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4 ,

tV,,,.iU)!!W". I Jl.ilM^P!«^^BBa|9«BH|ip|p|p^p

y^*./.,:*'.: ::*■*■•

THE

WAR OF 1812

IN CONNKCriUN Willi

THE A R M \' BILL A C T

!iV

JAMES STKV'KXSOX

GENEKAL MANAGER OK THE (JUEHEC HANK

montrp:al
W. FOSTER BROWN ^: CO., PUBLISHERS

1892.

I
I

PREFACE.

Some years ago I delivered a Lecture before 77u'
Literary and Historical Society of Quebec, on The
Currency of Canada after the Capitulation,
which was published, and copies were sent to my
friends. I closed my lecture with a promise to pro-
ceed with the subject. " We have now reached," I
said, " the most interesting part of our financial
History, that which is related to the War of 1812,
when our Militia and our monetary resources were
taxed to the utmost. I shall leave it to others to deal
with the incidents of war : it will be my endeavour to
show how the exigencies of the Army were provided
for, under circumstances particularly trying, by the
establishment of a Government Bank of Issue,
which all our writers upon the History of Canada
have alluded to; but which few, if any, have described
in its operations, from its inception to its close, on the
return of peace." Having been frequently reminded
of my promise by brother Bankers, and by several
friends, I have considered it my duty to redeem
my pledge — hence the following pages.

JAMES STEVENSON.

Quebec,

i^th March, i8g2.

COXTKNTS.

CHAPTER I.

Declaration of War — Embargo — Meeting of Provincial Parliament-
Introduction of the Act — Lcj^al tender coins — Price of gold-
Capture of Detroit — Death of General Brock.

CHAPTER n.

Meeting of Provincial Parliament — Speech of the Governor General
— Enlargement of the Act — Steamboat service between Quebec and
Montreal —Capture of York — Further enlargement of the Act.

CHAPTER HI.

Americans prepare to continue the war — Treaty of peace — Report
on Army Bills in circulation — Bills lost or destroyed, ^'9000 — Final
close of the Army Bill Office.

4
M

THE

CIRCULATION OF THE ARMY HILLS

WITH SOME

REMARKS UPON THE WAR OF 1812.

CHAPTER I.

Declaration of War— Embargo on Goods— Meeting uf Provincial
Parliament— Introduction of the Act— Legal lender coins -Capture
of Detroit— Death of General Brock.

The American declaration of war was received in
Quebec on Monday, the 29th June, 18 12. On the
30th, a proclamation was issued by His Excellency
Sir George Prevost, requiring all American citizens to
depart from the Province within fourteen days ; and,
by order of police, within seven days from the city
and district of Quebec. Great activity prevailed in
the city in putting into operation the means of defence
at the immediate disposal of the government, which
consisted of the ordinary peace establishment of the
British troops in the Province and the colonial forces.

Declaration of War.

A militia c^cncral order was issued by the Adjutant-
General, V. Vassal do Monviel, from the headcjuartcrs
in Montreal on the 6th July, ordcrini^ the battalions
of militia throu'Miout the I^-ovincc to hold themselves
in readiness to be embodied, and to marc', on the
shortest notice to such points as the safety of the
Province mi^dU require. In Quebec the militia of
the city mounted c^uard in company with the regular
troops, and each battalion continued to furnisli a pro-
portion of its number daily for garrison duty. The
flank companies belonging to the militia battalions of
Montreal, were formed into a battalion under Lieut.-
Col. Auldjo and Lieut.-Col. Guy. A proclamation
was issued by General Isaac Hrock, Governor of Upper
Canada, from his headquarters, Voxl George, on the
22nd July, announcing the invasion of the Province
by the Americans, with the intention, he said, of con-
quering Canada and restoring it to the Empire of
h^'ance. ''Are you prepared," he said, "inhabitants
of Canada, to become willing subjects, or rather slaves
to the despot who rules the nations of Europe with a
rod of iron, — if not, arise," etc.

On the 1 6th July, a temporary embargo was laid
upon all goods, wares, moneys, merchandise and com-
mcKlities in and within the Province of Lower Canada;
upon all arms and ammunition; upon scalping knives,
daggers and Indian lances, bullion and specie of
every description, none of which were allowed to be
exported from any port within the Province of Lower
Canada. All vessels were prohibited from sailing,

J\firti//i^ of J^roviiicinl l^arliaiuent.

save such as were actually Uiadcd or loatliiiij^, aiul
whicli were bound for any port in the United King-
dom, or any of the colonies in America or the West
Indies. The Provincial I'arliament met on the same
day, anti His ICxcellenc)- Sir (jeor^e I'revost alluded
in his speech to the fruitless endeavours of His
Majesty for the preservation of peace ; to his implicit
confidence in the loyalty of liis subjects ; to their
attacliment to his person ; and to their ardent love for
the true interests of tiieir countrv. He observed
with concern that the necessarv establishments of the
militiu forces and the operations of the approaching
campaii^n, would be attended with considerable
expense; but he relied implicitly upon their wisdor.
and public spirit for miu!, sui)plies as tiic circumstances
and exiL,rencie.s )f the affairs of the Province would
be found to recjuirc.

Loyal responses were made by the Lci^islativc
Council and House c^f Assembly on the i8th, the
latter expressing itself prepared to grant such supplies
as the exigencies of affairs might re(|uire.

The peoi)le and authorities of Canada had for a
long time been alive to the imminence of war ; but at
the time of the declaration of war, Canada was in a
comparatively defenceless state. To man tlie fort-
resses of Quebec and Kingston, and to cover a frontier
of 1,700 miles in length, the whole available force
consisted of 4,450 regulars of all arms. In the Upper
Province, which presents a war frontier of 1,300 miles,
there were about 1,450 soldiers. The militia consisted

Militia MiisUr.

of about 2,000 men in the Lowe,; and 1,800 in the
Upper Province. The total population of Upper
Canada at this time was under 100,000, while that of
the Lower Province did not exceed 300,000.

On Sunday, the 19th July, orders for the whole of
the militia of the Province to hold themselves in
readiness to be embodied, was read on the Esplanade
of the city of Quebec to the militiamen under arms.
His Excellency was present on the occasion, and
expressed his approbation of the zeal shown by the
men in voluntarily doing duty with His Majesty's
regular forces.

To meet the pecuniary exigencies of the war the
Provincial Parliament of Lower Canada, which assem-
bled on the i6th July, i8i2,and remained in session
till the 1st of August, being the third session of the
seventh Parliament holden in Quebec, passed the Act
to facilitate the circulation of army bills, which pro-
vided as follows :

P^irst. That His Excellency the Governor, as Com-
mander of His Majesty's forces, from time to time
should cause to be prepared and made any number
of bills, to be denominated army bills, containing
one common sum, or different sums, in the principal
moneys, not to exceed two hundred and fifty thousand
pounds currency. Second. That such bills should be
issued from an office to be called the "army bill
office!" Third. That the said army bills of twenty-
five dollars each and upwards should bear interest at
the rate of fourpence per centum per diem, upon or

Army BUI Act.

in respect of the several amounts of each. Fourth.
That the principal sums of the said army bills of
twenty-five dollars each and upwards should, at the
option of the Commander of the forces, be payable
on demand to the holders of such army bills, in cash
or in Government bills of exchange on London, at
thirty days' sight at the current rate of exchange.
Fifth. That the interest of all such army bills of
twenty-five dollars each and upwards, upon the pay-
ment thereof in cash or in bills of exchanc^e as afore-
said, should be paid in army bills or in cash at the
army bill office, at the option of the holders of such
army bills. Sixth. That the principal sums of all
such army bills of twenty-five dollars each and
upwards, if paid in cash, should be paid at the army
bill office; but if paid in government bills of exchange,
should be paid at the office of the Commissary-
General, upon a deposit in army bills of the amount
of the bills of exchange to be so paid, and a certificate
of such deposit under the hand and seal of the super-
intendent of the army bill office to the Commissary-
General. Seventh. That it will be advisable for His
Excellency the Commander of the forces, from time
to time to cause to be prepared and made, such num-
ber of army bills of the value of four dollars each as
he shall see fit, provided the said army bills of four
dollars each and the said army bills of twenty-five
dollars each and upwards do not together exceed the
aforesaid sum of two hundred and fifty thousand
pounds currency. Eighth. That the said army bills

Army Bill Act.

of four dollars each should be payable at the Army
bill office in cash, to the bearer on demand. Ninth.
That all army bills whatever should be issued as cash,
upon the warrants of Mis Excc'Iency as Commander
of the Forces, to such person or persons, as he by
such warrants shall sec fit to direct such payments
to be made. Tenth. That the current rate of ex-
chani^e should be established on oath once in every
fortniij^ht by five persons, to be named by His Ex-
cellency, and publicly notified before any army bills
whatever shall be issued. Eleventh. Makes provision
for the cancellation of defaced army bills, and the re-
issue of new army bills of same number, tenor and
date as those cancelled. Twelfth. That no army
bills should be re-issued, those of four dollars each
excepted, and that all army bills whatever should at
all times be redeemable by being called in and paid,
both principal and interest in cash. And whereas
His Excellency hath been pleased to prepare and
cause to be prepared such army bills to the value of
two hundred and fifty thousand pounds currency,
which from time to time, as required, will be issued.
And whereas it is the bounden duty of the Legis-
lature to furnish every possible aid and assistance
towards the defence of the Province, and to this end
it is necessary to facilitate and support the circula-
tion of all such army bills, be it enacted that the
Governor, Lieut-Governor or person administering,
the Government be authorized and empowered to
pay and allow or cause to be paid out of all moneys,

Army Bill Act.

customs, taxes and revenues of the Province, and in
preference to all other claims and demands whatso-
ever, all such interest at the rate of four pence per
hundred pounds per diem as shall have arisen and
grown due upon all every and any such army bill
which shall be so issued as aforesaid, not exceeding
in the whole, the sum of fifteen thousand pounds
currency per annum, which said interest shall run
from the day of the date of such bill or bills, and such
other charges as shall be necessarily incurred in, to
or for the issuing, circulating or cancelling of the said
army bills, not exceeding in the whole, two thousand
five hundred pounds currency per annum.

Section II. Provides that whatever moneys shall
be issued out of the aforesaid moneys, customs, &c.,
shall be replaced out of the first supplies granted
in the Provincial Parliament.

III. Provides that the army bills shall be current
in the revenue, and taken by all collectors, and receivers
in the province, and that the same in the hands of
such collectors and receivers, and in the hands of the
Receiver-General shall be deemed as cash.

IV. Provides that in payments to the revenue,
interest shall be allowed to the day of payment,
i.e., that the interest which from time to time shall
be due upon any such army bill, shall be allowed
to all persons, &c., paying the same to the Receiver-
General or any collector or receiver up to the respec-
tive days whereupon such bill or bills shall be so
paid ; Provided always that every such Receiver-

Army Bill Act.

General, collectors and receivers as aforesaid, shall be
accountable for the interest on every such bill, so by
them or either of theni received for and during which
such bill shall remain in their hands.

V. Provides that all interest upon such army bills
shall cease from and after the fourteenth day next
after the day on which the same by any proclama-
tion shall be called in to be redeemed in cash, and
that money shall be reserved in hand for discharging
the same.

VI. Sets forth the penalty on forging army bills.

VII. Enacts that all contracts shall be void in
which any distinction shall be made between army
bills and cash.

VIII. No arrest if a tender in army bills be made.

IX. No attachment shall issue if a deposit in Army
Bills be made within the time limited by order of
court.

X. On capias ad satisfaciendum a deposit of the
debt and costs in Army Bills shall stay proceedings.

XI. On fieri facias, &c., a deposit of the debt and
costs in army bills shall stay proceedings.

XII. Provides relief for bills destroyed or lost in
case of satisfactory proof of such destruction or loss
being given, together with security for payment if the
bill or bills certified to be lost, burnt or destroyed,
shall be thereafter produced.

XIII. Provides Provincial security for ultimate
payment of army bills and loans in the following
terms : And whereas there may be many persons

ir7fij' Bill Act.

desirous of coming forward in aid of His Majesty's
Government, with the loan of monies, who, having
no commercial concern whereby to dispose of bills
of exchange, and who, on that account may be
deterred therefrom, for remedy thereof; be it enacted
that from and after the expiration of five years after
the passing of this Act, each and every the holder of
any and every such army bill as may remain unpaid
and unsatisfied shall be entitled to receive out of and
from the monies that then may be in the hands of
the Receiver-General of the Province, or from the first
monies that may thereafter come into his hands
arising out of any taxes or duties heretofore imposed
or that may hereafter be imposed, levied or raised by
virtue of any Act or Acts of the Provincial legisla-
ture, or from the rents and revenues of His Majesty's
territorial domains in this Province, the full amount
of all such army bills in money, with the interest
remaining due thereon.

XIV. Refers to the duty of the Receiver-General
on the receipt and payment of army bills, viz., that he
shall pay over the same to the Commissary-General
for the time being and get from him the amount
thereof in Government bills of exchange, at the current
rate of exchange, or in cash at the option of the said
Commissary-General, and the Receiver-General shall
immediately thereafter render a true and exact
account of all such payments and receipts to the
Governor, in order that the same may be laid before
the House of Assembly at the next session thereafter.

