240 Transactions of the Canadian Institute [vol. ix 



some slight changes was passed in Lower Canada and a somewhat 

 similar act in Upper Canada. In these the American dollar was rated 

 for the first time and at the same rate as the Spanish dollar, namely 

 5s. but no other changes were made in the ratings of the silver coins. 



The practice of the Montreal merchants in following the York 

 currency naturally extended to Upper Canada where most of the Loyal- 

 ist settlers were from New York State. Thus though the Halifax 

 standard of 5s. to the dollar was the official rate, the customary rate was 

 8s. to the dollar, the basis of which was the Mexican Real eight of which 

 made up a dollar, whence the old name "piece of eight." In time this 

 came to be identified with the English 6d. which was sometimes called a 

 York shilling. 



As the new American currency of dollars and their fractions grad- 

 ually took the place of all other coins in the United States, the light and 

 defaced coinage of other mints took refuge in Canada and added to the 

 piebald character of its currency. Only the scarcity of any medium of 

 exchange enabled much of this to circulate. In 1808 the rate of the gold 

 coins was further amended as affecting the foreign exchanges of the colony. 



During the whole of this period the Imperial authorities in Canada 

 continued to keep their books in sterling and made payments to the troops 

 on the same basis, rating the dollar at 4s. 6d. It was not, however 

 British coinage which was brought to Canada to supply the Military 

 Chest, but simply Spanish dollars. When these were issued to the troops 

 at 4s. 6d. it simply meant that the soldiers were paid a bonus of 6d. on 

 each dollar as the legal rate was 5s. In 1808 to partially overcome this 

 advantage to the troops the dollars were issued at the rate of 4s. 8d. sterl- 

 ing, which in practice meant the reduction of 2d. on the dollar from the 

 soldier's pay. 



In 1 812 to guard against replacement of the metallic currency of 

 the Canadas by the army bills which were then being issued, it was pro- 

 vided in the Army Bill Act that no metallic currency or gold or silver 

 bullion should be exported from Canada in any shape on pain of forfeiture 

 if discovered. This last law continued in force until 18 17. 



After 1792 the old French coins circulating in Canada were no longer 

 minted, though the French Canadians held to these coins as among the 

 symbols of their nationality. Much as they disliked the new French 

 coinage after the Revolution, yet they preferred it to anything British, 

 and in 1 819 by an act of the Lower Canadian Legislature the new French 

 coinage was created legal tender at fixed rates; in Upper Canada, however 

 they received no official standing. 



In the upper Province the conflict between the older form of York 

 currency and the newer form of Halifax currency gave rise to no little 



