Dominion of Canada 25 cent Bills, 1923 Series....."Shinplasters" - Canada's Beloved 25-Cent Notes.
At the time of the American Civil War, U.S. silver coin became depreciated by 5 percent relative to gold. The situation caused American silver, mostly of the 25-cent and 50-cent denominations, to pour into Canada, where it was still received at full face value. Banks and post offices would not accept these coins, so retailers sold them at a discount to brokers, who in turn derived their livelihoods by selling the depreciated silver back to manufacturers and buyers of grain and cattle. Thus the cycle repeated and the "American silver nuisance" resulted in hardship to farmers, merchants and factory workers who had no choice but to accept their losses. The government also suffered because the $1 and $2 Province of Canada notes, issued by the Dominion government after Confederation, were being crowded out of circulation.