<P> As the finances of the French government deteriorated because of European wars, it reduced its financial support for its colonies, so the colonial authorities in Canada relied more and more on card money . By 1757, the government had discontinued all payments in coin and payments were made in paper instead . In an application of Gresham's Law--bad money drives out good--people hoarded gold and silver, and used paper money instead . The costs of the war with the British led to rapid inflation in New France . Following the British conquest in 1760, the paper money became almost worthless, but business did not come to a halt because gold and silver that had been hoarded came back into circulation . Under the Treaty of Paris (1763), the French government agreed to convert the outstanding card money into debentures, but with the French government essentially bankrupt, these bonds fell into default and by 1771 they were worthless . </P> <P> The Royal Canadian Mint still issues Playing Card Money in commemoration of its history, but now in 92.5% silver form with gold plate on the edge . It therefore has an intrinsic value which considerably exceeds its fiat value . The Bank of Canada and Canadian economists often use this early form of paper currency to illustrate the true nature of money for Canadians . </P> <Table> Adoption of' Gold Standard' (Paper currency convertible into gold) <Tr> <Th> Country </Th> <Th> Year </Th> </Tr> <Tr> <Td> United Kingdom </Td> <Td> 1821 </Td> </Tr> <Tr> <Td> Germany </Td> <Td> 1871 </Td> </Tr> <Tr> <Td> Sweden </Td> <Td> 1873 </Td> </Tr> <Tr> <Td> United States (de facto) </Td> <Td> 1873 </Td> </Tr> <Tr> <Td> France </Td> <Td> 1874 </Td> </Tr> <Tr> <Td> Belgium </Td> <Td> 1874 </Td> </Tr> <Tr> <Td> Italy </Td> <Td> 1874 </Td> </Tr> <Tr> <Td> Switzerland </Td> <Td> 1874 </Td> </Tr> <Tr> <Td> Netherlands </Td> <Td> 1875 </Td> </Tr> <Tr> <Td> Austria - Hungary </Td> <Td> 1892 </Td> </Tr> <Tr> <Td> Japan </Td> <Td> 1897 </Td> </Tr> <Tr> <Td> Russia </Td> <Td> 1898 </Td> </Tr> <Tr> <Td> United States (de jure) </Td> <Td> 1900 </Td> </Tr> </Table> <Tr> <Th> Country </Th> <Th> Year </Th> </Tr>

O say that coins are token money means that