Vintage Wooden Nickel Town of Rindge New Hampshire Grades. Here in the United States, a wooden nickel was not (typically) legal tender but instead more of a novelty coin often redeemable for an item such as a drink issued by merchants or banks as part of a promotion. Wooden nickels became popular in the 1930s though they may date back as far as the 1880s. During the Great Depression, banks in both Tenino and Blaine Washington issued emergency currency printed on thin shingles of wood due to coin shortages.Usually, wooden nickels served more of a commemorative purpose becoming a popular hand out from banks to boy scout troops at grand openings and special events. The tradition of wooden nickels as tokens and souvenirs continues to the present day.