LOT Old Heritage Auctions  /  2008 APR Rosemont (CSNS) Currency #3500  / 

12902

DC-1a 25c 1870

Currency:USD Category:Coins & Paper Money Start Price:1.00 USD Estimated At:1,250.00 - 1,750.00 USD
DC-1a 25c 1870
<B>DC-1a 25c 1870</B></I><BR> This denomination was issued beginning in 1870 as a stopgap to halt the influx of American silver coins to Canada. During the American Civil War, U.S. silver coins had depreciated about 5% in value against gold. These coins soon began to flood into Canada, where they were accepted at full face value. As fast as the coins could be exported, they returned, creating a seemingly never ending cycle which began to crowd out Canada's own currency, even though the coins were not accepted by Canada's banks and post offices. To break this cycle, the Canadian government adopted a three part program. First, the government resolved to buy up the American silver at a five to six percent discount and export it. Second, the value of American silver was pegged at an artificially low 80c on the dollar to prevent its return. To take its place, the government ordered its first silver coins from the Royal Mint in London. Finally, 25c fractional notes were to be printed and issued to provide change while the new coinage was being prepared. <BR>Although the fractional notes were designed to be a temporary expedient, they proved popular with the public, and remained in circulation for the next 65 years. This piece comes from the very scarce "A" series, the first printed. PMG <B>Choice Extremely Fine 45 Net,</B></I> the "Net" grade due to a small repaired hole near the bottom of the note. <BR><I>From The Thomas M. Flynn Collection</B></I><BR><BR><b>Shipping:</b> Coins & Currency (<a target="_blank" href="http://www.heritageauctions.com/common/shipping.php">view shipping information</a>)
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