Army Bill Act.

XV. And be it further enacted by the authority
aforesaid, that for and during the period of five years
from the passing of this Act, no person whatever
shall export or otherwise carry out of this province,
any gold, silver, or copper coin of any description
whatsoever, or any molten gold or silver in any shape
or shapes whatever, and if any person whatever shall
export or otherwise carry out of this province, or
procure to be exported or otherwise carry out of this
province, or shall in any manner or way whatsoever,
attempt or endeavour to export or otherwise carry
out of this province, or attempt or endeavour to pro-
cure to be exported or otherwise carried out of this
province, any gold, silver or copper coin of any de-
scription whatever, or any molten gold or silver in
any shape or shapes whatever, then, in each and
every such case, such gold, silver and copper coin,
and such molten gold and silver shall be forfeited,
one half to His Majesty, his heirs and successors,
and one half to the person who shall sue for the
same, and the same shall and may be seized, sued
for, i)rosecuted, condemned and recovered in such
courts, and by such and the like ways, means and
methods, and the produce thereof disposed of and
applied in such and the like manner, and to such and
the like uses and purposes as any forfeiture incurred
by any law respecting the revenue of the Customs
may now be seized, sued for, prosecuted, condemned
or recovered, disposed ot or a[)i)lied.

XVI. Refers to action against the ex[)orter of

Army Bill Act.

thority
c years
latever
ovince,
:ription
/ shape
sr shall
nee, or
of this
:soever,
e carry
to pro-
of this
iny de-
ilvcr in
ch and
er coin,
)rfeited,
cessors,
for the
d, sued
in such
ins and
of and
Lich and
ncurred
"ustoms
demned

:)rtcr of

specie or bullion as follows : And be it further
enacted that every person whatever, who, durini,^
the period of five years from the passing of this
Act shall export or otherwise carry out of this
province, or procure to be exported or otherwise
carried out of this province, or shall put on board of
any ship, or vessel, or boat, or into any land carriage
to be exported or otherwise caried out of this province,
or shall in any manner or way whatsoever attempt
or endeavour to export or otherwise carry out of this
province, or attempt or endeavour to procure to be
exported any gold, silver, or copper coin of any
description whatever, or any molten gold or silver,
in any shape or shapes whatever, for every such
offence over and above the forfeiture of such gold,
sihcr and copper coin, and if such molten gold or
silver, if the same shall be seized, shall forfeit the sum
of two hundred pounds, and double the value of such
gold, silver and copper coin, and of such molten gold
and silver, one half to His Majesty, and one half to
the person who shall sue for the same by bill, suit,
action or information, in any of His Majesty's courts
in this Province.

XVII. Provides that nothing in the Act shall
prevent persons taking out of the Province the sum
of £\o, or such further sum with license from the

Governor.

XVIII. Penalty on persons convicted of perjury.

XIX. Refers to fines, &c., to be paid into the hands

Army Bill Act.

:')

III

of the Rcccivcr-Gciicral and to be accounted for to
the Crown.

XX. Refers to Hmitations of action. At the close
of the session, on the ist of August, 1812, the
Provincial Parliament of Lower Canada presented
to His Excellency Sir George Prevost, Baronet, the
foregoing "Act to facilitate the circulation of army
bills " for the royal assent, which was duly given.
The Honorable Speaker of the Assembly said :
" They, the representatives of the Province of Lower
Canada, are under the greatest obligation to your
Excellency for having communicated to them the
means to ameliorate and insure for several years the
punctual payment of the army, by the circulation of
bills, the reimbursement of which is guaranteed in
England. To give theiii greater credit, this bill limits
the sum necessary, and moreover provides for the
interest, the advantages accruing therefrom, and for
the entire payment of the principal in specie in this
Province, which has become expressly bound for the
same at a fixed period."

In connection with the establishment of the army
bill office, a notification was made to the public by
His Excellency, that James Green, Esquire, had been
appointed Director, and Louis Montizambert, Esquire,
Cashier, and that they had given the required security
for the faithful performance of the trust reposed in
them. The office was opened at the Court House,
and from thence by order of His Excellency, an issue
of army bills was made, consisting of the denomina-

4
I

TJlc Coins Current in Canada.

itcd for to

the close
1 812, the
presented

ronet, the

1 of army

Lily given.

bly said :

of Lower

1 to your

them the

years the

ulation of

an teed in

bill limits

2s for the

n, and for

cie in this

nd for the

the army
public by
, had been
t, Esquire,
;d security
eposed in
rt House,
y, an issue
ienomina-

tions, twenty-five dollars, fifty dollars, one hundred
dollars and four hundred dollars ; sifrncd by His
Excellency the Commander of the Forces, by the
Director, by the Military Secretary and made payable
to the bearer, on demand, at the army bill office, in
Government bills of exchange at the current rate of
exchange or in cash, at the option of the Commander
of the Forces, with interest.

Prior to the passing of the "Act to facilitate the
circulation of army bills," the currency of Canada con-
sisted of a variety of coins. In the absence of a
colonial coinage, the gold and silver coins of several
nations were in circulation. Spanish, Portuguese,
I'rench and German, circulated simultaneously with
the gold and silver coins of Great Britain. During
the session of 1795, the following statute was passed,
viz : " An Act to prevent the diminution of specie
circulating in this Province, that the same may be
regulated according to a standard that shall not
present an advantage by carrying it to neighbouring
countries ; and whereas, by an ordinance now in
force for regulating the currency of this Province, an
advantage does arise by carrying gold coin out of the
same, be it therefore enacted that the gold and silver
coins hereafter mentioned, shall pass current and be
deemed a legal tender in payment of al debts, and
demands whatsoever in this Province, at the weights
and rates following, that is to say :

20 Tlie Coins Current in Canada.

Cnnndn
Na.MKS (JI- Coins. WeiKhiii),'. Currency.

Dwts. Grains. £, s. il.

The British guinea 5 6 i 34

The Johannes of Portugal 18 400

The Moidore of Portugal 6 18 i 10 o

The P'our Pistole piece of Spain 17 3 ^4 o

The French Louis d'or coined before 1793 5 4 0180

The American Eagle 1 1 6 2100

With regard to silver, the American dollar shall

pass current at five shillings currency, and every other

coin current in the Province as already provided for,

viz :

Can.'uln
Currency.

The Spanish dollar at £0 5 o

The British Crown .. 056

The French Crown or piece of 6 iivres Tournois . .'. 056

The French piece of 4 Iivres, 10 sols 042

Canada
Currency.

The British shilling ^o i i

The French piece of 24 sols Tournois 01 i

Pistareen o t o

The French piece of 36 sols Tournois o I 8

A similar Act was passed by the Parliament of
Upper Canada on the 3rd of June, 1796.

Great inconvenience was experienced in conse-
quence of the scarcity of specie, which gave rise to a
kind of barter, or store pay, prejudicial to the interests
of the farmers and labouring classes. Farm produce,
furs, and labour were paid for in goods which had to
be taken at unreasonably high prices at the shops or
stores, because specie was hardly to be had.

Under the Army Bill Act, however, a paper cur-
rency was introduced, which proved of essential

Circulation of Army Bills.

Cnnnclii
Currency.
IS. £ s. il.

' 3 4
400

1 10 o
3 14 o
o 18 o

2 10 O

ir shall
y other
led for,

Canada
Currency.

^^i^o 5 o
056
056
042

Canada
Currency.

£0 I I

O I I

O I o

o I 8

lent of

coiise-
se to a
terests
oduce,
lad to
ops or

r cur-
sen tial

service, not only in meeting the exigencies of the
public service, but in facilitating commercial trans-
actions. The measure proved, in practice, a complete
success. Bills of the denominations $25, $50, $100
and $400 were not re-issued. They bore interest, as
provided for in the Act, $400, fourpence per diem,
$100, one penny per diem, $50, one halfpenny per
diem, and $25, one farthing per diem, being substan-
tially interest at the rate of six per cent, per annum.
Four dollar bills bore no interest, and they were
re-issued. They were payable at the army bill office
in cash on demand.

Many years ago I ascertained from merchants who
were engaged in the retail business in Quebec in
1 81 2, and during the war, that the army bills circu-
lated freely, the larger denominations with interest
from the date of issue added. The calculation of
interest which had accrued was an easy one: $400
for 30 days was just 120 pence, equal to 10 shillings
currency ; $100, 30 pence ; $50, 15 pence, and so on ;
consequently the increased value of each bill was
easily ascertained ; and it passed, with its increment,
from one to another in the purchase of goods or settle-
ment of account.

The Act provided for the redemption of bills of
$25 and upwards, in cash or exchange on London, at
30 days sight, at the option of the Commander of the
forces, at the current rate of exchange ; but the
interest which had accrued on all such bills was paid
in cash or exchange at the option of the holder.

•)•)

Rate of lixchnnge.

The current rate of exchaiif^^c for bills on London
at 30 days sii^ht was establislied (jncc in every fort-
night, by a committee of five persons named by Mis
Kxcellency.

The rate of exchanj^^e for bills on London, in con-
sequence of the suspension of specie payments by the
Bank of Kn<^land, which took place in 1797, and which
lasted till 1823, was very low. This subject, however,
lias to be considered in connection with the price of
;4old in Kni^dand.

The mint i)rice of an ounce of Standard gold is £7^
17s. lo'^d., being one-twelfth part of £^6 14s. 6d. the
value set upon a pound weight of gold.

During the Napoleonic wars, the price of gold in
Kngland per ounce rose, in 1800 to £4t. 5s. currency ;
in 1809 to ^^"4. IIS. ; in 1810 to ;64. 19s.; and in 181 2,
when Napoleon was in the zenith of his power, to
£$. los. British currency. In order therefore to effect
a settlement in Canada on a specie basis, bills drawn
at 30 days sight on the Treasury in London, were
subject to a large discount, frequently as much as 22^,
as determined by the committee appointed by His
Excellency to regulate the rate of exchange. Con-
sequently, a bill at 30 days sight for i^ioo, at that
rate, yielded only £'j'i sterling, equal to $356.46 in
specie. In 1812 ^100 sterling in gold in England
was worth ;^I20 4s. 9d. ; in 1813, ;{^ioo sterling in
gold was worth ;{^I22. i8s. currency of Great Britain.

It has to be borne in mind that the dollar in gold
of 181 2, was of greater value than the dollar in gold

The War.

'IW

of the present day, oti account of its »;rcater wcij^ht
and fineness. It retiuired only $4.57 to constitute
the par of the pound sterlin^j in 18 12 ; whereas it
requires $4.86^ to constitute the par now, bein^
9j/°/ over the nuith or old i)ar of Queen Anne. In
other words, the American ea<;le of 1792 contained
24.2 }4 i^rains of fine c;'old — the American eac;le o(
1837 contains only 232.2 i^rains of fine <;old. ThciC
has been no change since that year in the quality or
weight of the American eagle.

In the early part of August 18 12, the war, both by
land and sea, began to assume ii.i proper character.
The American General, Hull, with a strong force,
crossed from Detroit to the Canadian shore on the
1 2th of July. Hull, however, had calculated upon
a friendly reception in Canada, but found the people
hostile ; and, being warned of the advance of General
Brock with a force of over 300 regulars, 400 militia,
and several hundred Indians, led by Tecumseh, made
a hasty retreat, recrossed the river and occupied his
old quarters in Detroit. General Brock, however,
with characteristic daring, crossed in pursuit, attacked
and captured the town with 33 pieces of cannon, and
the military chest ; and took General Hull and 2,500
troops prisoners of war.

During the autumn, several raids were made along
the frontier of the Upper St. Lawrence, and at other
points ; but none of them of any importance, and
none of them very creditable to either party. The
Americans were repulsed at Presqu'ile on September

Oucenstoii Heitrhts.

the 1 6th ; Gananoque was raided by Americans on
the 2 1st; the British were repulsed at Ogdensburg
on October the 4th ; and several British craft were
captured off Black Rock, Lake Erie, on October
the 9th.

In the early part of October, however, viz., on the
1 2th, General Van Renselaer, in command of a con
siderable force of American regulars and militia on the
Niagara frontier, prepared to attack the British at
Queenston, opposite Lewiston. He considered his
forces ample to secure success. They numbered more
than six thousand. The British force on the Western
bank of the Niagara river, regular, militia, and Indians,
numbered fifteen hundred. The Indian allies, under
John Brant, numbered about two hundred and fifty
strong. In addition, there was a detachment of the
41st regiment, 380 strong, under Captain Bullock, and
the flank companies of the 49th regiment.

The Americans effected a landing, notwithstanding
a desperate resistance made by the British, and
occupied the heights after a hot engagement, in which
the gallant Brock lost his life ; but they were finally
defeated and driven over the precipitous banks of the
Niagara river at the point of the bayonet. About
1,1 or Americans, officers and privates, surrendered
unv;onditionally as prisoners of war.

CHAPTER II.

Meeting of Parliament— Speech of the Governor— Enlargement of the
Act— Steamboat service between (Quebec and Montreal— Capture of
York -Further enlargement of the Act.

