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The Passing of the Canadian Silver Circulating Coin.
During the early 1960s, the price of silver rose so that there was a danger of bullion value of U.S. and Canadian silver coin surpassing face. In 1964, the U.S. made the move from .900 fine coins to those of cupro-nickel, setting off a spate of coin hoarding that extended even beyond the silver to the cents and nickels. Until huge new mintages caught up, the U.S. experienced a coin shortage. The phenomenon did not extend to Canada with our slight price-buffer of the silver coins being only .800 fine, even though our exchange rate of 92 ½ ¢ ate up some of this protection. Even so, as early as September, 1964, the Royal Canadian Mint was recommending to the Finance Department that the country switch from silver to cupronickel coins by 1966.
For the time being, this did not come to pass - and no copper-nickel until 1982. Partly, this was due to a speculation in Canadian silver and proof-like sets that was just starting to peak at this time. It was all the RCM could do to keep up with current demand for coin without the added delays of switching. This hit its peak in January 1965 and broke on February 1 when the Mint announced that all orders for prooflike sets would be filled no matter how long it took to strike them. Total coin production would fall from a high in 1964 of 665-million pieces to 514-million in 1965 to a mere 289-million in 1966. Production of proof-like sets fell from the boom of 2,904,000 sets in 1965 to a bust of 672,514 in 1966; generally speaking, the mintage figures of these sets continued to drop, an exception being the Centennial Year of 1967 (963,714 sets). The 1965 figures are net, after the orders for some 4-million more sets had been returned and a million sets re-ordered after the February 1 press release.
Unfortunately, the bust came at precisely the time when the Mint made provision to meet the demand: 26,000 square feet of space in the Printing Bureau Building in Hull had been set aside for collectors' coin set production and shipping ( 25 May 1965 ) equipped with four presses and three sealing machines in late June.
Nickel Test "Ten Tokens", 1965. Wgt: 2.09 gm. Rev.1 with R.C.M. Obverse common to both Rev. 2 with no R.C.M.
It's apparent that even though definite orders had not been given, the Mint was exploring the changeover from silver to nickel. From 1965 there exist sets of nickel test tokens for three different denominations. Their designs bore little resemblance to the circulation coin and were probably used to determine suitability in the coining presses and (especially) vending machines.
Nickel "Twenty-five Nickel "Twenty-five Nickel "50 Tokens", 1965 But the change was definitely coming. In the 1966 Mint Report, we read: "In the latter part of December ( 23 December 1966 ), the Minister gave notice that changes to the Currency, Mint and Exchange Fund Act would be submitted to Parliament in 1967. These changes are required due to the fact that it is intended to change from silver to pure nickel for coinage in the 10-cent, 25-cent, 50-cent denominations. The target date for changeover was set for some time in 1968". Note that the dollar coin is not mentioned, nor were nickel test tokens made up for this denomination. Were they contemplating dropping the "silver dollar", making it a purely collectors' piece or changing it along with the rest? We don't know - but its omission in the Report is strange. Although nickel was on the horizon, Canada entered the Centennial year still using silver coin .800 fine, the reverses of all using one-year designs by Alex Colville (by proclamation, 10 November 1966). For the occasion, there was also struck a $20 gold piece (proclaimed 5 October 1966 ). But things were unsteady on the silver scene. Back in 1964, the U.S. had imposed price control on silver which had a dampening effect on the bullion price even in Canada . Even so, the U.S. was forced to follow this ( 15 May 1967 ) with a ban on silver export except with a permit. Although Canada had not pegged a price, the Department of Trade and Commerce was also forced to impose a similar ban in June. But at about the same time, the U.S. cancelled its price control while keeping the export ban, the result being a rapid rise in world silver prices. Bullion value soon began to crowd face value of the Canadian silver coins and something obviously had to be done. The "something" was two-fold: by early September, the 10- and 25-cent pieces for circulation had their fineness debased to .500 (by proclamation of 17 August 1967) while at about the same time, coining ceased of the 1967 silver dollars and 50-cent pieces meant for circulation - which weren't mentioned in the proclamation. But demand, even for the debased 10- and 25-cent pieces, was tremendous. By this time the general public became aware of the fact that silver was going to disappear from circulation in 1968, obviously "become rare", and thus worth socking away a few rolls. Oddly, just as in the U.S. in 1964, demand extended to the non-silver 1- and 5-cent pieces and at year's end, the Mint had to run as fast as it could to produce