Help me understand the history behind Hard Times tokens and later Store Cards or Merchant tokens.

SiriusBlack

I understand that it dealt with the Second Bank of the United States a partially private, partially public bank. I know that Andrew Jackson disliked it and set things in motion to dismantle it and that his VP Martin Van Buren essentially continued it and was the actual President during the Hard Times though the public's hatred got directed at both men equally it seems.

Those are the basics that I understand. From reading it seems like the beginnings of the bank were hindered by illegal activities by directors and branch employees, and poor decisions the begin with. That shifted public opinion against the bank. Later though it seems like the bank got on the right footing and finally started accomplishing its goal of stabilizing the economy, reducing inflation from all the private and previous public currency being produced etc. So why then was Jackson et al still so much against the bank? It seems from reading that this was a much more political issue for them than a practical one and when it all started falling apart, their responses made things worse not better? I think I read somewhere that some politicians were even trying to compare if the Gov't can make national banks, they can abolish slavery and I have no idea how those two things relate.

Unfortunately I have a terrible grasp at economics and a lot of the websites I've tried to read kinda go over my head when they start talking about Jeffersonian agrarianism and things like the wikipedia page goes into. I feel like to learn about this properly I need to learn about 27 other economic topics first!

Second half to my question is about Store Cards or Merchant Tokens. A lot of people seem to lump these all in together though as I understand it, they are about a decade later than Hard Times tokens. Are these two separate things that should be in two different discussions or are they just some form or carry over where slowly the political commentary on the tokens fell away and the practicality of using them as an in store credit/advertising became standard? Were they still used because Large Cents were being hoarded or did people just like them? I read RogerB's thread a few months back about the Mint being angry about these counterfeit coins and wanting them to be arrested etc. Was there some final legal decision that found them not illegal? It seems like there are so many of them the government no longer pursued shutting them down, or merchants didn't care.

Thanks in advance! I hope others will find this interesting too.

Gluggo

I have a book on this subject its about 3.5" Thick. It talks about the history but I just look at the pictures looking for matching tokens in my possesion. I will see if I can find the title and post a picture of it. Maybe later I will open it up and actually read about the history that it talks about. But I mainly buy these to look at the nice pictures. I am one of those that hate reading but I love movies.
Geez 1248 pages no wonder I have not read it!
Standard Catalog United States Tokens 1700-1900
by Russell Rulau
The most extensive source available for the collector of U.S. tokens goes a step further in this new 2nd edition. You'll find 50% more information, better photos, updated pricing and carefully revised listings. Every token from colonial tunes to the dawn of the 20th century is cataloged and priced in this handy, one-volume library. Russell Rulau combines coverage of Early American, U.S. Merchant, Hard Times, Civil War, U.S. Trade and Gay Nineties tokens for a solid primer and reference took suitable fur beginning and veteran collectors.

JBK

My knowledge on these issues is much shallower than yours.

As I understand it, there was a severe recession bordering on depression in the US circa 1837 and that drove coins from circulation, and private issuers and merchants stepped in with private tokens, many of which resembled the center of the era. (There are some great slogans on many of those which offer great history lessons).

A couple and a half decades later there was a Civil War and the same shortage of small coins once again led to private issues. As I understood it, the feds stepped in at some point (1864 or so?) and put an end to it.

Gluggo

Hard Time Tokens Introduction 1 of over 1200 pages.

ricko

@Gluggo ...Thanks for the bit of history... I think I will add that book to my library... I do not collect these, but often see them and associated discussions here...Cheers, RickO

Oldhoopster

@Gluggo excellent response. I have a few HTT that I picked up over the years As well as Rulau's book, but never bothered to read the section you posted. Thanks for posting that reference

BillJones

So why then was Jackson et al still so much against the bank? It seems from reading that this was a much more political issue for them than a practical one and when it all started falling apart, their responses made things worse not better?

When Andrew Jackson was a young man, in the early 1800s, he accepted some promissory notes from some investors who bought land from him. He used those notes to open a general store. When the notes proved to be worthless, he almost went into bankruptcy.

This give Jackson an inherent distrust of paper money and legal documents that stood for money. He became a hard money man who believed that only gold and silver were safe monetary devices. He distrusted banks and the paper money they issued.

In Jackson’s time, this was not a totally imprudent position. Banks received their charters from the states and there was little regulation. The money the banks issued was no better than the financial health of the institution. Some banks were well run, and their paper money was sound. Others were on shaky ground, and their money was worth only a faction of its face value or worth nothing at all. A few banks were fraudulent operations from the start and issued bogus money for as long as people would accept it.