The Provincial Parliament of Lower Canada was
summoned for the despatch of business on the 29th
December, 181 2. In the Speech from the Throne,
His Excellency Sir George Prevost said :—

" The complete discomfiture of the plans of the
enemy for the conquest of Upper Canada, by the
capture of Detroit, and by the surrender of the whole
invading army with its general ; the brilliant achieve-
ment at Queenston, tho' clouded by death in the
hour of vfctory, of the gallant and much lamented
Major-General Brock, together with other recent
advantages gained over the enemy, both in Lower
and Upper Canada, are subjects of sincere congratu-
lations, and demand our fervent acknowledgments
to the Great Ruler of the Universe for these unde-
served mercies.

" I take also pleasure in acquainting you that the
measure of the issue of army bills, for the circulation
of which you so promptly and liberally provided
during the last session, has been attended with the

Meeting of Parliajnent.

happiest effects, both by powerfully aiding His
Majesty's Government to meet the extraordinary
demands of the present crisis, and by materially
facilitating commercial transactions. The experience
of four months having fully shown the utility of the
measure, I recommend to your consideration the
adoption of such further regulations and provisions
respecting it, as, upon a review of the Act passed
upon this head, and of the present circumstances of
the country, may appear to be necessary."

It is manifest, I have said, that the Act to facilitate
the circulation of army bills, proved a complete
success ; but a much larger amount of notes than that
authorized by the Act had been issued during the
recess ; and the exigencies of the public service
rendered it necessary to resort to a furtlier increase
of issue.

At the fourth session of the seventh Parliament
holden in Quebec the 29th December, 181 2, "An Act
to extend the provisions of an Act passed in the
fifty-second year of His Majesty's reign, intituled,
" An Act to facilitate the circulation of army bills,"
and to make further regulations respecting the same,"
was passed, and received the royal assent on the 15th
February, 1S13. The Act reads as follows :

I. Whereas an Act was made and passed in the
fifty-second year of His Majesty's reign, intituled
"An Act to facilitate the circulation of army bills ;"
And whereas it appears by a message of the Governor-
in-Chief to the House of Assembly of the 8th

Enlargement of the Army Bill Act.

January, 1813, that the exigencies of the public
service have rendered it indispensably necessary for
him as Commander-in-Chief to direct an issue of the
army bills to be made to a greater amount than two
hundred and fifty thousand pounds provided for by
the said Act, and that the further exigencies of the
public service may render a further issue indispensably
necessary ; and whereas it is expedient to subject
such army bills as have been so issued, as well as
such as may be hereafter issued, to the provisions,
recfulations, and enactments of the afore-recited Act,
and to make further provisions and regulations
respecting the same ; Be it therefore enacted by the
king's most Excellent Majesty, by and with the
advice and consent of the Legislative Council and
Assembly of the Province of Lower Canada, consti-
tuted and assembled, by virtue of and under the
authority of an Act of the Parliament of Great Britain,
passed in the 31st year of His Majesty's reign,
intituled " An Act to repeal certain parts of an Act
passed in the 14th year of His Majesty's reign,
intituled, "An Act for making more effectual provision
for the government of the Province of Quebec ;
in North America ; " " and to make further provision
for the government of the said Province, and it is
hereby enacted by the authority of the same, that all
army bills which have been so issued after the time
at which the army bills then issued, amounted to the
sum of two hundred and fifty thousand pounds, and
each and every of them and all such army bills as

Enlargement of the Army Bill Act.

shall be issued during the next twelve months, from
and after the passing of this Act, shall be deemed and
taken to be within the purview of the Act made and
passed in the 52nd year of His Majesty's reign,
intituled, " An Act to facilitate the circulation of
army bills ; " and that all the provisions, regulations
and enactments in the said last-mentioned Act con-
tain(?d, and each and every of them, shall be applied
and put in force in respect to all and every such
army bills so issued, or that may hereafter be issued,
as fully and effectually to all intents and purposes as
if the same were severally and separately repeated,
and herein recited, and made part of this Act under
the restrictions hereinafter mentioned.

II. Provides for the payment out of all and every
and any the monies, customs, taxes and revenues of ,
this province, and in preference to all other claims
and demands whatsoever, all such interest at the rate
of fourpence per one hundred pounds per diem, as
shall arise and grow due upon all and every and any
army bill or bills, which have been issued, or shall
hereafter be issued.

III. Provided always that the sum so to be paid
out of and from the customs &c. aforesaid, with inter-
est as aforesaid, shall not on the whole and together
exceed the sum of fifteen thousand pounds currency
per annum.

IV. Provided also, and be it further enacted by the
authority aforesaid, that the amount of army bills in
circulation as well as those already issued or such as

Enlargement of the Army Bill Act.

may be hereafter issued, shall not at any one period
exceed the sum of five hundred thousand pounds
currency.

V. And be it further enacted by the authority
aforesaid, that interest upon such army bills as have
been, or shall hereafter be issued, shall run from the
day of the date of such bill or bills, until the same
shall be paid, and that the holder or holders of every
such bill or bills shall be entitled to demand and
receive payment of all such interest at stated periods,
once in every six months, at the army bill office in
the city of Quebec, and further, that public notifica-
tion shall be given in the Quebec Gazette immedi-
ately after the passing of this Act, by order of the
Governor, Lieutenant-Governor, or the person ad-
ministering the government for the time being, of the
periods at which such payments shall be made.

VI. And whereas it is expedient in order that the
public confidence in such army bills may remain
undiminished, that the holders thereof may be assured
of the punctual payment of all interest that may
become due and payable on army bills ; and whereas
the sum of fifteen thousand pounds per annum herein
before provided, may not suffice for the full payment
thereof on the whole amount of bills so issued or to
be issued, Be it therefore enacted, by the authority
aforesaid, that the provisions, regulations and enact-,
ments of the Act herein before cited, intituled, "An
Act to facilitate the circulation of army bills," shall
not extend or be coni:trucd to extend to a greater

Enlargement of the Army Bill Act.

amount of army bills in circulation at any one time,
during the next twelve months after the passing of
this Act, than two hundred and fifty thousand pounds
currency, unless public notification shall be given in
the Quebec Gazette within one month after the
passing of this Act, by the Commander ot His
Majesty's forces in this province for the time being,
that all such interest as aforesaid shall be paid at the
army bill office at the like stated periods.

VII. And be it further enacted, that the five Com-
missioners heretofore appointed for the purpose of
certifying the current rate of exchange, at which bills
of exchange on London were and are to be given in
payment of army bills, and their successors, or any
three of them, shall continue to meet and certify
under Oath the rate of exchange in like manner, and
that in due execution of their office, as aforesaid,
they shall be guided by the fair current rate of bills
of exchange at thirty days' sight, and by all such
other information as they may be able to procure, so
as to enable them to do substantial justice to the
holders of such bills, and to the government.

VIII. And be it further enacted, that it shall be
the duty of the officer or officers to whom it may
appertain as having the direction of the army bill
office, to lay before the Commissioners immediately
after the passing of this Act, a correct account of the
amount of all su h army bills as shall then be in
circulation, ?»' ; r.. ukc\\ second subsequent meeting
of the said Cou\ni;;.s;..ncrs, a true and correct account

Enlargcincut of the Army Bill Act.

of all such bills as shall have been issued and put
into circulation from the date of the last account
rendered, in order that the same may be laid before
the Legislature, at its next ensuing meeting.

IX. And be it further enacted, that all sheriffs
and bailiffs who shall or may receive army bills upon
execution, shall be accountable for the interest on all
such bills which by them or any of them shall be so
received for, and during the time that such bills
remain in their hands, to the persons interested
therein, and to this end the said sheriffs and bailiffs
shall mention in their respective returns, whether
t' cy received the amount or any part of the amount
of such executions in money or in such bills, and also
the day on which they received it.

X. And be it further enacted, that no public
officer whatsoever shall profit by the interest on the
army bills which may be placed in his hands as such
public officer, to be given in payment, and shall
render an account of the said interest, annually, on
the first day of November, to the Receiver-General
to be employed according to the dispositions of the
fourth section of the aforesaid Act, passed in the fifty-
second year of His Majesty's reign.

XI. xAnd be it further enacted, that the interest
for which the Receiver-General and collector and all
public officers are accountable to the province, shall
be employed and applied in the payment of the
interest wherewith the Province is by this Act
charged.

Enlargement of the Army BUI Act.

XII, Provided always, and be it further enacted,
that nothing in this Act contained shall extend or be
construed to extend or entitle any holder or holders
of any such army bills as aforesaid, as may at any
time hereafter, remain unpaid or unsatisfied (save and
except the holder or holders of such army bills as
were heretofore issued, subsequent to the passing of
the Act, to facilitate the circulation of army bills and
until the same exceeded in the whole the sum of two
hundred and fifty thousand pounds, and which now
remain unpaid and unsatisfied) to receive out of or
from any monies that may then be in the hands of
the Receiver «jeneral of this Province, or from any
moniei: that may hereafter come into his hands
arising out of any taxes or duties heretofore imposed
or that may hereafter be imposed, levied, or raised by
virtue of any Act of the Provincial Legislature, or
from the rents and rev^enues of His Majesty's terri-
torial domains in this province, or from any other
monies in the hands of the Receiver-General, pay-
ment of any such army bill or bills, as aforesaid.

XIII. And be it further enacted, that should the
Governor-in-Chief deem it expedient, to cause the
whole or any part of the army bills to be hereafter
issued to be signed by any other person or persons,
by and under his authority ; public notice shall be
given during one month in the Quebec Gazette, of
the name or names of such person or persons so
authorised, and that all army bills signed by such
person or persons, shall be considered as forming

Enlargcinoit of the Army liiii Act.

;33

part of the sum of five hundred thousand pounds, at
which the whole amount of army bills to be circu-
lated at the same period is hereinbefore limited.

XIV. And be it further enacted, that the sum of
five hundred thousand pounds, at wliich the amount
of army bills to be in circulation at one period is
limited, such amount may be issued in army bills of
one, two, eight, ten, twelve, sixteen and twenty dollars
each, as the Commander of the forces may deem
expedient and necessary, such bills bearing' no interest
and payable in cash on demand at the army bill
office. Provided always that the amount of such
bills, and of bills of four dollars each, shall not in the
whole and together exceed the sum of fifty thousand
pounds.

XV. And be it further enacted, that it shall and
and may be lawful for the Governor, as Commander
of the forces, to establish such other office or offices
at Montreal or elsewhere in the Province as to him
may seem expedient and necessary for the payment
of all such bills as have, or may hereafter be issued,
payable in cash on demand. Provided that the whole
expense thereby incurred, together with the expense
of the office already established, do not in the whole
exceed the sum of two thousand five hundred pounds
per annum, appropriated by the Act herein before
mentioned.

The following is a copy of advertisement respecting

the adjustment of the rate of exchange :
c

Rate of lixc/iaugc.

!il
f'i

"Quebec, 151I1 March, 1S13.

"The Commissioners appointeil by I lis Excellency Sir (ieorge
Prevost, Governor-in-cliief and Conunimler of llie Forces, in virtue of
the I'rovincial Act of the 52n(l year of His Majesty's reign, inlituleil,
"An Act to facilitate the circulation of army l)ills,' (the provisions
thereof being extended, and further regulated by an Act of the 53rd
year of His Majesty';, reign) have fixed on the rate of exchange for
government bills, at 30 days sight, at twenty per cent for the next
fortnight from this date."

N.IJ. — "The said Commissioners meet every Monday fortnight at
10 o'clock, at the hf)use of Mr. Blackwood, St. I,ouis Stre<it, where
written communications on the subject of exchange will be received
and duly attended to."

The army bills of the denominations $400, $i(X>,
$50 and $25, were signed, as I have already stated,
by Mis Excellency as Commander of the forces, by
the Director, and b}'' the Military Secretary, and
made payable as provided for in the Act. The four
dollar bills were signed by the director of the Army
bill office, the Cashier and the military secretary only.

The whole of the bills were deposited in the mili-
tary chest, from whence they were issued in payment
of whatever demands were required to be made on
the Commissary-General or Paymaster-General, on
account of the public service.

The signing of these bills by His Excellency was
apparently found inconvenient, for, under date of
23rd March, 18 13, I find the f<^'lowing notice:

" His Excellency has directed that public notice be given, and the
same is hereby given, that all such army bills, will, from and after the
24th day of April, instead of bearing the signature of His Excellency
the Commander of the forces, be signed under the authority of His
Excellency, by James (ireen, Esquire, director of the said army bill

Armj' Bill Office.

ofllce, or l)y the direclnr of the said office for the lime l)einj;, by tiie
command of His Excellency, and ])y Louis Moiilizambert, Esquire,
cashier of the said office for the time beinj;, and by those persons only."

And on the 22nd of April, further notice is given
as follows :

"And whereas certain army bills now bearing my signature still
remain to be issued, and will be issueil, nothwithstanding the said
notification, after the said 24th in<tant. I have therefore thought fit,
by this proclamation, to make known the same, and the same is hereby
made known accordingly." C^^^i^w ,\:c..

Signed. Gkorgk I'rkvost.

