Canada’s Dollar Coin: The Loonie
Twenty years ago, the first Canadian dollar coin was introduced. The Loonie was considered a “loonie” proposition by some, small change and heavy in the pockets.
Accustomed to paper money and small change, Canadians were not excited about the announcement of a coin to replace the dollar bill in 1987. The change was to save money on printing since coins need fewer replacements than paper in circulation. Using the coin would save about $250 million in costs over 20 years compared to using the green and white $1 bill, estimated the government.
Canadians not thrilled about the change
The population saw problems with the new currency: Cash registers had to be refitted to allow the tills to hold the new coins. The coin immediately dropped the dollar’s value to “small change”. It was heavy and added extra wear and tear on pockets, wallets and purses. Canadians were already aware of such troubles from receiving silver dollar coins and fifty-cent pieces minted to commemorate special occasions.
The first master dies disappeared
The government proceeded with its plans for the $1 coin. The first authorized design was symbolic of Canadian history: a Voyageur canoe. Engraved dies were created and prepared in Ottawa then sent to Winnipeg for production. Somehow, the master dies disappeared in transit. They vanished, never to be found by the courier company nor the RCMP. Rather than producing the same dies again and leaving a big opening for counterfeiters, the Mint authorized another design.
The Loonie was authorized
Created by Ontario artist Robert-Ralph Carmichael, the second set of authorized dies featured Queen Elizabeth on one side and another Canadian symbol, the Loon, on the opposite. Successfully reaching the production facility this time, 80 million coins were struck for the first run of circulation. Dubbed “the Loonie”, the nickname stuck, though Canadians still were hesitant and thought the idea itself was “loonie”. Issuing the first coins on June 30, 1987, the $1 bill was phased out completely by 1989.
Composition of the coin
Instead of using silver-coloured nickel for the Loonie as with several other Canadian coins, the government changed direction and created a coin with bronze colouring. It was smaller than the silver dollar, unique with 11 sides. The patented metal electroplating formulation of Canadian company Sherritt Gordon Limited was chosen by the government, for their copper-tin alloy-cladded blend with an “optimum combination of colour and resistance to tarnish and wear.”
More coins to come
The $2 version of the Loonie was put into circulation, adding another more change to the pants pocket. Designed first by Ontario artist Brent Townsend and later updated by Tony Bianco, also from Ontario, the Toonie portrays a large Polar Bear in its centre. A two-piece coin, in the first production runs, the Toonie coin had a flaw of the centre-piece falling out. It was immediately rectified. The $2 bill was removed in February 1996. The government has considered a $5 coin but that idea has been shelved for the time being.
The Royal Canadian Mint has produced over 800 million Loonies and 550 million Toonies since their issuing.
Now a part of Canadiana
Canadians gradually changed their pessimistic view of the Loonie and it has transformed into a source of pride. On later strikings, as noted by John Ward of The Canadian Press, the Loonie featured the revered young runner Terry Fox (2005), peacekeepers (1995), a Remembrance Day coin (1994) and the 125th anniversary of Confederation (1992). It was used as a good-luck charm during the 2002 Winter Olympics when placed into the hockey arena ice. It must have worked – both Canadian men’s and women’s hockey teams won gold medals. The Loonie is now pure Canadiana.
This article first appeared on Suite101.com in 2007. Copyright Susanna McLeod