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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: aluminum, brass, tin and bakelite or celluloid were commonly used. The key point of difference between a token and an "official coin", or coin of the realm, is that a coin of the realm is issued by a national government and is backed by a national bank, while a token is issued by a private company or individual.
Exonumia
There are many varieties of token coins such as: currency tokens, trade tokens, barter tokens, staff tokens, credit tokens, monopoly tokens, discount tokens etc. Tokens were originally issued by traders from the 1700s in regions when 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.
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.
Currency tokens
In their purest form currency tokens crossed the boundary of being "trade" tokens when these coins, issued by a company were sanctioned by the local government authority. This was normally a desperate 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.
One well-known example of currency tokens is the Strachan and Co, coins 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 coins 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 coins 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.
Trade tokens
These were private coins issued by traders in times of acute shortage of coins of the state to enable trading activities to proceed. The token is a pledge redeemable in goods or in coin of the state, i.e. the face value of the coin represents the real value of the official coinage. These coins never received official sanction from government but were accepted and circulated quite widely. There is no intended element of coercion or inducement for customers to use a particular trade outlet.
Barter tokens
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.
Staff tokens
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.
Other sources of tokens
Railways and public transport agencies used fare tokens for years, to sell rides in advance at a discount.
- Car washes - Though their use has decreased in favor of coins and credit cards
- Video arcades
- Parking garages
- Subways
- Fast food restaurants - Often given to children to collect and redeem for prizes
See also
External links
- The Atlantic Provinces Numismatic Association Medals page
- The currency tokens of Strachan and Co
- Token coins their history and their types
- Exonumia
- Token Collecting Organization
- The Conder Tokens Enthusiast - resources regarding 18th Century English Provincial token coinage
- First Ukrainian Tokens
References
- "Church Tokens", New York Times, April 11, 1993
Fare collection systems | Numismatics
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"Token coins"