In 181 3 the passenger traffic or intercourse between

Quebec and Montreal was carried on by a line of

stages, which set out every morning at four o'clock

during the summer season, Mondays excepted ; but

in the early part of May a steamer, named the

" Swiftsure," was put on the river line. She started

from Montreal at five o'clock on Saturday morning,

anchored at eight o'clock the same evening near

Three Rivers, which she left on Sunday morning at

five o'clock, and arrived at the King's Wharf, Quebec,

at half-past two ; being only about twenty-four hours

and a half under way between the two cities, with a

strong head wind all the way. The advertisement

sets forth that she is superbly fitted up : " twenty-two

berths in the great cabin, each sufficient for two

passengers, besides four for ladies in the state room,

and a separate room for families. In the steerage, a

great number of passengers can be accommodated.

America cannot boast a more useful and expensive

undertaking by one individual than this of Mr.

Molson."

(I)

JUockadc of Ports.

" His l^xccllciicy the Govcnior-iti-Chicf set out for
Montrc.'il on Tuesday aftcriioou in the Steam Boat."

On March the 30th, F.Si^, it was announced by the
P'oreij^ni Office in London that the necessary measures
had been taken for the blockade of tlie ports and
harbours of New York, (Charleston, Port Royal,
Savannah, and of the river Mississippi. There was
no lack of eneri^y on cither side in the prosecution
of the war. Great activity prevailed in the port of
Quebec. Between the 5th and i6th of June, sixty-
one vessels in all arrived ; twenty-six in ballast, six-
teen with general car_L;oes, five with (government
stores, and thirteen with [)assenL;ers and troops ; the
troops consisted of the Wattville rec^iment, the 89th,
the I04t]i ; and one vessel had soldiers belonginij to
different regiments and some artillery on board.
Halifax was also a busy port duriuLj the war ; there,
shi[)s of war held themselves ready for any emer-
gency ; thither ships (jf war and privateers took
the prizes taken at sea. In the cargo of one prize,
the " Marquis dc Somerlos," a case containing
twenty-one paintings and fifty engravings, shipped
by a Mr. J. A. Smith, was found, addressed, *' To the
Academy of Arts, Philadelphia,'' a gift to that insti-
tution. The authorities at Halifax released the work.s
of art and forwarded them to IMiiladelphia, "with the
sincerest wishes for the success of the infant society,"
— in striking contrast to the conduct of Napoleon,
who plundered the National Galleries of Europe, not
even sparing the Vatican, and .sent the paintings and

Capture of York, Toronto.

• > —

statuary to Paris. Hut time at last makes all thini^s
even. "The Transfi-^^uratioii atul the Last Communion
of St. Jerome resumed their place in the Vatican; the
Apollo and the Laoc(^on aj^ain adorned the precincts
of St. Peter's ; the Venus was enshrined anew amid
hcauty in the tribune of I'lorencc ; and the Descent
h-om the Cross, b\' Rubens, was restored to the
devout worshij) of the I'^lcminc,^s in the Catliedral at
Antwerp."

The Americans were nothing daunted by the reverse
at Ouccnston. The authorities, as well as the writers,
spoke of the death of l^rock as etpiivalent to a
victorv. At the cw^ of April, iSi 3, a joint land and
naval expedition was organized to capture York (now
Toronto) the capital of Upper Canada. The American
fleet api)eared before the town on the 2()th, conveying
a land force of 2,500 men. Toronto had for defence,
under Major-General Slicaffe, less than 600 men,
consisting of regulars and militia. General Pike, of
the American army, at the head of a division of at
least 1,000 strong, landed, in spite of a spirited resist-
ance. The Americans swarmed into the old French
fort and harbour defences, fiery with fighting, and
flushed with success, when suddenly, — with the crash
and concussion of an earthquake, — the powder maga-
zine exploded at their feet, spreading havoc through
their ranks. Of the assailants, 250 were instantly
killed or wounded, — General Pike amongst the killed;
of the defenders many perished. The contest itself
was stayed by the catastrophe ; it had endured eight

A Jiiericans Victorious.

^:'} u

hours. The survivitif^ l^ritish troops had witlidrawn ;
all that could be done had been done, and York
capitulated throui^h the local officers of militia.
Shcaffc left behind him, of regulars sixty-two killed
and seventy-two wounded. The Americans kept
possession, but evacuated York on the 2nd of May,

i8i

The complete victory of the Americans over the
British at York atoned in some measure for the
reverse they had suffered at Oucetiston Heights. .1
might now allude to the succe: - of the Americans at
sea, to t leir victory over the l^ritish frigate Gucrriere;
to the naval duel between the British ship Shannon
and the American Chesapeake, to the defeat and
capture of the latter after a sanguinary engagement ;
but it is not my intention to refer to the stirring
events of the war, further than mav seem to me desir-
able to show the necessity which existed for the
Army l^ill Act, and for the subsequent enlargement
of its provisions to meet the exigencies of the public
service.

Several raids or attacks were made from both sides
of the lines with alternate successes and defeats.
Among the most memorable were the attack on
Sackets harbour by the 15ritish, without any satis-
factory result ; the capture of Fort George by the
Americans ; the subsequent night attack by the British
upon the American army encamped at Stoney-creek,

Colonel Coffin, " l8i2, Chronicle of the War."

Chatcauguay, Defeat of Americans.

3!)

where deadly work was done with the bayonet, in
the lurid light of the watch-fires, as the sleepers
aroused, rose stumbling and dazed. Two American
Generals, caught napping, and one hundred soldiers
were made prisoners of war. The rest of the
American Army made a hast>' retreat, never halting
till safe within the works of Fort George. Ikit the
most memorable of all the engagements was the
battle of Chateauguay in October 1813, when a
powerful invading force of Americans, bent upon the
subjugation of Lower Canada, was beaten back and
signally defeated by a small force, consisting chiefly
of French Canadian militia, led by Colonel de Sala-
berry. There was also a minor engagement at
Cryslers farm, in which the Americans were defeated.

The expenses connected with the war were so
great that it is difficult to conceive how it could have
been carried on without the operation of the Army Bill
Act. We are, I believe, as much indebted to the
authors of that measure for the preservation of our
connection with the British lunpire, as we are to the
valour of our soldiers and sailors in repelling a cruel
and unwarrantable invasion.

The Provincial Parliament again assembled on the
13th of January, 18 14. His I^:xccllency Sir George
Prevost, after alluding in his Speech from the throne
to His Majesty's victorious arms in ICurope, said : "In
turning our eves to our own shores, we have abundant
cause for gratitude to thj S^'iremc Giver of all good,
for the termination of the late campaign in a manner

Colonel dc Salabcrry.

so I'-lorious to tlic I^ritish <irm^, and so disastrous to
those of the enemy.

"The defeat sustained b}- lum on the Chateauguay,
where a liandful of brave Canadians repelled a power-
ful division of his arm)' ; and the brilliant victory
obtained b\- a small corps of observation on tlie
banks of the St. Lawrence, (Crysler's f:irm) have at
the same time upheld the honour of His Majesty's
arms, and effectual I3' disconcerted all the [)lans of
the enem\' for the invasion of the Province."

On the 25th of Januar\', 1S14, tlie dianks of the
1 louse of Assembl)- were voted to Lieutenant-Colonel
dc Salabcrry, and to the officers and privates under
his commantl in the enua^ement at Chateaui2:uav on
the 26th October, 1S13; and to Lieutenant-Colonel
]\L:)rrison of the Scjth rei^'iment, and the officers and
jirivates under his command at Cr}'sler's farm on the
1 I th November.

On the 5th (jf I^\^bruary, the speaker informed the
I louse that he had received from Lieutenant-Colonel
de Salaberr)' a letter, in return to the thanks of the
House to him, which he read.

The letter is a remarkal.)l\- able composition, of
which I cannot refrain from inserting one paragraph ;

"III pieveiUiiiL; ihe enemy fioiu pjiijlr.ilini; into ihe province, one
cnnmion sentiment aninKited tlie whole of my thiee hundred Ijiave
companions, and in w'v -h I ]);iilicipated, that ()r(U)ing our duly, serving
our Sovereign, and saving our country from the evil of an invasion.
The satisfaction arising from our success was to us adequate recom-
pense ; l)ul we now enjoy anotlier of inestimable value, in the dis-
tinguislied lionour conferred in the thanks voted to us by the House of

^uay,

Further Enlargcinciit of tJie Aruiy Bill Act. 41

Assembly. 'I'his generous proceeding leaves in our min.ls an impression,
deep, lively, and inlelihle. The country, through its representatives,
evincing itself thus nobly grateful, requites the service of its children
with the highest and most flatteiiiig reward."

On tlic i;th of January, 1814, I lis ICxccllencv sent
a message to tlie Mouse, statiiiL,^ that the e.Ki<;encics
of the public seivice rendered it neccssaiy that he
should direct a further and more extensive issue of
army bills. Accordingly an Act, fiu-ther to extend
the provisions of the two Acts for facilitatincr the
circulation of arm}- bills, was introduced.

The preamble nip. ■ as f<')]lo\vs : —

"Whereas an /-.ct uas made and passed in the
fifty-.second year of flis Majesty's reign, intituled,
'"An Act to facilitate the circulation of army bills,'"
and whereas, another Act was made and passed in
the fifty-third year of Mis Majest\''s reign, intituled,
"'An Act to extend the provisions of an Act made
and passed in the fifty-second \-ear of Mis Majesty's
reign, intituled, "An Act to facilitate the circulation
of army bills," and to m.-tkc^ further regulations
respecting the same,' " and t tun b;- the fcnuth clause of
the last mentioned Act, it is provided and enacted,
that no greater sum th.m '/vc hundred thousand
pounds currency in arr.iy Lil'^-, '-'mH be in circtilation
at any one time. And whereas it appears b}- Mis
Excellency the Governor-in-Chiefs message to the
Hou.se of Assembly of the 17th January, that tiie
exigencies of the public service render it indispensably-
necessary that he, as Coi . nander of the forces, should

42 Further Eulargenioit of the Army Bill Act.

direct a further and more extensive issue of army
bills to be made. And whereas it also appears by
the accounts of the Director of the army bill office
laid before the House of Assembly, that a ijreater
sum in army bills has been and now remains in circu-
lation than the aforesaid sum of fiv^e hundred thousand
pounds, and that it is expedient and necessary to
extend the provisions of the said Acts to all such
army bills as now are in circulation, and to a further
issue to be made, to make further regulations respect-
ing the same, and also to indemnify a'" • -sons •
concerned in the making and issuing of ari;. oills,
over and above the said sum of five hundred thousand
pounds ; be it therefore enacted, by the King's Most
Excellent Majesty, by and with the advice and con-
sent of the Legislative Council and Assembly of the
Province of Lower Canada. It is hereby enacted that
from and after the passing of this Act, all army bills
issued heretofore and now in circulation, or which
shall be made and issued at the army bill office in
the City of Quebec, from and after the passing of
this Act, until the first day of February, 1815, shall
be deemed and taken to be within the purview of the
Act made and passed in the fifty-second year of His
Majesty's reign, intituled, "An Act to facilitate the
circulation of army bills," subject, nevertheless, to the
restrictions contained in the Act made and passed in
the fifty-third year of His Majesty's reign, intituled,
"An Act to extend the provisions of an Act made
and passed in the fifty-second year of His Majesty's

FurtJicr Enlargement of the Aruiy Bill Act. 4."]

reign, intituled, "An Act to facilitate the circulation
of army bills," and to make further regulations
respecting the same," and that all provisions, regula-
tions and enactments in the said Acts contained,
(save and except as aforesaid) and each and every of
them shall be applied and put in force in respect to
all and every such army bills so issued, or that may
hereafter be issued, as fully and effectually to all
intents and purposes as if the same were severally
and separately repeated, and herein recited and made
part of this Act, in so far as the said provisions and
enactments are not hereinafter altered or repealed.

II. Provided always, and be it further enacted by
the authority aforesaid, that the amount of army bills
in circulation, as well those already made and issued
as such as may hereafter be made and issued, shall
not at any one period exceed the sum of fifteen
hundred thousand pounds, current money of this
province.

