iQii] Canadian Metallic Currency 237 



HISTORY OF CANADIAN METALLIC CURRENCY. 

 By Professor Adam Shortt. 



{Read 22nd April, 1911.) 



Canadian metallic currency as we have it to-day has not been the 

 result of any definite or conscious choice on the part of the Canadian people 

 or their Government. In fact, if the earlier Governments could have 

 settled the matter according to their own convictions and wishes, our 

 currency would be quite other than what it is. However, circumstances 

 are stronger than policy and popular usage than Government enactments. 



At the time of the Conquest Canada passed into the hands of the 

 British with practically no metallic money in sight. It was submerged 

 in a flood of depreciated paper currency, the result of extravagance and 

 corruption on the part of the last French colonial Government. When 

 confidence was restored the trade of Quebec and Montreal began to re- 

 vive through the activities of the immigrant British merchants from the 

 southern colonies. Metallic currency re-appeared, but it was of a very 

 varied character, coming as it did from the old stockings of the more 

 fortunate French-Canadians, the traders from the English colonies and 

 the payments of the British Government. 



The long and intimate trade connection between the American col- 

 onies and the West Indies resulted in the introduction of Spanish and 

 Portuguese coins. The Spanish dollar was the chief medium of ex- 

 change and consequently the practical standard of value. The sterling 

 currency of Britain was the legal standard of the colonies, but there were 

 few British coins in circulation. Metallic currency in a new country 

 whose manufactured goods must be obtained from abroad is apt to be 

 scarce. Popularly the most reasonable manner of protecting and re- 

 taining currency is the simple method of over-rating it. This however 

 led to competition in over-rating among the British colonies in America. 

 The Legislature of Massachusetts fixed the value of the Spanish dollar 

 or "Piece of eight" (meaning eight Reals) at six shillings. This was 

 confirmed by the Royal proclamation of Queen Anne, under advice from 

 the Board of Trade, in 1704. In this Proclamation the same rating was 

 extended to the other colonies, and the other silver coins were rated in 

 like proportion. As the Proclamation was only indifTerently observed 

 by some of the other colonies, in order to have it legally enforced its terms 

 were embodied in an Act of the Imperial Parliament in 1707. 



