Bruce's reply above offers the best information from the machinist's perspective - and you have to love it when a true professional speaks.
Looking at your problem historically from a draughting perspective, current geometric dimensioning and tolerancing is a comparatively recent innovation. The first nationally coded draughting standard, BS308 didn't come into effect until 1927! From all evidence, early 20th century mass-production manufacturing depended very much upon either 'try and fit' or hand-fit. That meant you had a box full of parts 'A' and another box full of parts 'B', etc. You'd take a part 'A' and try parts 'B' until one fit. The odd bits were set aside and hand-fitted if need be. That said, using a new made component produced using nominal dimensions would be essentially what occurred at least until the middle of WWII.Information
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