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Drennan's Commissariat Currency Notes |
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Notes:Deputy Commissary General Frederick Drennan arrived in Sydney Town aboard the Globe on 5 February, 1819, to replace the disgraced previous head of the commissary - Deputy Commissary General Allan.Despite a lack of written authority from the English authorities, Drennan immediately advised Governor Macquarie that he was authorised to replace the store receipts system then in use. Macquarie must have been convinced because on 8 February, he promulgated a change so that 'Promissory Notes on account of the Public Service' were to be given in payment of 'Untransferable Store Receipts'. The new form of store receipt was specifically excluded from being used as a negotiable instrument - it could not be considered as a cash voucher and was not saleable or transferable. Later, proceedings were to show that Drennan had no such authority. Drennan used the facilities of the Sydney Gazette to produce both the non-transferable store receipts and the new Promissory Notes. The receipts were printed four to a page and distributed to each of the Commisariat offices. The Promissary Notes, currency notes in fact as they had pre-printed values of 10 pounds, 5 pounds, 10 shillings and 5 shillings, were held in Sydney. Initially, Drennan insisted that consolidation of the now non-negotiable receipts must be carried out at the Sydney office. Protests from remotely located settlers soon forced Drennan to send his officers on regular visits to the outlying Commissariats of the colony specifically to consolidate receipts for the new currency notes. These visits did not extend to Van Diemen's Land where Lieutenant Governor Sorell, with Macquarie's support, quickly fixed the problem by reverting once more to the old and well understood store receipts system. It was soon discovered that the four denominations of currency note were easily forged. After only a short print run totalling around £500-£600, the notes were quickly recalled and destroyed. A second issue of 10, 5, 2 and 1 pound notes replaced the withdrawn notes, printed on Drennan's 'official press' using a plate engraved by Clayton. The notes were cut and stitched into books of 100 prior to dating and signing. Drennan's system would probably have worked, were it not for a complete lack of checks and balances over the handling of both the store receipts and the currency notes. Uncounted quantities of blank store receipts were delivered to Commissariat Offices, currency notes in reasonable condition were re-issued after consolidation for Treasury Bills, and, almost unbelievably, no record was kept of those currency notes that were re-issued, nor those that were destroyed. Compounding the problem was a series of note thefts from the outlying Commissariats. The system was abolished in June, 1820, and once again, the old system of transferable store receipts was revived, this time with a few safegards against theft and forgery. Drennan, with his credibility in tatters, was removed from office, arrested and sent back to England. Investigations revealed a shortfall of approximately £6,000 - a huge sum for the time. See the separate article on Paper Money in Early New South Wales.
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