igii] Canadian Metallic Currency 249 



coins to 20c. Unfortunately, with the exception of the changes here 

 made, the other parts of the Currency Act of 1841 were to remain in 

 force, which involved the continuing of the American dollar as unlimited 

 legal tender. This oversight caused the Act to be sent back to Canada 

 for revision. 



Together with it the British Treasury Board sent an exhaustive 

 memorandum on the North American colonial currency, and suggested 

 a basis for common agreement among the provinces. The British 

 authorities no longer objected to the decimal system but wished the 

 unit to be the pound currency, and not the American dollar. It was now 

 proposed that the pound should be represented by an actual gold coin to 

 be called a "Royal," with subsidiary gold and copper coins in decimal 

 ratio. 



Seeing that the Home Government had conceded so much, Mr. 

 Hincks was inclined to accept the suggestions of the Treasury Board, 

 But the more the members of the Canadian Parliament and the bankers 

 and business men considered the practical effects of the proposal, the 

 more they reverted to the system of dollars and cents. The new measure 

 was proposed in the session of 1852-3. As first presented it provided for 

 a special Canadian decimal currency with a gold coin of the value of 

 one half pound currency to be called a Royal, equivalent to $2, and with 

 a silver coin i/io of that or 20c., to be called a shilling, and another 

 copper coin i/io of the shilling or 2c. to be called a "mark." In the 

 discussion in the House the majority favoured the system of dollars and 

 cents, though leaning towards the sterling standard on sentimental 

 grounds. Among these was John A. Macdonald. Mr. Hincks readily 

 adopted the views of the majority, which were also his own at heart. 

 The new Act legalized transactions in dollars and cents, making them 

 the new legal money of account, though the Halifax or provincial de- 

 nomination currency was not excluded. The gold coins of Britain were 

 to be legal tender to any amount at $4.86 2/3or£i. 4s. 6d. currency; the 

 American eagle to be legal tender at $10 or £2. los. currency. Her 

 Majesty was empowered to direct the issue from the Royal Mint of 

 special silver coins for circulation in Canada, these to be legal tender 

 up to $10; special copper coins might also be struck. Until the new 

 coins were issued British silver was to be accepted at rates specified. 



In this Act the American silver dollar and its fractions disappeared 

 from the list of rated coins. This was because the dollar had disappeared 

 in the United States itself, owing to its being overrated. In 1853 the 

 American Government had provided a subsidiary silver coinage from 

 50c. downwards. This was accomplished by diminishing the quantity 

 of silver in these coins, thus making them a token currency with legal 



