MGMT 1030 Lecture Notes - Lecture 10: Federal Reserve Act, Card Money, Barter
27 Feb 2014
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Document Summary
The historical development of the canadian financial sector: banking in new france and early british north america. Merchants often assumed the role of credit in the economy of new france. Imbalance of trade with europe drained specie out of the colony. Card money proved to be a short term solution to currency problems in new france. Instability in the colonial financial structure continued after 1763. Transferable certificates for government purchases the first reliable form of currency on upper. Army bills during the war of 1812 were legal tender notes redeemed by the british government. Other than banks, canadian economy had to find alternatives; merchants (french companies or small merchants in the colony), to provide for funds to set-up businesses. French paid government debt, army and other government officials first, with specie. Called lack of specie; referred to gold or silver/coin, anything that has value. Counterfeiting became a major problem when currencies were issued.
