242 Transactions of the Canadian Institute. [vol. ix 



capable of conversion into the standard gold coinage of Great Britain. 

 This could be accomplished by issuing for it in the colonies, bills of ex- 

 change on Britain at a standard rate. The rate suggested was 3% pre- 

 mium, or £103 in the colonies for £100 in London. British silver coin- 

 age being issued at a higher rate than its intrinsic value, was expected 

 to remain in circulation in the colonies, because it would not pay to melt 

 it down for export as bullion, and the issue of bills of exchange on London 

 would prevent its being returned there. Steps were to be taken at once 

 to have the British silver coins sent to the colonies, in the meantime the 

 dollar to be rated at 4s. 4d. and other coins in proportion. 



The very natural object of this comprehensive scheme was to estab- 

 lish one currency language for all exchange operations throughout the 

 Empire. Wherever the British flag waved the British shilling was to 

 circulate, to the advantage of imperial trade and commerce. Looked 

 at from the point of view of London, the plan was faultless, but from the 

 colonial point of view it was much less simple or attractive. Most un- 

 expected obstacles to its realization cropped up. In Canada the prop- 

 osition provided for the rating of the dollar at 4s. 4d. sterling, instead of 

 5s.2d. as in the existing act. This however would mean the infringement 

 of the Canadian law by a British order in Council. Such a proposal stirred 

 the constitutional bile of the Canadian Legislature, and though Lord 

 Dalhousie endeavoured to get the Canadian Act changed by the Assembly, 

 that body simply referred the matter to a committee from which it 

 never emerged. The Legislative Council, on the other hand, though a 

 strong pro-British body, gave numerous reasons why the Canadian system 

 in operation at the time could not be disturbed. Their chief objection 

 was that as the British silver was over-rated and not subject to free 

 coinage, nor legal tender for more than 40s. it would be very unwise to 

 adopt it as a standard in Canada. In other respects it would involve 

 too many changes in Canadian contracts and general business. The 

 British Treasury, being informed of the difficulties in the way of their 

 imperial scheme gracefully abandoned it in formal shape, trusting to 

 the payment of the troops in British silver to alter the usage in Cana- 

 dian business. 



In Upper Canada though declining to alter the basis of the currency, 

 or change the rating of the dollar, the Legislature raised the rating of the 

 British coins. The Crown was rated at ss.gd. instead of 5s.6d. and the 

 shilling at is.2d. instead of is.id. This had the secondary consequence 

 of putting the two Canadian Provinces out of touch with each other in 

 the official rating of their coinage. 



The British military authorities sent out £30,000 in British silver 

 for the payment of the troops. Contracts for military supplies were to 



