In what can be considered one of this century’s most exciting discoveries in Canadian numismatics, a previously unknown Dominion of Canada Series 1870 $2 note issued in Victoria, British Columbia, has surfaced. Long thought to not exist, this note is an extraordinary rarity. Only 24,000 of the $2 notes were printed for Victoria, which is a fraction of the 764,000 issued in Montreal and the 728,000 in Toronto.
The other denomination issued for Victoria, the $1 note, is also extremely rare, with just three examples known, one of which is permanently impounded in the National Currency Collection of the Bank of Canada. Even the National Currency Collection, though, lacks an example of the 1870 $2 for Victoria. None was seen or even rumored to exist, until now. Stack’s Bowers Galleries is presenting this world-class rarity in its first exclusive Canadian Collectors Choice Online Auction, to be held Jan. 28, 2025.
When this Series 1870 $2 note was issued, western Canada had a sparse population and few financial institutions, resulting in limited issuance and circulation of paper money. British Columbia, which became a province of Canada on July 20, 1871, had a population of about 36,000 at the time. Victoria’s financial landscape in the early 1870s was shaped by its status as a frontier economy and its strategic role in British Columbia’s integration into Canada. The city had emerged as a commercial hub during the Fraser Canyon Gold Rush of 1858 to 1860, when it attracted miners and merchants. However, by the early 1870s, that gold rush had largely subsided, and Victoria’s economy shifted to industries like logging, fishing, and trade with the United States and Asia.
Victoria had a population of just 3,630 people in April 1871. Its remote location, reliance on gold and silver coinage, and competition from U.S. and private bank notes reduced the need for large quantities of government-issued paper money, even after British Columbia entered the Canadian Confederation. It is quite surprising then, that after British Columbia became a Canadian province, such notes were even issued. However, issuing these notes payable at Victoria, the capital of British Columbia, must have been thought an important contribution to the growth of the region.
Beyond its rarity, the note’s impeccable state of preservation makes it even more remarkable. All Canada 1870 $2 notes are difficult to find, and examples in grades above Fine are exceptionally rare. The PMG population report shows no examples of this type ever having been graded above Very Fine 20. This newly discovered example, graded Choice Very Fine 35 by Paper Money Guaranty, boasts crisp paper, vibrant inks, and detailed engravings that remain as vivid as when they were first printed. Lightened stains do little to detract from the piece’s overall appearance, according to the cataloger. The piece is not only unique for its place of issue, but it is also the finest example of this important Canadian type.
