PRE-CONFEDERATION TOKENS OF CANADA

One can hardly imagine a world without money. We work hard earning it, we take pleasure in spending it, and some of us simply enjoy hoarding it. Despite its popularity, few have any idea how it is made, where it comes from, and much less anything about the history of Canadian coins.

Yet there was a time when no coins existed, when people could only barter for the things they wanted with things they already had. A great variety of things were used as money before coins were invented. Among them were human slaves, fur, feathers, leather, weapons, salt, grains, cattle and fish. Sometimes objects of silver, gold, copper, or iron were used. Tobacco and beads made of shell were used for trading by colonists with their Indian neighbours. The invention of coinage made business easier and provided the means for generating new transactions. Early coins had no face value or denomination because they were struck to a specific weight instead of a specific value. During the 16th century, the Spanish, who were in control of vast quantities of gold and silver, were producing quantities of silver dollars and smaller denomination coins. The large denomination coins contained a quantity of precious metal equal in bullion value to the face value of the coins but few of these coins ever made it far enough north to reach Canada.

Even when Quebec City was founded, at the beginning of the 17th Century, there was very little use for coins. Explorers, fisherman and later fur traders generally made payments with goods. Furs were traded for supplies and supplies were traded to the Indians for more furs. By 1645, the trade industry was drawing more attention from the government of France and the population began increasing rapidly. This necessitated the use of coins. French coins were sent to the colony on occasion by the King of France however, the motherland had its own shortage problems and Canada was not its priority.

In 1670, the French Government attempted to solve the colonial currency problem by producing coins specifically for use in New France and other French colonies. While many publications refer to the issue of this coin as the first Canadian coin, others disagree on the basis that this particular coin was not meant for exclusive use in Canada. In reality, few of these coins actually circulated in Canada. They were unpopular because they were not returnable to France in payment for imports therefore they were of no use to the business community.

An unusual situation developed in 1685 when the colonial administrator wrote on the back of playing cards and later on plain cardboard as an extraordinary measure in response to the shortage of coins. The soldiers needed to be paid and coins from the motherland had not arrived. While the presence of these notes is well documented, none of these pieces are known to exist today.

The conquest of New France by Britain in 1763 led to a confusing mix of French, Spanish, and British currency which were used to support a rapidly growing and developing nation. The area along the St. Lawrence River, formerly called New France, was renamed Quebec under English rule. Under the Constitutional Act of 1791, Quebec became Lower Canada, and the western region became Upper Canada. Attempts in the 1790s and again in 1817 to produce coins from private sources were disallowed by the home government. The history of Canadian coins is obviously not much different from the history of Canada.

In 1813, the governor of Prince Edward Island ordered the production of Spanish "dollars". The coins included a central "plug" which passed as shillings and an outer ring which passed as five-shilling pieces. The coins were counter-stamped with a mark looking like a ten-pointed sun to make them legal.

The war of 1812 created commercial pressures to introduce coins. Introducing copper coins from the British Isles solved the problem. These coins were usually halfpennies and bore the inscription "TOKEN". Many tokens only showed a date and a denomination but some issues also bore the merchant's name.

The excessive use of unofficial and poor quality tokens led to the decision by the Nova Scotia government, to produce the pence and half pence between 1823 and intermittently until 1856. The Bank of Montreal issued one sou pieces in 1835, and Banque du Peuple sous in 1837. These were of mediocre quality and resulted in a flood of counterfeits. In 1837, four major Lower Canada banks participated in the issue of the habitant one and two-sous pieces. After Upper and Lower Canada united in 1841, three banks issued copper pence and half-pence pieces. The high quality of these bank coins were not counterfeited significantly and was successful in eliminating the use of poor coppers.

In the 1850's the home government produced copper bank tokens and became more tolerate of local issues. Nova Scotia and New Brunswick produced pennies and halfpennies. The Nova Scotia issue, particularly its floral pattern on the reverse side, struck in bronze rather than copper, is very attractive.

Anyone interested in the field of tokens should begin with some reference materiel. The Charlton Canadian Colonial Token Catalogue is a good place to start. Consider joining the Canadian Association of Token Collectors where a $15 annual fee will entitle you to a quarterly publication called The Canadian Token. Tokens offer a wide variety of designs, are steeped in history, and relative to decimal coins they are extremely inexpensive.

Sources:

(1) Striking Impressions, 1984, by J.A.Haxby (2) Coins of Canada, 1997, by J.A.Haxby and R.C Willey (3) Canadian Coin News, 22 Sep 98 p. 7 (4) www.rcmint.ca; (5) www.nunetcan.net/cna¸

CANADIAN DECIMAL COINS

Much has been written on the subject of Canadian decimal coins. The following few lines only scratch the surface on the subject. Rather then offer a comprehensive paper, what follows is a condensed version of the material. While it is useful to identify some of the historical highlights, this will be augmented with opinions and comments from personal experience.