mintages of the 1-through-25 cent denominations that ranged up to double that of 1966. Even then, they fell behind. An additional total of 280,803 sets of 1967 coins (all in .800 fine where the silver was concerned) had to be struck and shipped in 1968. As well (for some reason) 5,650,000 10-cent pieces dated 1967 in .500 silver was also coined in 1968. As 1968 dawned, the change to nickel was in place - sort of. A proclamation covering the change for the 10- and 25-cent pieces was in place ( 2 June 1967 ), apparently for use whenever deemed needed rather than right away. A total of 13,675,000 pure nickel planchets for the 25-cent piece as well as 28,045,000 for the 10-cent were stockpiled, both having been produced for the Mint by Sherritt-Gordon Mines, the same firm that had been supplying press-ready planchets for the 5-cent piece since 1961. It was probably at this time that the 1967 nickel 10- and 25-cent "patterns" were struck; chances are good that they are more accurately termed "off-metal test strikes" to study the effects of these future coins on the coining presses and vending machines - for, except for the metal, they are identical with the ordinary silver 1967 pieces. Even so, the Mint was forced to continue fulfilling coinage needs with .500 silver 10- and 25-cent pieces, along with the usual bronze cents and nickel 5-cents. The Mint Report for 1968 explains why (in part): "Our inability to melt, cast and roll nickel economically made it necessary that blanks or strip be purchased from outside sources.... All 50 cents were bought in blank form whilst all one dollar material was purchased in strip form. The greater proportion of our requirements in 10 cents and 25 cents was also obtained in strip form. "With modifications and improved tooling of our blanking presses, it is expected that more strip in lieu of blanks will be used until such time as only strip will be required." "An Act to Amend the Currency, Mint and Exchange Fund Act and the Criminal Code" (16-17 Elizabeth II, assented to 7 March 1968 ) is notable in that a couple of sections are important. Such as: 10. "Except under and in pursuance of a licence granted by the Minister, no person shall melt down, break up or use otherwise than as currency any coin that is for the time being current and legal tender in Canada." and 399. "Every one who (a) defaces a current coin, or (b) utters a current coin that has been defaced, is guilty of an offence punishable on summary conviction". (Some few years later, as the writer remembers, a Canadian was prosecuted for the melting of Canadian silver coin. His contention was to the effect that at the time, the nickel coins had been declared legal tender while the silver had not, thus removing them from legal tender status. He was acquitted of the charge. But "Schedule Part II" of the above Act seems to indicate otherwise [ at least for the .500 silver pieces] since it lists:)
" Denomination Composition Standard Weight (grains ) Standard Millesimal Fineness One dollar Silver 360 500One dollar Pure Nickel 241 - Fifty Cents Silver 180 500 Fifty Cents Pure Nickel 125 - Twenty-five Cts Silver 90 500 Twenty-five Cts Pure Nickel 78 - Ten Cents Silver 36 500 Ten Cents Pure Nickel 32 - Five Cents Pure Nickel 70 - Cent Bronze 50 -" A further Act ( 29 July 1968 ) set the diameters of the former silver coins at: One dollar - 1.265 inch 50 Cents - 1.068 inch As of August 1, 1968 , the Mint began striking and issuing the new nickel coins in 10-cent through dollar denominations. Even as 1969 dawned, some coins dated 1968 continued to be struck. The Mint Report shows that 198,255 nickel dollars dated 1968 were struck in 1969; the same was true of 26,000 50-cent pieces. Presumably, the Mint was avoiding the wasting of useable dies. That was only partly the case of the 10-cent, all dated 1968: in August, Canada contracted with the Philadelphia Mint to strike some 85-million 10-cent pieces who coined 35-million in 1968 and a further 50,170,000 in 1969. (About 15,500,000 1968s were also struck in Ottawa in 1969). Philadelphia "dimes" may be identified by the edge grooves having flat bottoms while those of Ottawa have V-shaped bottoms. From this times forward, the reduced sizes of the nickel dollar and 50-cent, and the acquisition of newer and more powerful blanking pressing and coining presses finally put the Canadian circulation coin on track. f course, as soon as the nickel pieces started to appear in August, 1968, the older silver pieces started to disappear - and was almost complete within a year or two. Suppositions that they were being withdrawn and melted were only partly true (the government, indeed, was doing this); mostly, they were being hoarded by everyone and their mother, a few here, a few there. As more disappeared, the perception was that the silver pieces really were "rare". To this day, 1967 silver coins in AU-UNC are still "bullion value" so far as collectors are concerned.
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Oct 2007The Lasqueti Mint Strikes Again The Pasing of the Canadian Silver Circulating Coin The 'Duress' Notes of Hongkong
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