The Mortimer Hammel coin offered here. And the Nobleman piece, acquired from the Quartermaster Collection and held by a Coinworks client.

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Coinworks also has available

1852-Adelaide-Pound-Type-II-EF-obv-July-2019
1852-Adelaide-Pound-Type-II-EF--Large-rev-July-2019

1852 Adelaide Pound, second die with crenelated inner circle

Extremely Fine

$32,000

The collector that is keen to acquire an example of the nation's very first gold coin, the 1852 Adelaide Pound, has two options.

The first is the ‘Cracked Die’ Adelaide Pound featuring the tell-tale crack in the 'DWT' section of the legend. As less than 40 coins are known, the Cracked Die comes with a hefty price tag. In excess of $100,000 for most examples.

The very reason why the majority of collectors opt for the second option of acquiring an Adelaide Pound struck with the second reverse die featuring the crenelated inner circle.

Still a very rare coin with perhaps 250 examples known but presented in a far more affordable price range, upwards of $20,000 for a nice example.

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The history of the Adelaide Pound

The discovery of gold in 1851 is one of the most extraordinary chapters in Australian history, transforming the economy and society and marking the beginnings of a modern multi-cultural Australia. It also led to the creation of the nation’s first gold coin, the 1852 Adelaide Pound.


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Word of the discovery of gold spread like wildfire across the country and overseas. First was the rush to Ophir near Bathurst in early 1851 and the even greater rush to Ballarat in August of the same year.

Then in quick succession came the rich finds throughout central Victoria, Queensland, Northern Territory and finally the bonanza in Western Australia.

No colony was immune from the dramatic effects of the discovery of gold. 

Those that were rich in gold. And those, such as the colony of South Australia, that was devoid of the precious metal. Its economy collapsed due to the mass exit of manpower lured to the Victorian gold fields.

Adelaide lost almost half its male population within the first three months of the first big gold strike near Ballarat. Also gone its cash resources. About two-thirds of the available coin travelled out of the state.
As the two main pillars of national activity, labour and capital, literally walked out, prices plummeted, property plunged, mining scrip nosedived, and Adelaide took on the air of a ghost town, with row after row of tenantless houses.

The cash-strapped banks pressed their debtors for cash payments, but as most debtors were merchants with their capital tied up, disaster beckoned.

By late 1851, genuine panic gripped those who had stayed behind as the total and complete insolvency of Adelaide looked real.
Out of desperation the Government offered a reward of one thousand Pounds for the discovery of a gold field in South Australia.

None was found. 

South Australia’s problems were further compounded because there was no method available to convert the gold nuggets the diggers had brought back from Victoria into a form that could be used for monetary transactions.

Calls were made for the establishment of a Government mint and the issuing of a coinage, but this was viewed as being in direct violation of the Royal Prerogative. Coining was beyond the powers and privileges of any local authority.

On 9 January 1852, over 130 leading businessmen and a further 166 merchants met with Lieutenant Governor Sir Henry Young and pressured him to start up a mint to convert the raw gold into coin. The intention was that the mint would purchase gold from the Victorian fields at a higher price than paid in Melbourne.
There are some doubts as to who suggested an Assay Office and stamped bullion. What is known is that the establishment of a similar office had been introduced into the legislature of New South Wales in 1851. It was defeated mainly due to the opposition of the banks.

Although Young realised that only Royal approval could initiate a move to establish a mint, he was also aware that the survival of the colony was at stake.

He found a loophole in the legislation. While the Governors were not allowed to assent in her majesty’s name to any bill affecting the currency of the colony, an accompanying paragraph that stated … “unless urgent necessity exists requiring such to be brought into immediate operation”.

The “urgent necessity” clause paved the way for the South Australian Legislative Council to pass the 1852 Bullion Act. 

A special session of the Legislative Council was convened on the 28 January 1852.

An enactment was proposed that allowed the Assaying of gold into ingots; the Council seeking to deflect Royal disapproval by striking gold ingots rather than sovereigns.

The ingots were intended to form a currency that would back the banknote issues of the banks as if they were gold coin. And be used by the banks to increase their note circulation based on the amount of assayed gold deposited. 

The Act was as daring, as it was contentious, in that it made the banknotes of the three South Australian banks a Legal Tender, under specified conditions. 
It drew condemnation from the eastern states. Melbourne’s Argus condemned the Act as dangerous, radically unsound and interfering with the natural laws of commerce. But these protests were motivated by self-interest, as South Australia posed a real threat to the Victorian economy by re-directing capital and labour away from the Victorian gold fields.

The Bullion Act No 1 of 1852 has a record unique in Australian history. A special session of Parliament was convened to consider it. Parliament met at noon on the 28 January 1852.

The Bill was read and promptly passed three readings and was then forwarded to the Lieutenant Governor and immediately received his assent.

It was one of the quickest pieces of legislation on record, with the whole proceedings taking less than two hours. 
Thirteen days after the passing of the Act, on 10 February 1852, the Government Assay office was opened. Its activities were supported by a state government initiative to provide armed escorts to bring back the gold from the Victorian diggings. 

Within a week 600 gold coins (known today as the 1852 Adelaide Pound) had been delivered to the South Australian Banking Company, 100 of which were sent to London. 

The Bullion Act had a lifetime of only twelve months. By the time the legislative amendments were passed to enact the production of gold coins, the Act had less than three months to run. As a consequence, only a small number of Adelaide Pounds were struck (24,768) and very few actually circulated. 

When it was discovered that the intrinsic value of the gold contained in each piece exceeded its nominal value, the vast majority were promptly exported to London and melted down.
That goes a long way towards explaining why so few Adelaide Pounds survive today (approximately 250) and why the highest-quality examples command such high prices. 


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