The use of coins did much to shape economic history. Some coins achieved universal popularity and were accepted without question in commercial centres far from their country of origin. In the middle of the 19^th Century, with large numbers of privately issued metal pieces, the need for a unified currency was clear. In particular, trade with the United States, and the widespread use of American coins flowing north, put pressure on the Province of Canada to introduce a currency system similar to its neighbors to the south.

In 1857 the dollar was established as the unit of money. All accounts, public and government, were to be kept in dollars and cents. The Canadian dollar was given the same value as the American dollar. Canada ordered its first Canadian decimal coins (one cent bronze, five, ten, and twenty-cent silver pieces) from the Royal Mint in London. Because the order was late in 1858, most were dated 1859. The coins were unpopular because people preferred the much heavier and more familiar copper bank tokens. And because the issue of 1858-59 cents was so large, pennies were not issued again until 1876. The twenty-cent piece was a problem because it was easily confused with the U.S. twenty-five cent piece. For this reason, it was only produced in 1858 and withdrawn in 1870. This was followed with coins for Nova Scotia and New Brunswick in 1861, and Newfoundland in 1865. The discovery of gold in the Fraser Valley led to a small quantity of $10 and $20 gold coins dated 1862 produced in British Columbia. British Columbia joined Confederation in 1871.

Once the Dominion of Canada was formed in 1867, the government issued 25 cent paper notes as a temporary measure while waiting for the arrival of the first Canadian coinage. These were officially called "fractionals" but were more popularly known as "shinplasters". The notes proved to be very popular and continued to be issued up until the mid-1930s. A few years following the formation of the Dominion, five, ten, twenty-five, and fifty-cent silver pieces were issued dated 1870. The British North American colonies, which had entered into the confederation, ceased to issue their own distinctive coins and a single coinage was issued for all. Newfoundland's coinage continued until 1947 and Prince Edward Island had a single issue of cents in 1871 prior to its entry into the Dominion in 1873.

Beginning in 1871, and during a number of years, the Royal Mint could not comply with any requests for additional coins for Canada. The Heaton mint in Birmingham took the business from the Royal Mint. Coins produced by the Heaton mint have a "H" as a mint mark on the reverse side of its coins.

Late in the 19^th Century, national pride demanded that Canada revisit its ability to produce its own coins. And those in favor argued that such a facility could produce gold coins, which in turn could be held as reserves and would stabilize the price of gold. At the same time, gold mining in British Columbia and the Yukon were reaching unprecedented levels. The coinage of 1907 was the last manufactured in England. In 1908 the Ottawa branch of the Royal Mint activated the press to strike the first domestically-produced coins. The Royal Canadian Mint (RCM), now a Crown corporation, operates plants in Winnipeg, Ottawa, and in Hull. While initially viewed as a colossal mistake, the mint has evolved into a highly successful mint, which produces one of the most beautiful and respected coinages of the world.

The portrait of King George V appears on Canadian coinage from 1911 to 1936. However some significant changes occurred during that period. A Canadian dollar was to be introduced in 1911. Although the proposal did not receive government approval, one trial strike in lead is held at the National Currency Collection in Ottawa. One silver pattern found its way in Britain’s Royal Mint Museum. A second silver example disappeared until it was sold in 1960 in London. This only known example in private hands has sold several times until it became the first Canadian coin to sell for a price exceeding $1 million dollars in the Fall of 98.

The large cent was replaced in 1920 with one of a smaller size. Beginning in 1922, the small silver five-cent piece was replaced by a nickel coin of a more manageable size. 1935 was the first year when silver dollars were introduced for widespread circulation. King George died in 1936 and, since his son Edward abdicated, his younger brother George VI was crowned. The new obverse portrait of King George IV, which appeared on coinage until 1952, is unique in that it is the first and only time the monarch is pictured on coins bareheaded. In 1937, the reverse design was changed to the maple leaf still used today.

The Second World War saw a significant effect on Canadian numismatics. While the 1 cent, 10 cent, 25 cent and 50 cent denominations remained unchanged, Canada's 5 cent coin underwent a number of alterations. Changes in Canada's 5 cent coins began in 1942, with the first Tombac 5 cent pieces being issued. Canadian silver dollars were not struck for the years 1940 through 1944 inclusive.

In 1949 the RCM established its Numismatic Section where all of their products can be purchased. This includes original rolls of business strike coins which can be purchased at face value. Single rolls can only be purchased in person. Mail orders for business strike rolls are only accepted in box quantities. In 1953, the RCM introduced what they refer to as Uncirculated sets. The rest of the world refers to these sets as "Proof-Like". These coins represent the mint’s first attempt to produce coins of superior quality intended for collectors.

