Another Belter From The Religion Of...
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For more on marking an answer as the "Best Answer", please visit our FAQ.As said above, at one time, a great many crimes automatically attracted the death penalty: you could be hanged, for example, for stealing goods worth more than a shilling. Sheep stealing was among these capital crimes.
Since the law was reformed in the 1820s to end the death penalty for the crime, the proverb must be older; in fact the earliest example known is from John Ray�s English Proverbs of 1678: �As good be hang�d for an old sheep as a young lamb�.