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Canada has an extensive history with regards to its currency. Beginning in the early 16th Century, items such as wampum and furs were actually considered currency. With the colonization of France and England, various coins were introduced in the 18th and 19th Century. In the 20th Century, it has issued many commemorative coins into circulation, temporarily replacing current coinage designs. For information on some non-circulating coins, go here.
Early 16th Century
- Canada was inhabited by First Nations; who traded in goods on a barter basis, therefore, currency was not used, except by the Ojibway, who used copper as currency.
- Special objects, such as a copper shield, had special economic and social value. The Haidas of the west coast, as a measure of status and wealth used these.[1]
- Wampum was also used to measure wealth and as gifts.[1]
- Aboriginals traded furs for supplies with European settlers and were fond of silver objects.[1]
New France
1660s
- The early French colonists bartered goods but also used metal coins like the 5-sol French coin circa 1670, but there was never enough hard currency.[1]
- Silver coins were sent from France but were taken out of circulation by merchants. They used them to pay their taxes and buy European goods.[1]
- The use of foreign coins was never legalized, although Spanish-American coins minted in Mexico would sometimes come in through secret trade.
- The coin shortage had grown so severe that colonial authorities resorted to using playing cards.[1]
- Playing cards were marked with the amount on the back and were given to soldiers as compensation. This practice continued on and off for several years.
18th Century
- Despite the continuing shortages for currency, playing cards were now banned as a form of currency.
- Colonists had to make do with a 15 and a 30-deniers coin known as the mousquetaire. These gold coins were meant to pay soldiers and civil servants but did not stay in circulation very long. The name is believed to have come from the cross on the reverse of the coins, which resembled the crosses on the cloaks of the legendary musketeers.[2]
Gold Louis
- The Compagnie des Indes Occidentales held a monopoly over the fur trade in New France. In 1721, they issued coins called the Gold Louis.[1]
- These coins were not considered legal tender in France and local merchants refused them. Unfortunately, the coin shortage continued to be a very serious problem.
Card Money
- Due to the continued currency shortage, the King of France authorized a new issue of card money in 1729. This was used until the fall of New France in 1760. The card money was printed on white cardboard and the size varied by denomination.[1]
- From 1720 to 1760, other forms of paper money circulated, including treasury bills and letters of exchange. These surpassed the amount of card money in circulation.
Sol and Double Sol
Another coinage that was used was the Sol (Sou). The sol was equivalent to the size of a 20th Century one-cent coin and was produced between 1738 and 1756. The Sol was rated at 12 deniers. The Double Sol was produced until 1764, although large shipments to Québec and Cape Breton ended in 1756. The Double Sol was rated at 24 deniers.[2]
19th Century
1800s
- British colonial rule failed to solve the currency shortage. The economy was still dependent on the fur trade and coins from England.
- Trade with various colonies plus the United States, resulted in an influx of additional Spanish-American coinage.
- In Prince Edward Island, officials punched out the centres of the Spanish American coins and made two coins: the one schilling and the five schilling.[3]
Tokens and Army Bills
- It took the public some time to trust paper money. During the War of 1812, the colonies issued army bills to finance the war effort. They circulated in large numbers and when the war ended in 1815, the British government redeemed the bills at full value. This restored trust in paper money, which led to the rise of banks.
- Tokens, of which many were imported from England, served as coins during this period. Some tokens were anonymous in that they did not indicate the name of any specific merchant or institution, while others did.
- Tokens offered a discount on purchases, similarly to Canadian Tire money in the 20th and 21st Century.
The Rise of Banks
- In 1815, the British government redeemed army bills at full value.
1821
- Banks started to issue their own notes, which were guaranteed by their reserves of gold and silver.
- One of the first banks to receive a charter was the Montreal Bank. It would later change its name to the Bank of Montreal after receiving its charter in 1822.
- The Bank of Upper Canada opened in 1821. For a long time, it was the largest in the province of Canada until its collapse in 1866.
1837
- Banks would start to issue more than just paper money. They would start to import tokens from England. The Bank of Montreal would import tokens and also had some tokens with their own name on it. (Try to find info from BMO website).
- In an effort to impose order on the issuance of tokens (and purge the junk), three banks in Montreal, plus the Québec bank issued a new series of tokens. Said tokens included the image of a habitant on one side and the coat of arms of Montreal, along with the bank name, on the other. These tokens were popularly known as Papineaus.
1850s
- As trade with the United States increased, the colonies wanted to replace the sterling system (in use since 1760), and replace it with the U.S. Decimal System.
- Between 1853 and 1857, the system had changed over and coins were issued in one-cent, five-cent, twenty-cent, and fifty-cent denominations.
- These coins were minted in England, as there was no facility in Canada.
1858
The first Canadian coinage was authorized and executed.
1865
Newfoundland starts to release its own coinage. In 1865, the one-cent, five-cent, ten-cent, twenty-cent and two dollar coins were released.
