The Portland daily press., 1878-04-25
Paper Money In Former Times.

The early settlers of Canada had their expe-
rience of fluctuating currency and worthless
money, as did our forefathers in New England.
in view OF the present discussion respecting a
currency not redeemable in coin, its advan
tages and otherwise, the following interesting
historical sketch taken from "Parkman's Old
Regime in Canada" may be of interest
Deerng, April %, 1873. Il.
1.-THE colonial finances were not prosperous.
In the absence of coin, beaver skins long served
as currency. In 1869 the council declared wheat
legal tender, at four francs the nli1aat or three
French bushels, and Eve years later, all credi-
tors were ordered to receive moose skins in
payment ct the market rate. Coin would not
sent any thither 1t went back in the returning
ships. The government devised remedy. A
coinage was ordered for Canada one-fourth less
in value than that of France. Thus the Cana
dian livre or franc was worth in reality fifteen
sous instead of twenty, This shallow expedient
produced only nominal rise of prices and coin
fled the colony as before Trade was carried
on for a time by means OF negotiable notes,
payable in furs, goods or farm prOdnce. In
1875 the intendant, Meules, issued a card cur
s'and not knowing" he informed the
minister, "to what saint to make my VOWS, the
idea occurred to me of putting 10 circulation
notes made of cards, each cut into four pieces
and hare issued an ordinance commanding
the inhabitants to receive them in payment. "
The cards we're common playing cards, and
each piece was stamped with a feur.de-lis and
a crowd, and signed by the governor, the in
tendant aud the clerk of the Treasury at Que
bee. The example of Meules found ready Imi-
tation. Governors and intendants made card
money whenever they saw fit; and being worth
less everywhere but in Canada, it showed no
disposition to escape the colony. 1t was de-
clared convertible not into coin, but into bills of
exchange and this conversion could ouly take
place at brief specified periods. 1.-THE currency
used in Canada" says writer in The last years
of the French rule" has no value as represen.
tstive of money. 1t is the sign of a sign" II
was card representing paper; and this paper was
very often dishonored. In TIA the amount oil
card rubbish had risen to two millions of livres
Confidence was lost, and trade was half dead.
The minister Ponchartrain came to the rescue,
and promised to redeem it at half its nominal
value. The holders preferred to lose half rather
than the whole, and accepted the terms. A few
of the cards were redeemed at the rate named
then the government broke faith. "This af1ict-
ing news" says a writer of the time, twas
brought out by the vessel which sailed from
Florence last july"
In IVY the government made another pro.
posaI, and the cards were converted into bills
of exchange. At the same time a new issue
was made. which 1t was declared should be the
last. This issue was rOmptly redeemed. b 1t
twelve years later another followed 1t. In the
interval certain quantity of coin circulated
IN the colony; but it underwent fluctuations.
Through the Intervention of government,
and within eight years, at least four edicts
were issued affecting its value. Then came
more promises to pay, till, in the last bitter
years OF its existence, the colony houndered in
drifts of worthless paper"