The early forms of money in Australia are far inferior and simpler than the forms of money used here today. There were no credit cards, no banks, no coins exclusive to our currency and country, no bank notes. Instead, there was rum, the holey dollar, coins from other countries, and the bartering system.
The first type of money that the early settlers in Australia used were rum and of course bartering. As there was not any set currency yet, they had to form their own. They traded rum, which obviously resulted in underlying problems such as alcoholism and drunkeness in the streets amongst other things. It was common amongst men to be unruly in the streets and spend all their money on the drink in early Australia, even when the economy slowly began to steady and agriculture became more developed and become one of Australia's biggest industries. This practice didn't happen as much when the holey dollar and the dump became popular, though. Bartering lost its popularity when the holey dollar and dump were brought in, and now is it basically unheard of to barter in our current Australian monetary system.
The situation was becoming increasingly desperate for the new Australian citizens and the settlers. They had foreign coins, but those ran out quickly, and often got exported back to their original countries or places of origin. Sometimes merchants on ships that came from other countries traded these coins for their goods or services, resulting in a loss of many coins.The governer decided to use Spanish coins, and punch out the middle, forming two seperate coins. The punched out middle of the coin was called the dump, whilst the ring was called the dollar. The central plug (dump) was worth fifteen pence, or one shilling, and the ring worth five shillings. Nowadays, that would be the equivalant to one shilling is ten cents, making the equivalant to five shillings fifty cents. In the 1820s, England had greatly improved its coin production, and sent out supplies to its colonies. Local banknotes and paper coin tokens were distributed by the Bank of New South Wales ande circulated from its establishment in 1817. In 1853, Queen Victoria consented to the building of a mint in Australia, and that was basically the end of the holey dollar. Now the dump and the holey dollar are collector's coins.