NCLT...matter Of Opinion?.......maybe Not

Hi penny,

I don't know of any demonetized currency in Canada ever occurred. But I am not an expert in this domain.

dialog_gvf: I can find no references for any demonetized currency for Canada. The Currency Act states the RCM can demonetize coins. I would think it would undermine the RCM if they ever did it though.

(If anyone knows of a good reference of a demonetized coin for Canada please provide it).

^^^ Hyper-inflation and war are right up there.

Soruce:
http://dollardaze.org/blog/?page_id=00017

Hyper-inflation is a reason to internally switch currencies. Any economics 101 book will tell you that. War is one of the main reasons for hyper-inflation (there are lots of other reasons though).
http://en.wikipedia.org/wiki/Hyperinflation

Very much related to coin collecting, including prices on gold and silver coins.

Thread is a tad dated, but... we are the only country where you can still regularly find coins with King George V in circulation. All other countries have demonetized that era of coins. I personally pulled an Edward VII quarter out of circulation in 1976 and a Vicky quarter in ~1967.

Where I still have unanswered questions continually relates to this concept of "non-circulating". I can accept that coins don't circulate for various reasons. I can't accept the fact that any coin with a face value minted for Canada from the RCM can be other than legal tender under the existing laws aside from the laws that govern coin handling (ie, no more than 25 pennies can be used to settle a debt) and again aside from private retail where you may negotiate any mutual payment form and both parties may walk away from any form of payment , even legal tender.

So we call it non circulating, but lets say silver suddenly became worthless because some alchemist learned how to make it from wheat. In theory, all these silver coins would be still be legal tender with their respective face values. But if the chartered Class A banks won't take them, how do we get spendable currency? Is there a mint department responsible for counting coins and sending out cheques (this actually doesn't sound all that far fetched for a normally run crown corp). I don't know. I really do recall this issue with the 1976 Olympic coins , face of 20, silver value far less, no one wanted to accept it as a 20 dollar piece of legal tender.

What is the definitive, documented answer on what constitutes legal tender? It's enormously clear for bank notes from the Bank of Canada, it's foggy as heck for coins from the RCM.

I've read the act a number of times, and without a current copy of the letter(s) of understanding between the Minister and the RCM it's all but worthless unless you want to launch a legal challenge. It's the things the act doesn't state that are the grey areas. I've written past Finance Ministers to get a clear answer, not one has ever done more than give a canned blurb on the Mints performance.

It seems to me that the Mint is exceeding it's normal mandate by the production of giftware (yeah starting in 76) unless it's covered somewhere in these letters of understanding that I never see the details of. Or, they are exactly fulfilling their mandate if this giftware is backed by a strong statement from the Minister that each piece produced is legal tender, coin of the land and can be deposited at any chartered bank, period.

As a for profit Crown Corp they get a reasonable amount of scrutiny, but as usual everything that can be hidden is.

I honestly think this issue is one of those things no one wants to deal with, so it hasn't been. Just normal human behaviour in avoiding a sticky issue. Especially if you are a politician, why take the risk on upsetting anyone at all?