Token coin

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A rare and historic Bechuanaland Border Police canteen token.

In the study of numismatics, token coins or tokens are coin-like objects used instead of coins. The field of tokens is part of exonumia. Tokens are used in place of coins and either have a denomination shown or implied by size, color or shape. They are often made of cheaper materials than the precious metals: copper, pewter, aluminum, brass and tin were commonly used, while bakelite, leather and other less durable materials are also known. The key point of difference between a token and a coin is that a coin is issued by a local or national authority and is freely exchangeable for goods or other coins, whereas a token has a much more limited use and is often (but not always) issued by a private company or individual.

1 Exonumia
2 Currency tokens
3 Trade tokens
4 Barter tokens
5 Staff tokens
6 Other sources of tokens
7 See also
8 External links
9 References

[edit] Exonumia

The 1965 Lundy Puffin proof set

There are many varieties of token coins such as: currency tokens, trade tokens, barter tokens, staff tokens, credit tokens, monopoly tokens, discount tokens, etc. Coin substitutes have been in existence for as long as coins themselves, and it is not always easy to determine whether a particular object should properly be described as a coin or not. In Continental Europe, from at least the 13th Century onwards, large numbers of tokens (commonly known as jetons) were produced for a variety of uses, often imitating coinage. Token production in England began at a similar time, with increasing amounts being issued by towns in the 16th Century to satisfy the need for small change. Between 1648 and 1672 thousands of traders in the British Isles issued private tokens, both to provide small change and also to advertise their goods and services, before the practice was suppressed. Another wave of token issuing occurred in the late 18th century, at a time when the Royal Mint was producing virtually no coin in silver or copper, and further issues have continued since then.

In North America tokens were originally issued by traders from the 1700s in regions where national or local colonial governments did not issue enough small denomination coins for circulation. They were later used to create a monopoly; to pay labour; for discounts (pay in advance, get something free or discounted); or for a multitude of other reasons. In the United States, a well-known type is the wooden nickel, a five-cent piece distributed by cities to raise money for their anniversaries in the 1940s to 1960s.

Token coin with the value of $1.00, issued by the Rawley Mine Commissary in Bonanza, Colorado.

Local stores, saloons and mercantiles, would issue their own tokens as well, spendable only in their own shops. Railways and public transport agencies have used fare tokens for years to sell rides in advance at a discount. Many transport organizations still offer their own tokens for bus and subway services, toll bridges, tunnels, and highways, although the use of computer-readable tickets has replaced these in some areas.

Churches used to give tokens to members passing a religious test prior to the day of communion, then required the token for entry. While mostly Scottish Protestant, some U.S. churches used communion tokens. Generally, these were pewter, often cast by the minister in church-owned molds. Replicas of these tokens have been made available for sale at some churches recently.

[edit] Currency tokens

In their purest form currency tokens issued by a company crossed the boundary of merely being "trade" tokens when they were sanctioned by the local government authority. This was sometimes a measure resulting from a severe shortage of money or the authority's inability to issue its own coinage. In effect the organisation behind the tokens became the regional bank.

The first set of Strachan and Co currency tokens - recognised as South Africa's first indigenous currency.

One well-known example of currency tokens are the Strachan and Co tokens which were first issued in 1874 in a remote part of South Africa known as East Griqualand. A partner in Strachan and Co, Charles Brisley, was also the government secretary and obtained official recognition of the tokens as currency for that region. The Standard Bank of South Africa notes in its official archives that its branch in Kokstad, East Griqualand's capital, readily exchanged these tokens as currency in the 1800s because of the shortage of coinage of the crown in the region. These tokens were South Africa's first widely circulating indigenous currency.

Similarly, in times of high inflation, tokens have sometimes taken on a currency role. An example of this is Italian or Israeli telephone tokens, which were always good for the same service (i.e., one call) even as prices increased. New York City subway tokens were also accepted sometimes in trade, or even in parking meters, since they had a set value.

[edit] Trade tokens

From the 17th to the early 19th Century in the British Isles and North America these were commonly issued by traders in times of acute shortage of coins of the state to enable trading activities to proceed. The token was in effect a pledge redeemable in goods but not necessarily for coins. These tokens never received official sanction from government but were accepted and circulated quite widely.

In England the production of copper farthings was permitted by royal licence in the first few decades of the 17th Century, but production ceased during the English Civil War and a great shortage of small change resulted. This shortage was felt more keenly because of the rapid growth of trade in the towns and cities, and this in turn prompted both local authorities and private traders to issue tokens.

These tokens were most commonly made of copper or brass, but pewter, lead and occasionally leather tokens are also found. Most were not given a specific denomination and were intended to pass as farthings, but there are also a large number of halfpenny and sometimes penny tokens. Halfpenny and penny tokens usually, but not always, bear the denomination on their face.

Most such tokens indicate the name of their issuer, which might either be his or her full name or initials. Where initials were provided it was common practice to provide three, one for the surname and the other two for the first names of husband and wife. Tokens would also normally indicate the trading establishment concerned, either by name or by picture. Most were round, but they are also found in square, heart or octagonal shapes.

Thousands of towns and traders issued these tokens between 1648 and 1672, when official production of farthings resumed and private production was suppressed.

Another period of coin shortage occurred in the late 18th Century, when the Royal Mint almost ceased production. Traders once again produced tokens, but they were now machine made and typically larger than their 17th Century predecessors with values of a halfpenny or more. While many were used in trade, they were also produced for advertising and political purposes, and some series were produced for the primary purpose of sale to collectors. These tokens are usually known as "Conder" tokens in the United States.

[edit] Barter tokens

Coin substitute pogs, used by AAFES at overseas military bases.

These were issued by a trader in payment for goods with the agreement that they will be redeemed in goods to an equivalent value at the traders own outlets. The transaction is therefore one of barter, with the tokens playing a role of convenience, allowing the seller to receive his goods at a rate and time convenient to himself and the trader to lock the holder of the token coin to his shop. Trade tokens often change slowly and subtly into barter tokens over time, as evidence by the continued circulation of former trade tokens when the need for their use had passed.

Because of weight, the U.S. Treasury Department does not ship coins to the Armed Forces serving overseas; so, Army and Air Force Exchange Service officials chose to make pogs in denominations of 5, 10 and 25 cents. The pogs are about 38mm (1.5816" to be exact) in diameter and feature various military-themed graphics.

[edit] Staff tokens

A de Beers 3d Staff salary token given to employees and only usable at their stores

These were issued to staff of businesses in lieu of coin. In the 1800s the argument supporting payment to staff was the shortage of coin in circulation, but in reality employees were forced to spend their wages in the company's stores at highly inflated prices - resulting in an effective dramatic lowering of their actual salary and disposable income.

[edit] Other sources of tokens

Railways and public transport agencies used fare tokens for years, to sell rides in advance at a discount, or to allow patrons to use turnstiles geared only to take tokens (as opposed to coins, currency, or fare cards).

Car washes - Though their use has decreased in favor of coins and credit cards
Video arcades
Parking garages
Subways
Public telephone booths in countries with unstable currency were usually configured to accept token coins that were sold by the telephone company for variable prices. This system was in effect in Brazil until 1997 when magnetic cards were introduced.
Fast food restaurants - Often given to children to collect and redeem for prizes
Niceties token - A token to encourage politeness