Section IL, 1903 [ 217 ] Trans. R. 8. C. 



XII. — The Copper Currency of the Canadian Banks, 1837-1857. 

 By E, "W. MoLachlan. 



(Communicated by Dr. S. E. Dawson and read May 19, 1903.) 



Trade, which, from early times in the British North American 

 colonies, had suffered from an insufficiency of currency, was still further 

 hampered, during the latter half of the eighteenth century, by the 

 almost total cessation of the coinage of silver at the Koyal Mint.^ 



While this scarcity prevailed in the north there, was abundance in 

 the south, tbrough the wonderful activity of mints in Spanish America,- 

 and some of this abundance found its way northward. 



This Spanish coinage, mainly dollars, so came to be the prevailing 

 currency in the British Colonies, and so influenced the circulation that 

 the dollar, in a manner, came to be considered the unit rather than the 

 pound, while many transactions, entered into by the government as 

 Avell as by individuals were expressed in " Spanish milled dollars." 

 The dollar too was divided into so many shillings and these shillings, 

 although still calculated as twenty to the pound, were based not on the 

 pound sterling but on a standard known as the pound currency. Thus 

 the pound in the colonies was reduced to meet the altered circum- 

 stances. The number of the shillings to the dollar varied in the dif- 

 ferent Colonies; for in Massachusetts it was six, in Pennsylvania seven 

 and a half and in New York eight. 



In Nova Scotia, after it came under British rule, a different 

 standard still M^as adopted, which, from the capital of the province, 

 was called " Halifax Currency." By this currency the dollar was 

 divided into five shillings and ten sixpences which gave it an approach 

 to the decimal system. When this standard was first adopted the 

 dollar was worth four shillings and sixpence sterling; on which rate 

 was based the old par of exchange. But Halifax currency followed 

 the decline in value of the dollar until it was finally fixed in 1837 by 

 the virtual adoption of the gold standard in the United States. Then 

 par of exchange, which bad been advanced from time to time, was 

 finally settled at nine and a half, the present rate. 



After the revolt of the thirteen colonies, Halifax currency was 

 extended to the old Province of Quebec where, by the way, it is first 

 mentioned in a tentative currency promulgated in an ordinance issued 



' Only a single silver coinag-e, and that limited to £55,000 in shillings and 

 sixpences, issued in 1787, was struck between .the years 1758 and 1816. 



' According to law the whole of the extensive products of the silver mines 

 of Mexico and Peru had to be coined before being exported. 



