As far as value, I would guess that the cut square would not retail for more than a dollar or two. Perhaps a philatelist with more experience in Canadian postal stationary could provide more info.
ashes - I believe you have either a Post Band PB3 or the stamp portion from a Post Card, catalogue UX7.
The scroll and shield-like images above and below the numberal are the primary keys to identification. Then the stamp image's colour/shade and the paper colour are the secondary indentifiers.
Based on the size, the "blue" stamp colour and whitish paper colour, your image could be a Post Band, catalogue number PB3, used in 1887 on white to manila paper. Unused $1.50, used $3.50. A clean dated postmark adds 50%. A stitch watermark would increase the catalogue value to $15.00 for either unused or used.
FYI -> A Postal wrapper, with the same design and also 121mm x [241 to 279mm] PB1, was printed in a dark blue colour, but on cream paper. It was sold to the public and would include the following "This wrapper to be used only by publishers and for the sole purpose of mailing second class matter to the United States."
A Post Card removed "stamp" portion with your image could be a UX7 issued in 1887 in several non-catalogued shades of "blue". If so, it's $2.00 unused and $1.50 used. A "slate blue" is $4.00 unused and $2.00 used. All catalogue values are based on a complete post card with attached reply card. The message side only is worth only 1/3 of the used value.
Smauggies' post card is a UX5, issued 1882, based on the shield-like ornament under the numeral, and is catalogued as 1/3 of the used value of $1.50 for either "shades of "blue" or "blue violet". I'm not sure which colour it is. A "lilac" UX7a is catalogued as $4.00 unused and $2.00 used.
All values, descriptions and information above is from The Unitrade Specialized Catalogue of Canadian Stamps 2011.
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