Coinage Act of 1864 prohibits privately issued tokens

Background. During the Civil War, government-issued cents vanished from circulation, leading to the private minting of tokens between 1861 and 1864. These tokens, including store cards and patriotic issues, served as currency substitutes. By 1864, an estimated 25 million tokens were in circulation. The scarcity of official coinage drove the need for legislative intervention to standardize currency and prohibit private issuance.

Legislative Action. On April 22, 1864, Congress passed the Coinage Act, which changed the composition of the one-cent coin and authorized the two-cent piece. The law explicitly made it illegal to privately mint one and two-cent coins for circulation. This action effectively ended the production and usage of Civil War tokens, although a subsequent law on June 8, 1864, further forbade all private coinage.

Numismatic Impact. The act is remembered for introducing the phrase "In God We Trust" on the newly created two-cent piece. The new one-cent piece, closer in weight to the tokens, gained public acceptance. While the act made tokens impractical, it did not make owning them illegal. Evidence suggests tokens were viewed as collectibles as early as 1863.