III. And whereas it is essential for the security
of the persons who may become possessed of army
bills to be issued as aforesaid, and in order to assure
to such persons the advantages conferred on the said
bills by this Act, and to promote the public confid-
ence in the said bills, that the aforesaid limitation
prescribed to the issue of the said bills shall be
strictly adhered to, and under no circumstances in-
fringed ; Be it therefore enacted, by the authority
aforesaid, that the Director of the army bill office,
the Cashier of the said office, and any other officer or

44 FurtJicy Enlargement of the ylnz/y lUll Act.

officers concerned in the making, sis^nini:^ and issuing
of the army bills to be issued as aforesaid, for the
time beiniJ, shall in no instance and under nc/ circum-
stances whatever, make, sii^n or issue any such army
bill or army bills, when and so long as the army bills
in circulation shall amount in value to, and not be less
than fifteen hundred thousand pounds, current money
of the Province ; and that if the said Director of the
army bill office, the Casjiier of the said office or any
other officer or officers concerned in the making,
signing or issuing of army bills so to be issued as
aforesaid for the time being, shall make, sign, or issue
any army bill or army bills after the said army bills
already issued and to be issued and in circulation at
the same time, shall amount to fiitecn liundred
thousand pounds, such Director of the army bill
office. Cashier of the said office, and other officer or
officers concerned in the making, signing, or issuing
of army bills beyond that amount, sliall thereby be
rendered incapable of serving Mis Majest\', in any
office, civil "^r military in this Province ; and shall
moreover severally and respectively forfeit to His
Majesty, his heirs and successors, the amount of all
such army bills as shall have been made, signed and
issued over and beyond the said limitation of fifteen
hundred thousand pounds, to be recovered by action
of debc, bill, plaint or information in any of His
Majesty's courts of Record in this Province ; one
moiety whereof, when recovered, shall be to and for
the use of our Sovereign Lord the King, his heirs and

FurtlLcr Riilargcuicnt of the Army Bill Act.

successors, and the other moiety thereof (with all
costs of suits) to and for the use of such person or
persons as shall inform or sue for the same ; and that
in default of i,^oods, chattels, land and tenements out
of and from which the money so forfeited may be
levied, such Director of the army bill office, Cashier,
officer or officers as aforesaid, against whom judgment
may be rendered for the money so forfeited, shall be
taken and conveyed into the common gaol of the
district in which such judgment shall be rendered,
and there detained, until he or they, respectively, do
pay the amount of such judgment, any law, usage, or
custom to the contrary notwithstanding.

IV. And be it further enacted by the authority
aforesaid, that each and every of such army bills, as
aforesaid, shall and may be received and taken, and
shall pass and be current to all and every the collec-
tors and receivers in this Province of Lower Canada,
of the customs or any revenue or tax whatsoever
already due or payable, or which shall or may here-
after be granted, due or payable to His Majesty, his
heirs and successors, under and by virtue of any Act
of the Parliament of Great Britain, or of the Provincial
Parliament or otherwise ; and also at the office of the
Receiver-General of this Province, from the said
collectors and receivers, or from any other person or
persons, bodies politic or corporate whatsoever making
any payments whatsoever to His Majesty, his heirs
and successors, for, upon any account, causes or
occasion whatsoever, and that the same in the hands

40 Further liulargcuicnt of the Army Bill Act.

of such collectors and receivers, and in the hands of
the Receiver-General of this Province, shall be deemed
and taken as if paid in the gold or silver coin passing
current in this Province, and as such, shall be charged
against and credited to such collector and receiver,
and to such Receiver-General as aforesaid, respec-
tively, in their respective accounts with each other,
and with Mis Majesty, his heirs and successors.

V. And be it further enacted by the authority
aforesaid, that the interest which from time to time
shall be due upon any such army bill, as aforesaid,
shall be allowed to all persons, bodies politic and
corporate, paying tlie same to the Receiver-General
of this Province, or to any collector or receiver of any
of His Majesty's customs, revenues or taxes up to
the respective days whereupon such bill or bills shall
be so paid ; provided always, that every such Receiver-
General, collectors and receivers as aforesaid, shall be
accountable for the interest on every such bill by
them or either of them received, for and during the
time during which such bill shall remain in their
hands.

VI. Imposes penalty on forging bills, and pro-
vides that such person or persons so forging and
offending, being thereof lawfully convicted, shall be
adjudged a felon, and shall suffer as in cases of felony,
without benefit of clergy.

VII. Sets forth the penalty in persons stealing
army bills.

VIII. Enacts that contracts shall be void in which

FurtJicr Ilnhwgcmcnt of the Army Bill Act.

any distinction shall be made between army bills

and cash.

IX. Provides that no arrest shall be made if a

tender in army bills be made.

X. No attachment shall issue if there be not an
affidavit of no tender in army bills.

XI. On capias ad satisfaciendum, a deposit of the
debt and costs in army bills shall stay proceedings.

XII. On fieri facias, etc., a deposit of the debt and
costs in army bills shall stay proceedings.

XIII. And be it further enacted by the authority
aforesaid, that of the amount of army bills now in
circulation, and hereafter to be issued a sum no less
than two hundred thousand pounds, and not exceed-
ing five hundred thousand pounds, shall be in bills of
one, two, three, five and ten dollars, such bills payable
as those of larger denominations, in bills of exchange
on London, and not bearing interest, and that the
holders of such bills shall be entitled to demand, and
receive at the army bill office on demand, army bills
of fifty dollars and upwards, bearing interest for the
amount of all such bills.

XIV. And be it further enacted by the authority
aforesaid, that during three months, to be computed
from the passing of this Act, it shall and may be
lawful to and for all and every person in possession
of army bills of the value of twenty-five dollars only,
bearing interest to have and receive at the army bill
office on demand, bills of one, two, three, five and ten
dollars, in exchange for such army bills of twenty-

48 Further Ii)ilargciiiciit of the Army /hi/ Act.

five dollars, toi;cthcr with the interest due and payable
thereon, uj) to the day of making such exchani^e.
Provided always that the Director of the army bill
office, or those employed under him, in exchanging the
said army bill, shall not, durini.; the said three months
next after the [)assing of this Act, be bound so to
exchange such army bills to a greater amount in any
one day than that of two hundred and fifty pounds ;
provided also, that the same person shall not, in any
one week, require to be so exchanged, more than one
army bill of twenty-five dollars, bearing interest as
aforesaid.

XV. And be it further enacted, that it shall be
the duty of the officer or officers to whom it may
appertain, as having the direction of the army bill
office, to lay before the commissioners immediately
after the passing of this Act, a correct account of the
amount of all such army bills as shall then be in
circulation, and at each second subsequent meeting
of the said commissioners, a true and correct account
of all such bills as shall have been issued and put in
circulation from the date of the last account rendered,
in order that the same may be laid before the legisla-
ture at its next ensuing meetin"-.

XVI. Provided always, that nothing in this Act
contained, siiall extend or be construed to extend
to entitle any holder or holders of any such army
bills as aforesaid, as may, at any time hereafter remain
unpaid or unsatisfied save and except the holder or
holders of such army bills as were heretofore issued,

Further Enlargement of the Ai my r>ill Aet. 41>

subsequent to the passing of tlie " Act to facilitate tlie
circulation of i^'-iny bills," and until the same exceeded,
on the whole, the sum of two hundred and fift\'
thousand pounds, and wliich now remain unpaid and
unsatisfied, to receive out of or from any monies that
there may be in the hands of the Receiver-General
in this province, or from any monies that may here-
after come into his hands, arisin<j[ out of any taxes or
duties heretofore imposed, or that may hereafter be
imposed, levied or raised by virtue of any Act (.)f the
Provincial Legislature, or from the rents and revenues
of His Majesty's territorial domains in this province,
or from any other monies in the hands of the
Receiver-General, payment of any such army bill or
bills as aforesaid.

XVII. And be it further enacted, that the director
of the army bill office, and all and every person or
persons aiding or assisting him in the issuing of army
bills over and above the sum of five hundred thou-
sand pounds, as limited by ihe Act fifty-third, George
III., Ch. III., shall be freed, discharged and indemni-
fied as well against the King's Majesty, his heirs and
successors, as against all and every other person or
persons, of, for, or concerning the making and issuing
of all, any and every such army bills, as shall have
been so made and issued beyond the said limitation.

The pacification of Europe did not now appear to

be a remote issue. The disastrous defeat of the

French army at Leipsic, and subsequent reverses,

had weakened the resources of Napoleon. The
1)

Abdiciitiou of Xapolcon,

alliaticc loctwccii Austria, Russia and I'russia, proved
a too forniitlahlc coniljinatiou for liini to cope with.
Wellington was driviuL;' Soult from Spain, and l^ritish
troops entered 1'' ranee on the 7th October, 18 13.
Paris surrendered to the allies on the 31st of March,
1 8 14. The abdication of Napoleon was ncijotiated
at Fontaincbleau on the 5th of April, 1814. Louis
the XVIII. arrived in Paris on the 3rd of May, and
on the 4th, Napoleon embarked on board the British
frigate Undaunted, an exile for PLlba.

Great Britain, in prolonged conflict with France
and her allies, under so great a leader of armies as
Napoleon, had become burthcned with a heavy debt.
The bank of ICngland had suspended specie pa)'mcnts.
Gold in relation to the currency of the realm was at
a high premium.

In October, iSi 3, the ounce <)r staivlAnl gold stood at £ -^ 9s. currency.

In March, 1814, «< « << - g^

In April, " « " " 5 5s. "

In Tune, " " .< << ^ ,o._

and the average price for llie months of Septeml)er, Oct()l)er, November

and December, wns ^^4. 7s. currency.

From PY^bruary, 18 14 to July 18 14, the rate of
P2xchange on London in Quebec for 30 days sight
bills, was announced by the commissioners from time
to time at 19% discount, but the prospect of peace
sent the rate down. The rate of exchange in those
days was not governed by the balance of trade, but
by the issue of battles.

Discount on Treasury lUlls.

In August 1st, 1S14, ttic discount was lA '.

:.i

t 1

15th,

1 1

'4/o

< i

29tll,

< (

127,

St'ptr.

I2tll,

( (

'OVo

Octr.

mil,

( <

87.

24th,

( (

57o

,r,

6th,

( (

((

^y^l

The escape of Napoleon from l^^lba, 011 the first of
March, 181 5, and tlie conseciuent apprehension of a
renewal of hostilities, sent the price of i^old in l'Ji<,dancl
a^L,^ain up to ^5. 7s. ; and in sympathy with tiie fall in
the value of current monej- in iMii^land, the discount
on bills of cxchani^e in Canada rose in July to 15°/,
but rallied towards the end of the month, when the
rate was quoted at 10% discount.

On the 2ist of January, icSi5, at one o'clock, His
Excellency he Governor-in-Chief came down in
state to \ 'legislative Council to open the first
session of the eiijhth Parliament. The Gentleman
Usher of the Black Rod was sent down to the
Assembly to command the attendance of that House,
and the members being present, the Honourable
Speaker of the Legislative Council signified His
Excellency's pleasure that they should return and
choose a fit person to be their Speaker, and present
him to His Excellency on Tuesday the 24th, at one
o'clock.

On that day. His Excellency being seated on the
throne, and the Assembly, with Mr. Papineau, their
speaker elect, being in attendance below the Bar, the
Honourable the Speaker of the Legislative Council

Meeting of Parliament.

\ P

expressed His Excellency's allowance of the choice
of the 1 louse of Assembly.

In the Speech from the throne, His Excellency
alludes to the reinforcements he had received from
His Majesty's Government, which enabled him to
diminish the pressure of war on the inhabitants of
the Province — and also to the demands of " the public
service continuing various and large," and that he
looks to Parliament for continued exertions to meet
them, — for a renewal of a productive revenue bill, and
of such of the provisions of the army bill act, as it
shall be deemed expedient to adopt for the future.

With reference to the " Act to facilitate the circu-
la! "on of army bills " and the two subsequent Acts
or.Miding the provisions thereof, I may remind my
readers that the original act provided that a sum of
fifteen thousand pounds should be forthcoming from
the Provincial Exchequer, for the payment of interest
on the first issue of army bills, amounting to two
hundred and fifty thousand pounds, and also pro-
vincial security for the ultimate payment of army
bills to that amount, if such army bills should remain
unpaid at the expiration of five years.

The first Act to extend the provisions of the
original Act, which authorizes an increased issue of
army bills to the amount of two hundred and fifty
thousand pounds currency — the whole issue not to
exceed five hundred thousand pounds, limits the
whole provision for interest to be paid out of the
Provincial Exchequer to fifteen thousand pounds

Provisions of Army Bill Act.

currency per annum, and gives no security or pledge
for the ultimate payment of army bills beyond that
for the first issue of two hundred and fifty thousand

pounds.

The second Act to extend the provisions of the
original Act, authorizes an issue, in all, of fifteen
hundred thousand pounds : but gives no security for
the payment of interest on any amount of army bills
in excess of two hundred and fifty thousand pounds
as set forth and authorized in the original Act of ist
of August, 1812.

CHAPTER III.

Americans prepare to continue the war — Treaty of peace — Report on
Army Bills in circulation — Hills lost or destroyed ^^9000 — Final
close of the Army J5ill Office.

The Americans contemplated, with no Httle appre-
hension, the pacification of Europe which followed
the defeat of Napoleon at Leipsic and his subsequent
exile to Elba. They once thoui:!^ht that there would
be no difficulty in annexing Canada, that the war,
for them, would be a mere promenade ; but instead
of annexin"; Canada, Canada annexed the whole terri-
tory of Michigan, rnd administered its civil Govern-
ment. And now tiiai peace in Europe had apparently
been restored and had set free the veterans of the
15ritish army for other service, the Americans con-
sidered that they had just cause for apprehension.
The 1^'esident at once communicated with several
Governors of States. In July, icSi4, he wrote:
"Great Britain will now have a large disposable force,
both naval and military, and with it, the means of
Cfiving the war in xAmerica a character of new and
increased activity and extent ; " and as a measure of
precaution he deems it advisable to strengthen them-
selves, and the line of 'the Atlantic, and invites the
executive of certain states to organize, and hold in

Treaty of Peace.

