Trade dollars
This month I’m going to write about “trade dollars” or “municipal trade dollars.” These coins were produced by different cities or municipalities throughout Canada. The coin was sponsored by a local authority and given a value in a limited area and time frame. It was used as money until the expiry date with all merchants in that area.
There must be a value on the coin or else the coin would be called a medallion. Many denominations of the coins exist — 25 cents, 50 cents, $1, $1.50, $2, $2.50, $3 and $5. The most common was the $1 value.
There were also issues of the wooden coin with a denomination of $.05, and that is where the term “wooden nickel” comes from.
Most trade dollars were issued for fundraising purposes, knowing that only a certain percentage were ever turned back to the group. The coins not turned in were put aside in jars, etc., or collected by collectors, leaving a profit for the group or organization. The coins were made of several materials but the most common was nickel and nickel-bonded steel. About 75 per cent of the coins were made of this material as it was non-corrosive, did not tarnish, was highly resistant to wear, and showed high degree of brilliance.
The Sherritt Mint in Fort Saskatchewan, Alta., struck most of the issues of the trade tokens. Other mint locations included the Royal Canadian Mint, Alberta Mint (Edmonton), Lombardo Mint (Quebec), Pressed Metal Products (B.C.) and Johnson Matthey Mint (Ontario).
Some communities indicated different mint marks on the same design on the coin. An example would be Calgary with the horseshoe, or boot, or hat, etc. Most of these coins do not have much value, ranging from $1 to $10 on the average. There are, however, exceptions to this.
In Alberta, Calgary and Edmonton have the most issued, but in Medicine Hat there were at least nine different types prior to 1993. Up to 1993 there were 72 cities, towns or hamlets in Alberta alone that have made a trade dollar for their community, as described in the Standard Catalogue dated 1993, and written by Serge Pelletier. I personally talked to Pelletier a number of years ago, and asked him if he was going to publish further issues and he said because of his age he was not able to do so.
There are very few books that talk about the trade dollar. Trade dollars are a fun way to collect coins, and it does not cost as much as real coins. It does not take much to get started and is fun to learn about the towns around you or across the country. The designs shown on these coins have a purely local flavour, reflecting the people’s way of life and their traditions and culture in the area of Canada for which they were issued. Most of these coins to purchase would only be around $1 to $3 each. They can be found at coin dealers, coins shows, etc. Happy hunting!