"token coins," were issued, in limited numbers, of less than full
proportionate weight and bullion value.

This plan, having been partially tried, was generally adopted by the
United States in 1853 at a time when the silver dollar of 371.25 fine
grains was legally rated at the same value as the gold dollars of
23.22 grains, and was freely coined. The fractional coins were made
a little over 6 per cent lighter per dollar than the dollar coin; two
half-dollars or four quarters or ten dimes contained 93.52 cents worth
of silver. Since then silver bullion has become worth much less in
terms of gold, and for years past the bullion value of the silver in
a dollar of silver small change has been between 40 and 60 cents. Why
then has the fractional coinage a monetary value equal to the standard
money, dollar for dollar?

The answer is, because it is artificially limited in quantity, so that
it does not pass the point of saturation in the field of its use. Its
value rests on its monetary use; it is fiduciary money, not commodity
money. It is limited simply by letting "the needs of the people"
determine its amount. This is done by issuing it only in exchange for
other money of the larger denominations, and by redeeming it in other
money on demand. Fractional coins are issued on the request of banks
in exchange for standard money. One needing "change" gets it at the
bank; when the bank finds its supply falling short it gets more from
the government mints. As business increased in 1898, the demand for
nickels, dimes, and quarters became unprecedented, and the mints
worked night and day to supply them. If these coins were made in
great quantities and forced into circulation by the government through
paying them out to creditors and officials, their quantity would
become excessive and they would fall in value (be at a discount)