;).»

readiness for immediate service, a corps of ninety
thousand five hundred men.

In anticipation of a pmlonoed state of warfare, tor
which the Americans were preparin-. the committee
upon the army bills, report to the Mouse of Assembly
on Friday the 17th of February, 1815, that it is ex-
pedient to renew the provisions of the two Acts with
some modifications, and to increase the amount ot
a. y bills which may be in circulation to i:2,oor,ooo
currency ; and the house havin- concurred, a bill was
read the first time-second readin- fixed for Monday
the -oth. On that day the bill was read aoam, and
referred to a general committee for discussion on
Wednesday the^22nd, wh-n some progress was made :
the bill to be further discussed on Friday the 2\S\\.
On Mondav the 27th, the committee report the
amendments, and the house having concurred, it is
ordered that the bill, thus amended, be engrossed.
On Tuesday the 28th, the bill, as amended, for facili-
tatincr the circulation of army bills, was read a third
time,\nd passed the House of Assembly. But the
bill was thrown out in the Upper House for reasons
which .shall presently appear.

On the ist March, 181 5, however, a message was
received from His Excellency the Governor-in-Chicf,
acquainting the House of the Ratification of the
Treaty of Peace. This was the Peace of Ghent,
concluded between Grekt Britain and the United
States, made substantially on the status quo ante
bellum, and signed on the 24th December, 18 14.

I! :'

Army Bills in Circulation.

In tlie Canadian Archives there is the following report
rcspectinfj the working of the Army Bill Act, showing
the amount of bills in circulation in February, icSi5.

Copy of report re amount of army bills in circula-
tion in Febuary, 1S15, together with the report of the
board upon the subject.

"Quebec, igih Febniaiy, 1815.
" We, the uiKleisigiied, liaviiig assembled at Your Kxcelleiicy's desire
for the i^urpose of coiisiderint; the sul)j.'Ct of army l)ills in circiihition,
and havin<; Iiad reference to the several representations your Excellency
has made to Ilis Majesty's (iovernment thereon, we have great satis-
faction in staling that all the beneficial effects of the measure which
have from tinu to time been anticipated by Your Kxcellency, have
been fully realized ; in illustration of which the following calculations
are submitted. At jiresent there are about ;^8oo,ooo in circulation in
bills bearing interest, Ixring a total of ^1,300,000 ; the interest annually
upon the ^800,000 at 6 per cent is _^48,ooo, deduct i)aid by the pro-
vince /"!5,noo, leaving a balance of ^33.000, which is the total interest
pai<l from the army extraordinaries for the use of ^i,3OJ,O0O, being a
trifle more than 2j4 per cent i)er ainuim — into this, calculation may
al.io l)e taken to show the advantage derived by the public, that the
loss upon exchange which has fluctuated from 2J2 t<> 22J-2 I'«ii" cent,
discount, has been altogether saved upon the sum now in circulation,
and what further loss the public must have sustained by the exchange,
but for the relief afforded by this paper medium, it is not i)ossil)Ie to
calculate, no doubt it would have lieen enormous ; another advantage
not to be overlooked, is the facility with which army iiills hive been
conveyed to the m>)st remote parts of this extensive command, to meet
the exigencies of the service al an inconsiderable expense and risk,
whereas the transport of specie would have been attended with danger,
delay and heavy cost, besides which, the enemy has been deprived of
his booty in two instances in his predatory incursions into Upper
Canada, by the facility with which the contents of the military chests
at York and Fort George were destroyed, williout any loss to the
public. In explanation of this circumstance it is necessary to ol)serve
that as the army bills do not become cash by the system adopted, until
they are issued and dated, and the numbers of the bills having been

Arwjf Bill Office,

kept by the accountants, they were replaced from the army bill office,
or a similar amount in lieu thereof.

UnderstandincT that another bill is in progress in the Trovincial
Lei^islatare now in session, extendin<r the provisions of the former
Army Bill Acts, by which a farther sum of ;{:5oo,ooo in bills not bear-
ina interest may l)e issued, which, ad le 1 to llie ^1,300,000 at present
i.rcirculation, will make a total of ^1,800,000, reducing thereby the
interest paid the government for the use of this gross sum to a little
more than \^,i per cent, per annum.

The total expense of the army bill office estal)lishment for the last
year, amounted to about i:4.ooD, ;^2.500 of which is defrayed by the
Province, and the remaining ;^i,5oo from the military chest. In all
probability, this excess of ^1,500 will be more thm covered by the
accidental loss of army bills, which, from the large amount in circu-
lalion, cannot fail of being very considerable.

In August 1817, it is provided by the first Army Bill Act that the
province'wiU no longer i)ay interest upon army bills that the holders
may demand specie for them, and that the Governor may at any time
previous to that period, call in an 1 redeem with specie the army bills
in circulation ; it is for the consideration of Your Excellency, how far
it may be expedient to suggest to His Majesty's government to avail
itself of any favorable circumstance of furnishing specie for this purpose
upcn advantageous terms in the course of tire ensuing two years, to
provide for the redemption of these bills, with )ut waiting the expiration
of the period prescribed by the Act.

These suggestions and calculations are submitted for your Excellency's
consideratio^n, but the inferences we have drawn will be rendered more
conclusive when the state of public affairs will be known with more
certainty, when the Army Bill Act shall have passed, when Your
Excelk^icy shall have received on the 27th inst. the periodical report
of the commissioners for fixing the rate of exchange, and the next
monthly account of the amount of bills in circulation from the director

of the army bill office.

(Signed) \V. II. Robinson,

Com>' Gen'.

(Signed) J. Halk,

Dep.- Paymaster Gen'.

(Signed) NoAH Frker,

Military Secretary.

'I\ \\'

Extension of Circulation Opposed.

The bill referred to in the foregoing report as in
progress in the Provincial Parliament was thrown out
in the Upper House ; and I find a letter in the Quebec
Gazette of the 31st March, 181 5, respecting its rejec-
tion, headed :

Army Bills.

The tate of the new Army Bills Act, lately passel by the House of
Assembly and rejected by the legislative council, having excited public
curiosity, we are happy in being enabled by a correspondent, to gratify
our readers with the following observations on that interesting subject.

The Act of 1814. authorised tlie issue of army bills w\-) to the 1st day
of February, 1815, to an amount not exceeding ;i^i,5oo,ooo currency at
any one time in circulation. This Act remains in full force in respect
to all bills issued within the above limits, and will continue in force
until the end of live years, counting from August 1812, and by the
monthly returns from the army bill office laid before the legislature, it
appears, that the above sum of ^^ 1,500,000 was amply sufficient for
the public service in both ])rovinces, the largest amount stated to be in
circulation at any period during the last year being only about

;^I,205,000.

At the time this Act was jiassed, the public were suffering for want
of small money ; a clause was therefore inserted, requiring that, of the
amount so to be issued, a sum not less than ^^200,000 nor more than
;^5(30, 000, should be issued in small bills bearing no interest — and at the
same time, to guard against the pernicious effects of a superabundance
of small bills in circulation, a proviso was wisely added, entitling the
holders of such l)ills, "to demaml and receive at the army bills office,
on demand, army bills of $50 and upwards, bearing interest for the
amount of all such bills." This proviso is still in force but was wholly
omitted in the new bill.

Immediately after the passing of this Act on the 17th of March,
1814, the issie of small bills commenced, and was continued through
the summer and fall, and by the end of November, it would appear the
circulation of both Provinces was more than fully supplied, for early in
the following month we find by the monthly returns, that the public
began for the first time to avail themselves of the above proviso, by
bringing in small bills in exchange for large ones. Accordingly it

Extension of Circiilatuvi Opposed.

appears, that between tlie i2lhof Deceml)er, 1S14, and 31st of January,
1S15, no less than ^^43,925 was issued in large notes bearing interest,
in exchange for small ones. As there is no reason to suppose that
government excee led the limits prescribed by the Act, here is plain
proof that even half a million in small notes was more than sufficient
for the circulation of both Provinces, seeing that in a!)()at ten months
no less than ^'44,000 worth of them were brought back in exchange
for large bills, exclusive of what were paid in during that period for
bills of exchange. Tiie i)re>umplion therefore is, that a smaller sum
would have been ciuite sufficient during the war, and that a still smaller
sum might suffice during ])eace.

Here it may be proper to remark, tlial the operation of the above
proviso had the in )st salutary effect, l)y counteracting any excessive
issue of small bills, and to this circumstance, in conjunction with the
management of the exchange commissioners, may fairly be attril)Uted
the high and unprecedented degree of credit in which the paper hath
hitherto been so ha[)pily maintained.

With this experience before our eyes, the object of the framcrs and
advocates of the w^w army bid is altogether inconceivable. It began
by extending the authority to issue armv bills to an amount not exceed-
ing ^2,000,000 at any one time in circulation. This extension was
surely unnecessary in a time of peace ; seeing that the former limits
afforded more than sufficient for tlie public service, even during war.
But this was not the principal objection to the bill.

In a subsequent clau->e it was enacted, that of the amount so to be
issued, a sum not less than one million should be issued in small notes,
bearing no interest, and the wise proviso in the former Act, for con-
verting small notes into large ones, was entirely omitted. Tiiis extra-
ordinary clause having passed in the Assembly, and the bill arrived at
the third reading, a rider was proposed and agreed to, in that House,
authorising tlie Commander of the forces, at any time, to buy up with
ca«h, the whole or any part of the army bills bearing interest, whenever
he might think proper.

In this shape the liill made its appearance in tlie l>egislative Council,
where, luckily, the members were too well acquainted with the subject
to suffer its dangerous imperfections to escape their notice.

The words "not less than one million" were the first that struck
their attention. Hy that clause as it originally stood, government might

Ilxtension of Circulation Opposed.

have issued the whole two million in small notes, at same time that they
were authorized by the rider to buy up all the large ones. But a com-
munication having taken place i)etween the two houses, it was agreed
to consider the words " iu)t less" as a clerical error, and to substitute
in their stead the words '• not exceeding " which was accordingly done
in a ])rivate way by the two speakers, etc. This was considerable im-
provement to the clause, but it was liable to insurmountable objections,
for want of the old proviso so often menlioneil, to relieve the circulation
from superfluous sm.ill notes there being no other mode of redemption
provided than that of bills of exchange on London, which are only
wanted by a very small portion of iiie community, and therefore, the
issue of small notes to the extent of one million, must inevitably have
produced a depreciation, seeing by the experience of last ye;ir, while the
war expenditure was going on to its full extent, that even half a millitm
was too much. Mad the Legislative Council been at liberty to amend
this bill, by inserting the old proviso for converting the supeifluous
small bills into large ones, everything would have found its level by
means of that salutary check, and all might have gone well — but unfor-
tunately, this all along had been considered (very erroneously) as a
money bill, which the Upper House must not touch, and therefore
they had no other option than to pass it or reject it. We do not pretend
to give any report of the debates in council on this subject, but we
understand it was very fully discussed during several sittings, and that
finally the members were unanimous in rejecting the bill, as being
the safer of the two alternatives.

The introduction of this paper currency, at the commencement of
the late war with the United States, as the substitute for specie, at a
time when there was very little specie in the country, and when the
public service could not have been carried on without it, was certainly
a seasonable and judicious experiment, and its unprecedented success
has not only been a great pecuniary saving to Great Britain, but it has
also contributed in no small degree to the preservation of these
Provinces.

The credit of this paper ought, therefore, to be considered as an
object of the first importance and carefully supported to the last, being
a most valuable resource, to be again resorted to by government on
future occasions in case of need. Mistaken notions of economy in
attempting to save the interest by buying up the large bills and making

Extension of Circulation Opposed.

excessive issues of small ones, if carried into practice, would be fraught
with most dangerous consequences, and ought always to be resisted,
for when depreciation begins, there is no knowing to what extent it
may go, and the credit of the paper once lost will be remembered for
a century to come, and render it impossible again to resume the system
with any success.

Finding by experience that this paper is so advantageous to Great
Britain, while at the same time it affords accommodation to .noneyed
men in this colony, some well-informed persons are of opinion, thit it
would be good policy to continue the system in peace as well as in war,
and have expressed their surprise that no steps were taken after the
rejection of the New Army Bill Act, to introduce a short bill, to
authorize a further issue of army bills for a limited time, under the Act
of 1814, which it is supposed would have met with no opposition in
either house, the provisions of that Act having been found by expe-
rience to answer every desirable purpose. And we confess we are
much inclined to this opinion, when we reflect that Great Britain has
no money lying idle -that on the contrary, she is paying many millions
annually for the interest of what she owes as a nation, and that she
cannot send specie or anything else to this country, without adding so
much, in some shape or other, to her national debt. It is true, the
legal interest in England is only 57, , while here it is 67,. But it must
at^ame time be recollected, that ail our paper serves as a substitute for
specie, that only about two-third^ of what is at present in circulation
bears interest, an.l that the Province contributes ^15,000 per annum
towards that interest. To this must be added the advance of money
in England (equal to perhaps six or eight mouths interest) and the
ordinary expenses of purchasing and sending out the specie-and it
must also be recollected that specie as a circulating medium, freiiuenily
finds its way into the neighbouring States, and therefore recpures a
frequent supply to keep up the requisite quantity, while, on the con-
trary, our piper remains at home, and requires only a judicious regu-
lation of the rate of exchange, and due precaution against forgery to
keep it in full credit.

