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Bank of Canada Review

Autumn 1997

Autumn 1997 cover

European economic and monetary union: Background and implications
by Chantal Dupasquier and Jocelyn Jacob

Statistical measures of the trend rate of inflation
by Thérèse Laflèche

Clearing and settlement systems and the Bank of Canada
by Clyde Goodlet

Cover: The Puffins of Lundy

This coin helped defeat the independence claims of the proprietors of Lundy, a small island in the Bristol Channel about 11 miles off England's Devonshire coast. The island had traditionally asserted its independence from England, and its owner, Martin Coles Harmon, brought the matter to a head by issuing local coinage.

In 1929, Harmon had 50,000 coins in each of two denominations minted in Birmingham and put them into circulation on Lundy. The coins were the Puffin and the Half Puffin, named for the aquatic birds that nested in large numbers on the island. Devonshire authorities reacted by charging Harmon with infringement of the Coin Act of 1870, a charge that was valid only if England had jurisdiction over Lundy. Thus, rather than a simple determination of culpability in a coinage charge, the case became an inquiry into jurisdiction.

On Lundy, no taxes or duties were levied by England; inhabitants did not collect British pensions; and British officials landed on the island only with the permission of the owner. Harmon stated, to the amusement of the court, that disputes on the island were settled by the 'heavy hand' of his Agent who stood six feet four inches tall and weighed more than 250 pounds.

Harmon lost his court case when the county court justices ruled that England did indeed have jurisdiction and that he was therefore guilty of the infringement charge; his fine was five pounds and his costs 15 guineas. He subsequently appealed the ruling to the High Court of Justice, King's Bench, but England's jurisdiction over Lundy was again upheld and Harmon's appeal dismissed.

This Half Puffin is struck in bronze and is slightly smaller than a 25-cent piece. The bird appears on the reverse of both the Puffin and Half-Puffin pieces. The obverse shows a portrait of Harmon, his name, and the date 1929.

The coin is part of the National Currency Collection at the Bank of Canada.

Photography by James Zagon.