Texas trade tokens evolved from eastern United States 1840's -1850’s merchant tokens. Tokens were used as both local currency and advertising. During the 1860’s, civil war sutlers that followed Union armies issued tokens to advertise their trade among soldiers. Post war reconstruction brought northern carpetbaggers, and families from devastated southern states to Texas. Migration of settlers to homestead land and expanding westward railroads brought new economic growth to Texas during the 1870’s . Merchants, because of competition, began employing tokens to build clientele loyalty. Tokens also provided an accounting procedure for the barter system and providing change due to coin shortages. General merchant tokens become firmly established as a medium of exchange and comprise the largest segment of Texas trade tokens.
Merchants utilized tokens for various methods of exchange and bookkeeping. Saloons handed out tokens to cowboys on cattle drives to entice them into their establishments. Cowboys were paid in silver dollars and change was returned in tokens. Eight drink tokens to a dollar represented the common hard currency practice of dividing Spanish Silver dollars into "bits" to make change. A bit equaled 12½¢, cost of a good whiskey shot. 2½¢ and ½¢ tokens were also used to make change. Merchants would issue a series of tokens, ½¢, 1¢, 5¢, 10¢, 25¢, 50¢, $1, $5 and occasionally a $10 denomination. This provided a credit system whereby a merchant didn’t have to enter each item purchased on his accounts receivable books. Merchants would loan customers credit in the form of tokens with a single entry in their accounting records. Tokens were also issued for an amount of product, like ice, coal, water, etc with payment made for product in cash at the business office with a token being redeemed at the distribution point. Production or piece work tokens were distributed to a laborer for each unit of work completed. Texas sheep shearing operations issued a token per sheep shorn with redemption of tokens in cash on pay day. Development of Texas resources created, company lumber towns, ranch communities, coal mining operations, and other industries. These industries would issue wages in tokens to be redeemed at company stores.
Texas trade tokens reflect the individual character of proprietors and merchants who issued them. Immigrants brought a variety of European cultures to Texas. Their influence is represented in language, town names, proprietor’s names, and values imparted upon their tokens. Mexico's culture is reflected in many of the southwest Texas tokens.
Early 1870's Texas trade tokens were generally an incused token on a round planchet about the size of a quarter. Typically, a proprietor or merchant would buy a supply of ready made planchets then punch out lettering on the quantity of tokens needed. As railroads extended rails across the west, drummers were able to provide custom made tokens to meet proprietor's needs. Later, to add unique identities to proprietor’s tokens, an interesting variety of shapes emerged from suppliers. Scalloped edges like flower petals, squares, barrel, animal figures, triangles, crosses, clipped corners, and other geometric forms appeared. Token pictorials of horses, bulls, ships, cotton bales, elephants and other highly recognizable objects enhanced the token trade. Many clientele could not read but could associate a token pictorial to pictorial business signs above establishments. San Antonio diesinkers produced many of these higher quality pictorial Texas and Mexican tokens during 1880’s. The Panic of 1907 was caused by a group of investors attempting to corner copper and brass markets. This action increased the cost of these metals which led to a reduction in size of tokens purchased by businesses. Tokens prior to the panic generally were quarter size and after the panic were generally nickel size.
The earliest tokens were made from a interesting assortment of materials. As raw materials were hard to obtain, tokens were often made from foreign coins and salvaged metal. Another material used was a hard rubber invented by Goodyear in 1850’s. These are referred to as vulcanite tokens. Tokens were also made from a hard press fiber board in various colors. German silver or nickel was used for a more elaborate token. Aluminum became a popular token material when electricity lowered refining cost in early 1890’s. Later lumber companies begin using a bimetal token composed of an outer brass ring with an aluminum center. Initials of company owners were inscribed or stamped on the obverse and a value amount on the reverse aluminum center.
Texas trade tokens span several historical era’s from the 1870’s to 1950’s. Growing dynamics of commerce, invention and industrialization adversely impacted token usage. Local option liquor laws outlawed “Saloons” across Texas. Saloon owners removed identifying information from tokens they issued resulting in "Maverick" tokens. Owners did not want to breach local laws but still needed to ply their liquor trade. The more prohibitionists preached against liquor trade establishments, the less information was imparted on tokens. Laws were also enacted against the method of paying workers in scrip for wages but enforcement of wage laws was non existent. Wage laws did change tokens used in company towns. Instead of having a denominational value, companies used a quantity of product or a number without the value sign.
The heyday of token usage was in the first decade of the 1900’s. "Mom and Pop" grocery merchants were scattered through out neighborhoods and on major corners of most Texas towns. Decline of token usage came with new inventions, changing economics, and politics. Invention of automobiles allowed customers to travel to better bargains. Prevalence of tokens began to decline as consolidation of the grocery industry merged into larger stores or grocery chains. Prohibition in the 1920’s killed liquor trade tokens. The 1930’s Great Depression helped to eliminated scrip tokens with enforcement of wage laws and 1940’s WWII rationing tokens caused a dislike for tokens in general. Plenty of small change was readily available in a booming economy and returning soldiers brought back modern business ideas. Token usage steadily declined in Texas as well as the United States and was virtually dead by the 1950’s. Retail merchants and grocers rewarded customer’s purchases with savings stamps to be redeemed for merchandise. Coupons you clip today from newspapers, magazines, or internet ads began with the earlier concept of trade tokens!
by
Robert Stone
Copyright © 2004 all rights reserved.