Further to illustrate these oljservations, we have only to present our
readers with the following statement in round numbers, which, by the
returns from the army bill office, cannot be very far from the truth.
Suppose ^[,200,000 in army bills at present in circulation. Of

i! !-

1^.

62 Extension of Circulation Opposed.

which /"Soo.ooo Ijcais iiilt-icsl at 67,, /"4S,0i)0, and ^"400,000 bearing
no interest, being small i)ills, ;^l,200,ooo. Deduct so much paid l)y
the Province /"i 5,000, balance of interest (being only 23^7o ""
^1,200,000), — ,1^33,000. Suppose bullion at the mint prices, arid that
Great ISritaiii were to purchase and send out specie for the redemption
of all these army bills, the expenses in freigiit on /"r, 200,000 cannot
be less than i/^7oi say /"i8,ooo, one year's interest on ;^l, 200,000
@ 57o'/6o.ooo-Z'78,ooo.

Deduct the foregoing balance of interest /io33»ooo

Loss to Great iJritain by sen<ling out specie exclusive of tiie

risk and advance of money ;i^45,ooo

Thus it appears that Great Britain gets a substitute for specie in
Canada to tlie amount of ^1,200,000, for which she pays 2;^4.'7o per
annum, and that it would cost her at least /'45,ooo to replace that
sul)stitute with specie !

Where can Cheat Britain get so advantageous a loan?
But even supposing the whole of our army bills were to l.>ear interest
— still we are of opinion that they would be atlvanlageous to Great
Britain, particularly when it is considered, that without them, we should
require an annual supply of specie to a certain extent, to keep up the
requisite quantity for circulation.

Expense of sending out ^!,2GG,ooo in specie as above

stated, including one year's interest .... ;^78,ooo

^'1,200,000 in army bills, all bearing 6/0 interest. ^^72, 000

Deduct so much paid by the Province 15,000 57,000

15alance saved to Great Britain, supposing that all our l)dls

bore interest 21,000

Again we may ask where can Great Britain obtain a cheaper loan ?
N.B. What is meant by the "advance of money" is the difference
between the time when money would be paid in England for the
purchase of specie to send here, and the time at which bills drawn here
for the public service get home and become due, which, in the ordinary
course, is found on an average to be six or eight months — and the
interest for that time is of course so much more to be added in favour of
our army bills, which are only issued when they are wanted, and Great
Britain is so much more the gainer. It would be easy to piove that at
least half a million has been saved to Great Britain in one way or other,
by means of our army bills up to this date. — Quebec, 24th March, 1815.

A moil Jit of Army Bills in Circulation. ('»'')

The following statements relating to the circulation
of the army bills, copied from official documents in
the Canadian Archives Bureau, will prove inter-
esting to professional bankers.

Circulation of Army Hills. ^^^,^, ^^^^^ Office,

24th April, 1S15.
Account of tiik A.mouni' of Army Bn.i.s in Cikculation.
Balance of army bills remaining in circulation the 2']\.\\

March, 1815.... ^1,249.996 5

Dkddct : —
So much redeemed by bills of exchange on London
since the 27th March, 1815, viz. : —

In large bills ^ 43 '5

In small bills 3-594 5 ^' 3.63S o

175 four dollar bills, worn out, have been

redeemed with specie since last report 175 o

459 one dollar bills, rendered useless by
wear, have also been redeemed since last

report 1 14 15

The following bills have been redeemed at,

and received from the military chest at

Montreal, viz. : —

19,463 bills at 4 dollars. ... . ;!<,'l9,463 o

56,354 bills at I dollar . 14.088 10 33,551 10

117 bills at 10 dollars^

137

105

308

(( .< 2

Of the new issue of
small bills rendered
useless by wear, or
otherwise, have been
redeemed between
the 27th March and
24th April, 1815.. .

Balance of army bills remaining in circulation the 24th

April, 1815 ^^1,211,857

2,640 dollars

660 o ^38,139 5

To the Commissioners
for fixing the rate of exchange,
&c. &c. &c.

(Signed) James Green,

Director.

¥■

Amount of An/ty JUils in Circulation.

Circulalion of Aimy IJills.

AkMV IJii.i, Ol'i'iCK,

2211(1 May, 1815.

Account ok iiir. Amount of Aumy Uii.i.s in Circulation.

Balance of army bills remaining; in ciroulaiion the 24tli

April, 1815 ^"i, 21 1,857 o

Deduci' :—
So much redeemed by bills of exchange on London
since the 24th A[)ril, 1S15, vi/. : -

In lai-ije bills /^ 831 5

In sm ill bills 2,932 5

^"3,763 10

150 four dollar bills, worn out, have been

redeemed with specie since last report 150 o

70S one dollar bills, rendered nseles-. l)y wear,

have also been redeemed since last report. . . 177 o

64 bills at 10 dollars'

58 " " 5
no " " 3
209 " " 2
619 " " I
Affidavit
before the
Judges. . . I

Of the new is>ue of
small l)ills remlered
useless by wear, or
r otherwise, have been
redeemeil between the

24th A|)iil and 22nd

May, 1815 574 10 ^4/^65

2,298 dollan

Halance of army bills remaining in circulation the 22nd

May, 18 1 5 ^1,207,192

To the Commissioners
for fixing the rate of exchange,
iJtc. iS:c. (S:c.

(Signed) James Green,

Director.

Amount of Antiy Bills in Circulation. G.'

Circulation of Army Bills.

Army Bill Office,

19th June, 1815.

Account of the Amount of Army Biils in Circulation.

Balance of army bills remaining in circulation the 22n(l
May, 1815 ^1,207,192 o

Deduct : —

So much redeemed by bills of exchange on London
since the 22nd May, 1815, viz. : —

In large bills ;Cl3.SI2 10

Four dollar bills worn out have been re-
redeemed with sp^^cie since last report

One dollar bills rendered useless by wear
have also been redeemed since last report. . .
30 Bills at 10 dollars^

Of the new issue of
small bills rendered
useless by wear, or
^ otherwise, have been
redeemed between
the 22nd May and
19th June, 18 1 5

594 dollars^

Balance of army bills remaining in circulation the 19th
June, 1815 ;ii, 193.531 o

8 •• "

((

26 " "

79 " "

18 " "

Affidavit

before the

Judges.

•

((

148 10 ;^I3,66l o

(commissioners
ixing the rat >f exchange,
&c. iVc. &c.

(Signed) James Green,

Director.

WT.

Amount of Army Bills in Circulation.

Circulation of Army Bills.

Army Bili, Office.

nth September, 1815.

Account of the Amount of Army Bills in Circulation.

Balance of army bills remaining in circulation the 14th

August, 1815 £ 628,792 15

Deduct:—

So much redeemed by bills of exchange on London
since the 14th August, 1815, viz. : —

In large bills ;^75.I25 o

In small bills 240 o

;^I22,365 o

976 four dollar bills, worn out, have been

redeemed with specie since last report

4294 one dollar bills, rendered useless by
vv^ear, have also been redeemed since last
report .

--Bills at ID dollars^

(S 1 (

976 O

1,073 10

Affidavits
before the

Judges 6 '*

6 dollars

Of the new issue of
small bills rendered
useless by wear, or
otherwise, have been
redeemed between
the 14th August and
I I th Se pt ember,
1815 Affidavit

I 10 ,^124,416 o

Balance of army bills remaining in circulation the llth

September, 1815 ;^ 504,376 15

To the Commissioners
for fixing the rate of exchange
&c. &c. &c.

(Signed) James Green,

Director.

r, 1815.

LATION.

28,792 15

!4,4i6 o

4.376 IS

Amount of Army Bills in Circulation. C7

Circulation of Army Bills.

Army Bill Office,

9th October, 18 15.

Account of the Amount of Army Bills in Circulation.

Balance of army bills remaining in circulation the nth

September, 181 5 ^504.37615

No large or ten dollar bills issued since nth
September, 181 5.

Deduct : —

So much redeemed by bills of exchange on London since
the nth September, 1815, viz. : —

^" '-'^'■K^ l^*"s ^43.331 5

In small bills 25,649 o ^68,980 5

240 four dollar bills, worn out, have been

redeemed with specie since last report 240 o

663 one dollar bills, rendered useless by
wear, have also been redeemed since last

'■^P°''t 165 15 69,386 o

Balance of army bills remaining in circulation the 9th

^^'^''"'■' '^^5 ;^434.99oi5

To the Commissioners . (Signed) James Green,

for fixing the rate of exchange. Director,

&c. &c. &c.

Director.

' V t ■

i' ' i'

68 Amount of Armj/ Bills in Circulation.

Circulation of Army Bills.

Army Bill Office,

6th November, 1815.

Account of the Amount of Army Bills in Circulation.

Balance of army bills remaining in circulation the 9th

October, 1815 A34.990 15

No large or ten dollar bills since that date

Deduct : —

So much redeemed by bills of exchange on London since
the 9th October, 1815, viz.: —

In large bills ;i^' 6, 943 15

In small bills 10,695 'O

;^27,639 5

94 foi'r dollar bills, worn out, have been

redeemed with specie since last report 94 o

426 one dollar bills, rendered useless by
wear, have also l)een redeemed since last
report 106 10 27,839 15

Balance of army bills remaining in circulation the 6lh

November, 1815 ;^407,ISI o

To the Commissioners (Signed) James Green,

for fixing the rate of exchange. Director.

&c. &c. &c.

Army Bills Redeemed.

815.

)N.

90 15

J9 15

51 o

or.

General abstract of statements shewing the manner in which the sum
of ;(^8S,962 10. currency, imprested to me by warrants from His
Excellency Sir George Prevost, and His Excellency Sir Gordon
Drummond, between the nth October, 1814 and 24th August, 1S15,
has been appropriated.

A. Statement of one dollar bills redeemed between the 13th
Septeml)er, 1814, and 6th November, 1815 inclusive,
your reports transmitted to the Commissary-General
from time to time, in conformity to instructions from
His Excellency Sir George Prevost, Governor-iu-Chief

and Commander of the forces ;i^l 6,029 5

B. Statement of four dollar bills redeemed within the above

period, and reported to the Commissary-General 14,381 O

C. Statement of bills of 10, 5, 3, 2 and I dollars, of the last
emission, rendered useless by wear, or otherwise, which
have been redeemed within the same period, and re-
ported to the Commissary-General as above. . , 8,879 o

"D. Statement showing how the sum of ;,^48,962 10. cur-
rency, has been a])propriated, which I received for the
purpose of exchanging small notes with bills bearing
interest of 400, 100 and 50 dollars each 48,962 10

E. Statement showing the number of counterfeit bills
which were discovered in the military chest at Quebec
and redeemed by me with specie, paid to John Hale,
Esq., Deputy Paymaster-General, pursuant to the mili-
tary Secretary's letter, dated Head Quarters, Montreal,
i6th November, 1814 39 10

^88.291 5

Balance remaining in my hands on the 6th November,
1815, for the purpose of daily changing small notes of
the above description

617 5

^88,908 10

Errors excepted.

Army Bill Office,
22nd Nov., 1815.

(Signed) James Green,

Director.

Army Bills in Circulation.

Circulation of Army Bills.

Army Bill Office,

4th December, 181 5.

Account of the Amount of Akmy Bills in Circulation.

Balance of army bills remaining in circulation the 6th

November, 1815 ^^407, 15 1 o

No issue of large or ten dollar bills since that date

Deduct : —

So much redeemed by bills of exchange on London since
the 6th November, 18 1 5, viz : —

In large bills ;,^i,i8^lo

In small bills. . . 4,582 15 ;^5,77o 5

So much redeemed by specie, commencing
the 24th November, 1815.

In large bills ;^3.3l8 IS

In small bills, .. 801 15^^4,120 10

174 four dollar bills, worn out, have been re-
deemed with specie since last report.. ........ 174 o

1231 one dollar bills, rendered useless by wear,

have also been redeemed since last report 307 15 ^^10,372 10

Balance of army bills remaining in circulation
the 4th December, 1815

;^396.778 10.

To the Commissioners (Signed) James Green,

for fixing the rate of exchange, Director.

&c. &c. &c. .

Army Bills in Circulation.

! lO

\ lO

Memo.— Letter from James Green, Director, dated l8th December,

1815, asking for further warrant for ^10,000 currency, to pay interest

on army bills.

Report of Circulation, ist January, 1S16. gives balance in circulation
4th December, 1815, ;{;396,778 o; from which deduct bills redeemed
to 1st January, ^65,281 15 ; leaving a balance in circulation 1st Jan.,

1816, of;^33i,496 15-

Report of Circulation, 29th January, 1S16, says, balance in circula-
tion 1st January, 1816, ;^33i,496 15 ; f'o»" ^^''li'^^i ^'^duct bills redeemed
to 29th January, 1816, ^30,213 ; leaving a balance of army bills
remaining in circulation the 29th January, 1816, of ^^301, 283 15.