There is a tendency to call every nick and scratch a variety. It is important to differentiate between an error and a variety. An error is when a coin is produced with a defect which was unintentional. Examples include: die cracks, off-center strikes, clipped coins, double dates, and so on. Varieties result when a die has outlived its usefulness and the production of more coins is continued with a replacement die which is sometimes slightly different from the original. Varieties are usually identified in catalogues. The various 1859 and 1891 pennies are good examples.

There are numerous errors in numismatics. For example, Canadian decimal coins are often referred to as pennies, nickels, dimes, quarters, and half dollars. These incorrect terminologies have been borrowed from the United States and Britain. Other common examples are coins dated 1953 - 1955 which are often erroneously referred to as having either a "shoulder strap or "no shoulder strap". These coins should be described as having a "Shoulder Fold" or "No Shoulder Fold".

Aside from being concerned with the shifting needs of over 30 million Canadians, the mint must be concerned with profit. And to achieve a profit the mint must find a way to ensure that a loonie does not cost more than one dollar to produce. In the mid-sixties this became a major factor for the decision to switch the composition of most denominations from silver to a nickel alloy. Today, rarely can one find in circulation a 10 cents, 25 cents, 50 cents, or one dollar dated prior to 1968 because these coins were made in silver and have since been melted for their value as a metal or are hoarded by collectors. Likewise, the one-Cent has been the target of change over the years to change its composition, diameter, thickness and weight in order to force the costs down.

It is always disheartening to hear about a fellow collector who has "thrown in the towel" so to speak. The Canadian Coin News once published an article about a coin collector who was upset with the never ending number and variety of products produced by the Royal Canadian Mint. To collect all of the products produced by the Royal Canadian Mint is far too costly and what is the point? It is important to set objectives which are achievable, evokes passion, and brings happiness. The possibilities offered by coin collecting are unlimited, enjoy your collecting, and happy hunting!

Sources: (1) Striking Impressions, 1984, by J.A.Haxby; (2) Coins of Canada, 1997, by J.A.Haxby and R.C Willey; Canadian Coin News, 11 Aug 98 p.7; 22 Sep 98 p. 7; 3 Nov 98 p.7; 30 Dec 98 p.1; www.rcmint.ca; www.nunetcan.net/cna

BRIEF HISTORY OF CANADIAN BANK NOTES AFTER 1870

Prior to 1870 the major banks and the Canadian government both issued paper currency. In 1870 the Finance Minister, Sir Francis Hincks, introduced legislation that removed from the banks the right to issue $1 and $2 notes. The government also produced Canada's only fractional note, the 25 cent note. These were known as 'shinplasters' because U.S. Revolutionary soldiers used their American 25 cent notes as a lining in their boots to prevent chafing. Canada last made the 25 cent notes in 1923.

In 1882 the government issued a $4 note. The last date of issue for this note was 1911.

In 1912 the $5 'Train' note was issued. The picture on this note depicted the 'Maritime Express' travelling though the Wentworth Valley in Nova Scotia. In 1924 the 'Queen Mary' $5 was produced. Sometimes called the 'Mother of All Notes' this note in crisp, uncirculated condition trends at $8000.

The Bank of Canada was created by the Central Bank Act of 1934. Now the Bank was given sole responsibility for the issuance of Canadian paper money. The Bank's first issue of notes, in March 1935, were a smaller size than before and were issued in French and English. A special $25 note to mark the 25th anniversary of the accession of George V was also produced that year.

In 1937, King George VI was portrayed on all notes except the $500 (Sir John A. MacDonald) and the $1000 (Sir Wilfrid Laurier). The use of one bilingual note was also instituted.

In the 1954 issue the picture of Queen Elizabeth II was moved to the right side of the notes. This was so it would get less wear as people frequently folded their bills in half. In the original portrait of the queen, imaginative people could see a 'devil's face' in the queen's hair. This caused enough controversy that another variety of notes were created with the queen's hair modified. This was also the year in which the Bank began printing series of independently numbered notes with an asterisk (*) preceding the serial number to replace defective notes.

In 1967 the back of the $1 note was replaced with a view of the first Parliament buildings. A special collectors issue was prepared with the dates 1867 1967 replacing the serial numbers.

Beautiful multicoloured notes were produced after 1969. In 1986 a new series of notes was redesigned to assist the visually impaired, increase efficiency of high speed sorting machines and improve security. The $1 note was discontinued at this time. Replacement notes are identified by the letter X as the third letter of the prefix.

The $2 note was discontinued in 1996. The two notes, first produced by the government in 1870, now no longer exist. I hope the Bank does not discontinue any more notes as I already carry enough change around in my pocket.

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