Dominion of Canada
- With the onset of Canadian Confederation, the Dominion of Canada came into existence on July 1, 1867. The central government now assumed responsibility for money and banking. It undertook the effort to implement its own currency.
- Ottawa issued a new series of coins in the following denominations: one-cent, five-cent, ten-cent, twenty-five cents, and fifty-cents.
- These coins were legal tender in the four provinces that signed the Confederation Act: Ontario, Québec, New Brunswick, and Nova Scotia.
Shinplaster
- While the government of Canada waited for the shipment of 1870 coins to arrive from England, the government issued twenty-five cent notes known as the Shinplaster. These were named after similar United States notes that were reportedly used during the American Revolution as boot liners.
Banknotes
- Between 1868 and 1869, the Canadian government took several United States silver coins out of circulation. These coins were then exported as a means of ensuring that only Canadian coins were used.
- The government took over paper money still controlled by the banks. In 1887, Ottawa issued one dollar, two dollars, fifty dollars, five hundred dollars, and one thousand dollar notes, while banks could issue notes over $4.
$6 and $7 notes
- Some banks circumvented the agreement by issuing $6 and $7 notes. This meant that they could carry out transactions without having to use the government’s $1 and $2 notes.
- Since the Bank Act of 1871, only covered one bank, other banks, such as La Banque Nationale, were free to issue their own notes in any denomination.
- This was changed in 1881 restricting banks to $5 notes and multiples.
20th Century
1908-1922
The First Coin
At the opening ceremonies for the Ottawa branch of the Royal Mint, held on January 2, 1908, Governor General Earl Gray struck the Dominion of Canada’s first domestically produced coin. It was a silver fifty-cent piece bearing the effigy of His Majesty King Edward VII.
1911
- The Ottawa branch of the Royal Mint opened its own refinery. By year’s end, a record number of gold sovereigns (256,946) were coined at the new facility.[4]
- A new monarch assumed the British throne. His Majesty King George V acceded to the throne in 1910 and his effigy would now appear on all coins minted in Canada.[5]
1920
- The second coin that was struck at the Ottawa Mint’s facilities was the large one-cent piece. This coin would be replaced in 1920 by a smaller bronze coin. This cent was now closer in size to its American counterpart.[5]
1922 Nickel
- Canada now converts to a five-cent piece that is comprised of nickel. This proves to be an ideal metal for coinage because Canada is the world’s leading source of nickel ore.[6]
1930s
1931
Bank of Canada
The Bank of Canada was created in 1934 and given sole responsibility for issuing paper currency in Canada.[7]
Voyageur
- The Royal Canadian Mint issues the first silver dollar in 1935. It is meant to commemorate the Silver Jubilee of His Majesty King George V. The coin’s reverse design is sculpted by Emanuel Hahn and portrays a Voyageur and an aboriginal paddling a birch-back canoe. The faint lines in the background are meant to represent the Northern Lights. This design would be utilized on the dollar until 1986.
Banknotes
On 11 March 1935, the Bank of Canada issued its first series of bank notes. Unique to the 1935 series were:
- A $25 note, issued to commemorate the silver jubilee of King George V
- A $500 note, a carry-over from Dominion of Canada bank notes.
This is the only Bank of Canada series that includes $25 and $500 bank notes.[7]
1937
In 1937, new Canadian coinage is introduced. New reverse designs are introduced for the following coins:
| Denomination |
Design |
Artist |
| One Cent |
Maple Leaf |
G.E. Kruger-Gray |
| Five-Cent |
Beaver |
G.E. Kruger-Gray |
| Ten-Cent |
Bluenose |
Emanuel Hahn |
| Twenty-Five Cents |
Caribou |
Emanuel Hahn |
| Fifty Cents |
Coat of Arms |
G.E. Kruger-Gray |
New Banknotes
The 1937 series of bank notes saw the portrait of King George VI replace those of other members of the royal family on all denominations except the $100 and $1,000 bank notes, which pictured former Canadian prime ministers. Other departures from the 1935 series included colour variations and the location of the portrait in the centre of the bank note bordered by English and French text.[7]
1939
- A new silver dollar is issued to commemorate the Royal Visit of His Majesty King George VI and Her Majesty Queen Elizabeth. The reverse design by Emanuel Hahn depicts the Centre Block and the Peace Tower of the Parliament Buildings in Ottawa. The legend on the coin, “Fide Suorum Regnat”, means, “He reigns by the faith of his people.”
1940s
Tombac Five Cents
- In 1943, a new five-cent piece was introduced. Due to the shortages of nickel, owing its use for munitions, the Royal Canadian Mint adopted tombac, a type of brass for the five-cent piece. The composition of tombac was .880 copper and .120 zinc.[8] The coin was twelve-sided, so that the public could easily distinguish it from the bronze cent.