Report of Circulation, 26th February, 1816, says, balance in circula-
tion 29th January, ^301,283 15 ; deduct bills redeemed, £^\,^^^ 15 5
leaving a balance of ^279,720 o.

Report of Circulation, 25th March, 1816, says, from balance 26th
February, deduct in bills redeemed, ^36,970 10 ; leaving balance of

;^242,749 10. , , ,

Report of Circulation, 22nd April, 1S16, says, from balance 25th
March, deduct in bills redec neJ, ^16,678; leaving a balance of

;{'226,07I 10.

Report of Circulation, 20th May, 181 6, says, from balance in circu-
lation 22nd April, 1816, deduct in bills redeemed, ^28,096 15; leaving

a balance of ^197,974 15.

Memo.— From a letter signed James Jackson, dated 3rd June, 1816,
to Lt.-Col. Fulton, I see that the value of a silver shilling at that time
was 25 coppers.

Note. — In a letter from Geo. Wcod, Com.-Genl., dated 8th
October, 1818, to Major Bowles, Mil. Secretary, he slates that during
the summer of 1818, the rate of exchange for public bills was at par,
while private bills had uniformly been below par, from one to three
per cent., the demand for public bills having been very large.

Note.— From a letter dated 9th December, 18 18, I End that the
rate at which the dollar was issued to the troops was 4s. 8 1.

Note.— From a proclamation issued by His Grace Charles Duke of
Richmond, Lennox and Aubigny, Commander of the forces in Canada
and British North America, dated 17th December, 1S18, I find that
the date of closing the army bill office was enlarged to the ist April,
1819.

72 £g,ooo Lost or Destroyed — Consequent Gain.

Note. — Letter from James Green, Director, asking for continuance
of army bill office to 1st August, 1820, as it had i)een accurately ascer-
tained that there remained to the Crown a saving of nine thousand
pounds and upiuards oit hills lost or destroyed to that amount, and he
wished to have time to carry the affairs of that office to a satisfactory
close, as was usual witii other pat)ltc offi:es similarly situated. (Date
of letter, 19th May, 18 19.)

Office continued to six months after 1st August, 1819, by sanction of
War Department (Treasury Chambers).

Memo. — Grand total of the numl)er of army bills issued, viz. : —

Bills at 400 dollars each ....... 5,500. . . .;i^550,ooo

" " lOD «' " 34.605 ... 865.150

" "50 " " 63914... 798,925

" " 25 " "...... 92,726 ... 579-537 'o

/2,793,6i2 10

" " 10 " " ....... .127,600. .. .;{^3I9,003

" " 5 " "....... 72,000.. . 90,000

" " 3 •* " 64,030 ... 48,000

" " 2 " " 106,500 53-250

" " I " " 165,000.... 41,250 ;^55i. 500 o

Bills redeemed with ) at 4 dollars 52,131 ... 52,131

specie only ) at r dollar. 179,000 . . . 44,750 96,881 o

'iolal ^3.441,993 10

Note. — Army bill office is or^lered to l)e continued to ist August,
1S20. Army bill office is ordered to be c >ntinued to 24th December,
1820. From a letter, dated Treasury Chambers, 23rd October, 1820,
the army bill office was finally closed 24th December, 1820, Mr. Green
paying into the hands of Commissary-General Wood the balance
remaining in hi^ hands to pay interest, namely, ;^8i9 133. 7d. currency,
at the rate of 5s. currency to the dollar.

From the i.st of Januaiy, 181 5, to the 23rd Novem-
ber, when notice was given of the intention of the
government to redeem the army bills in circulation,
there is no official notice respecting the rate of

Rate of Exdiangc in i8r^.

< •>

exchange for bills on London at 30 days sight.
Neither can I find any quotation in the newspapers
of the day, save one in tlie Quebec Gazette of the
14th September, 181 5, under the head of "money,"
which is as follows :

" For sale at par, for cash ; a few government bills
of ;^300 and ^100 sterling, at thirty days on London.
Apply to the Editor."

The pacification of Europe had effected a L,reat
change in the value of bills drawn on the treasury in
London. As the demand for such bills appears to
have been limited in Canada, resort was had to the
Boston and New York markets. The following
correspondence, however, shows that financial opera-
tions in the United States, for the purpose of procuring
specie to meet the exigencies of the public service
in Canada, were attended with no little difficulty.
The Commissary-General writes to the Military
Secretary as follows :

Commissary-General's Office,

Quebec, 15th May, 1815.

Sir,

I have the honour to report to you, for the information of His
Excellency the Lt. -General Commanding, that I have this clay received
letters from Dy. Asst. Corny. -General Wybault, dated New York, the
3rd inst., in which he states, on the subject of his mission, that exchange
at that place is at 4 per cent, discount, and that as the banks to the
southward of Massachusetts have not yet commenced paying out specie,
it is at a premium of four p. cent, at New York, making a loss of 8 per
cent, on negociation, and it appears there would be the same loss at
Boston. Mr. Wybault regrets that he is directed to sell bills for specie,
as that will betray the secret of his mission. The first bill he attempts

Premium on Specie.

¥.■■
vs

to sell, and the knowledge that he has bills for sale, will at once reduce
the price, as it will naturally be supposed he requires a very large
sum ; besides, as there will be a premium on the specie, the discount
on the bills, if paid for in specie, will appear much higher than the
current rate, which, for obvious reasons, ought not to be the case ;
under these circumstances, and considering our extreme distress for
money, not Hving a thousand pounds in the Canadas, without a chance
of being relieved by an importation from England to any great extent,
in consequence of the reports we have lately received through the
press of extraordinary event? in Europe, I beg to submit to His Excel-
lency whether Mr. Wybault should not be directed to procure specie for
the government bills in liis possession upon the best terms he can effect
the negociation ; receiving in payment American bank notes and then
exchanging them for specie, making tlie real exchange upon the bills,
and charging the premium upon the specie in his account of disburse-
ments, with expenses of transportation and other charges generally
attending the transaction. I trust you will be pleased to lay this letter
before His Excellency, that I may be honoured with his commands as
early as possible.

I have the honor to be. Sir,

Your most obedient humble servant,
To Major O. Foster, (.Signed) W. H. Robinson,

Military Secretary. Corny. -Genl.

[From Canadian Archives, Series C 331, page 98.]

Copy of Lktter re Bringing Specie into Country.

Iti

Halifax, 9th June, 1815.
Sir,

Finding that Commissary-General Robinson had written to the
Deputy Commissary-General here, representing the very pressing
demand for specie in the Canadas, I have made every exertion to afford
you a supply, which I could not have been able to do but by obtaining
a loan rom he Naval Storekeeper; with the assistance of which I
have directetl to be shipped on board H.M.S. Bulwark ;^30,ooo con-
signed to Mr. Robinson.

I think it right to apprise you of our poverty, that you may not place

Rate of Exduingc for Bills on London. 75

too much reliance on supplies from hence. At the same time I shall

always be willing to make every exertion to afford you all the aid in

my power.

I have the honour to be, Sir,

Your most obedient humble servant,

(Signed) J. C. SHERliROOKE,

I^t.-(jeneral.

Those letters were written after the news of the
escape of Napoleon from Elba had reached this side
of the Atlantic. All Europe was astir with excite-
ment over his escape ; and the consequent certainty
of war had a depressint:^ effect upon the rate of
exchange. Bills on the Treasury were quoted at
I2y discount. But Waterloo broucrht peace. Bills

/o '^ '•

on London rose in value ; and the discount on
30 days sight bills was reduced to 1% to 2/^
in Boston, at which rate it stood in October 181 5,
and continued at from 2% to 3% discount, till the
17th of April, 1 8 16, when a temporary increase in
the rate occurred.

The quotations in New York for Bills on London
were rather misleading. They were quoted at a
premium of from 10 % to 12% ; but a correspondent
in Halifax of the Quebec Gazette, enlightens the
public on the subject. The letter is dated 7th
October, 181 5, and is headed Bills of Exchange.
" By the late arrivals from New York, we observe
that Exchange on England is quoted at a Premium
of from 10 to 12%, which causes much more specu-
lation in this place. A person, unacquainted with
the mode of transacting business in New York, would

Price of Gold in England.

i^fi

lit

naturally infer that specie of some kind was the
equivalent, and at the quoted Premium ; but their
insolvent Bank paper is the payment — which paper
is at a discount of 14% for silver or gold, conse-
quently Bills on England, which are nominally at 10
to 12/^ Premium, may be bought in New York by
sending on hard coin at a discount."

The price of gold in England from January, 1816,
to June 9th of the same )'ear, did not average over
£df. IS. 6d. currency, the mint price as I have before
stated being £1 17s. lo^d. per ounce; and from
June to January 1817, the average for currency was
£'i^ 19s. The Bank of England, however, did not
resume specie payments till 1823 ; but the difference
between the price of gold in the currency of the
country, and the mint price per ounce, seldom ex-
ceeded 2s. 6d, during the last years, i.e. from 18 17
to 1823.

A plentiful supply of specie appears to have reached
the Treasury in Quebec at last ; for in November it
was announced that the army bills would be redeemed
in cash. The following is the announcement : —

PROCLAMATION.

On the 23rd November, 181 5, hy His Excellency Sir Gordon
Drummond, Commanding His Majesty's Forces, and Administrator-in-
Chief of the Governments of Upper and Lower Canada.

Whereas, heretofore, for the purposes of maintaining the means of
circulation and answering the exigencies of the public service, His
Excellency Sir George Prevost, Baronet, then Commanding His
Majesty's Forces in British North America, did make and prepare a
number of bills denominated army bills, and caused the same from

Redemption in Specie of Army Bills.

I i

time to time to be issued from the army bill office, established fi)r that
purpose at the City of (Quebec, agreeably to the provisions of the
several acts made for the purpose of facilitating the circulation of army
bills: And whereas, in and by the said acts, it is, amongst other things,
enacted, that all interest upon such army bills shall cease from and
after the fourteenth day, next after the day on which the same, by any
proclamation or other public requisition by the Commander of His
Majesty's forces for the time being, shall be called in, to be redeemed
in cash : I have, therefore, thought fit to issue this Proclamation, and
hereby do signify and make known, to all whom it may concern,
that all Army Hills heretofore issued, and at present in circulation, are
called in, to be redeemed in cash, at the said Army Hill Office, in the
said City of Quebec; and that all Interest upon such Hills as aforesaid,
shall cease from and after the fourteenth day next after the date of
these presents. Of all which the Officers of Ilis Majesty's Govern-
ment, and generally all to whom these presents shall come, or may in
any wise concern, are hereby required to take notice and govern them-
selves accordingly.

On the 20th of December, 1815, His Excellency
Sir Gordon Drummond called Parliament together for
the Despatch of business; and in his Speech from the
Throne, he alluded to the army bills as follows : —

" You have had the satisfaction ot seeing that the
Executive Government has completely redeemed its
pledge to the Public, by calling in and paying in
cash the army bills which were in circulation."

To which the House replies : —

"We have seen with great satisfaction, that the
Executive Government has completely redeemed its
pledge to the Public, by calling in and paying in
Cash the Army Bills which were in circulation, A
measure which exemplifies, in a most striking manner,
the national good faith, and which will, we trust,

Meeting of Pariiaineut.

facilitate similar arrangements hereafter, should the
Public interests ever recjuire a renewal of them."

At the Provincial Parliament held at Quebec on
the 15th of January, 1 8 17, the Fifteenth section of
the original Act prohibiting the exportation of specie
and bullion from the Province, for a period of five
years from the ist August, 18 12, was repealed.

And it was provided that the Army Bill Office
should be continued for a limited period beyond the
1st of August, 1 817, for the purposes of calling in
and cancelling and paying all Army l^ills that might
remain in circulation after the ist of August ; and
that it should be lawful for the Governor to issue his
warrant for a sum not exceeding seven hundred and
fifty pounds currency, for the payment of such officers
in the Army l^ill Office as it may be found necessary
to continue in the service till the ist of August, 1818,
for the purposes aforesaid.

But the date of closing was enlarged to the 1st ot
April, 1819 ; and further to the 24th December, 1820,
when the Army Bill Office was finally closed.

This ends my exposition of the Army Bill Act, by
means of which the exigencies of the public service
were provided for during the war of 181 2, a war which
was entered upon by the British with the greatest
reluctance ; but which was forced upon them by the
Americans, with the ostensible object of establishing
the principle that the Flag covers the merchandise,
and the right of search for seamen who have deserted
is inadmissible ; but really, " to wrest from Great

Coiic/iisioii.

71)

l^ritaiii tlic C.'inatlas, and, in cotijunctioti witli Napo-
leon, to extinguish its nuiritinic power and Colonial
Empire." *

I have now the pleasure of statint^ that I am in-
debted to Mr. Georf^e Rethune of the branch of the
Quebec Hank in Ottawa, for important information on
the subject of this paper, which he obtained in the
Archives Ikireau at Ottawa ; and to the kindness
of Mr. Douglas Brymner of that office, in directing
him to records relating to o[)erations under the Act.

* Alison's History.

MONTREAL:
■Witness" trinting House