Source: "These 25-cent denominations were called "shinplasters", a derogatory term that came to be applied to all paper money with a value less than a dollar. In Canada, the term refers only to 25-cents notes. The origin of these notes dates back over 200 years, to a paper currency issued by the Continental Congress during the American Revolution. The notes were redeemed at such a small fraction of their face value that soldiers used them as insulation in their boots or as dressings for shin wounds." Bank of Canada - Currency Museum http://www.currencymuseum.ca/eng/learning/faq7.php
Urban Legends of Canadian Currency Legend: The dies for the original design of the Canadian one dollar coin (Loonie) were lost while being transported. Status: True Origins: The design originally chosen to replace the one dollar bill was the Voyageur design on Canada's silver dollar / nickel dollar coin. The dies that were prepared for the new design were lost in transit to the Royal Canadian Mint in Winnipeg. In order to stop the thiefs from counterfeiting the Mint opted to use a different design. The design chosen was a common loon on the water. The new coin was nicknamed the "Loonie"