INTRODUCTION

The Civil War resulted in the most extensive issuance of tokens in U.S. history. Previously issued by merchants during economic recessions,
tokens were privately-minted currency intended to supplement or replace official coinage. Already familiar to the American public, they were
cheap and profitable with the added potential for business advertising and political proclamations.

In July of 1862, the federal government outlawed the issue of private tokens under $1, attempting to keep federal coinage in circulation and prevent issuer abuses. However, legal penalties proved insufficient to stop the tide of tokens. Indeed, the majority of Civil War tokens were produced in 1863! The Mint actually altered the thickness and composition of the small cent to match that of the tokens, which happily reduced production costs. Increased issues of modified cents and fractional notes finally ended the demand for tokens by 1864.

Did You Know?

• Each token tells a story. For example, many Patriotic tokens feature the first Union ironclad ship USS Monitor – immortalized by its battle with the Confederate ironclad USS Virginia in the Chesapeake.
• The Civil War confirmed that the United States was a single political entity with a strong federal government. The Legal Tender Act of 1862 definitively
  extended federal power and declared all U.S. currencies a federal concern.
• The Bureau of Internal Revenue (the IRS) was established in 1862, a legacy of the Civil War, along with income taxes. Thanks, Civil War!!