Did Frederick pay Napoleon for the timber in legitimate money?

Frederick did not pay Napoleon for the timber in legitimate money. Instead, he used counterfeit currency. This decision is significant in the narrative as it reflects the themes of betrayal and deception present in the story. Napoleon's dealings with Frederick highlight the underlying tensions and mistrust among the animals, as well as the exploitation of their hard work and sacrifices. Frederick's action of using forged money serves as a plot device to illustrate the dangers of misplaced trust and the vulnerabilities of the animals in the face of human cunning. The transaction ultimately leads to conflict and reinforces the critiques of power and manipulation that are central to the novel.