As you wrote the Bank of the United States was poorly run in the beginning. Then it got its act together and started to perform a valid service for the country. It policed the state banks in the sense that it often required them to back up the money they issued in silver and gold. Naturally some banks did not like that.

Still the Bank of the United States had a flawed charter. The Federal Government held some of its stock, but so did private individuals who expected it to earn a profit and pay dividends. Unlike the modern Federal Reserve, which has the role of executing monetary policy and not turning a profit (although it does make a profit on the side), the Bank of the United States was a for-profit enterprise.

Jackson’s core of support came from yeoman farmers and intercity workers. He was a populist who stood against the “high hats” and monied interests. Jackson believed that his people were best served if they could run their economic affairs with gold and silver coins, not paper. To that end he pushed through the Coinage Act of 1834 which authorized the Classic Head gold coinage. The Coinage Act of 1836 which opened mints in Charlotte, Dahlonega and New Orleans which got more coins into circulation.

Jackson also pushed for legislation that outlawed bank notes in amounts of less than $20. That pushed a lot of money out of circulation, which lowered the money supply. Lowing the money supply is strong economic medicine, which can start a recession on its own. Jackson did not understand that concept. Jackson’s policy helped bring on the Panic of 1837 although other factors were also in play. There were crop failures and a major economic slowdown in Europe which cut the demand for exports, especially cotton.

Like Jefferson, Jackson thought that farmers, the men of the soil, were the salt of the earth. He had the greatest respect for them and not so much respect for the “stock jobbers” and others who traded in finance. Jackson did not understand how a properly run monetary system worked, and his policies reflected that.

A wise leader would have looked for a way to reform the banking system, but in Jackson’s day, that may not have been politically possible. Instead he trashed the bank which brought more monetary chaos and economic woes.

I have been long-winded, but I hope this helps you.

SiriusBlack

Thanks so much everyone!
@Gluggo I had seen reference to that book in a few articles, thanks for posting those images. I ordered the Bowers Red Book on HT tokens. I’ll keep a look out for this one as well.

@BillJones Thanks you very much for the detailed history lesson, it helps a lot! I hadn’t read anything about his personal dealings early in life, and didn’t understand who his core supporters were, working people as opposed to the bankers etc.

I imagine it’s easy for economists and political scholars to look back at it now and see the signs and obvious errors, but at the time the country was only 50ish years old and their understandings and perspectives were probably much different.

tokenpro

Be aware that there are three main catalogs that cover the Hard Times token series, all of which still have relevance in one way or another to this day:

1. Hard Times Tokens by Lyman H. Low, 1899. The classic reference for HTTs and the base for the more current works. Some collectors still consider the 164 pieces listed by Low as the gold standard and limit their collection to the original Low listings.

2. Hard TImes Tokens 1832 - 1844 by Russell Rulau, 9th edition (last) 2002. Rulau greatly expanded the depth of HTT coverage by including new discoveries, store card issues that fit (or sometimes only partially fit) the time period, counterstamped Federal coinage that fit (or partially fit) the time period through directory research, additional political tokens not covered in Low, cardboard tickets here & there, some gizmos and some objects d' art such as an engraved animal horn. While the foo-foo and semi-dross are mostly ignored, a number of the additions are regarded as legit and recognized as part of the series. HT numbers are used by most exonumia dealers & auction houses with original Low numbers also included when needed. Rulau listings are numbered into the mid-500 range with many extra sub-listings and even more in the various appendices. The 9th edition of the Rulau catalog is a convenient stand-alone work; the HTT section in the large Rulau 1700 - 1900 catalog is considered the 8th edition.

3. A Guide Book Of Hard Times Tokens by Q. David Bowers, 2015, part of the Whitman series of "Official" catalogs. Bowers tightened up the listings by excluding much of the peripheral material included in Rulau, as well as c/s, etc. A few tokens that fit the time period are added but some HT pieces that should be there, aren't. The catalog goes much deeper into the history of the period and the history of the individual merchants and is by far the best in that regard. Listings are priced in several grades (often generously) with auction records of the scarce to rare pieces included. Bowers introduces his own detailed but somewhat clumsy numbering system but also includes the Low & HT #'s for each piece.

