Hard Times Tokens

[coppercoins]

Can someone explain the basics of hard times tokens for me and the benefit of other readers? I am not completely sure what they are and would like to hear from experience.

[Robert]

According to Rulau (more or less) there are 5 varieties:

1. Bank of the United States
2. Political satire
3. Similar to regular issues but different enough to avoid prosecution
4. Store cards
5. Die mules


Much of 1 and 2 have to do with Pres. Andrew Jackson and Martin Van Buren. Jackson was elected in 1832, partially on a promise to eliminate the Bank of the US (which was established in 1792 and was sort of like a federally controlled bank. I think this was before the US Treasury and Federal Reserve.). People didn't like the idea of so much money being controlled by the government. He won and did eliminate the BotUS. He took the $ out of BotUS and put it in state banks. Then in 1837, either due to a land speculation bubble if you like Jackson or due to his clumsy actions if you don't, there was a big financial panic. A depression. No one had much money and people hoarded cash, even coppers. So there was a coin shortage. Hard Times Tokens were then struck. And in the caricatures on some of those tokens artists "thank" Jackson for necessitating the tokens' creation.

There are lots of "jackass" allusions on those tokens. They're referring to Jackson.

[Bob P]

Very interesting stuff Robert. I am learning new things every day.

Bob P

[SteveAZ]

Good info, Thanks.

Steve

[Robert]

The historical aspect of coins is often overlooked. They can teach you a lot about history, geography, national emblems, economics, metallurgy, art appreciation, politics, technology... the list goes on! I love learning every chance I get.

[GarryN]

Great story, Robert. I have a new appreciation for Hard Times tokens.

[Robert]

http://www.worksandwords.com/moneym/hardtime.htm

[Mark]

Robert's explanation is generally right, but 1) I think it errs in a couple of minor points, and 2) by posting this message I move ever closer to the treasured second red dot! So.....

The Bank of the United States that Jackson opposed was actually the Second Bank of the United States and was not the same as the First Bank of the United States that was founded in 1792. The First Bank of the U.S. had a charter that lasted for 20 years, but the charter was not renewed by the Congress. The Second Bank of the United States also had a 20-year charter. The Bank directors knew that Jackson opposed the bank and so when he was elected, they pushed for the charter to be renewed early. This effort backfired as Jackson vetoed the effort and so the bank was doomed. Jackson opposed the bank, in part, because it was privately owned and he did not want the bank's power in private hands.

What was the bank's power? The Bank of the U.S. effectively operated as a central bank and limited other smaller commercial banks' power by insuring that these banks did not issue too much paper money. In so doing, the bank also managed to enrich itself, which shows that the exercise of power was not totally dis-interested.

The Federal Reserve was founded in 1913, so this era was well before the Fed. The U.S Treasury existed at the time of the Second Bank of the U.S. but the Treasury didn't exercise any of the powers of a central bank. Eventually the Treasury did exercise these powers in a limited way from the 1880s or thereabouts until the founding of the Fed in 1913.

Mark

[Robert]

Mark, I defer to your more thorough explanation. To be honest mine was a mix of Rulau's blurb on Hard Times tokens and a hazy recollection of high school history.

At least I was generally right!

[Mark]

Robert:

I am an economist and worked for 8 months at the Fed as a visiting scholar. So I have a keen interest in this sort of topic.

Re your being "generally correct:" Upon reflection, I think it would have been more accurate to say "almost totally correct" because who gives a rat's rump about my observation on what the U.S. Treasury was doing circa the 1880s?

Now, to get back on topic, I have always been vastly amused by the jackass tokens and the "following in the footsteps of my illustrious predecessor" slogan. These things really serve to put me in touch with the people of that era!

Mark

[Robert]

I find those amusing as well. Also ones with "LLD" on the jackass referring to his honorary law degree from Harvard I believe. They really knew how to lampoon back then, didn't they? Almost as bad as the British.

The closest thing today to those tokens might be silver rounds with pointed political messages or those Clinton $3 bills. Sort of a private mint thing.

But of course those don't circulate as money so it's really not quite the same.


Do you collect HT tokens per Rulau?

[Mark]

Robert:

I have precisely 1 HT token that I purchased as a kid, 35 or so years ago. But I do have the last two editions of the Rulau token book and a book on HT tokens dating from the 1960s. I've thought these coins interesting but simply haven't collected them. I bid on one in a B&M auction several years ago but failed to win it. I think at the time no one was slabbing them and given my then young kids, I wanted everything to be slabbed. So I wasn't terribly aggressive in my bidding. How about you--do you collect HT tokens?

Re your comment about the Clinton: I presume you have seen the Clinton/Arkansas parody state quarters? I doubt these will ever be collectable by many people...or, on the gounds of good taste, at least I HOPE these will ever be collected by many people!

Mark

[Robert]

I have a few HT tokens but they're mostly pretty rough.

Illustrious Predecessor
Webster Credit
Substitute for shin plasters
maybe 1 or 2 more

I like flipping through my Rulau book though and seeing what turns up at shows. I've got a handful of other tokens plus the odd Civil War token too. Nothing too amazing (so far).

[Art]

I find the HT and Civil War tokens really interesting. I have on my Numismatic goals for 2003 to acquire a CW token and a good book on them. Hopefully, that will be a Christmas gift thing.

I recently bid on an "Abolishonist" Token from England. I think the year was 183x. It was on Ebay. Didn't win though. From what I understand there's a whole group of those tokens and they're heavily collected.

A friend of mine has a SC slave token. It's a numbered tag that shows that the slave was legally sold in the market in Charleston. It's pretty interesting. I'd never seen or heard of them until recently.

[Robert]

I think most CWTs are about $20 in decent shape. The only book I know on them is the thin black Fuld booklets. There's probably something better but I don't know what that is.

The Confederate states made a few CWTs too though they're expensive.