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EXTRACT
TAKEN BY KIND PERMISSION FROM
PROFESSOR FRANCOIS MALAN'S PRESENTATION TITLED
THE PRETORIA SOVEREIGN AND THE
GOLD STANDARD CRISIS
AT THE 2023 INAUGURAL NUMISMATIC SOCIETY MEETING
What happened to the 83 million SA sovereigns?
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38.6 million shipped to the UK from 1925 to 1932 melted by Bank of England
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82 million officially exported
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Early in 1933 SA public tried to make profit from their sovereigns
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Some melted down by jewellers no law prohibiting purchase of coins or melting them
The developments in South Africa during and after WWI
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Gold standard not suspended during WWI gold coin circulated freely in South Africa
Embargo on the export of gold from November 1914
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Problems started after wartime pegging of the dollar sterling exchange rate terminated in March 1919
British pound depreciated 85 shillings to 127 shillings per ounce by February 1920
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South African Banks maintained parity between South Africa pound and British sterling
Resulted in extensive smuggling of gold coin out of South Africa
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South African banks struggled had to buy gold coin in London at a premium and then pay it out in South Africa at par
Banks requested Government to be released from obligation to convert banknotes into gold coin
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