The early years
In
early 1840, Captain William Hobson, RN, the first Governor of New Zealand,
extended British laws to New Zealand. This meant that certain sections of the
Imperial Coinage Act, 1816 (UK) became relevant to the new colony. This allowed
for the standard gold, silver and bronze British coins to circulate freely in
New Zealand alongside the existing variety of foreign coins. British coins were
made legal tender in terms of the above act by the passing of the English Laws
Act in 1858.
In
the 1840s and 1850s there was an extreme shortage of coins, especially copper
coins. Traders tried the issue of low value paper notes to remedy this
situation but this was soon abandoned. Instead, as this shortage intensified
throughout the 1850s, businesses in Auckland and Dunedin decided to issue their
first copper tokens in 1857. In all, 48 traders (mostly retailers) issued their
own penny and half-penny tokens. This practice survived until 1881 with their
use gradually declining in the 1880s.
In
1897, New Zealand's currency became subject to certain provisions stated in the
Imperial Coinage Act, 1870 (UK). This meant that only British coin became the
official legal tender coin of the colony. At that time, it was already one of
the two ‘common' currencies, along with Australian minted gold sovereign and
half sovereign coins.
In
1914, the gradual withdrawal of gold coin from circulation took place.
Silver
coin was debased from .925 fine (Sterling Silver) to .500 fine in 1920.
New Zealand’s own currency
By
1933, it was obvious that something had to be done about the coin smuggling and
the shortage of lower denomination coins in New Zealand. It was decided that
New Zealand should start issuing currency from a single bank. The New Zealand
Numismatic Society suggested that New Zealand adopt a decimal system of
coinage.
However
a distinctive New Zealand coinage was introduced in 1933 based on a fractional
system (the same as sterling). These new coins used the same weights, sizes and
denominations as the British coins.
Bronze
coins (penny and halfpenny) of British standard were not approved until 22nd
December 1939. These were issued in 1940, at the time of the Centennial of New
Zealand.
The
Coinage Act, 1933 governed the currency, coinage and legal tender in New Zealand,
and meant that British coin ceased to be legal tender as at 1st February 1935.
New Zealand then became the last and most remote of the self-governing
dominions of the British Commonwealth to introduce its own coinage.
The original designs
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Half-Crown Ensigns armorial of the Dominion on their
shield (quarterings depicting the Southern Cross, a wheat sheaf, a lamb
suspended by a ribbon and mining hammers crossed divided by three ships)
surmounted by the Royal Crown and surrounded by ornamentation inspired by Maori
carvings
Florin A kiwi (bird) facing left
Shilling A
figure of a Maori warrior in warlike attitude carrying a
taiaha
Sixpence
A huia (bird) perched on a branch
Threepence Two carved patu (Maori weapons) crossed
with lanyards or throngs attached, with "3d" between their blades
Penny A tui (bird) perched in a setting
of yellow kowhai blossoms
Halfpenny A Maori Hei-tiki (Maori charm) with
Maori ornamental scrolls
on each side
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In
1947 the issue of Cupro-Nickel coins replaced .500 fine silver coins. This
proclamation was made under Section eight of the Coinage Act, 1933 and signed
on 25th August 1947. Both metal types of coins were still considered to be
legal tender. This change was due to the rising costs of mining and the price
of silver.
