ENGLISH DOLLAR

Evening Star, Issue 21007, 22 January 1932, Page 12

ENGLISH DOLLAR

CURIOUS COIN EXPLAINED When an Englishman says “ Lend me a dollar,” he means ss, not 4s 2d, the value of the American dollar. Why ? The answer is told in a strange English coin, and is linked up with a financial crisis England went through over 100 years ago. The coin has an unflattering bust of George 111. on one side, and on the other the figure of Britannia, surrounded by the words “ Bank of England. Five shillings. Dollar. 1804.” For a long time I sought to trace the origin of this queer coin, says an ‘ Evening Standard ’ correspondent, and when at last I got the solution it l was through Mr Montagu Norman—the Governor of the Bank of England—himself. Mr Montagu Norman, accompanied by Professor Sprague, economic adviser to the Bank of England, was on ono of his frequent voyages to America, We were in mid-Atlantic. The governor was reported never to have given, an interview to a journalist, I wanted one. My English dollar did the trick. I went to him with the coin in my hand, and said : “ Gan you tell me anything about this coin?” “ Why should I,” he replied, “ Because you are the Governor of the Bank of England, and this is a Bank of England dpllar,” I said. Mr Norman became interested. He examined the coin, rang it on the deck, examined it again. Then he borrowed it, saying: “ The longer I live the more I find I have to learn. This is vdry interesting. You have taught me something. I did not know the b~nk had ever issued such a coin. I will get to know about.it.” It was Professor Sprague who told us all about it. In 1804, he said, Britain was passing through a financial crisis. The Bank of England had to declare a moratorium, but the traders of the country cried out,for cash. In the vaults of the bank were millions of Spanish “ pieces of eight,” which were known as thalers. The difficulty was solved. The bust of George 111. was imposed on one side of the coin, and on the other side Britannia. Millions of the coins .were issued. The traders were satisfied, and England had its first and only dollar.