244 Transactions of the Canadian Institute. [vol. ix 



Pistareens and French silver, and for excluding all gold coins but the 

 British so\ereign and half sovereign. It failed to pass, however, its 

 changes being regarded as too radical. 



In both Provinces temporary measures were passed making some 

 slight adjustments. The Lower Canadian measure rated the Pistareen 

 at lod. instead of a shilling and the half Pistareen at 5d. The Upper 

 Canadian act merely excluded from legal tender the worn and defaced 

 coinage then forming a large part of the circulation, such as worn British 

 coins, the Pistareens, and French crowns and half crowns. But as no 

 new coinage was provided to take the place of that which had been dis- 

 franchised the situation was not much improved. Matters were simply 

 left to be dealt with by practical agreements among the merchants and 

 others. 



Meantime the miscellaneous trash, constantly imported into Canada 

 and circulating under the name of coppers, became an intolerable nui- 

 sance. The banks of Lower Canada undertook to remedy matters by 

 issuing a series of copper bank tokens of definite standard which were 

 accepted at their face value. The first issue was dated 1837 but did not 

 pass into circulation until the spring of 1838. The banks providing them 

 were the Bank of Montreal, the City Bank, the Quebec Bank, and the 

 Banque du Peuple. Later the Bank of Upper Canada also obtained and 

 exercised the right to issue copper bank tokens. This movement only 

 partly remedied matters. As a further condition of relief the Bank of 

 Montreal imported $10,000 worth of 5 and 10 cent pieces from the 

 United States Mint. This certainly improved the situation, but in doing 

 so further determined the country in the direction of the American and 

 not the English standard. 



For some time the changing ratio of silver to gold had caused the 

 American rate of 15 to i, by undervaluing gold, to drive it out of the 

 country. Hence in 1832 the new ratio of 16 to i was adopted. This 

 however had the opposite effect, and as gold increased faster than silver, 

 the latter passed to a premium and disappeared from circulation. Amer- 

 ican silver disappeared from Canada also, increasing the difficulties of 

 the Canadian situation. Once more therefore the rating of the coinage 

 had to be changed in Upper Canada. This was accomplished by the 

 act of 1836. The British crown was rated at 6s. and the British shilling 

 at IS. 3d. 



British coinage continued to act as an exchange on England and was 

 therefore rated at its exchange value, not at either its currency value or 

 its bullion value. Thus instead of the pound Halifax currency being 

 equivalent to 17s. 4d. sterling, as formerly under the Act of 1836, it became 

 equivalent to 1 6s. 8d. or, in the shape of the British shilling, to i6s. 