I would recommend buying both the Bowers work for the history, clear color photos and more up to date pricing ($29.95 list, often available at a good discount) and the 9th edition (gold cover) of Rulau (out of print) for it's expanded coverage, useful details & numbering (the 8th edition included in the 1700 - 1900 catalog is an adequate substitute)

Gluggo

On my United States Token book I was able to buy it from one of the good members here and was able to get a good price. I think mine is from 2004 Edition. Not sure what the latest is but if your patient you can find one reasonably priced. It looked a bit pricy in Amazon. Maybe even ask for it in the BST.

RogerB

Informative and useful thread !

BillJones

If you have read my essay further up the page, the slogans on those pieces will mean more to you now.

This one brings up "MY EXPERIMENT, MY CURRENCY & MY Glory." It refers to Jackson's hard money policies. The reverse with the pig continues the theme. The "THIRD HEAT" either refers to Jackson's third run for the presidency, which gave him his second term (He lost first time in 1824.) or the desire to run for a third term as president. His opponents called him "King Andrew."

This one was issued during the Van Buren administration. Martin Van Buren was Jackson’s protégé and hand picked successor. It shows peace and tranquility if Daniel Webster, a Whig presidential want to be, were elected, and the ship on the rocks under Van Buren’s “Metallic Currency plan.

This token covers themes along the same lines. It shows Jackson emerging from a money chest with a bag of coins and a sword. They were making fun of Jackson's status as a military hero which got him elected and his short temper. The reverse shows a jack ass with an "LLD" on its belly. It is a bad pun on Jackson's name and temperament. The "LLD" reverse to the honorary degree that Harvard gave to Jackson which outraged alumnus, John Quincy Adams. This might be the most common Hard Times Token.

This one is sort of sequel to the previous piece. It was issued during the Van Buren administration. The obverse shows a tortoise with a safe on its back. This refers to the Sub-treasury which was the government’s bank for collecting a paying out funds.

Early on Jackson removed the government’s deposits on put them in what his opponents called “pet banks.” Jackson got taste of what it was like to deal with these unsteady institutions. When some of them went bust, the government lost its money. That led to the substitute, the Sub-treasury. Implication here is that the government run bank might be “slow pay.” The first Sub-treasury bill was passed under the Van Buren Administration. The Whigs briefly did away with it when they took over the White House in 1841, but it came back during the Polk administration. The Sub-Treasury continued to operate after that until circa 1912.

The reverse refers to Van Buren’s inaugural address. In it he said, “I follow in the footsteps of my illustrious predecessor.” Since Jackson was a jack ass in the opinion of his opponents, that made Van Buren one too.

Finally this is not a Hard Times Token; it was issued, probably in 1836, during Martin Van Buren's only successful run for the presidency. It pays homage to the Jackson – Van Buren political base, the yeoman farmers. This token is rare. It took me years to find one. This one is gold plated, which means it was probably given to a wealthy political contributor or worn by an important politician. I’d rather have a “regular one,” but you can’t get picky after you have waited 20 years to buy one.

SiriusBlack

@tokenpro Thanks for explaining the differences in the reference books, that helps a lot, I was having difficulty figuring out which would be good to look for given there were so many out of print editions.

@BillJones Thank you once again! I've seen several of these tokens referenced on websites and on eBay but wasn't certain but all of the different slogans and iconology meant. A follow up question, what does "Slow Pay" refer to? I'm not sure I understand the term.

BillJones

A follow up question, what does "Slow Pay" refer to? I'm not sure I understand the term.

"Slow Pay" - If you send someone a bill, it takes them a long time to pay to you. Time is money. That is why a few businesses offer discounts if you pay right away. For example. " 2 - 10, net 30." If you pay within ten days, you get a 2% discount. If you wait 30 days, you pay 100%.

SiriusBlack

Ahh ok I understand!

BillJones

Here is an example of the granddaddy of all Hard Times Tokens, Low #1. That number actually covers three sub die varieties. In general, the pro Andrew Jackson tokens are much scarcer than the anti-Jackson pieces.

The obverse is Andrew Jackson. The reverse has to slogans. “The Bank Must Perish” refers to end of 20 year charter the bank got in 1816 which ran out in 1836. Henry Clay, Jackson’s 1832 presidential opponent, got a bill through Congress that would have renewed the charter, but Jackson vetoed it. Congress could not override the veto and that set up the major issue for the 1832 presidential election.

“The Union Must and Shall be Preserved” refers to a more complicated issue. During this time there were protective tariffs on imported goods. The South ended up paying a lot of these taxes because they imported goods mostly from England and the rest of Europe. Northern manufacturers benefited because the foreign goods were made more expensive, and that allowed them to charge higher prices what they produced.

