St. Louis Post-Dispatch, Missouri, April 12, 1896
Only recently the Government considered the legality of prohibiting St. Louis cigarette manufacturers from putting pennies in cigarette packages..
I’m guessing what they’re talking about here is something similar to what was common from the 40s until the 70s at least, where cigarettes would cost, say, 23 cents a pack, so when you inserted your quarter you’d receive the pack of cigarettes with two pennies tucked into the cellophane.
I don’t think these cigarettes were in vending machines though, and the “penny back” was more of a rebate or discount. When the government argued the issue, the cigarette companies said if the penny had to go, then cigarette trading cards should have to go as well - and they both got to stay.
St. Louis Post-Dispatch, February 5, 1896:

