250 Transactions of the Canadian Institute. [vol. ix 



tender to $5 only. From 1853 to 1878, when the Bland Act was passed, 

 the United States had a monometallic currency with gold as the standard 

 but with subsidiary silver currency as in Britain. This will explain the 

 disappearance of the American silver from the Canadian Act. 



Mr. Hincks went out of power in 1854, juist after the new Currency 

 Act was approved, and there was much delay in putting the new measure 

 into practice. Finally in 1857 a further Act was passed requiring the 

 Government accounts to be kept in dollars and cents without the option 

 of using Halifax currency; and requiring all accounts presented to the 

 Government to be rendered in the new denomination, as indeed had been 

 largely the practice. The Act was to come into force on January i, 

 1858. From that day dates the actual official adoption of the decimal 

 system of dollars and cents in Canada. Following the Government the 

 merchants and banks quite generally adopted the new system, and steps 

 were immediately taken to have the new silver and copper currency 

 provided. About the middle of 1858 the first shipment was received 

 from the Royal Mint. It consisted of $100,000 in 20c. pieces, $75,000 

 in 10 cent piepes, $75,000 in 5 cent pieces, and $50,000 in i cent pieces. 

 Some surprise was expressed that there were no 25 cent pieces, which 

 many regarded as the most necessary of all. But the British shilling 

 had been provided for in the Act of 1 853 as legal tender to the extent of $ i o. 

 Its proper rating should have been 24^ cents but it was commonly 

 accepted at 25 cents, hence the omission of the Canadian 25 cent coin. 

 The shilling being over-rated soon appeared in large numbers and gave 

 considerable trouble. The new American token currency also flowed 

 into the country under the influence of the Reciprocity Treaty, but more 

 especially during the period of the Civil War. The banks did not favour 

 the Canadian gold coinage nor have they to this day, because it was not 

 necessary in commerce and it would be no use in exchange except as 

 bullion. Various attempts were made to extend the legal tender range 

 of the silver coinage, but fortunately without success. 



No further changes in the currency were made until after Confed- 

 eration. But Confederation being accomplished, and the American 

 Civil War ended, the Canadian Government found it necessary to set the 

 currency in order for the whole Dominion. Canada was flooded with 

 American silver which had been sent over to purchase supplies. At this 

 stage Sir Francis Hincks once more became Finance Minister of Canada, 

 and in 1870 undertook to dispose of the Yankee silver and to supply 

 its place with Canadian coins. By employing the banks in general 

 to gather it in, and the Bank of Montreal in particular to dispose of it 

 in New York, upwards of $5,000,000 in American fractional silver was 

 exported at a cost to the Government of $118,000. While this process 



