Getting to Know Merchant Trade Tokens - Brief Overview

Merchant Tokens were commonly used after the end of the Civil War as a way of paying or making good on a purchase through any number of vendors, cafe's, saloons, etc.  They were commonly referred to as scrip (in certain parts of the country), "good for's", seco, chit, among other slangs.  Use of tokens as monetary payment gained steam around 1867 and were commonly used through to the 1950's.  These were the days when tangible money was still being saved out of circulation because the country was still in the midst of a topsy turvy economy, merchants were forced to produce their own monetary means of doing business as a way of replacing the absence of regular circulating U.S. coinage.  Trade tokens will generally have the name of the merchant/proprietor or other entity on one side, along with the originating town/city and maybe a brief description of the service (ie: saloon, die sinker, boat maker, etc.).  And on the reverse face of the token, a monetary value is usually in place.  Using the provided inset photo of the Reno, NV Empire Cafe token, this example is good for 5 cents in goods or merchandise.

1910's Reno, NV - Empire Cafe
Recent acquisition shows the
name of the business along
with the originating town.

How do I get started collecting trade tokens?

Compared to coins, currency and even civil war memorabilia (tokens & store cards), getting started in collecting merchant tokens is a lot easier and much more affordable.  Knowing what to collect is of great importance in keeping your hobby affordable. By focusing what arena of token collecting collectors want to pursue, one can have better control over the money they want to spend.  Collecting by town or state is a great starting point.  A lot of collectors I know focus on their birth state or city, it's an easy entry point and provides its own set of challenges that heightens the challenge factor.  And usually with any city or state, they possess their own rarities in much the same way that collecting coins does.  Additionally, in much the same way as civil war store cards, these grade on the R1-R10 rarity scale, R10 being the most rare.  By narrowing the focus of your collecting intentions, you will be able to collect only the relevant pieces and have better control over your budget.

Where do I find them?

Now that you have focused on a specific goal in your collecting pursuit, now comes the challenge of seeking those tokens.  A great starting point is to do some research on the available token sources on the internet.  For example, sites like eBay, Linkville Coins, tokencatalog.com, offer all sorts of beginning tips, inventory, and other information you need to know about your city or state specific merchant tokens.  After some well invested time in research, you will quickly find out which pieces are more common or rare, which will play a huge role in how involved you want to be.  In addition, if you live in the state that you're interesting in collecting, be sure to check out local coin shops, shows, and antique shops as these normally get passed up over the more desirable coins that they once replaced.  It's not out of the question that collectors find good and cheap examples in these shop's misc. bins.  Prefacing the info at the beginning of this expose, I mentioned that these were once used as early as the 1860's.  The older you go back in your quest, typically the more expensive the tokens become.  Third, the more complete tokens (examples with full merchant names, city and state) will command more premium.  

In closing, merchant tokens are like everything else in numismatics.  They are an appreciating asset that is picking up tons of popularity in recent years.  The allure of collecting a token that a famous western outlaw once held or the prospect of owning a token from a once thriving mining community that has since turned into a desolate ghost town is what makes this segment in exonumia such an interesting subject.  So if you're at all tired at the same old U.S. coin collecting, give trade tokens a try.  It's a breath of fresh air that will excite with it's own unique history.