Twenty-Five Cent Notes

Twenty-Five cent fractional notes were issued by the Dominion of Canada, who was the predecessor to the Bank of Canada. The notes were issued during the years of 1870, 1900 and 1923. Currently, I own a 1900 and 1923 note.  Both are in excellent condition.

1900 Fractional Note

U.S. Silver and Canadian Merchants

When U.S. silver coins became depreciated (5% relative to gold), 25 and 50 cent pieces flooded the Canadian market. Banks would not accept the coins, but the merchants did. The merchants would then sell the depreciated silver to brokers, who sold the depreciated silver to manufacturers (as well as grain/cattle buyers). The hardship that resulted from this to farmers, merchants and factory workers forced the Government of Canada to step in with a solution.

• They would buy up discounted American silver and export it to the US.
• The Government would then replace the American coins with the first silver coins for the Dominion of Canada.
• While the new coins were being minted, the Dominion of Canada issued fractional notes for temporary use.

The plan was successful. Silver was returned to New York and the remainder was shipped back to England.

1923 Fractional Note

It is believed that the expression “Shinplaster” refers to U.S. Revolutionary War soldiers who lined their boots with their own fractional notes to prevent chafing.