By Ian Brimble
The eventual establishment of the Bank of Canada officially produced Canadian Banknotes starting in 1935 to the present day. Few symbols in Canada can take one back to their childhood quite like seeing banknotes from that time. The nostalgia and memories these relics can evoke is something that is universal for many.
Canada’s first official banknotes produced by the Bank of Canada came shortly after its inception in 1935. This article is the first in a two-part series to discuss the history and production of Canada’s first official banknotes as produced by the Bank of Canada. These first and only unilingual notes had a very limited run before the introduction of bilingual currency in 1937. Bilingual currency, of course, continues to be the norm for all banknotes produced within Canada to this day. The 1935 series consisted of $1, $2, $5, $10, $20, $25, $50, $100, $500 and $1000 denominations in both English and French; the French series being more rare as between 20% and 30% of each denomination was produced in French and the remaining 70% to 80% were the English issues.
An interesting occurrence related to this series is the very high denomination of $1000 banknotes. A note of a similar value today would have a purchasing power of approximately $22,000. Overall, the 1935 series is unique in Canadian history as it proves to be a royal family tree in many ways, with many notes featuring a member of the royal family or former Canadian Prime Minister. The series discussed below is one of the most valuable to collectors, particularly because King George V would die in 1936, necessitating the redesign of Canadian Banknotes. Most of these were only in circulation for less than 3 years before being recalled by the Bank of Canada and destroyed in order to make way for the new 1937 series. As a result, surviving examples are definitely considered rarities.
The $1 note as pictured below was produced by the Canadian Banknote company as were all of the larger denominations from $20 up. The remaining notes ($2, $5, $10) were produced by the British American Banknote Company.
This $1 note features the portrait of King George V who reigned from 1910 to 1936 but would die shortly after production in 1936, necessitating the production of the 1937 series that would carry the portrait of King George VI after the historically short reign of his brother King Edward VIII. The note pictured above is a specimen example of the French series, which in average circulated condition (EF- 40) could be worth upwards of $500. The English version of the same note would be around $250.
The $2 note pictured above featured the portrait of Queen Mary, wife of King George VI. As you may have noticed, this series of notes has a Roman or Greek theme on the back designs, featuring imagery that is reminiscent of statues often found in Rome or Athens. This particular $2 is the English version and is often only valued at a fraction of the value of the French version. (Approximate EF – 40 value: French – $2500, English $750)
The $5 note pictured above is one of the most interesting notes historically as it features a portrait of the Prince of Wales who would later go on to hold the throne after the death of his father King George V. King Edward VIII would reign for less than 1 calendar year as he would abdicate the throne to his brother King George VI after proposing marriage to an American divorcee with two living ex-husbands. This marriage was opposed by the British Government and Prime Minister of the day, forcing the monarch to choose his marriage or the throne; ultimately King Edward VIII would elect to leave the throne. (Approximate EF – 40 value: French – $2100, English $1000)
The $10 note pictured above features Princess Mary, the only daughter of Prince George V and Queen Mary. This note was to have had 5 million produced and the English version of this banknote, in average circulated condition (EF-40), can be valued upwards of $1500. However, the French version, being more rare with only 1.5 million produced, could be worth upwards of $2000 in similar condition. Another factor that contributes to the valuation of specific notes is the estimated number of surviving examples believed to be in existence, having escaped destruction during the recall by the Bank of Canada mentioned above.
In the second part of this two-part series on the 1935 banknotes we will examine the $20, $25, $50, $100, $500 and $1000 notes in both English and French. Please check back next edition to see the remainder of this highly collectible part of Canadian history.