Vigo County Historical Society

Historical Treasure Article

Historic Treasure of the Week - March 17, 1985
By Susie Dewey
Vigo County Historical Society

Money tokens tell story of early commerce here

Five brass tokens of varying shapes and denominations lead to a story of tokens and their use in the American monetary system.

The small metal shapes are exhibited in a glass case in the Guy Stantz room of the Historical Museum of the Wabash Valley, 1411 S. Sixth St. The room also contains the museum's extensive tool collection.

Two round coins have a 5-and 10-cent denominations; a diamond one, 25 cents; an octagonal one, $1; and a flower-shaped one, 50 cents The reverse side of the coins is stamped with LBC for the Lancaster Block Mine and Andrews for the subsidiary in the area. The Andrews Mine operated in 1898-1899. It was a small mine, hiring only 25 men.

The miners tokens, as they were called, were probably used at the company store, but library research opens other uses they may have had. The museum has no other information about the coins, and welcomes information from anyone in the area.

Tokens in history have been used in exchange but they lack legal tender attributes. They have been manufactured by private corporations rather than governments. Such base metals as copper, bronze, brass and lead were usually used.

Tokens bearing the name and location of the business issuing them are often called store-cards. For such firms the tokens served as a medium of exchange as well as advertisement and promotion.

Widespread use o store-cards began in 17th century England, but the widest use of tokens was in the United States. When the Parys Mine Co. of Birmingham, England, issued tokens in 1787, it was because there was no small change in the country.

Tokens could be used anywhere and in any way that was mutually agreeable to two parties. While use at the company-owned store was probably the largest, the dearth of small change led many other stores to accept and return tokens. Usually the tokens could be redeemed in cash from the issuing company; but no guarantee or promise existed that the company would redeem the tokens at face value or at all.

The defeat of the Charter of the Second Bank of the United States in 1833 brought forth tokens in large numbers. Citizens hoarded all gold, silver and copper coins so brass tokens circulated freely. In 1837 hard-time tokens caricatured politicians and patriotic slogans as empty promises.

The Panic of 1837 coins are especially valuable today. Just before and during the Civil War brass card tokens circulated freely. Merchants issued store-card tokens that were redeemable in merchandise as the public hoarded any specie. Copper coins did not circulate during this time.

Following the Civil War, expansion of industry into undeveloped areas increased the use of tokens. In some small western communities, United States currency and coinage was so rare that the merchants did not recognize it. Small and large mining corporations paid employees in tokens and accepted the tokens for payment of rent and food bills. The tokens in the local museum probably fall into this category.

Tokens are still issued today for use as bus and subway fares, vending machines and advertising promotions. Pickers chits given to agricultural migrant workers, resemble the earlier tokens. The chits are redeemable in cash or services in many small communities. The issuing company redeems chit with U. S. currency on demand. All that is required is good faith on both sides.

Tokens, known among numismatists as exonumia, are collected just as are coins. The value of a token varies and is not intrinsic as is a coin's value.

The miners receiving the tokens probably accepted them and spent them as freely as if they were bona fide coins. Hoarding them was unprofitable for the issuing company might move, go out of business, or refuse to redeem them. The tokens served a need in the economy.

The Historical Museum of the Wabash Valley is open 1 to 4 p.m. Sunday through Friday.