The early stages of Confederation pressured Canada into establishing a currency for the country. Ratings changed, and Spanish and US silver dollars with a minimum weight of 412 grains were worth 5 shillings and 1 pence. A gold eagle worth 10 US dollars was valued at 2 pounds and 10 shillings in Canada.
One day, in 1841, Lord Sydenham (acting as Governor General) proposed the idea of paper currency to the government. However, the government refused to put the idea into effect, for they were worried about the banks’ profits.
So, on August 1st, 1854, a law was passed in Canada that only dollars, cents, pounds, shillings and pence could circulate throughout the country. And, in 1858, the first official Canadian coins (made of silver and bronze) appeared.