- Rather than the traditional beaver, the patriotic V for Victory (made famous by Winston Churchill and a burning torch were now used. The coin was designed by Thomas Shingles, the Chief Engraver for the Royal Canadian Mint, and the coin’s rim holds a message in morse code that states: “We win when we work willingly.”[9]
1948
- When India gained its independence on August of 1947, the legend IND:IMP (Latin for Emperor of India) had to be removed from the obverse of all Canadian coinage. The legend appeared on all Canadian coinage since 1902.
- Owing to the time required to produce new dies, the revised inscription did not appear until late 1948.[10]
1949
- War Medals: In honour of the service of Canadians during World War II, the Defence Department commissioned the Royal Canadian Mint to strike a Defence of Britain Medal and The War Medal 1939-1945. Both medals were struck in .800 fine silver.
- Newfoundland joins Confederation: A silver dollar was struck to commemorate the entry of Newfoundland into the Dominion of Canada.[11] The coin depicts the ship called The Matthew. This was the ship in which John Cabot made his historic discovery of Newfoundland in 1497.
1951
- 200th Anniversary of Nickel Discovery: The bicentennial of the isolation and naming of the mineral by Swedish chemist A.F. Cronstedt is commemorated with a five-cent coin. At the time of issue, Canada supplied 90% of the world’s nickel supply. The coin features a hill with a smokestack in the middle.[12]
1953
The first Effigy of Her Majesty Queen Elizabeth II appears on Canadian coinage for the first time.
Devil's Head Banknotes
In 1954, the Third Series of Canadian banknotes was released. Significant changes to the design of Canada's paper currency gave it a whole new look that set the standard for the future.
This series caused controversy because highlighted areas of the Queen's hair gave the illusion of a grinning demon behind the ear. The term "Devil's Head" is commonly used to describe these bank notes. The Bank of Canada had both bank note companies modify the face plates by darkening the highlights in the hair. These modifications were made in 1956 for all denominations.[7]
1958
- To commemorate the centennial of British Columbia, a silver dollar is issued. With a reverse designed by Stephen Trenka, a totem pole is the focal point of the design with a view of the mountains in the background.[13]
1959
In 1957, the Coat of Arms of Canada was simplified. At the suggestion of the Queen, the crown of Edward the Confessor was substituted for that of the Tudors. The changes were reflected in the 1959 fifty-cent piece. The new reverse was modelled and designed by Thomas Shingles.
1960s
1964
The fifth coin in the series of commemorative dollars (the others being 1935, 1939, 1949, and 1958) recalls the centennial of Confederation conferences held in Charlottetown and Québec City. The design is by Dinko Vodanovic, who was a winner of a nationwide competition. The drawing features the emblems of the four European nations who took part in the founding of Canada: France, Ireland, Scotland, and England. More than 7 million of these coins were minted.
1965
The effigy of Queen Elizabeth II was updated. A new obverse was sculpted by Arnold Machin, and featured a more mature Queen wearing a tiara. The legend was also revised. The wording Dei Gratia was shortened to D.G. to save space.
1967
Canadian artist and sculptor Alex Colville created six new designs to commemorate Canada’s centennial. The designs for Canada’s coinage is as follows:
| Denomination |
Design |
Symbolism |
| Penny |
Rock Dove |
Spiritual values and peace |
| Nickel |
Rabbit |
Emblematic of fertility and new life |
| Dime |
Mackerel |
To represent continuity |
| Quarter |
Bobcat |
Embodiment of intelligence and decisive action |
| 50 cent piece |
Howling Wolf |
To evoke the vastness of Canada |
| Silver Dollar |
Goose |
Dynamic serenity |
Centennial Banknotes
Two series of $1 dollar banknotes were released to celebrate the Centennial of Canada. The scene for both banknotes featured the original Parliament Buildings which were destroyed by fire in 1916. Both banknotes looked the same but one had the Standard Serial Number, while the other was Double Dated (1867-1967)[7]
1969-1979
Scenes of Canada Banknotes
The main characteristic of the new design was the use of multicoloured tints beneath the dominant colour. This series was often dubbed the "multicoloured series". With the exception of the $1 note, the use of black ink was abandoned. Furthermore, the words "this note is legal tender" replaced the phrase "will pay to the bearer on demand," reflecting the fact that Canada's currency had long ceased to be redeemable in gold. The $1,000 denomination was not included in this issue.
Unlike previous series, the 1969-79 series did not have the same date of issue for all denominations, but rather the year in which the printing plate was produced. Originally, the Queen's portrait was to appear on all denominations. However, the Minister of Finance requested the inclusion of portraits of former Canadian prime ministers on the new bank notes to enhance national identity.[7]
1973
The 25-cent piece for 1973 bears a special reverse designed by Paul Cedarberg (the Police Constable sitting on a horse in the design).[14] It honoured the RCMP for 100 years of service.
1974
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