The early Canadian banking system (British North America and New France until 1763; then renamed Upper and Lower Canada) was regulated entirely by the colonial government. Primitive forms of banking emerged early in the colonial period to solve the drain of wealth caused by the application of mercantilist theory. The drain of wealth translated into a complete lack of gold or silver bullion in the colonies, and thus, a complete lack of forms of economic exchange and payment. History In New France, playing cards were issued as a method of payment in the 1680s by the Intendant of New France, in addition to the coins introduced in the 1660s. However, the massive drain of wealth from New France to Europe resulting from mercantilist trade policies made it impossible to back card money with gold bullion. Card money was thus essentially worthless. The card system collapsed in the 1690s, causing long-term suspicion of paper money on the part of the French settlers. Card money was replaced in the 18th century by a type of promissory note called bons, derived from the French phrase, bon pour, meaning good for the indicated amount. These were issued to a limited extent by French merchants, who, lacking in any other form of currency, were forced to create their own, and who consequently became the first Canadian bankers. The issue of bons spread rapidly into British North America after 1763, when New France became a British possession. Bons persisted as the most common type of currency until 1812, along with the English pound, American and Spanish coinage, and the Halifax standard. The British administration under Isaac Brock introduced what became known as army bills in 1812, in order to finance the War of 1812. The total value of these bills was 250,000 pounds. These were promissory notes issued directly by the government. They came into wide usage during the war (1812–1815) to make up for the lack of bullion in Upper and Lower Canada. Unlike the card money used in the late 17th century, army bills could be and were in fact exchanged for gold coin once the war had ended. The army bills had thus proven themselves reliable, eradicating any real stigma against paper currency. In 1817, Montreal bankers were granted a charter by the British government to open the first formal bank in Canada. This was the Bank of Montreal. Under its charter, the