Card money
Card money is a type of fiat money printed on plain cardboard or playing cards, which was used at times as currency in several colonies and countries (including Dutch Guiana, New France, and France) from the 17th century to the early 19th century. Where introduced, it was often followed by high rates of inflation. Design and use In order to prepare playing cards or plain cardboard for use as currency, the medium had to be given a denomination, a seal, a serial number, and appropriate signatures. In New France, this meant an embossed fleur-de-lis and the signatures of the intendant, governor, and treasurer. In Dutch Guiana, meanwhile, the form these validations took varied between issue. Card money was generally issued, at least initially, in emergency situations. It could be backed by other currencies, such as Bills of Exchange, or be without guarantee. Applications New France Canada During the expansion of the French colony in New France (in what is now Canada) in the 17th century, currency used had to be imported from France. When the colony faced insolvency owing to great expenses fighting the Iroquois and a diminishing beaver trade, intendant Jacques de Meulles introduced card money to pay soldiers; this soon spread into general use, including commerce. The introduction of card money allowed the colony to reduce deliveries of specie, which could be lost at sea to weather or attack; no specie could be produced locally owing to a lack of precious metals. The currency caught on, and values equal to 100 livres are recorded. Eventually, an estimated two million livres in card money is thought to have circulated. By the end of the decade New France faced counterfeiting problems with this currency, although counterfeiters could be caned, branded, banished, flogged, or even hanged. It was ultimately inflation, however, which led to the decline of card money in French Canada: the money was produced in a greater quantity than required, in part to offset a failing French economy, while coins were hoarded. Attempts to decrease the value of the cards by half failed, and in 1717 the card money was withdrawn. By 1720 it had been declared worthless. The recall of card money led to more than a decade of stagnancy, as there was no circulating currency. For this reason, in 1730 the government reinstated card money, reaching a total value of 600,000 livres by 1733. Unlike the earlier issues of card money, however, these were printed on plain cards, rather than playing cards. In 1763, after another burst of inflation brought on by a turbulent war-time economy, card money was ultimately and permanently withdrawn from the settlement. French Louisiana Between 1716 and 1720, John Law and his privately held (French government backed) Banque Royale issued paper currency in colonial French Louisiana far in excess of the reserve set aside to back these issues. When investors attempted to redeem notes for specie, the bank stopped payment. The "Mississippi Bubble" began to burst in May 1720, when Banque Royale notes