igii] Canadian Metallic Currency 241 



difficulty, especially in the settlement of cases brought to court. To 

 definitely settle these differences, an Act was passed in 1821 providing 

 that no interest should be collected on notes, bonds, or other contracts 

 in which the sums were expressed in York currency. No rendering of 

 accounts and no presentation of books in court were to be deemed legal 

 where they were presented in York currency. Thus was York currency 

 finally displaced by Halifax currency. Yet so strong is custom that for 

 nearly half a century afterwards in the older sections of Upper Canada 

 prices continued to be quoted and farm produce bought and sold in York 

 currency. 



In 1S25 the British Government undertook to correct all the ano- 

 malies of colonial currency by introducing the British sterling currency 

 as a standard of value and medium of exchange throughout the Empire' 

 As already observed, among the French Canadians the old French coins, 

 so far as available, constituted the favorite currency, while in the English 

 settlements, in the city of Montreal and throughout western Canada, the 

 Spanish and American dollars, with a miscellaneous fringe of other gold 

 and silver coins, constituted the general medium of exchange. 



In 1 81 6 Britain herself had adopted gold as a standard and silver 

 became a token money, its face value being above its intrinsic value, 

 while its legal tender was limited to 40s. In 182 1 the Bank of England 

 resumed specie payment. At this time also the Spanish colonies were 

 achieving their independence, the silver mines passed out of the hands of 

 Spain and the supply of Spanish dollars was checked, leaving henceforth 

 the American dollar in command of the field. In view of these condi- 

 tions and especially of the successes which attended the re-adjustment 

 of the British coinage, it was perhaps natural for the Government to sup- 

 pose that they could re-construct the currency system of all parts of the 

 Empire. It was resolved to make use of the extensive payments in the 

 colonies through the Military Chests for the purpose of effecting the 

 desired change. The Lords of the Treasury, in a minute dated February 

 nth, 1825, set forth their scheme for re-organization and the arguments 

 in support of it. They acknowledged that in most of the colonies the 

 Spanish dollar was at once the prevailing coin in circulation and the stand- 

 ard by which all other coins were measured. But the Spanish dollar was 

 greatly over-rated, it was paid out by the Military Chests at 4s 8d. when 

 as a matter of intrinsic value it was scarcely above 4s. and at the rate of 

 British silver coinage it would be 4s. 4d. 



Under the circumstances the Lords of the Treasury had reached the 

 conclusion that the best medium, alike for the payment of the British 

 troops quartered in the colonies, and for colonial exchange, was the 

 British silver and copper currency. This currency, however, must be 



