19"] Canadian Metallic Currency 247 



and it is most convenient for their business, while the United States is 

 the only available source for large and immediate supplies of metallic 

 currency. On the other hand the British standard cannot be main- 

 tained in Canada because it will be subject to constant fluctuations 

 following the conditions of exchange and the currency will be liable to be 

 exported in lieu of Bills of Exchange. " 



With Canadian opinion in a divided condition the Currency Bill 

 was necessarily a compromise. It corrected, however, many of the 

 existing anomalies and reduced the range of unlimited legal tender. 

 The Halifax standard was retained, though there were still no coins 

 corresponding to it. The gold coins allowed as legal tender were the 

 American eagle and the British sovereign. Other gold coins might be used 

 as legal tender at specified rates per ounce. The silver coins admitted 

 as unlimited legal tender were the American dollar and half dollar 

 and the new French 5 franc piece. The other rated coins were limited 

 as legal tender to £2.ios. The dollar was rated at 5s. id. and the 5 

 franc piece at 4s. 8d. The old French silver coins of Lower Canada were 

 not given any rating and therefore became mere bullion, much to the 

 disgust of the banks and the people of Lower Canada. The French 

 Canadians of course saw in this another blow dealt at their nationality. 

 There was a rather amusing scramble among the banks to unload on 

 each other before the Act came into force the now homeless old French 

 coins. The exclusion of British silver from the privilege of unlimited 

 legal tender caused quite an outburst of sentiment on the part of the 

 pocket Loyalists, as they were likely to lose a little in consequence. But, 

 as Mr. Hincks pointed out, British silver was now treated in Canada ex- 

 actly as it was treated in England. It was merely a token currency of 

 limited legal tender. The general effect of the new measure was decidedly 

 beneficial, and certainly prepared the way for further changes in the 

 same direction. 



After the passing of the Metcalfe ministry, Mr. Hincks once more be- 

 came Finance Minister in the Reform ministry of 1847 under Lord 

 Elgin, and resumed the task of developing a permanent currency for 

 Canada. Under the Act of 1841, at the instance of the Council, but 

 much to the dislike of the Assembly, the dollar had been rated at 5s. id. 

 and the English crown at 6s. id. In 1850 the older ratings were restored, 

 namely 5s. for the dollar and 6s. for the crown. This was done with the 

 express object of equalizing the American and Canadian standards. 

 The same Act gave authority to the Governor in Council to cause silver 

 coins to be struck for circulation in Canada, the coins to be of the fol- 

 lowing values, 5s.,2s.6d., IS. 3d., Is., 6d., and 3d. These were of course 

 merely currency ratings corresponding to the dollar, half and quarter dollar, 