The South rebelled against this, and passed laws to nullify the tariffs. This became known as the Nullification movement. The Nullification movement was centered in South Carolina with Senator John C. Calhoun had its head. Calhoun had been the vice president under Jackson, and he resign the office over this and other issues.

Jackson held firm. He threatened to send the army to South Carolina for enforce the law. Some people saw that as a states’ rights issue that the institution of slavery lurking behind it. South Carolina backed down, but Jackson did quietly have the tariffs lowered after the crisis had passed.

This token is very scarce and popular. This example is okay, but not great. It's still worth a few thousand dollars. The nice ones have ranged in price from $10,000 to over $20,000 depending upon which big collectors want one at a given time. I'd like to up grade it, but that has never worked out.

SiriusBlack

I hadn't realized there were Pro Jackson tokens as well, I guess as you said since they're rarer I just haven't come across one. All of these things sort of laying out the beginnings of the civil war several decades later.

BillJones

Here are a couple more pro-Jackson Hard Times Tokens. This one celebrated his victory at New Orleans in January 1815. There are two minor varieties of this piece. This is the more common one. I bought this one dirt cheap because of the hole, but it actually shows that it was probably used as a presidential compaign piece.

Here is the same token without the hole. To me it's not as nice, but it's worth more.

Here's one with jackson wearing toga. This was considered to be cool in the 19th century. Note the date error. Jackson became president in 1829. He was elected in 1828.

Here is the previous coin's "sister." The reverses are the same except for the 1829 date error which was corrected to read the correct year, 1828.

This piece is scratched on the reverse. It sold for $1,500 in a Stacks' auiction. I bought it from a dealer a few years later for $450. The number of pieces is small enough that you can actually keep tabs on them now and then as they go from collector to collector. I knew the collector whose estate consigned this piece to Stacks'. His name was Herb Ochner. He was a well known member of New Jersey Numismtic Soceity.

There are a number of other contemporary Jackson tokens, but they are considered to be Hard Times Tokens.

SiriusBlack

I think I agree, I like the holed one better in your first example there. I guess you could really narrow your field of collection down even in Hard Times tokens if you wanted to, only collecting Pro Jackson tokens, or only against him or some similar design. Do the merchant tokens also count as Hard Times tokens or are they considered separate because they are not related directly to the politics of Jackson/Van Buren? I guess I'm asking what is the dividing line or main topic that makes something a hard time token?

spacehayduke

I will let the other do the talking. Great series, here as some of mine, real value and as noted above, interesting history.

Best, SH

BillJones

@SiriusBlack said:
I think I agree, I like the holed one better in your first example there. I guess you could really narrow your field of collection down even in Hard Times tokens if you wanted to, only collecting Pro Jackson tokens, or only against him or some similar design. Do the merchant tokens also count as Hard Times tokens or are they considered separate because they are not related directly to the politics of Jackson/Van Buren? I guess I'm asking what is the dividing line or main topic that makes something a hard time token?

The Hard Times Tokens have a date window that runs from say 1828 until 1844. The economic depression lasted from 1837 until 1843 or ‘44.

The large cent size political and merchant tokens that were issued during that period are virtually all Hard Times Tokens. Pieces of other sizes qualify too. Political tokens issued for John Quincy Adams. Henry Clay and William Henry Harrison don’t make the cut. Russell Rulau tried to add some generic William Henry Harrison political pieces to the mix, but they did not seem to catch on with Hard Times collectors as official parts of the set. I think that those pieces have at least a historical spot in a Hard Times collection.

lkenefic

Thanks all for the education!! Especially @BillJones .

NumisOxide

Great thread guys! Over the last couple of years I've been occassionally picking up different pieces. Their a very interesting and important part of political and economic history.

Gluggo

Spacehayduke beautiful Tokens and amazing photos.
Here are a few I picked these up from a Steve Hayden Auction. Had to resize these a bit to big.

SiriusBlack

Great tokens, @spacehayduke and @Gluggo thank you for sharing some! I’m really enjoying all the interaction and knowledge being shared here.

lkeigwin

Here are excellent articles on The First Bank of the United States and The Second Bank of the United States
Lance.

SiriusBlack

Thanks! I've downloaded them to my iPad so I can read them!

@lkeigwin said:
Here are excellent articles on The First Bank of the United States and The Second Bank of the United States
Lance.

CWT1863

Great thread! Thanks for the history lesson. Here are a few of my Hard Times tokens: