H^^ CORNELL ' fjf UNIVERSITY ^^-^ UBRARY Cornell University Library HG 1222.V83 On Chinese currency.Coin and paper mone • 3 1924 023 306 875 Cornell University Library The original of this book is in the Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924023306875 ON CHINESE CUREENCY. com AND PAPER MONEY. OK CHINESE CUMENCT. COIN AND PAPER MONEY. BY W. VISSERING L L D., With facsimile of a Banknote. --j?>ir>=«3^=jr>d»>- LEIDBN, B. J. BRILL. 1877. SIMONI VISSERING VIKO CLAKISSIMO PATEI OPTIMO CAEISSIMO w lOHANNI lOSEPHO HOFFMANN VIRO CLAEISSIMO VENERABILI MAGISTEO HAS PRIMITIAS TAM EST STUDIIS ECONOMICIS QtTAM IN STUDIIS OEIENTALIBUS D. D. D. GRATUS DISCIPULUS AUCTOR CONTENTS. Page. Preface ix. Introductory Chapter 1 — 32. CHAPTER 1 1—26. FIRST NOTIONS OF MONEY. Barter. — Origin of money and primitive speeies. — Denominations to express the idea of money, currency, medium of exchange. — Infor- mation of Kwan-tsze, the earliest writer on money. — Views on the .cha- racter of money and the -use of it in ancient times, hy two Chinese scholars of the eleventh century. — Something on the use of money in the beginning of the Tseu dynasty. — Two passages quoted from "the book of rites of the Tsea". — Ma-twan-liri's critic. — Introduction of now coins by King-wang and advice given hy Tan, duke of Mu. CHAPTER II 27— 60. HISTORY OF MONEY UNDER THE GREAT HAN-DYNASTY. The Ts'in-dynnsty. — The golden yi. — The Han-dynasty. — The leave-coins. — Wen-ti grants the people to cast their own coins. — Speech of kia-i against free -coining. — Practical view of the same question by Kia-san. — ' King-ti makes false coins. -^ Reign of "Wu-ti. — His financial measures. — Representative money of skin-parcels and white metal. — Yik tseu coins. — Institution of one general" state-mint. — Excess of false coining under Yuen-ti, and advice given by his Minister to abolish money. . — Information om the relative value of money under the Han- dynasty. — History of Wang-mang. — His regency and re-establisment VI CONTENTS. Page. of the currency of the ancient kings. — His foolish institution of several varieties of representative currency. — His fall, the 5 tsu-ooins come hack. — Speech of Liu-t'ao on the disadvantage of making unnecessary al- terations in an existing currency. — Decline of the Han-dynasty, the coin with the four outlets. — Bad currency of Hieu-ti. — End of the reign of the Han-dynasty, CHAPTER III 61— 98. HISTORY OP THE MONEY DURING THE PERIODS OF DIVISION OF THE EMPIRE. The three kingdoms. — The Tsin-dynasty re-uuites the empire. — Hwan- hiuen proposes to abolish the money. — Speech of the privy councilor Kung-lin against that plan. — The sajue question discussed in another part of the country. — Division of the empire into North and South. — _ The Southern empire, the Sung-dynasty. — A session of the privy coun- cil and advice not to coin -too light pieces. — Wretched condition of the currency during the reign of the "Deposed emperor". — View of the po- litical events hy which the four subsequent dynasties rose and fell. — Admirable speech of a Minister on the necessity that money should have - real value and be perfectly coined. — The Liang-dynasty. — Institution of iron money; its failure. — The Ts'an-dynasty. — The northern em- pire. — The Wei-dynasty. — Money is not used at all, the people en- forced to use it. — Discussions on the institution of a new currency. — Northern Tsi-dynasty. — Assisement introduced. — Gold and silver money of the far west. — The Sui-dyuasty re-vmites the empire. — Unavailing measures to introduce a better currency. — Money superseded by other objects. — End of the Sui-dynasty. CHAPTER ly 99—125. HISTORY OF THE MONEY UNDER THE T'ANG DYNASTY. Kai-yuen-t'ung-pao-money. — Origin of the nail-mark on the reverse of that coin. — Opinion of later times. — Fragments of the annals of false coining. — Free coining discussed again. — The annals of false coi- ning continued. — Reports of the collectors of salt and iron-duty. Ap- parition of paper money. — Tyrannical measures to obtain the necessary copper. — Restrictions on the possession of ready money. — Ma-twan- lin''s criticism. — Buddha religion laid under requisition and finally abo- lished in order to confiscate the copper vessels of monasteries and temples. CHAPTER V 126-159. HISTORY OF THE MONEY UNDER THE SUNG-DYNASTY. The 5 imperial famiUes. — Tree coining and its effects. — A conflict between Church and State. — Speech of the emperor and reply, of an CONTENTS. • VII Page, economist, believer in Buddha. — The Sung-dynasty, new regulation of money-matters. — The history of the double standard in China. — The economical innovations of Wang-gnan-si. !». State advances to cultivators of land. 2°. Prohibitions against the export of copper suspended. — An old way to pay new debts. — Critical observations on money by Tung-lai of the family Liii. CHAPTEE VI 160-218. PAPER MONEY OP THE SUNG-DYNASTY. Origin and denominations. — Private bank in Sse-ts'uen, its insolvency and institution of a Government-Bank. — Way of issue of bilt of ex- change by the State. — Receipts for Government productions used as mo- ney. — Reserve funds. — Terms of redemption. — History of the bills of exchange, and bills of credit. — The Southern Sung-dynasty. — Bills of the province of Sse-ts'uen. — Hoei-tsze and frontier-biUa. — Bills of the districts of Hoai and Hu. — Tyranny, overissue and depreciation. — Criticism and notions on paper money by Ma-twan-lin, Tung-lai and Sui-sin. -A. ID r> B isr'iD .A.. I. Description of the fac-simile of a Chinese Banknole of the Tai-ming dynasty. . • ■ Page i— m. II. Description of a Banknote of the year 1858. . . .- . . » iv — v. III. Addenda and Errata » vi. PREFACE. It is now two years since the first thought occurred to me to write a historical and critical inquiry into the metallic and paper _ currency of the Chinese, followed from original sources. The source chiefly drawn upon and consulted by me has been "the Examination on Currency')" by the Chinese scholar ilfa- twan-lin 2), treated of in the VIII and IX Volumes of his great Encyclopedia. Ma-iwan-Una life and works have been described by abel kemusat in the "Biographie Universelle." He was born in Pp-yang^), province of Kiang-si, probably about the year 1245, when the end of the 5'M«^-dynasty was near, and the social condition of China was most miserable in consequence of an over-issue of paper money. Under the last emperor of this dynasty he held an important public office, but when the Mongols had conquered the Chinese empire, he resigned his post and devoted himself entirely to scientific studies. During twenty years he was engaged upon the composition of his great work from which the materials of this volume have been gathered. X PREFACE. In 1321 the first edition of his work was published under the title of Wen Men t^ung Tc'do •). According to Ma-twan-lins own preface to his work ^ wen, signifies the historical chronicle, the purely historical facts as he found them in the Annals of the different Dynasties; ^ Men are properly oral or written addresses and reports which are mostly the elucidation of the historical facts. I, therefore, prefer the Rev. Dr. legge's translation of that title into "General Exa- mination of Records and Scholars" to that of abel eemusat who tried to express its signification by the rendering "Recherche approfondie des anciens monuments". Great is the praise lavished by European authors on Ma- twan-lin, and together with Confucius and Mencius he is of all Chinese authors the best known in Europe. In the above mentioned biography abel bemusat says of him: 'On est certain de tr.onver soua chaque matiere les faits qui y sont rela- tifs disposes chronologiquement suivant I'ordre dea dynasties et des rjgnes, annde par ann^e, jonr par jour. On ne pent se lasser d'admirer Timmen- sit^ des recherches qu'il a fallu a I'auteur pour receuillir tous ces mat^- riaux, la sagacity qu'il a niiae a les classer, la clart^ et la precision avec lesquelles il a su presenter cette multitude d'olijeta dans tout leur jour. .On pent dire que cet excellent ouvrage vaut a lui seul toute une bibliotheque et que quand la literature Chinoise n'en oifrirait pas dautre il faudrait la peine qu'pn apprit le Chinois pour le lire. On n'a que choisir le sujet qu'on veut dtudier, et- traduire ce qu'en dit Ma-twan-lin. Tous les faiits sont rapportds et classes, toutes les sources indiqu^es, toutes lea autorit^s cities et discut^es. II est S, regretter qu'on ne se soit pas encore occup^ d'exploiter cette mine pr^cieuse, ou toutea lea questions qui' peuvent con- cerner I'Asie orientale , trouveraient des r^ponses les plus satisfaisantes. 11 y a meme beaucoup de parties de Ma-twan-lin, qui mgriteraient d'etre tra- duitea en entier " PEEFACE. XI After a careful study of Ma-twan-lin I readily agree to this encomium passed on our learned Chinese; only in one respect I must differ from it. Ma-twan-lin is not always equally clear and dis- tinct. Compressed constructions which often cloak his exact mean- ing are of too frequent occurrence; moreover, he is peculiarly fond of using words in a strange secondary signification, not explained in any Chinese Dictionary. A comparison of many pas- sages , and a profound study of the difficult parts will at last enable the student to solve these riddles. This explains perhaps the reason, why except the maequis d'heevey de ST. DENYS ') nobody as yet has listened to the call of ABEL EEMtiSAT, and edited part of Ma-twan-lin s Works. As far as I am aware the important fragments in the two volumes of Ma-twan-lin's work are all quoted; those not inter- esting either . with respect to language or history are paraphrased or entirely omitted. The explanation or interpretation of passages obscure either from the difficulties of the language, or because they were distinctive of the authors style, and showed a pec- uliar Chinese construction , I have given to the best of my ability, even when the economical part had no need of the informations given in those fragments. In a few instances the difficulties were beyond my strength; these passages I recommend to the special care and attention of sinologues. It having been my aim throughout to preserve the sense and spirit of the original, many pages will be found disfigured by 1) In his meritorious work "Etbnographie I de Ma-twan-lin , edited in the Ats-ume Chtsa. des peuples dtrangers" traduit du Qiinois, ' XII PREFACE. inelegant phraseology, b"ut though this may offend the ear of the ordinary reader, sinologues will undoubtedly appreciate a faithful rendering of the peculiar construction and choice 6f words in the Chinese text. To two remarkable phenomena in the Chinese language I have called attention as often as they occurred in the expounded 1. The peculiar force of the final particle ^ which, according to my conviction, is commonly used when the author or speaker expresses his subjective opinion, and which characterizes the thoughts and perceptions founded only on the individual na- ture of the thinking and speaking person; while, on the contrary, the final particle j^ gives to the words the character of an objective certainty proceeding from the nature of the subject itself. In reading the classic authors my attention was directed to this fact by my much esteemed y^ -^ ^ Prof. Hoffmann , and the more I advanced in my study of Chinese texts, the more settled my conviction became regarding the truth of his observa- tion. The following examples taken from Classical authors may serve as illustration; to give here more I have thought unnec- essary, as the passages of ma-twan-lin, in which that peculiar force of ^ is obvious , are all marked at the foot of the page. Confucius says: ± m m ^ r- ^ B n ± ^. "To be a scholar and love one's ease is, I believe, not sufli- ciept to be considered a scholar." Tlie distinction between ^the two particles is clear from the next extiTuple ill whith both occur. PKEFAC]?. Xllt # ill m„ g ^ m„ "The King is the source, the subjects are the stream. To make thait source muddy, and yet to wish to have that stream limpid is, in my opinion, not possible." Mencius too gives many instances. m 'ii' Mi m ^ ^- "The heart seen in this is sufficient (to my conviction) to carry you to the Imperial sway." The distinction of the two particles shows itself again in the next phrase. {The king says.) "Small as my virtue is, in the government of my kingdom I do indeed exert my mind to the utmost." Dictionaries commonly state that the character ^ emphasizes the phrase. This is, however, no argument against my observation, as subjective views are mostly expressed with more emphasis than objective statements. 2. The great signification of the rhetorical inversion or ante-position in the Chinese language, in consequence of which that word and that, part of the phrase on which falls the stress is transposed and emphatically begins the sentence. This is especially the case in the tf){ parts containing the speeches and reports , the style of which the author or speaker intended to be elaborate. This same transposition is found in most European languages and some authors make frequent use of it. "Ein frommer Knecht war Pridolin" says SCHILLER, and begins his sentence with the predicate. "A giant's strength we admire in him," writes caulyle under XlV PREFACE. the impression of the tidings of goethb's death. From everj page of our modern literature examples might be gleaned, and in the writings of the ancients the same rhetoric peculiarity is found. In the Chinese language and grammar that transposition has, however, greater significance than in any other language, as here all grammar depends on the position of the words, and when for the sake of rhetorical turns we are deprived of this guidance, and the Chinese author instead oi ■^'^ ^ dares to write ^jc ^ '^ > the difficulties already besetting us greatly increase. Ma-twan-lin's Book has in consequence of that inversion many a complicated construction which for a long time I was at a loss how to translate. The most important of these pas- sages I have marked in a note. And now I am at the end of my long labor, and see the book ready before me, I wish to express my grateful thanks to all wha have assisted me by help or encouragement. To them whose names are found on the first page of this volume, I can give no better token of my deep acknowledgments than the dedication of the work they have shown to much sympathy with. For much information I am also indebted to Prof, gtjstave scHLEGEL, whosc profound knowledge of the Chinese language was of invaluable assistance so me. A copy of Ma-twan-lin's book I received from Prof. a. caekiJike, Secretaire de I'Ecole Speciale des Langues Orientales viv antes; at the request of Dr. e. eost of the library of India Office, the Rev. Dr. james legge had the kindness to send me the copy of Wan U'a Continuation oi Ma-twan-lin; through the kind intercession of his Excellence the Minister of Fo- PREFACE. XV reign affairs p. j. a. m. van dee, does de tillebois, I re- ceived from the Imperial Academy of Sciences at St. Pe- tersburg the original bill of the Tai-ming dynasty with permis- sion to make a drawing or photograph of it. Prof. a. schietnee, member and secretary of the Imperial Academy of Sciences at St. Petersburg was so kind as to offer me some Chinese bank-notes and bills of exchange of later times ; and from Paris I received from the Ecole Orientale the scrip of a note, • issued by a Chinese joint-stock bank at Sang-hai. The photograph which is an exact reproduction of the origi- nal much worn bill, is obtained after a new process, invented by Dr. e. j. asser of Amsterdam, who had the kindness to supervise the execution of this work of art. To these gentlemen and to many others , residing in my country , I openly tender my deep obligations for their ready and kindly aid. Within a few days this volume will be launched from e. j. brill polyglottic printing-office into the world; very probably to be critizised and contested; but also, I am sure, to be appreciated by those who, taught by their own experience, know the amount of labor required to understand and explain a Chinese author. The best wishes the author can give to his book on its way are those contained in the following passage of goethe's treasure of wisdom, "the West-Ostlicher Divan" Vor den Wissenden sich stellen, Sicher ist's in alien Fallen! Wenn du lange dich gequalet, Weisz er gleich wo dir es fehlet; Auoh auf Beifall darst du hoffen,. Benn er weisz wo du's getroffen. Leiden. June, 1877. W. V. INTRODUCTORY CHAPTER. An impoilant chapter of the economical history of China was the subject on which I purposed writing my Academical Dissertation for the acquisition of the degree of Doctor of Laws ; and as the mysteries of the monetary history always have had great attractions for me , my predilection has led me to attempt an investigation of Chinese Cur- rency and Banking. How far this investigation may claim to be a Political Econo- mical Study is a question which has already often been put to me, while I was collecting the materials from Chinese and Japanese sources. And when the economist, judging by the title, opens the book and sees so many Chinese characters, I fear he will feel some doubt if the woi'k can be of any interest to him and if the economical value has not been put too much in the background because of the desire to explain diflScult passages in the Chinese text. It is therefore that in this introductory part I have imposed upon myself the task of giving an answer to the above question, Perh'aps the same answer that I have often given to the same question might suflSce here, that the history of a commercial people which is the gi'eatest as well as the most ancient nation in the world, of whose literature vast and valuable stores are still extant, who had come to the solution of many a question, social and political, long before it agitated the Western world, and whose theories, and institutions are all found back in Europe years and years after- wards, that such a history is worthy of being closely studied and carefully searched. But I feel here called upon to waive an answer in such general terms and to speak more in particular about the economical value of the matter treated of in this study, the more 2 INTRODUCTORY CHAPTER. SO, as I -wish to acquaint my readers beforehand with what they are to expect on a perusal of this volume. However, before treating of the economical value of the subject, I may be allowed to state what on this head has already been communicated by European authors of different times. There are many stories of medieval merchants and monks, which witii more or less praise mention the use of paper money in the empire of the Great Khan, and at present hardly any work on Currency or Banking is published but gives some information as to the money and paper currency of the Chinese. Mr. macleod ^) and Mr. JEVONS *) tell us many particulars of Chinese paper money ; dr. otto hCbner in his work "Die Banken" ^) says that at present the system of Free Banks is in active operation in China and that it fully answers the purpose, m. courcelle seneuil *» wee "Papier Mon- naie" in the Dictionnaire de I'Economie politique, and M. BENADAKis in his essay in the Journal des Economistes, entitled "Le Papier monnaie dans I'Antiquite *) and even the author of the Notizie interno all' ordinamento bancario e al corso forzato negli Stati Uniti di Ame- rica, e in Russia has appended to his AUegati a little chapter entitled "La Carta Moneta presso le nazioni Asiatiche"*) All those authors show great interest in the same subject, and give a concise view of the history of paper currency in the Chinese empire. These communications lead us naturally to the sources drawn upon by them, and as the fountain-head of all we find: 1" A little information given by j. klaproth in the first volume of the Journal Asiatique (1822) entitled "Sur I'origine du papier monnaie''*). 2" An essay of the late sinologue ed. biot, followed firom Chinese 1) THEOKY AND PRACTICE OF BANKING Vol. I, p, 179. DICTIONABT of POLITICAL ECONOMY in voce Basking p. 215 and m voce Currency p. 667 — 671. Mr. MACLEOD says at the end of Ms information on Chinese paper money: "We have given this account of Chinese paper money be- cause we are not aware that any account of it has ever been published in English, and it may probably be new to our readers to learn that all the phenomena which have been displayed in Europe and America by the issue of paper money were exhibited in China many centuries ago". 2) Money and the Mechanism of ex- change p. 198. 3) Leipzig 1854 Vol. 11 p. 421 4) Vol. 33. March 1874. p. 353 sqq. 5) Page 161. This hook of which only the first part is printed as yet, is one of the many valuable economical and statistical works which are gradually edited by the Minis- terio d'agricoltura, industria e commercio in Italy. 6) Cf. M^moires relatifs it 1' Asie par 1. KLAPBOTH 1826. Tome I p. 375. INTRODUCTORY CHAPTteR 3 sources, and entitled "M^moire sur le Systems monetaire des Chinois''. This study has been published in 4 numbers of the Journal Asiatique, Anno 4837. These then were the sources from which all further information on the subject was drawn, information which did not escape the rejuvenating influence of a distillation through so many brains. "What I myself read in these monografies made me the more de- sirous to consult authentic documents in which probably many things, which were vague and without connection would be explained when I could read the exact and chronologically arranged details which the Chinese with laudable zeal are wont to collect together on any Subject they treat of. I had the good fortune of having a copy of ma-twan-lin's Ex- amination on Currency lent to me, and moreover I had access to the treasures of the collections in the Royal Ethnographical Museum, to the Japanese Museum of the Zoological Society: natura artis MAGisTRA at Amsterdam, and to the libraries of Prof. j. Hoffmann and Prof. G. SOHLEGEL of Leiden, and so I set to work, still uncertain whether I should be able to produce anything not yet published by my predecessors. But the more I advanced in my study of the Chronicles, the stronger became my conviction that I was doing no superfluous work. The oldest piece, that of klaproth, proved to be nothing else but a quotation from one of those numerous En- cyclopedias in which all possible and impossible subjects are sepa- rately treated of, works always highly interesting to a Chinese scholar, being compiled from the great authors, and faithfully referring to the sources from which they are borrowed. The second source, the essay of ed. biot has great merits but it has the fragmentary character of a magazine article, ma-twan-lin, the principal Chinese author consulted by biot has divided his work into two parts, 4" the historical chronicle, 2" the economical theories and opinions contained in the reports and memorials pre- sented to the imperial government by prime ministers, governors of provinces, and other high dignitaries, or in the speeches delivered in the meetings of the privy council and, the ministers of state by the sages and learned of their time, ma-twan-lin, a. learned statesman and author of the 43* century of our era, has collected all these chronicles and state papers, and arranged them in chronological order so that from the most ancient date down to the author's own ■i lUI-RODtrCTORY CHAPTER^ time we have a faithful record of. all that relates to the province of learning, science, policy, etc. Of this extensive Collection, how- ever, the reports and speeches form the principal and most im- portant part; everywhere they impart the elucidation of historical events which precede and follow; but infinitely more important they are as they give us an idea of the men who have had the greatest influence on their time. These fragments, however, require a care- ful study, shall they be rightly understood. Full of historical allu- sions comprehensible to the Chinese literati but to us, not having the necessary materials at our disposal, often unintelligible; more- over not simple and clear as the chronicle which communicates only facts, but full of distorted sentences, full of pedantic words taken in a signification which rarely occurs and which are borrowed from some classic author who perhaps in some exceptional case made use of them and lastly treating of notions which they felt to be true and tried to express, but which as yet had never been sub- jected to a rigorous scientific investigation. In writing his- M^moire sur le Systeme monetaire des Chinois the French author has exclusively confined himself to the historical Chronicle ; only once or twice he wanders from his subject to give a few lines of ma-twan-lin himself, .in which that Chinese scholar communicates his individual opinions after having treated of a whole period of Chinese history; but even then those fragments are so abridged that the speculative matter could merely be touched upon. The consequence is that many passages of the Chronicle are not sufficiently understood, and that owing to the omission of what would have given variety and relief to dreary dates and facts, the part on the history of metallic money is uncommenly dull and monotonous. Of invaluable service, however, this worthy pioneer of Chinese science has been to me. I had but to follow the way mapped by him when he, like a second Marco Polo, for the first time undertook a journey through the immense Chinese empire and it was possible for me to cruise and wander about in every direction, where he, seeking for the way in the, unknown and unexplored country was obliged to go straight forward. By the indefatigable labors of many European sinologues, Hoffmann, julien, leggf,, and others, I had not those obstacles to overcome, which biot had to struggle with; in many cases the way was prepared, the direction indicated, INThODtJCTORY ciiAPTten. 5 and so I could reach the wished for end or at any rate come nearer it than was possible for the solitary traveller in 1837. Now it -v^ill easily be seen why I have preferred this to any other form of composition for my work. A magazine article being extant, a study collected from original sources was wanted, if it were only to enable some one or other to compose a new article for a Peiiodical in which the history of Chinese currency is fully discussed. I have continually connected the history of currency with the economical opinions of the different times , such as they have come down to us in the words and writings of the great thinkers who in China have occupied themselves with this subject. But I have pointed out not only the good and the true principles, but also the follies and mad-cap theories which promulgated by in- fluential Chinese wei-e of equally great importance to the history of their time. Originally it was my intention to compare the opinions and theories of Eastern Asia with those of Western Europe and America; but gradually I have been obliged to confine myself to a few remarkable points of comparison, for fear of giving to this book the very encyclopedian character peculiar to all original Chinese science. In most cases I have given a concise view of the political history which directly bears upon the passages taken from Ma-twan-lin, and which were indispensable to understand our author, at the same time availing myself of these little introductions to devote a few lines to the economical part of the social conditions. It was likewise part of my plan to incorporate into this book a view of the Japanese metallic and paper currency. Apparently this was a wide field for observations. Among the collection of Dr. von siebold, brought from Japan and preserved in the Royal Ethnographical Mu- seum at Leiden , there were a great number of so called inint-books , containing diagrams and descriptions of .all varieties of Chinese and Japanese coins; the collection of Japanese coins in that cabinet is nearly complete, and, last not least, there are seven Japanese bank-notes, the oldest dating from the year 1688 and the latest from 1868. But what was my disappointment when, on examination, I found that the Japanese authors seem not to have had the least idea of the signification of money, their books on the subject con- taining, only besides other worthless trash, a dull account of the di' mensions and weights of their coins. INTRODUCTOKY CHAPTER. After they had adopted the institution of money fi'om the Chinese, the round square-holed copper pieces were but seldom used, the general measure of value remained , what it originally had been , rice. The Japanese gold and silver money had by no means an intrinsic value corresponding to the nominal, which has been proved from a report of an essayist of the Dutch Bank at Amsterdam, who at the request of Prof. HOFFMANN has estimated the value of some hundreds of gold Kohangs. The relative value of the different metals, as given in the Japanese Encyclopedia San-tsairdew-i^) is very primitive. "A gold coin has the value of iO silver coins, 1 silver coin is worth 10 copper coins, and 1 copper coin has the value of a measure of rice." Behold the childlike ^mplicity of a people who isolated from the rest of the world, were not interested in having an exact ratio of value of the different materials which for centuries together have circulated as medium of exchange. After the Japanese ports were opened to Europe and America, this state of things very materially altered , .but not until the country was plundered by cunning speculators who imported the silver coins in wholesale to exchange them for the underrated gold. A paper money too have they had, but their notions of this representative currency seem to have been as crude as those of metallic money, and having gold and silver coins, the want of a lighter medium of exchange than copper was so little felt that this institution never reached any high degree of development. Little pieces of paste-board representing a very small value , circu- lated in some feudal territories, and were issued because the feudal lords or daimios who, not having the privilege to cast their own coins, wished to bring a currency in circulation which was a sign of their power in their own territory , and at the same time met the want of a sufficient quantity of metallic money. Of these notes there is one in the above mentioned Museum, issued in 1731 by the feudal lord o^Awa and Awatsi^); another current in the province of Simdbara^) issued in 1776; a third of the year 1688 without mentioning the territory where it was in circulation, of a value of 5- silver pu, etc. In all 1) 51* m H tT i Tol. 69. p. 16 a. till has aTalueofi/«-»JOffl»!* — "i >§? ^ (about Viu tael or three pence). ^) "Hir 1^ ' '^'^ ^^^ ^»s » ^»l"e "f Tin-ni-pu ^ ^ ^ (about 2 s. 6 d.). ISTRODUOTORY CHAPTER. 7 the mint-books at my disposal I have looked for a description and account of this paper money , but nowhere have I found any further information. Only the great Encyclopedia San-tsai-dztt-i ^) has an article on the paper cuiTency of the Chinese, which is characteristic enough to be inserted here. # 2 ^ ? ~ Under the reign of the Stmy and Tuen dy- 5 ^2 * EH ? nasties paper money was made use of. It was ;jb ^. ^ j^^ uncommonly impractical. When in the rain f HlJ ^ ^ % ^* g°t soaked and the mice gnawed at it , •^f: tP-r -tl ^* became unfit for use (Ht. as if one possessed ^i ~ ' ^ raven). When carried in the breast-pocket, ' '^ ^ ^B or the money-belt the consequence was that it was destroyed by abrasion." ■=? ^ -^^^ .^^ t?" « 3 r 7 This quotation will suffice to show that though the Japanese have known paper money, they have not had the least idea of its impor- tant signification. The Japanese is by nature either a husbandman or a soldier; mer- chants belong to the lowest cast; they act only as intermediaries in the inland trade of the country. When Japan was opened to the world commerce, the credulity of the government as well as of the people was the cause that designing merchants cheated them in all possible ways, till at length roused by heavy losses they were urged to study causes and effects and take measures in order to prevent further mischief. Quite different i.s the character of the people in China. There nearly everyone is a merchant and trader above all things. And the re- verse of what commonly happened in Japan is seen in China. A. Chinese merchant will not easily let pass an opportunity to make a bargain; in his intercourse with Europeans he generally proves to be too sharp for them; in all commercial transactions he knows to get a little profit out of the fan-hwei (foreign devil) , and to drive out the European merchant wherever he makes his appearance. 1) Vol. 89. p. 154. 8 INTRODUCTORY CHAPTER. With such a strong contjast of character it is not surprising thai the monetary history of the Japanese has no importance whatever when compared with that of the Chinese. In many branches of Chinese wisdom traces of economical prin- ciples are obvious, They have writen on taxes and population as well as on money matters. The practical philosophy of Confucius teaches the most judicious way in which a state should be governed, and that the first duty of a prince is to make his people rich. Once, when confucius was passing through Wei in company with one of his disciples he was struck with the populousness of the State. The disciple said "Since the people are thus numerous, what more shall be done for them?" confucius answered: "Enrich them." And when they have been enriched, what more shall be done for them?" The reply was — "Teach them." i) We read in mfncius "Let it be seen to that their fields of grain and hemp are well cultivated and make the taxes on them light; — so the people may be made rich." "The people cannot live without water and fire, yet if you knock at a man's door in the dusk of the evening, and ask for water and fire , there is no man who will not give them , such is the abun- dance of these things. A sage governs the empire so as to cause pulse and grain to be as abundant as water and fire. When pulse and gfaia are as abundant as water and fire, how shall the people be other than virtuous." ^) In mencius we find another remarkable passage in which he, answe- ring some sophists who wished to return to the primitive state of man when everyone provided] for his own wants, sets forth the advan- tages of an equal division of labor '). It reads as follows. mencius said: "I suppose that Meu-Ung sows grain and eats the produce. Is it not so?" "It is so," was the answer. "I suppose also he weaves cloth, and wears his own manufacture. Is it not so?" "No. Heu wears clothes of haircloth." "Does he wear a cap?" "He wears a cap." "What kind of cap?" "A plain cap." "Is it woven by himself?" "No. He gets it in exchange for grain." "Why does Sen not weave it himself?" "That would injm'e his husbandry." "Does Heu cook his food in boilers and earthen-wate pans, and does he plough with an iron share?" "Yes." "Does he 1) LEGGE Chinese Classics Vol. I p. 130. I 3^ Vol II n 12'i 19R 2J Vol. II p. 338—339. | ; ui. p. i.i.i~iM. INTRODUCTORY CHAPTER. 9 make those articles himself?" "No. He gets them in exchange Pajc for grain." MENCius then said: "The getting those various articles in ex- change for grain, is not oppressive to the potter and the founder, , and the potter and the founder in tlieir turn, in exchanging their various articles for grain, are not oppressive to the husbandman. How should such a thing be supposed? And moreover, why does not Heu act the potter and founder, supplying himself with the ar- ticles which he uses solely from his own establishment? Why does he go confusedly dealing and exchanging with the handicraftsmen? Why does he not spare himself so much trouble?" ChHng-aemg replied, "The busmess of the handicraftsman can by no means be carried on along with the business of husbandry." MENCIUS resumed: "Then, is it the government of the empire which alone can be carried on along with the practice of husbandry ? Great men have their proper business , and little men have their prop- er business. Moreover, in the case of any single individual, what- ever articles he can require are ready to his hand, being produced by the various handicraftsmen: — if he must first make them for his own use, this way of doing would keep the whole empire run- ning about upon the roads. Hence, there is the saying, 'Some labour with their minds, and some labour with their strength. Those who labour with their minds govern others; those who labour with their strength are governed by others. Those who are governed by others support them ; those who govern others are supported by them.' This is a principle universally recognized." Taking a general view of the economical part of our subject we find in the history both of the metallic and paper modey principles which are perfectly true and correct. An evidence of this is the name "current merchandise", by which the Chinese already iu early 5 times expressed their notions of money. The theories of money and its signification contain many good elements, and in many cases it is clear that the Chinese were thoroughly aware that money, as. a measure of value of all commodities, should have an intrinsic metallic worth corresponding to the nominal indicated by the legend, at which the coin is brought in circulation by the government. Often do we hear the warning voice of the councilors of the crown, when they show the prince who in the most reckless manner issues bad money to meet the growing demands of his army, the dangers b 10 INTRODUCTOUY CHAPTER. , p«ge -which must result from these unhmited adulterations not only for the subjects who will have to pay more for all commodities, but also for the prince himself and the goverment, as the money issued .at a higher value than the nominal will return to the prince 141 in a depreciated state and vast sums will be required to with- draw the bad medium of exchange from circulation. "If you con- sider the money without heeding its character, as an instrument 80 in daily, use to further exchange, if you are too sparing of the copper and grudge the cost of the mechanical process" you will soon experience the fatal consequences of it, for the false coiners will spring up in swarms , desirous as they are of enjoying for them- selves the profits now accruing to the state. "And what is that little profit gained in coining bad money," exclaims another author, "compared to that so much greater profit that the money returns in its full value to the government, and lic that his impeHal Majesty having received back the money as taxes from the hands of the people can re-issue the same pieces at the original worth which they had when they were circulated for the first time." "For then," says another minister again, "the money makes reprisal on the bad policy of the prince when you are obliged to HI withdraw the debased money, because the money coined by the .state and the bad currency coined by private persons cannot be distinguished from each other any more." Let us listen to the sensible words of the venerable councilor at the court of Wei, where he says: "The flourishing state of a reign is not the result of the money being large or small of size, if only that which is generally received as money has a real value, the government can change the out- go & »i ward form without causing any trouble." A learned author on money matters says among others: "If we penetrate to the foundation in arguing on the value and meaning of 158 money, we arrive at the conclusion that money is an object that in a time of famine cannot feed us, in a time of cold cannot clothe us, but coming to the service of all occupations, all sorts of pre- cious things may be procured by it. Hence it may not be bad!" Notwithstanding these traces of the existence of sound economical notions it will be seen from this work that on the whole the social condition in general , and the condition of the money especially has IKTEObUCTOftY CrtAPTKn. 41 been most miserable. Never have those budding ideas been able to ''"S" ripen into an organic whole that could form the basis of a good system of coinage. In the history of the metallic money we observe two important factors which continually have impeded a fuller development. 1". the want of a sufficient quantity of precious metals. 20. the influence of false coiners which was the consequence of the rude technical execution and the deficiency in the art of coining of the state money. The first point needs not be further demonstrated. Our whole his- tory furnishes evidences that gold and silver, found only in a small quantity, could not circulate as a general medium of exchange in China. Only during the reign of the Mongol dynasty (1260 — 1368) silver bullion circulating as money was frequently made use of"'), and generally the larger credit notes of that time were estimated in some ounces of silver. Occasionally our history mentions the- use ju of precious metals as a medium of exchange of unlimited value, buty4„ic. these cases are insignificant compared to the general use made of copper and iron. But owing to this use of substances which had a slight intrinsic value, the art of coining .must necessarily be simple and inexpen- sive, as in the opposite case the cost of production of each coin would soon have exceeded the intrinsic metallic worth, which hke- wise would have resulted in a depreciation in the market-value of the coin. The art of coining being so bad through all ages, it was natural that especially when the government began to adulterate the money, false coiners sprung up in great numbers and cast money in wholesale by the same simple process as the State. The Chinese have never understood the art of striking money, but every little piece was cast in a mould made in fine sand, so that every person was able to cast as much money as he wanted. Matters were worst under the reign of the I"a»iiy- dynasty; then everywhere the money was counterfeited; no longer in secret places, but before the very eyes of the state officials, on rafts and in vessels in the '"* middle of the river, this illegal but profitable occupation was exer- 1) mm — M'^^— ^ . "One tael of silver tu^ion is equal in value to a string of a thousand cash" we read in Wang-h'Vi Continuation oiMa- 42 INTRODUCTORY CHAPTER. •"'B' cised. CouDtless measures, were taken to prevent the evil , twice even 3i_36 '^^ "^^^^ 'II history that the emperor granted the people the privilege io(V-ii4 *° '^^^ money for themselves. This measure was strenuously opposed and defended in several speeches which contain a wealth of remar- kable economical opinions. But the results were even more fatal in the end than the wisest stateman could have foreseen and the government was soon obliged to retract the privilege. The only effectual means of checking false coining, the Chinese, with all their fine speeches and beautiful theories, have never been able to find, viz. to render the mechanical execution of the coin so perfect as to make forgery impossible , a result they could have obtained , if they had understood the art of striking money instead of casting it. And now involuntarily arises the question: How is it possible that the Chinese have not gradually improved in their art of coining, and that necessity has not taught them to devise that mode arrived at by all other peoples who have attained a certain degree of civili- zation. That question too I will attempt to answer, but before doing so, I wish briefly to consider the economical significance and impor- tance of the history of the paper money, as this will lead us to the very same conclusions as are to be drawn from the history of the metallic currency. I will not treat of the ephemeral apparition of the deer-skin parcels, the representative medium of exchange introduced by JSfoM-JFw-^i. Though mentioned by European authors as the first appearance of paper money in 38-io the world, it was nothing but a cunning trick ofa sly prince, purposing to tax the well-lined purses of his state-dignitaries, nothing but a shamelers extortion, corroborated by the fact that a minister j looking through his Majesty's shrewd designs , was put to death because he was bold enough to speak his mind and object to such measures. No more will I speak of the short apparition of a real paper currency under the ^'am^-dynasty. It is indeed a remarkable event in the monetary history, but it makes no more impression than a I2'i-i2i dissolving view ; we do not know whence it came or where it went , it is like a dream which after horrible phantoms appears as a pleasing calm, but which likewise disappears without leaving any trace of its existence ,. and of which afterwards the dim outlines are hardly to be recalled. ,B(, But I will treat of the system as it shows itself under the Sunj- dynasty, how it has developed itself without leading principle aud TNTRODUCTORY CHAPTER. 13 without any system, and how after an existence of about 300 years, ?"«'' it has at last been made away with, having entailed nameless misery on prince and people. A fe-^v words I may however be allowed to advance as to the reason why the history of the paper money has been treated in a way somewhat different from the other parts of this book. The reader will ob.'serve that the Chinese text in the last chapter^ is more bulky than in the chapters which treat of metallic money, ■ and that, besides the general introduction with which the chapter begins, the passages, printed in large type, principally serve to give some explanations of the contents of the fragment which follows. My reasons for this deviation are these that the quoted passages all dating from one time, and the measures recorded, generally taking their origin in the same causes, these fragments of Ma-twan-lin's chronicle are better connected than those of an earUer date which contain incoherent information often of distant periods and different times. But on the other hand I have given in this part all that could be given; the history of the institution itself was remarkable everywhere and the records comparatively so few that after having tried' to ex+ plain them all, I could not help giving the whole without the least deduction. Only the order in which the fragments follow have I changed to establish a* better connection between the different parts of the subject than is found in Ma-twan-lin's work. As everywhere else in -the world, the paper money had its origin in the want felt by the people to have a medium of ' exchange i"? in which payment could be made without the trouble of transferring specie from hand to hand. Especially in the west of China where in those times the heavy iron money circulated, such a substitute for the common medium of exchange was of inestimable convenience to trade. Soon the system developed itself, as seen from the little but striking passage, where the invention is told. That institution invented by one Ty'ang~yimg ') was during the first period of its existence, however, entirely iu the hands of private persons. The use of the money bills probably originated in the receipts for government prod- ucts issued by the state to pay the purchases made for the army. i7o-ni 1) H^. ^^ As we read in Wtmg-&'i's Continuation of Ma-twan-lin. Vol. XVIII p. 94. 14 INTRODUCTORY CHAPTER. Page It is' of little importance how far the insolvency of those private 167 banks necessitated the state to interfeie. No doubt, the government had immediately seen what large profits . were to be gained, if it obtained the monopoly of the issue of notes, and so we soon see all private banks abolished, and on the very spot where the institution had taken its origin, the government continued to issue "the conve- nient money." Soon afterwards the new money became legal tender throughout the realm; it so readily accepted by the people who had so much confidence in it, that when the 22"* triennal term of redemption of the notes of the first series, issued for the time of 65 years, and 17^,173 convertible at the government bank every three years, had come, only a small number was presented for payment. Now we already meet with a conversion of the old bills by new obliga- tions. At the 23'd term, when the whole series fell due, notes for more than 1.250.000 string of copper money were still in circulation. To redeem these old obligations new bills were issued to that same amount, for a period of 25 terms of redemption, and since that time there circulated notes of. two different echeances. Once struck into that dangerous path they continued their way, more bills were issued, and at last, we are told that in 1107, when the 174 war with the Tartars called for great sacrifices, the necessity of the state was met by a vast supply of paper money so that there cir- culated an amount of twenty times as much as 100 years ago when the first bills were issued. Eager as they had been before to keep the notes in their pos- session, they were now anxious to redeem them, but though present- ing them at the fixed interval no specie payment was obtained. The holders of these already considerably depreciated bills of exchange received instead of money a new sort of notes called credit notes. These bills were emitted for a period of 43 years, convertible every year, and were exchanged at the ratio of 1 new bill for 4 of the old. In order to keep the depreciated paper money in circulation iia the same measures were adopted as in France when the paper money of JOHN LAW was only to be maintained in circulation by force. All payments must be made for a part in paper. In that case it was thought that it would be difficult to ascertain the decrease of value, for "when it was ordered by law that what in the fu- ture would be stipulated for in iron and copper money, INTROUUCTORV ChAPTER. 15 should be paid partly in bills, these would have a ^^^f' value corresponding to that of metallic money". The result of this absurd measure was not doubtful. The bills ■were soon reduced to i/j, of their legal value. Influential officials warned the government not to destroy public credit by over-issuing the paper currency any more; they adviced that the government sKould set the example to accept the bills at their legal value at '™ the government offices, in that case all payments might be made in bills exclusively, or on payments in money a premium of from 10 to 20 percent might be levied. But this measure proved as ineffectual as others, and notes of a nominal worth of 1000 cash were at last reduced to a real value of no more than 10 casA, Such is the history of the paper money current in the capital and the whole eastern part of the empire, except in some of the prov- inces of the south east , where the use ■ of paper money was to be ""^ introduced some time afterwards. But even worse was the condition to become in the western and north-western parts, where the armies were encamped and the fortifications were built to secure China against their warlike neighbors, the Tartars. Our author takes us back again to the district of So in the province of Sse-t^'tien, isi where the paper money had taken its origin. He tells us how grad- ually the metallic deposit had been seized upon to meet the increas- ing expenses, and how all payments in behalf of the army were made in paper. Some fragments give us information as to the enormous quan- tities which were emitted in a short time. The first issue of paper money in those parts (in 970) was to an amount of one million string, in the year 1204 the number of »83 credit notes of Sse-ts'wen alone exceeded the sum of 53 million string. Many schemes for paying off part of the debt, conversions of debt by issuing new notes estimated in silver, were devised, but they were all leavened with fraud; repayment was promised and when 184 . the credulity of the people had caused the notes to rise"^, other sup- plies were issued , payment was deferred and the people proved to be cheated, when they came to present the notes which according to the proclamations should be paid back. And the end of the history of the bills in Sse-is'iim is described as follows: ''In the year 1210 m 16 INTpODtrCTORY CHAPTER. p-ge when the old bills had been twice withiliawn from circulation, the value of the new notes was at last equal to the old ones. Another chapter treats of the history of the government bonds or frontier bills with which the purchases made for the army, encamped in those western parts, were paid and the outlay on the border fortifications was covered. A curious circumstance it is, that, when it was ordered that in the same place there should be established a bank for the issue of another sort of notes, to suit the convenience of the daily expenses of the soldiers and the retail >8" trade in the camps, a protest was made by the ministry because the metallic deposit was wanting. In consequence of this protest the bank was immediatatly abolished again. Here too the ever increasing want led to an overissue of paper money; those notes gradually made their way into the eastern provinces where it was first ordered that they ought to circulate as legal tender , and afterwards they were even printed and emitted there , when in consequence of the hopeless war with the Tartars the Chi- ns-iTO nese court was obliged to retreat to the south. How little confi- is'j dence the government itself put in the paper money is told where we read that "in order not to have to look up entirely to the pa-, per bonds to meet the wants of the empire , there were issued again receipts for government productions which represented a value of 10.000.000 string annually. Moreover the government itself begins to disown the notes by ordering that all taxes should be paid in i'.io-i!ii ready money; continually conversions are effected and redemptions 200 deferred, with the promise that at ensuing terms of echeance the loss will be regained , but the consequence was that the notes con- tinued to fall, an ruin and misery spread throughout the country. Ma-twan-lin gives a separate chapter regarding the histoiy of paper money in the eastern provinces , wliich was instituted to cir- culate in certain ' districts exclusively. Its histoiy is the same, and here too in consequence of over-issue "the character of the paper money , the balancing an actual possession of money , lost its effect." The ultimate result was that thousands were inproverished and totally ruined and such a cry of despair rose in the country as never after- wards was heard either in France after the failure of the Mississippi ■i.i-iO'.) scheme or in Austria in 1810. "After having tried during years and months to support and maintain these notes, the people had no INTnoiiUCTORY CIIAPTEH. 17 longer any confidence in them, bnt were positively afraid of them. ^„** For the payment for government purchases was made in paper, the fund of the salt manufactories consisted of paper, the salaries of all the officials were, paid in paper, the soldiers received their pay in paper. Of the provinces and- districts, already in arrear, there was not one that did not discharge its debts in paper. The copper money which was seldom seen was considered a treasure. The capital col- lected together in former days to supply the border fortifications was 2** quite exhausted , and was a thing not even spoken of any more. So it was natural that the prices of commodities rose while the value of the paper money fell more and more. Among the people this caused them, already disheartened, to lose all energy, the soldiers were continually anxious that they did not get enough to eat, and the inferior officials in all parts of the empire raised complaints that they had not even enough to procure the common necessaries. All this was a result of the depreciation of the paper money." The paper money had ruined the state and caused the decline of a dynasty that for more than three centuries had occupied the throne , and never after that time the bills issued by the state have been able to recover from their deep fall. In following out the history of the paper currency we find, as in that of the metallic money, a great many good principles and notions which, if they had been extracted from that chaos of injustice, united into a system, and accepted as norma agendi, might have had the most beneficial results. In the- beginning the payment of the notes was guaranteed by a ^''^ metallic deposit to an amount of about three-sevenths of the out- standing notes; intervals of redemption were fixed, and a limit was set to the issue. Constantly the ministers and the councilors wani the government that paper money which is worthless of itself, must be backed by a fund for which it may be exchanged, shall the people keep confidence in it, and ciiculate it as money from hand to hand. Timg-lai and Ma-twan-Un have both very plainly said 21* that paper is not money; they have pointed to its representative character, and maintained that it is nothing but a means of trans- mitting specie. Ma-twan-lin writes: •'With the very first intention to institute papei-bonds , it was not 8ii-2t5 18 INTRODUCTORY CHAPTER. Pfige Griginally so that they were looked upon as mouey but they were 212 then considered to be of the nature of the receipts for tea, salt and other government productions, balancing money only tempora- rely." a 13 .... "And so much the more now that by means of a bit of paper of the size of one foot, a quantity of many pounds of copper could be substituted, now that by circulating the lighter 'the heavier was ac- tually employed, and the strength of one man was sufficient to make that a quantity of tens of thousands of strings at a fixed time arrived at places some thousands of miles distant, what necessity was there that every part of the empire should have a paper money of. its own, in consequence of which the people at last did not know any- more which to trust." But not only in the time of its greatest decay do we find such correct notions of the paper money. Already in the definitions and names- by which they tried to express their first apprehensions of the representative character of paper money, we see the right prin- •tis ciple at the bottom of their thoughts on the subject. "The stretching iM of money" and ''a bill balancing an actual possession of money or merchandise' were the long but well chosen names which contain- ed their first notions and soon became the current expressions for paper money. Scattered here and there we find various principles which , if — as in later time in Western Europe — a law of banking had been made , would have been introduced into the system. So we find regulations as to the convertibility of old, damaged, or torn bills into new ones, and as to what part of the old bills must be presented and be still i»5 legible in order to be exchanged for a new one at the payment .of a little premium. Then follows some information about the way in 190 which the bills were coined, the designs and the marks impressed m °^ them, the paper of which they were made, the details of the art of execution; all these particulars showing the gradual development of the institution, but at the same time the total absence of anything that might be called a system. Furthermore there are the penalties remar- kable for their resemblance to those which were instituted at the iv| first appearance of forged paper money in Europe aad America, On Addolda *^^ '^^" °^ ^^'^ ^'^^^^ Mmj-djaastj we read: "Whoever fabricates or HI uses forged bills shall be. beheaded, anl he who informs against the forger or arrests him shall receive a reward of 250 ounces of silver." INTEODUCTOBY CHAPTEB. 19 On the assignata de la Mepuhlique fran^aise we read something sim- ilar: "Ja hi punit de mort le conlrefactewr , la nation recompense le denonciatetir," and the Ameiican notes issued during the War of Independence bear the short phrase 'To counterfeit is death." Perusing the fragments quoted, inore regulations and decrees -will be found, which might have completed the system if the Chinese had been able to compose it. But all these good elements and these right economical principles remained disjointed, and were only so many luminous points in the pitchy dark through which they groped their way to hit upon the exact mean, as Chinese philosophers love to call it. By their own stupidity as well as by' irresistable causes from without they deviated more and more from those principles which should have led to a solution of the difiiculties, and got involved in greater misery and wretchedness than the Western world has even experienced. And now the question arises again: what has been the cause that the Chinese civilization, so much older than that of any other people in the world, containing so many good elements, has never attained to a higher stage of development , but has remained stationary in all respects in the same way as we have observed it in the history of their currency. The question is a very debatable one, and it ia almost impossible to point out a general cause of the fact. Some have tried to explain it by asserting that the inhabitants of North-eastern Asia, belonging to in inferior race of men, never can attain to the highest stage of mental development. This assertion is in some degree corroborated by the history of the east Asiatic nations, their exertions in science and art , which all show a remarkable inertness of thought. It has , however , also been contested , among others by my worthy friend Mr. L. serburier ^) who in his studies of Japanese language , political and social history, has met with the same phenomenon, and who holds that the explanation must be found in the circumstance that the soil and climate have not necessitated these nations con- tinually to devise means of defending their lives, of making their country inhabitable, and of protecting themselves against all the dan<^ers which those tribes have had to overcome, who coming from the' Western and Southern paits of Asia have peopled Europe. Such 1) The author of a very interesting little I der over Japan) and editor of a part of work "Something on Japan." (.Een en an- the Kadra-gaU, 50 INTROlPUCTORY CHAni'.R. P-ge n strui-'gle for existence sharpens tlie intellect, and is the parent of that Science which never resting at last makes Nature her sei'vant. There is some degree of truth in this opinion, especially when we consider the splended conquests of Science in the European society iii every branch of human knowledge , results which lead us to be- lieve that the human intellect is boundless in its range. But I have two serious objections to that assertion. Firstly that in ancient times countries which were even more blessed than Eastern Asia, viz. Greece and Italy, even in consequence of the benefits of soil and climate have attained to a development which in many respects is unequaled by the modem development born from struggle and privation. What an admirably developed system of laws did the Romans possess; a system which served for ages as norma agendi and for the greater part, continues to' serve as such even in the present times. So the ancient Greek are still the un- matched statuaries, and of both peoples writings have come down to us which show the high degree of development of their languages and conceptions; and wherever in modem times in science or art the highest point of perfection is aimed at, those relics of ancient Greece and Rome are still the models generally looked up to. If we draw a comparison between the progress made in art, law and language by these peoples and that in China, we are inclined to gi-ant that a lack of natural capacity must have been the obstacle which has prevented them from reaching the same height under nearly similar circumstances. My second objection may seem to be weightier yet. The Chinese were by no means exempt from such labor and hardships as were overcome by other peoples by energy and strength of intellect, but Nature seems not to have bestowed upon them an equal share of mental endowments. Some striking instances may be quoted to prove this. The Chinese author Kwan tsxe who lived 625 years be- 9 fore Christ writes: "When from east, west, north and south, all over a surface of from 7 to 8000 miles all intercourse with these parts was cut off by the flood, and in consequence of the diflficul- ties to reach those regions neither ship nor cart could penetrate thither, the people relied on the following sorts of currancy." To this passage may be subjoined the following paragraph from the N o r th China Herald, Shang-hai , January A^^ 1877. "In Central China the provinces have been suffering famine fol- INTRODOCTORV CHAPTER. 21 lowing upon a drought, which caused the failure of the crops and consequent impoverishment and scarcity. Some measures of relief are being taken, but the want of good roads makes the carriage of rice to the distressed districts difficult, and it is to be regretted the Chiuese government does not require the people to earn food by developing the means of communication." So during a period of more than 25 centuries we see no pro- gress in the art of constructing roads and of protecting the fields from inundation. What a strong contrast China in this prospect presents to Hol- land. To render their country habitable the Dutch had to put out all their strength and engage for generations in stubborn conflict with the angry elements. Untiring industry and energy chained the Ocean and made the country, disinherited by nature, not only fit to dwell in, but rich and powerful. The comparison affords another striking instance of the difference between an all conque- ring power of the ever progressing development of the human mind in the one country, and a perfect inertness of intellect and submission to the power of nature in the other. We have had occasion to show what misery was produced in China by a bad currency, and how they have never been able to find the right means to baffle false coiners. And this must be said of a people of merchants, while the Romans who felt much less inclined to trade have directly invented the art of striking money , as may be seen .from the excellent fragment of the writings of the civilian paulus, lex 1 pr. Be €ontraJienda emptione (Dig. Lib. XVIII, 1) •) while we read in the Lex Cornelia de faUis (Dig. Lib. XLVIII, 10, lex 9 pr.) ') that the false coiners at Rome cast their money, so, that the better mechanical process of the government money made it easy there to distinguish between true and false coin. That lack of natural capacity of the Chinese people we observe in all their intellectual proceedings, in the way in which they culti- vated science, in their art and in their political institutions. 1) Origo emendi vendendique a perma- tationibus ooepit; olim non ita erat num- iniis, ueque aliiid merx, aliud pretium vo- cabatnr, sed unusquisque secuaduni neces- sitatem rerum utilibus inutilia permutabat; sed quia non semper nee facile concurrebat , ut, quum ta haberes, quod ego desiderarem, invicem haberem, quod ta accipere velles, electa materia est cuius publica ac perpetua aestimatio difiicultatibus permutationum aequalitate quantitatis subveniret; eaquu materia forma pubuca percussa usain dominiumque non tam ex substantia prae- bet, quam ex quantitate. • . 2) Lege Cornelia cavetur, eum qui argen- teos numos adulterinos flaterit falsi cri- mine teneri. 22 INTRODUCTORY CHAPTER. With some few exceptions , that which has originated in the minds of the Chinese can hardly be called science. Nowhere we find a system , but everywhere a mixture of elements , good and bad , an enormous encyclopedia , but without any logical sufceession of ideas , no basis laid by one generation to build on for the next, not even the capacity to connect and unite the scattered materials and work them to a whole. On the contrary every attempt to strive forward in science shows little or no progress and generally is confined to endless colla- tions, compilations and commentaries, generally devoid of anything that may be called system. A favorable exception to this form the writings of the ancient philosophers which are founded on a true and practical basis, con- taining the principles on which men will live happy on earth, and how to attain this end, how the prince must govern his people and the people must serve their prince, how the social relations both in the family and in the state must be arranged in order to come as near this object- as possible. Here we find a logically deve- loped system which has been a true gospel at its origin and has continued to exist as such but likewise without having been developed fuller notwithstanding it chiefly deals with the material interests of life. As to the department of speculative philosophy, what has been produced after that time is so obscure and vague that one feels almost inclined to ask whether the learned philosophers themselves were able to account for the speculative theories they wrote down as ge- nuine wisdom. In art as in science we find the general and -characteristic fault of attending too much to the details but too little to the whole, and besides, that stubborn adherence to customs , traditions , fixed rules and processes which developed Chinese art to a true talent only as to the details. Let us take, for instance, the Chinese art of painting; the outlines of a picture are boldly drawn but perspective is wan- ting; the details are executed to perfection but a leading thought is not to be found , and this is again the consequence of the following "the old beaten track; every part being done according to certain rules. To improve upon these rules , to catch the spirit and not to cling to the letter is a thing a Chinese painter never thinks of. A remarkable instance of this I have seen in a number of por- traits of Chinese nobles who were evidently taken after life. The iNTRODUCTOtlY CHAPTER 23 painter had produced a striking resemblance of the head and atti- tute of his modei , and in this part of his work he had unconsciously- followed the laws of perspective , while the state, robes interwoven with gold and flowers and the variegated carpet are executed as minutely in the background as in the part of the picture which lies nearest to the painters eye. And the reason why he in one part had unconsciously obeyed the laws which the plane surface imposes on him, and he neglected them in the other, is simply because there is no unity of thought ; in floor and carpet he neglects the laws of perspective only because he knows the receipt to draw a floor or a carpet. He does not observe this want of unity in the whole, and very problable it would not be possible to convince him of his unprincipledness , for he has worked according to rule, and rule in his principle. Finally we find the same absence of unity in the political admi- nistration of the Chinese. The ancient constitution of the tl%eu- dynasty was founded upon the principle of centralization. Whole legions of civil functionaries were spread over the empire and were respon- sable for their 'actions to the central government established in the capital; a thing of itself already impracticable. Such a system, however, may have answered well in the beginning when the empire was not extensive, but already under the Sim-dynasty a centrali- zation of the power of the government must -needs cause a total disorganization and the greatest frittering of power. The Chinese empire was too extensive to become powerful when governed in such a way. Petty princes and influential officials re- presenting the central government in remote districts could with im- punity . commit the greatest extortions and injustice. Their despotism generally made it necessary for them to assume a hostile attitude against the central government and to be on friendly terms with their homogeneous neighbors in case the emperor minding to punish them, made war upon them. Hence no prince, however prosperous his reign may have been , but has had to fight rebels. And was that system of centralization a source of continuous confusion and warfare at times when the reins of the government were in the hand of a well-meaning powerful prince, worse evils arose when a tyrant was seated on the throne, and abused the imperial dignity to satisfy his passions and desires. Every feudal prince, every magistrate becomes lord and master of his own terntory, calls himself prince, king, emperor, or whatever sublirne title his imagination suggests, and whole periods occur 24 INTRODUCTOKV CHAPTER. in Chinese history in which several dynasties, several emperors simultaneously sway the scepter in the most distant parts of the empire. This state of affairs generally lasts till some warrior or states- man has spirit and energy enough to consolidate the lacerated empire, then he is proclaimed Emperor and becomes the founder of a new dynasty. The internal broils are quelled, and the external enemies driven back to their dominions. A new period of prosperity has dawned owing; to the peace which now prevails and the incomparable fertility of the land situated between the Kiamg and the So, there is abundance of food: "the teeth grow and the population increases" '). At the accession of such a new dynasty we always read of reforms also in the monetary system, but hardly have some generations pas- sed by when it is the old history again. A despot or tyrant either disregarding the warnings of wellmeaning ministers or urged by evil councilors sets the example of making bad money. Confusion, want and distress are the fatal consequences. Provisions rise in price, trade is paralyzed, weeds cover the fertile fields, false coiners spring up like clouds, the officials appointed by such a government , commonly rascals themselves , extort the people ; the posterity of those who were born in affluence die miserably from want and the bodies of tens of thousands, not killed by the sword of the enemy but starved with hunger, cover all the roads of the empire. Four times in consequence of this absence of unity the Chinese empire has fallen a prey to its savage enemies the Huns, Tartars and Mongols, who in large numbers and with irresistable fury came in from the Western and Northern plains of Asia. Their chiefs ascended the sublime throne of the "Son of heaven," did all they could to ruin the people and after a short career shared the same fate as their Chinese predecessors. In this way occurs everywhere the same phenomenon so clearly seen in the monetary history; the want of a progressive development and of an organizing talent which were to unite into a whole, into a system the good elements scattered here and there , and this notwithstanding the Chinese people lived in circumstances which made it necessary ^%^^-n% JjflF is the phrase by which the Chinese author expresses that Malthusian theory. INTRODUCTOHV CHAPTER. 25. for them to exert all their strength of intellect to accomplish radi- cal inprovements. Involuntarily we are induced to ascribe such a leading characteristic to a lack of natural capacity -which allows no development beyond certain limits. I may be allowed to communi- cate a remarkable concordance of this supposition derived from the state of social development, with the results of another branch of science, viz. the examination of the formation of the Chinese skull. The Chinese skull frequently shows, firstly a particular deviation in the formation of the tempeial bone, called by Prof, virchow ') Fro- cessus frontalis (Stirnfort sat z der Schlafensch uppe), and se- condly a noticeable narrowness of the temporal reg\on(StenokrotapAie) ; two phenomena which are generally observed in the skulls of inferior races. In the Anatomical Museum of the Leiden University is a collec- tion of 67 Chinese skulls, 5 of which have the deviation [Processus frontalis) and 20 of which show more or less the other phenomenon, the narrowness of the temporal region {Stenoh-otapAie). Professor virchow, p. 59 of the work quoted, wiites "Ich komme somit zu dem Schlussergebniss, dass der Stirnfortsatz der Schlafen- schuppe allerdings eine Theromorphie (Thierahnlichkeit) und zwar vorzugsweise eine Pithekoide (Affenartige) ist. Die noch nicht nach- gewiesene aber sicher zu vermuthende defecte Bildung der tempora- len Hirntheilen lasst es gerechtfertigt erscheinen , in, dem Stirnfortsatz und in der Stenokrotaphie iiberhaupt evn Merhmal niederer, jedoch heineswegs niederster Itasse eu sehen." The reports of mediaeval travellers inTartaryand China, which first made known in Europe the wondrous use of pieces of paper as money, all date from the time when the paper money in China had already had its flourishing time. 1) Se RUDOLF vmCHow, Ueber einige Merkmale Niederer Menschenras- sen am Schiidel.. Berlin 1875. 2) I got this information from my friend and fellow student Mc. p. de koning who having examined the aforesaid coUec- tioB of Chinese Skulls, is about to publish a dissertation on the subject entitled "De- scription of Chinese Skulls" (Beschrijving van Chineesche schedels. Leiden v. d. Hoek 1877.) The number of 67 ShuUs which were at his disposal is perhaps too small to draw a general conclusion regarding the Chinese race, but remarkable it is that both phe- nomena are found in such a high degree {Processiis frontalis at So/o and Stenokro- taphie at 30"/o of the whole number, where- as other examinations of skulls f. i. of Russians and other European races made on large scale showed only a proportion of about '5|,ooo- GHUBER ioxmiths Processus frontalis on 60 of 4000 Russian Skulls. CALORi on 12 of 1074 Italian Skulls. Cf. VIRCHOW rit. p. 10. 26 INTRODUCTORY CHAPTER. The earliest communication is of a monk, guillaume de eubroUck {Buhruquis) who in the year 1252 was sent by Saint Louis, king of of France, to the court of the. Mongol prince mangu-khan. His report on the paper money is very insignificant: "ia monnaie de. Cathay est faite de. coton grande comme la mam et sur laquelle ik vmjprvment certams Kgnes et marques faiies comme -le sceau dw Cham'). Much more interesting is the information given by marco polo, the Venetian, who about 1275 — 84 resided at the court of kublai- KHAN ^). Inhabitant of the greatest commercial town in the world , an institution like that of paper money struck him with admiration which is evident from this glowing account '). It is found in the second book of his travels : CHAPTER XXIV: How THE Gkeat Kaan causeth the Baek or Trees made into, something LIKE Pater, to pass pob, Money- over all his Country. Now that I have told you in detail of the splendour of this City of the Emperor's, I shall proceed to tell you of the Mint which he hath in the same city, in the which he hath his money coined and struck, as I shall relate to you. And in doing so I shall make manifest to you how it is that the. Great Lord may well be able to accomplish even much more than I have told you , or am going to tell you , in this Book. For , tell it how I might , you never would be satisfied that I was keeping within truth and reason ! The Emperor's Mint then is in this same City of Cambaluc , and the way it is wrought is such that you might say he hath the Secret of Alchemy in perfection, and you would be right! For he makes his money after this fashion. He makes them take of the bark of a certain tree, in fact of the Mul- berry Tree , the leaves of which are the food of the silkworms , — these trees being so numerous that whole - districts are full of them. What they take is a certain fine white bast or skin which lies between the wood of- the tree and the thick outer bark , and this they make into something resembling sheets of paper, but black*). When these sheets have been pre- pared they are cut up into pieces of different sizes. The smallest of these 1) Of. Kecueil de divers voyages ourieux par p. BERGERON. Voyage de RUBRuqtns en Tartaric p. 91. Leide 1729. 2) He is known as the emperor to* iii Si-tsimg in the Chinese history. 3) The text is quoted from the splendid Edition of maroo polo's Book by Col. henry yule, 'Vol. I p. 378—380. The account is so interresting when compared with the Chinese sources, which have been translated is the sixth Chapter that I have given it in full. In different other passages of M. P.'s Journal the use of paper mo- ney with Jihe tribes he visited and who were governed by the great Khan is men- tionned. 4) See the photograph to the Addenda. IN'TRODUOTORY CHAPTER. 27 Sizes is worth a half tomesel; the next, a little larger, one tornesel; one, a little larger still, is worth half a silver groat of Venice; another a whole groat; others yet two groats, five groats, and ten groats. There is also a kind worth one Bezant of gold, and. others of throe Bezants, and so up to ten. All these pieces of paper are [issued with as much solemnity and authority as if they were of pure gold or silver; and on every piece a variety of officials , whose duty it is , have to write their names , and to put their seals. And w;hen all is prepared duly, the chief officer deputed by the Kaan smears the Seal entrusted to him with vermilion , and impresses it on the paper, so that the form of the Seal remains stamped upon it in red; the Money is then authentic. Any one forging it would be punished with death]. And the Kaan causes every year to be made such a vast quantity, of this money, which costs him nothing, that it must equal in amount all the treasure in the world. With these pieces of paper , made as I have described , he causes all payments on his own account to be made; and he makes them to pass current universally over all his kingdoms and provinces and territories, and whithersoever his power and sovereignty extends. And nobody, however important he may think himself, dares to refuse them on pain of death. And indeed everybody takes them readily , for wheresoever a person may go throughout the Great Kaan's dominions he shall find these pieces of paper current, and shall be able to transact all sales and purchases of goods by means of them just as well as if they wer.e coins of pure gold. And all the while they are so light that ten bezants' worth does not weigh one golden bezant. Furthermore all merchants arriving from India or other countries , and bringing with them gold or silver or gems and pearls, are prohibited from selling to any one but the Emperor, He has twelve experts chosen for this business, men of shrewdness and experience in such affairs; these appraise the articles, and the Emperor then pays a liberal price for them in those pieces of paper. The merchants accept his price readily, for in the first place they would not sret so good an ime from anybody else, and secondly they are paid without any delay. And with this papermoney they can buy what they like anywhere over the Empire; whilst it is also vastly lighter to carry about on their journeys. And it is a truth that the mer- chants will several, times in the year bring wares to the amount of 400,000 bezants, and the Grrand Sire pays for all in that paper. So he buys such a quantity of those precious things every year that his treasure is endless , whilst all the time the money he pays away costs him nothing at all. Moreover several times in the year proclamation is made through the city that any one who may have gold or silver or gems or pearls, by taking them to the Mint shall get a handsome price for them. And the owners are glad to do this, because they would find no other purchaser give so large a price. .Thus the quantity they bring in is marvellous , though those who do not choose to. do so may let it alone. Still, in this way, nearly all the valuables in the country come into the Kaan's possession. 28 INTRODUCTORY CHAPTER. When any of those pieces of paper are spoilt — not that they are so very flimsy neither — the owner carries them to the Mint, and by paying 3 per cent, on the value he gets new pieces in exchange. And if any Baron, or any one else soever, hath need ot gold or silver or gems or pearls , ia order to make plate, or girdles or the like, he goes to the Mint and buys as much as he list, paying in this papermoney. Now you have heard the ways and means whereby the Great Kaan may have, and in fact has, more treasure than all the Kings in the World; and you know all about it and the reason why. Marco Polo's information has already frequently been mentioned in connection with the Chinese historians of the Mongol dynasty, and after the detailed account of the issue of paper money under the reign of Kublai-khcm given by pauthier in his edition, of Mareo FolOf the Chinese text may justly be looked upon as a superfluous appen- dix. Yet was it not useless to compare these reports with that part of the history of paper money in Wan^-k'i's Continuation of Ma-twan-lm which bears upon the time of Marco Polo's residence at the Chinese Court. The perusal of this passage has lent greater force to my conviction that the important history of the paper money after the great bankruptcy caused by it under the Sw»y-dynasty was al-, ready past and gone by in China. Our Venetian was too much in ad- miration of this remarkable institution to see the dark side of the picture. The Khan actually "made such a vast quantity of this money which cost him nothing that it equaled in amount all the treasures of the world". Moreover we read in the Chinese Chronicle that it was made to the smallest amoimt and that there circulated bills for 1 and 2 ca»A'). An imperial decree issued in the Srd month of the period Tstmg-t^umg (1281) ordered that the premium on the conversion of old Soei-tsee into new • ones should be raised from '2" jo to 30/0 to indemnify the state for the cost of printing and ink^j. Here too were depreciation and conversions of all kinds the natural consequences of over-issue which terminated in a great state-bank- ruptcy at the close of the Mongol dynasty. Subsequent travellers in Tartary and China have also made men- tion of paper money. Prater oderic de frioul (1318) seems to allude to paper money when he relates the way in which taxes are paid to the great Khan. 1) We read of bills caUed J| •§* worth Viooo of an ounce of silver = 1 copper cash. 2) Marco Polo's statement perfectly ac- cords wich this decree. iVang-k'i XVIU 3«-«(xM-©) tNTROIltlCTORY CHAPTER. 29 The people of this country say, that they have one duetie inioyned unto them by their lord, for every fire payeth one Balis in regard- of tribute and a Balis is' five papers or pieces of sill^e, which are worth one floren and an halfe of o ir coine, Tenne or twelve housholds are accompted for one. fire" i). In 1322 Sir john mandeville, the physician was in Tartary and his story which is inserted in all books treating of the history of Banking , reads as follows '). "This Emporour may dispenden als moche as he wile, withouten cstyma- "cioun. For he despendethe not , ne makethe no money , hut of Lether em- "prented, or of Fapyre. And of that money, is som of gretter prye, and "sora of lasse prys, aftre the dyversitee of his Statutes. And whan that "Money hathe ronne so longe that it begynnethe to waste , than men beren "it to the Emperoure's Tresorye; and than thei taken newe money for the •'olde. And that Money gothe thorghe out alle the contree, and thorghe "out. alle his Provynces. For there and beyonde hem, thei make no Money •'noutjier of Gold nor of Sylver. And therefore he may despende ynow, and "outrageously." The last information is of jean de cobe, bishop of sultanyeh '). Le grant Eaan fait monnoie de pappier la oii il a une enseigne rouge droit ou millieu, et tout environ sont lettres noires. Et est celle monnoie 1) The passage is quoted from the Se- cond Volume of the Principal Navigations, Voyages, etc., by eichard hackluit. London 1599. page 60. 3, Remarkable it is indeed that neither from the account of any medieval author nor from the informations of the modern economists, anything is known of the use of paper money in a great commercial town of Europe, at the same time that in Cliina under the reign, of the Stmg-iyasatj paperpmoney was invented, maclbod writes in his Uictionnairy of Political Economy in voce Currency. "The first paper money that we are aware of in Europe was that issued by the city of Milan in the IS^h century." But in an Arabian manuscript recently found in Spain, and treating of the Scla- vonic race we read that about the year 960 of our era, shred money circulated in the city of Prague. This manuscript is prepar- ing for publication at St. Petersburg under the title of ai-bekbi's "Nachrichten vher die Slaven and deren Nachtam" . Prof. K. J. DE GOEJE who is possessed of a proof- print of this work , has kindly allowed me to borrow the following fragment from it (p. 29), which is interesting to our subject; The Arabian author got his information from a lew who stayed for some time at the court of Otto I. "Ibrahim ben lak&b der Israelite sagt: " . . . . Die Stadt Fr&ga ist aus Steinen "nnd Kalk gebaut. Sie ist die reichste der "Stadte an Handel . . . Ihr Land ist das "beste der Lander des Nordens, nnd das "reichste an Lebensmitteln .- der Weizen wird "bei ihnen verkauft um einen Knsch^r, so "viel als ein Mann braucht fur einen "Monat; Gerste wird verkauft um einen "Knsch&r Futter eines Pferdes fur 40 Tage, "und 10 Hiihner werden bei ihnen verkauft "um einen Knsoh&r. Und es werden im "Land Bwj'ma (Bohemen) leichte kleine "Tiicher gemacht von sehr feinem netzfor- "migen Gewebe, welche zu nichts gut sind. "Der Preis derselben ist bei ihnen jederzeit "10 Tiicher fiir einen KnschSr. Mit ihnen "handeln und verkehren sie untereinander. "Sie besitzen da.von (ganze) Grtasse und sie "(die Tucher) gelten bei ihnen fur Reich- "thum und fiir die werthvoUsten Gegen- "stande. Mit ihnen wird eingehandelt Hirse, "Mehl, Pferde, Gold, Silber und alle Dinge. ' 3) i'Extr?me Orient au Moyen- age par loots de backer. Paris 1877. p. 341—12. 30 INTRODUCTORY CHAPTER. de greigneur ou mendre pris selonc la enseigne qui y est. L'une vault une maille, I'autre un denier, et aicsi plua ou mains. Et ilz avaluent leur monnoie d'or et d'argent a leur monnoie de pappier. Ly empereres deseusdis a tresors si tresgrans que c'est merveilles et est pour cello monnoie de pappier. Et quant celle monnoie de pappier est trop vielle et d^gast^e, sy que on ne la puet bonnement manier, on.l'apporte as monnoiers du roy, k la chambre duroy, deputez a ce, et se la enseigne de la ijjonnoie ou ly noms du roy y appert aucunement, ly monnoier du Roy rendent nouvelle pour la vielle trois moins sur chaseun cent pour la renovation Ilz font aussy tous leurs previlegeS en pappier. A Chinese author whose -wark is quoted by Wcmg-kH ') -writing about the history of the money bills of the Mongol-dyn- asty says: "Already were the bills in consequence of the overissue no more fit to measure the value of all merchandise, and when in consequence of the confusions of war there was for the government expenditure no sufEcient quantity of money to meet the want, con- tinually new bills were printed, the re.'iult was that the bills had no value while commodities fetched high prices, and when at last they were not accepted any more, that law by which they had been instituted, was repealed. At the time that they had their full value, the bills were generally used as balancing money but in the times of their decay when the deposit which should have backed them was not sufficient, more paper money was constantly made, . till at last they (the bills) were not current any more." "If the law of redemption shall be carried out an equal amount of copper money should be depo.sited when bills are isSued , as it was when in Sse-tsuen for the first time bills of exchange were emitted. The private persons who managed this issue took care that the bills came in when the money went out, whereas when the bills were issued the money was deposited, and in this way mofley and bills circulating side by side measured all merchandise of the empire, and in those days there was not the least reason why they should not circulate. But in the present time they do not know how heavy they shall make the punishments, simply to compel the people to circulate them, but in proportion as the punishments became severer, the use made of the bills became less, and this resulted at last in their not being current any longer and their circulation being out all at once." * 1) 5m wen. hiea t'img h'ao XVIII 9flj — I tains the most important part of the account. 10a. The translation is free and only con- I INTRODUCTOKy CHAPTER. .31 The paper currency -which "the grand khan spended outrageously" •was one of the reasons that the Mongols were expelled from the country, but a short time after the Chinese Jfiray-dynasty began by trying once more to palm paper money upon the people. In the year 4375 the bill was issued, a photograph of which has been appended to this work. The history of these bills is little more than a weak echo of what has already been said about the paper circulation which for a long time dragged forth its insignificant existence. Occasionally history mentions a conversion or an order that the paper money should be accepted as legal tender, but no loud complaints, no state bankruptcy have resulted from it, very probably as the people ' having learned the value of a government-paper currency , made but little use of it. About the middle of the Ifitii century when the Mandchu brought China under their sway, the paper currency was abolished, and ages passed away without any attempt being made to revive the old institution ; its very existence seems to have been forgotten , so much so, that the Jesuit pater gabriel de magaillans who many years preached the Gospel in the Western regions of China and also resided in Peking about 1668, in his "'Nouvelle Relation de la Chine" can remark: ''11 n'y a aucune m^moire dans la Chine et on ne trouve aucune marque dans les livres qu'on se soit jamais servy de monnayes de papier dans ce royaume comme Marc polo le dit dans dans son second livre." Not until two centuries later paper money was made use of again, in consequence of the want trade felt of a lighter and more convenient medium of exchange. II reappeared in the same form as that in which it was first issued by "private persons" in 960 in the province of Sse-ts'uen. "Notwithstanding it is no legal tender", a French diplomate ') writes, "it is everywhere accepted and seldom it occurs that the bills issued by some bank or other circulate at a discount." Considering the history we have related this statement in my opinion might be reversed and run: Because it is not legal tender and because it is no concern of the State it is generally accepted as money. The words of this Fren^ diplomate corroborate the statement 1) Lsttre date's de P-jMag 13 Avril 1333 axl its E;on33il3t33 1889. Vol. XV , p. de M. le Comte de ro3HB3hduaiit, chwge 105 sqq. d'Affaires de la Franse ea Ckiiu. — Joar- 32 INTRODUCTORY CHAPTER. made by some authors, that the present system of free banking seems to work favourably in China. Truly a remarkable contrast! "While in Europe free-banking gradually disappears as impracticable and monopoly of the State itself or at any rate under immediate control of the State is becoming the general theory, we see in China the very opposite take place. And how to explain the fact that free-banking works its way so well? The information given by several diplomates answers that question. The circulation tif paper money issued at a certain place moves within narrow limits, and within the immediate neighborhood of the town; in no wise without the province; hence the people generally know whether the bank which issues the notes be solvent or not. Furthermore, the several money shop keepers and bankers of a town or district enter into a kind of bond agreeing to honor one another's bills .and only he who has sufficiently proved to be solvent is admitted into the bond. Hence the different banks con- trol one another and if one happens to become insolvent the con- sortium is apprised of it before the public, and takes measures to prevent great losses. Credit exists only to the extent of advances of money on sufficient security. Deposits and mortgage seldom occur. Bills circulate and are bought and sold at the Exchange of Pekin:]c, but as far as we can judge , Chinese banking confines itself to issuing and repaying bills. At the end of th s work an interpretation will be found of two bills, one emitted by the State, the other, a scrip issued by one of the numerous joint-stock banks in ^mg-hai. It may seem contradictory to speak of a bill emitted by the State , after ha- ving just told that since the conquest of China by the mandcho, the goveniment issued no paper money any more. The contra- diction is, however, explained by the fact that the State acts in the quality of a private person in order to enjoy some of the prof- its accruing from Banking. Therefore it has also adopted the name of a commercial firm and subjected itself to the very, same regulati- ons which other private banks have to obey to, in order to retain the favour and confidence of the public. OS-A.FTBI?, I. rmST NOTIONS OF MONEY. BAETBB. — ORIGIN OJ MONET AND PRIMITIVE SPECIES. — DENOMINATIONS TO EXPRESS THE IDEA OF MONEY, CURRENCY, MEDIUM OP EXCHANGE. — INPORMATION OP KWANTSZE, THE EARLIEST WRITER ON MONEY. VIEWS ON THE CHARACTER OP MONEY AND THE USE OP IT IN ANCIENT TIMES , BY TWO CHINESE SCHOLARS OP THE ELEVENTH CENTURY. SOMETHING ON THE USE OP MONEY IN THE BEGINNING OF THE TSEU DYNASTY. TWO - PASSAGES QUOTED PBOM "THE BOOK OF RITES OPTHEtSbu". MA-TWAN-LIn's CRUIC. — INTRODUCTION OP NEW COINS BY KING-WANG AND ADVICE GIVEN BY TAN, DUKE OP MU. The primitive- mode of commercial exchange in China, as in all other countries , was barter , the interchange of certain products of the earth, such as wheat and rice, or of men's manual labor, as silk, arms, etc., by means of which the necessary and much de- sired articles were obtained. It is, howeyer, remarkable that while all other nations, in Europe as well as in Asia, hare had a primitive currency recalling the lowest state of civilisation, the hunting and pastoral state, ^- when by means of furs and cattle exchange was effected — no trace of the same phenomenon is to be found either in Chinese history or language. The earliest record of money shows that the "blackhaired people" in the re- motest times stood already on the third step of the ladder of civ- ilisation, and that a subject of "the Son of Heaven" was either a husbandman or a merchant. For it is related that 1 >&" ^ "^ i^ f\& &n-nMngf (the second known emperor of China, 'H ^ M /TV 'l"P ^^^ reigned about the year 2737 B. C.) in- ^ = Tn ^ o S c ^ stituted a. market-place in his Empire in order IM Ft LM ^ll *° gather merchandise and silks. By day-time *^ ■ market was held to exchange the articles which 52 t' ^ >Bh people had for others which they had not'. But at the same time that among the common people, . who earned their livelihood by cultivating the soil and feeding silkworms, barter was prevalent, there seems also to have existed a kind of coined metallic money, current among the travelling merchants, the circulation of which was however very limited, as it was not used by the people who lived by the produce of agriculture. Ma-twan-lin alludes to that ancient money in the beginning of his "Examination", and the same subject is treated of historically and rather economica,lly by two Chinese scholars, who lived in the middle of the 11*'^ century of the christian era. From both treatises we intend giving a passage. Besides, many old Chinese and Japanese mint-books show us drawings of those ancient coins, most of which, however, are covered with characters, in an old and nearly illegible writing-manner. One of them I .have copied as I found it in a Japanese book in possession of the zoological Society Natura t^ ^\ Artis Magistra at Amsterdam'). / / X According to my Japanese informant the cha- 1 1 JL racters, rejid from the right-hand side to the T J left, are ^ ^ ^ :il ^ which means cur- rent merchandise of the second metal (circulating in) the peaceful capital. With 1) To the kindness of tie Director of tliis Society Mr. G. F. Westerman and of the conservator of the Japanese Museum and, library Mr^ G. Janse, I am indebted for the free disposal of several useful ma- terials. second metal silver is meant. It was cast by King- Yu of the JSia- dynasty ^ V ^ 3E ^ "^^ wlio reigned twenty-two centuries ago in China. What Ma-twan-lin gives in reference to the money of ancient times is very little. As it is most likely a piece of a very re- mote date, and at the same time furnishes us with some ancient denominations of currency, we will first quote it, and then pro- ceed to the explanation of the various names by which , in ancient and in modern times , money and its different qualities are designated. 7j ^s^^.tPpoif A m z z m ^ m ± ^ ^ m z m z ^.o^o^.^o^e^ m m m WoZ ifiM m ^ m is: ^ M.^ m ^ 7JM A B ^ Z m M ^ e :^ E A ^ ^ ^ ^.^.m Since the reign , of T'ai-Hao (B. C. 2852) money is supposed to have been extant i). In the reign of T'ai-Hao it was called Kin, metal, in that of Yeu-nai-si (B. C. 2697) and of Kao-sin-si (B. C. 2435) it was called Ho, merchandise. T'ao-Pang-si called it Ts'uen, (a charac- ter now signifying a fountain) the people of Sang and Ts'i called it Pu, a hempen or silk piece of cloth, and the people of TsH and Keu called it tao , knives. The money of the first three dynasties of Yii, Hia and Sang (2255 — 1766 B. C.) was made of three different sorts of metal, yellow, white and red, and consisted further of cloth, knives and tortoise shells. There is some evidence that in the remotest times , in which history is a blank, there was in China a currency of shells, much resembling the Wampumpeag cowries, found among the American natives, when the first New-England settlers arrived there in 1630. Firstly, because all the Tvords denoting buying ^ , selling ^ , riches ^ „ ;^ , goods "^ , store ^ , property ^ , . , .^ , '• I.- t. I no objective certainty but tbe subjective 1) Note the final particle ^ by which | meaning of the author is expressed. prices W , cheap ^ , dear ^ , and many others referring to money and wealth are composed of the ideographical sign which denotes the word shell ^ *). Secondly, because Wang-mang the usurper, who took possession of the Imperial throne 14 A. D., wishing to return to the ancient state of things , introduced again the old forms and sorts of money, and among them 5 different varieties of shells of ah arbitrary value. Further there is a passage in the Su-king, the historical chronicles, informing us that anciently shells were considered as precious articles. For we read that Mng Pwan-kang (1400 "B. C.) laments the greediness of his ministers: "Here are those ministers of my goverpment, who share with me the offices of the State, and yet only think of hoarding up cowries and gems," ^ J^ ^ 3£*)- Two songs in the ancient "Book of Poetry" make mention of shells as "an ornament embroidered in silk ^), and strung together by vermillion threads, fastened as an ornament on *a warriors helmet*)." The different denominations of money are: 1°- ^ o ^ o 77 o jP") pi and tao. Hempen and silk cloth andj knives were the earliest ar- ticles of trade generally used for money, and as the first weighed metallic money, was an imitation of the shape and a representation of those articles, the same denominations remained to designate those coins. The pw-coins represent a piecfe of cloth, a dress , and the iao-coins are in their outward form / \ I an imitation of a sword or knife. Even between the character ^ pu and the forin of the coin 1) J. Klaprotk-was the first that in the Journal Asiatique directed the atten- tion to that fact. 2) Su-H«g IV, VII. 2. 14. Leggep. 240. 3J ^Jrkmg II. v. 61. Legge p. 346. 4) Si-img IV. II. 4, 6. Legge p. 626, pu, of which we give here an illustration, there is a resemblance which still more distinctly may be seen from the form (^' the same character in the old seal-writing. The conclusion is easily arrived at that ^ or fjl is the original ideographical form representing cloth, dress i). The illustration of the knife-shaped coin is of one used under the usurper Wang- mang (14 A. D.) and found in the valuable work of the Russian -diplomate babon de OHAUDOiB., Recueil de Monnaies de la Chine, St.Petersbourg. 1842. (Planchell.) The character engraved on the coin is ■j^ to exchange, which here is used for ^ article of barter, merchandise. It is the same as the third monogram ^ on the coin of the Emperor Yu (page 2). Together ' with .the knife-shaped coin the character yj as a denomination of currency is lost. ^ and tl^ (hempen and silk cloth) ,-. however , are still extant, as we will see in the passages quoted from Matwanlin , and the second word, used by itself or as part of a compound, has becoiae the standard term for currency *). 2°. ^m ho , MERCHANDISE , ARTICLE OP TRADE {merx), composed of property and the verb 1) I have coEied the coin from a Japanese I 3) See, for instance, the title of Ma-twan- nuntbook. A description ofitwillj.egiv«n in } j.^,^ Examination ^^^ , Chapter II, Currency instituted by Wang-mang. 6 to change is likewise one of the oldest names of currency, and may already be seen on the coin of the emperor Yil , and up to the • present time, taken by itself or as part of a compound, it is used in the same sense, as for instance in the frequently occurring ^ ^ general or current merchandise ^ ^ lit. cloth- merchandise, or the cloth-representing coin, the name of a coin in use under Wang-mang (14 A. D.) ^ '^ money-mer- chandise, etc.'). The economical truth, that money is a merchandise which should have its own intrinsic value, a truth so frequently lost sight of in our modern history of money, has become with the Chinese a rooted truth by the constant use of the denomination "^ ; and frequently we see in Chinese history, that whenever the sovereign has arbitrarily altered the weight or standard ojF the coins, his prime minister remonstrates with the argument. "Money as a MEECHANDisE should havc an intrinsic value." 3°. ^g tsien, coin, copper cash, is the general name for the round and square holed Chinese coins in common use. In com- bination with other characters already treated . of, as for instance @^ o ^ "fu' ^^ ^^ "osqA for the general signification of Me- dium of exchange. Another quality of money, is expressed by Chinese economists by the character 1^ Kiuen, properly meaning to weigh or balance on the steelyards, equivalent; for instance, ^ 'Wl^fli^fil:^^^®- Formerly, they had what is called the equivalent of a currency consisting of grain arid rice. — And a little further on the passage is found: Jj^ I) Mat. VIII: 21 « ^ ^ 1^ "^ ^ j^ ;^ ^ Its weight may be the reason that it is fit for currency ~^ ^^ m ils( ^^ ^H) ^3 The ancients made currency of tortoise shells. 9 Mi^^M- i^^^tS^^p:. Money was made the equivalent, but they did not always take care that that equi- valent was adequate to its origin (was what it was intended to be when it jBrst was instituted). [Mat. IX: 36 6]. ^°- Bl ^ yuen-fat, properly EOUND'or cuekent etjle is a denomination found in the "Eites of the Tsew-dynasty" '), in which we read that the administration of the State-finances was divided among nine different principal offices or boards ^ If^p Bl ^ • The signification of ^J is , according to a definition of Ma-twan-lin's , similar and current H f ^ J?^ ffll ffi i^ • 5° There ate several other terms, as ^ pao, precious ob- ject, treasure. For instance the expression ^ ^ "current money" in addition to the year-name of the fabrication of the coin , is the constant design of the coins of the T^ang and subse- quent dynasties (800—1877). Further, ^^ ^ and |5| which aU three have the signification of a string of 1000 cash. 6°. Finally, there is the remarkable word 9y<, s''uen which at present means, fountain, spring. We see it in a seal- writing on the ancient coins as a denomination of money, and now it is still used in daily occurring expressions to denote money, as ^^ ^ „ ^ ^ . An attempt has been made to explain, ■its signification by saying that money streams and, so to say, spreads over the community' as water coming forth from a fountain, but on authority of a scholar under the Sung- dynasty, this is a misinterpretation,, and the monogram ^ of the old coin is not even related to the modern character .^ fountain. 1) This book was written more than eleven centuries B. C. and is still extant. When treating of the money under the 2"&«- dyn. we will quote two passages from that "Book of Kites" having reference to the bud- get and the management of state finances. But let us hear TsHng-tsHao , who according to Mayers i) was a. scholar distinguished by almost universal knowledge. m i^ ^ T m m z- ^ m. ^ lit M.^ ^ ^ ^ f& M m :5k z 9i< 9J< z Z i 15 A. ift o jsc ^ ^ « F;r ^ iM: 5Tt ^ f i z ^fc 77 ffl ffij ^ Bi 3^ o Kia-tsi of the family-name Ts'ing says — "In classical style the word money is expressed by the character ^3 and has reference to the forin of the coin ; synonymous with this cbaracter but different in form is the character sword , which has reference to the instrument (anciently used as money). Anotlier synonym is Yuen-fat, which was instituted by Tai-kung (the duke of Tseu). Since that time Yeun-fat has passed through different ages, and as the people thought it convenient, ts'uen and tao were discontinued, and posterity does not more understand the meaning of that character. If we look at the shape of ancient coins , (we observe) in seal-writing the character ^^ ( |_ I _J j which later generations have substituted by the monogram ^^. If they, therefore make the derivation of the (ancient) mark Ts'Uen, they make of it the character ^S which has the meaning of water- fountain. But the seal-character of the real ^^ (of ancient coins) is in its lower strokes not composed of the .radical ^k water. The most eminent scholars do not know either its origin or end (whence it arose or what has become of it) and when they say that it streams faster than a fountain, that it spreads more (widely) than cloth-parcels, that it is more precious than gold and more advantageous* than knives, these (various opinions) are nothing more than sailing along the coast and boring in the direction of truth. 1) Chiueae Reader's Manual. I. 61. Kia- tti IS (he pseudonym of the author. Z = ^ going to. 9 Prom the form of the primitive species of which we gave the illustrations, it will easily be seen that money took its origin in barter. The Romans derived their pecunia from pecus and on their first coins engraved the figure of an ox or a sheep, the Chinese did very much the same thing when, instead of their knives and articles of clothing , they gave to a weighed quantity of different kinds of metal the shape of articles of clothing and of knives, which henceforth served for money. There exists a fragment of one of the most ancient Chinese authors on the origin of money, which relates in a rather inge- nuous way how circumstances led the ancient sovereigns to make money as a means to relieve the wants of their people. h.he m m mM ^ z ^ ^oZ ^.m ^ m.m -b M M m m m w^ m M ¥ z^^^mmiunm^^^'^ Ho^ ^ M.Jt A Z ¥ m \U M ii^^-t 1^ ^ ^ i: * ^ ^ ^.A Z ^ A ^ Ewan-tsze says'): "In the seventh year of the reign of king T'ang^ (B. C. 4766 the founder of the Sang-Ayn.), there was a drought and in ' the fifth year of the reign of king Yu , (B. C. 2205 the founder of the Hia-dyn.) there was a flood. Among the people who were in want of rice-gruel (food), there were who had sold their children (for slaves); Mng-yangf then took the metal of the T^oang-mountains , and cast money that he might ransom the sold children of the people who were in want of food. King-Yw took the metal which was found in de Lei- mountains, and made money of it to relieve the distress of his sub- jects. When from east , west , north and south , all over a surface of 7 or 8000 li (miles) all intercourse with these parts was cut off by tfie flood, and in consequence of. the length of the way and the difii- ij Kwan-tsze was one of the most renown- ed statesmen of antiquity. In 6S5 B. C. prime Minister of the feiidel State of Tsi he greatly contributed by a prudent go- vernment to the rise of Ms native country alnong the rival principalities of that time. He has written a work on government and legislation of which the piece quoted is prob- abfy a fragment. See Mayers Chin. Bead. Man. I. 293. lo ^ ^ ^ ^^.^oWi m n 7i "^ ^ ^ $M m ^m -t^cA i^ fi -tfeioMiJ T 41 ± ^ oulties to reach them neither ship nor cart could penetrate thither, (the people) therefore relied on and employed according to their weight (the following sorts of currency). Pearls and gems were used as the first, the yellow metal as the second, and swords and cloth as the lowest sort of money. As to the effects of these three different sorts of money , if you took a handful of them, they could not supply (you) with clothing (lit. to warm the body) and as to eating them, there was no possibility of getting satiated. In order to protect the precious goods , to promote the welfare of their subjects, and to bring the kingdom to a perfect state of order, the ancient sovereigns gave the instruction, saying: by weighing in a balance, the result will be that articles, one -of which is high and the other low, will not obtain the quality of being equal". A note, given by Ma-twan-lin to elucidate the last sentence, where mention is made of the invention of the steelyards in order to measure the value of objects of different size, runs as follows: M m p\ - ® M rfo ^ ^ M ^ M ^ M f^ m T - z n T wc S Wl ^ ^ Y. ,^ ^IJ 7^ m m m m ± ^ij A #1')^ "When the relation between the five species of grain and all living beings is proportional, people have no occasion to adopt those several sorts of money (high , middle and low) ; but by applying the expedient of weighing, one may obtain that. one object is high and the other low. And by weighing the goods, one will get an advantageous issue which will wholly agree with the above-mentioned (expedient of making use of several different objects for money). But those old forms of the medium of exchange soon proved to be very inconvenient, and the right principle, that money, 1) J|^ SJM ^^^ universe, all creation. • 11 whose destination it is to roll about the world, should be round of form, soon became a firm conTiction with the Chinese; hence it is recorded that in the reign of the Tseu-djnasij (1022 B- C.) moiiey was made, which was round .of shape and had a square hole in its centre. This convenient form once adopted, is, as it were, petrified, in Chinese society. If, at different times, weight and quality vary, with a few exceptions which shall be duly mentioned, -the form has remained" unaltered during nearly 30 centuries. In this case also the spirit of invention had reached its climax, and the Chinese rested satisfied faithfully to follow the example of their venerable ancestors without any important deviation from the beaten track. The metal of which money was made, was in ancient times of three different kinds — gold, silver and copper; the last however, rather a species of bronze composed of copper, tin and lead. As the country itself was not rich in precious metals, gold and silver, as we shall see, were in use only in the earliest times, when currency was Jittle needed; moreover, these metals were totally unfit . for Chinese society on account of their high valuation. Gold had ten times the value of silver, silver ten times the value of copper, and when we learn, according to a fragment from the "Statistical returns of articles of commerce and food" in the days of de Han-djnastj (about the birth of Christ), that one in- dividual of the lower class of people did not even spend one cash a day to supply his wants Q ^^^}^ — '^' ^*i^ ®"^i" dent, that a currency of great intrinsic value was of little use in those simple times. Generally, the gold and silver coins were used as presents to princes , and as rewards to the highest officers of state for. meritorious actions performed by them. Sui, a scholar 12 in the teign of the Sung-djnastj gives us the following in- formation on the. subject: "If by the government great outlays were made, or great rewards were given, they usually consisted of metal, and especially of yellow metal. In thg time that the Han-Ajnstsiy ruled over the empire, gold and silver were still used as currency, but after the reign of the Emperors Siuen-ti and Yuen-ti (B. C. 73 and 48) gold as money began to be ex- liausted. After, the reign of the Later or Eastern ffan- dynasty gold was very seldom used , and by the great spread of the religious doctrines of Buddha and Lao-tsze, gold was em- ployed to adorn the images (of those sages) made out of wood and clay. And as it then ceased to be used as money, it was made into vessels and used as ornaments of dress", [Mat. IX 416]. Occasionally "we read in history of iron money, which circula- ted besides copper, but which did not answer on account of its want of portability, little intrinsic value and the general unfitness of the material to supply the place of money. What idea did the Chinese attach to money? what were its functions and character? and how is it that in olden times money was not made at all or in very small quantities, while in later times metallic money could not be made in sufSciently large quantities? These questions are treated of by two scholars , who lived in the reign of the ASww^f-dynasty (about A. D. 1000 — 1100), and as their views of the matter are not unworthy of being brought under the notice of Western economists, I have trans- lated those parts of the two essays, which refer to the mon- ey among the ancients'). Further on, when treating of paper- 1) I have, moreover, added the Chinese i contain many curious Chinese phrases and teit to the translation, as the fragments I constructions interesting to sinologues. 13 money, we shall once more quote these authors, who, on this sub- ject are still much more important, living as they did at a time in which China was visited by one of the greatest of cala- mities that can befall a people, viz, "an over-issued and depre- ciated paper-currency." ESSAY BY LIU-TSTJ-KIEN '). ^ m «< m m fs z * w i>i T^ ^ -jw: 7lb ^^ dignitaries (according to their ranks), and the only difference was in the size of the piece of land owned , and so it did not occur that money was considered as official pay. For the reason that the people under the three dynasties possessed a great deal of land, there were no idlers and as the use of money was scarce, the consequence was that money was of little importance. Only when bad years brought on fa- mine and distress, money was made, and the reason of it was , according to the statement of ancient scholars, that gold and copper had no bad years. According to the want of the times they made it, that by means of it, (the commodities) which the one had and the other had not might circu- late, and thus effect a due proportion between abundance and want, and nothing more ^). These now are the reasons, why formerly under the three dynasties , currency is seldom made mention of. . AS we come to the time that the i/an-dynasty occupied the throne, the old custom still existed. In order to distinguish the rank and offi- ces they held, from the king and his nobles down to the assistant offi- cers, the terms tens of thousands, thousands and hundreds of stones (picul of rice) were made use of, and because in the same. way all sala- ries were reckoned by grain and rice, the currency was not considered very inaportant yet. 1) p^ A^ an idler, (lit. a,nothmg-doer) — 'Tte ^. , The author means by it fa Is e- coiner. The student of Ma-twan-lin's text will see that at the next page, which we omit in our translation, the expression TJr "Vp is found twice again, firstly in_ comhination with ynp "ija' ' secondly with '^ ■^. [Mat. IX 36*] 2) Nothing more lit. and there stop, is a frequently oocuring expression denoting that the phrase is at an end. 16 ESSAY BY §m-SIN OF THE FAMILY YE*). Z # — m4M^5fi:^0 i j'^ ^ „^^ Tit ^ H ifc i Tit J5iL ^ ^ Z ■ iH: ^ 1^ n m z .0 ^1 m ^.ifl: ii Sui-sin of the family-name Ye says: "On the advantage and disad- vantage of money there are several theories. The ancients used goods (commodities) which they weighed in order to serve for money , and the subsequent ages useii money, which was weighed in order to serve for goods (riches) ^). The origin of money is to be found with the mer- chants who travelled all through the four quarters, as they went to trade in regions far off and near, and because goods could not be dea,lt in. by means of themselves, they were dealt in by metallic money. But in the period when the three dynasties ruled over the Empire , the use of money ■ was very limited. Since the T'sin and Han swayed the scepter, it gradually increased, and at the present day no business is transacted without- the use of money! As formerly under the three dynasties money was very scarce, every one of the people was continu- ally engaged in supplying by manual labor whatsoever was needed for the support of his own family, grain and rice, silks, vegetables, fish and meat. The available (lit. waiting) money when gathered, was computed to amount to a very small quantity , only so much as was re- quired by the merchants to pay for the products of the government which they bought. 1) I have not found his name in Mayers or elsewhere. From his writings it ap- pears" that he lived nearly at the same time as the foregoing Tung-Ui. 2) The meaning is this: Anciently goods were used as nioney, now money is con- sidered as goods (riches). The pun in the Chinese text makes a literal translation dif- ficult. The term ^^ is used in a double sense. Firstly, it stands for goods, merchan- dises. Secondly, for goods, richeei m m m iH: 17 ^ * W ^j 3¥ t^ ^ it # ^ -^ ^ -**t -SJ ^ «ll 4 ni ^ n ^;f ^ a A Mo^ ^ ^ ^;r ^>)f ^ - 1" f^a M 2(5: i :^„^.^ > m But when 'afterwards the service of money was more and more adopted, and Li-huei ') laid down a . general regulation as to the purchase of provisions for governmental use, it was considered that every individual needed 1000 pieces of money or a little more, a year. And this was rather much for that time, for under the three dy- nasties it did not amount to this figure. What was offered to the spirits of the earth ^) , and ■ what was consumed by the mass of the people, if not grain and rice, th6n certainly it was silks, and because every one of the people made them for himself, there was altogether no room for metallic money, and as the people quietly attended to their business, there was no want of metallic money either, and therefore the use made of it was very limited, and the quantity which was then used, was, if reckoned over a whole year,- still below the generally accepted estimate of that time. But the regulation of its quantity in subsequent ages was quite dif- ferent. A hundred (different) things oiiginated in money, in consequence of which all goods were measured by means of money. When {formerly) it was pieces of sjllk, they were measured by tsangs {iO feet) and tsik (feet), and when grain and rice, the measurement was ascertained by hu and meu. All other provisions that arose, and were hoarded up in subsequent ages , are, since money gradually got more important, meas- 1) liM-huei was a minister of prince Wen of Wei. Mayers I n". 345 does not state any particulars about him. 3) H^ are sacrifices brought to tbe spirits of tbe earth. See Su-hing V. 1. 1. 10. Legge p. 487. 18 ;^ ± X m It: ^1 K #1 it ift M it :^o^^ z if m m ^ :J?^ H 1^ H 1^ ± tfl: m * ffil M ± s z ^o^oW W S ffl ured by money as to weight, quantity j price and value. Prom the most important (articles) transported in behalf of the government, down to the smallest tribute paid by the people as taxes , what is gathered in provinces and districts, and what by travelling merchants is transacted, all this is governed by money; and that is the reason why later generations use 100 times 100 the money, which the earlier (generations) employed. But how is it that the three dynasties had not too little, and the later generations not tod much iponey. The three dynasties had all isolated their kingdom (from all other countries) , that they might manage their, own affairs;, and what was produced by one country, was also sufficient to supply the wants of that same country. And (those productions) did not circulate through the whole kingdom, nor was it allowed to export the goods, and so it had not come to that pass, that people were obliged to spend the strength of their minds to get a living. The ruler,, moreover, in a judicious way, instituted inhibitions, and it was not yet necessary , that the exhausted forces of the empire where required in the remote regions'). Hence the book of Records says "When they love only the productions of the ground , their hearts will be good", and Lao-tsze says: "The highest state of perfection of good government is reached , when the people think their food sweet , and . their clothes beautiful, when they rejoice in their uneducated simplicity; when the inhabitants of neighboring states , who are sg' near each other , that 1) As it was when the author wrote this treatise, and China was in constant war with the barharous tribes on the North and West frontiers, and a great deal of North China was already invaded by Tartar princBB. 19 • 4- 0^.m ^ ^ :\t m z z ^.n n ^ m m z m ^ :s. :^.^.mom - r^ m MoM m ^ ^ m.wi ^ w m m.^pom ^ r^ ^ ^.n X ^ n ^ m m ^ m ^ m ffloit ^.^ # ^ -.% n % ^ Soi^ Wc w B i&.m M T ^ m m ^ they can see one another, and hear the crying and barking of their fowls and dogs, have grown old and die without having had mutual intercourse." In such a condition there is no need for money, and it is easy to obtain, that there be no want of it. (lit. that it was not scarce). Afterwards when the empire was united into one kingdom, though the different names .of provinces and districts were still existing, and the great assault of the r'sm(-dynasty) had not yet happened , and the people did not feel sorry that they did not know each other., and that arm and finger (i. e. high and low) were equal, it was stUl possible for the people not to trade, and not to penetrate into the four quarters. In those early times , however , tradesmen were continually coming and going , and kept up a constant intercourse between South and North, and thus it was easily obtained, that metallic money was not plenty (for it was not generally needed). The reason why the quantity of money was afterwards so large, was because it was so generally made use of, and as there was such a large quantity of money, calculation and measure were not always the same, so that in the course of time* weight, size and thickness were continually altered. THE T§BU-DYNASTY. In the year 1122 B. 0. the Sang or Fw-dynasty, the second of the so frequently spoken of three dynasties, was overthrown, having ruled over the empire more than 600 years ; the • last ty- rant being dethroned by the duke of Tseu, eldest son of the ChieJf of the West, who mounted the Imperial throne under tbe 20 title of Wu-wang. His younger brother Tan, wto in history is generally known under the title of ^ ^ Tseu-hung, or duke of Tseu, composed a work, in which he lays down the rules, according to which the n.ew dynasty was to govern the empire. This work is still extant, and its precepts continue to be looked upon as a guide to the government of the State; Having given some information on the different sorts of medium of exchange, current in the beginning of the reign of this new dynasty , Ma-twan-lin quotes two fragments from the book on the state laws and regulations of the Tsew-dynasty, which refer to the administration of the state fina,nces,, and which undoubtedly are the oldest historical records, which so minutely bear witness to the high degree of development attained by the administrative government of those times. I will first give the historical facts in their original fo.rm, and proceed with the most . important parts of the quotations from the Tseu-li. kX ~^ om M m Inbehalf of the merchants, the Tsew made jT ^e .B -^ roU ^ current merchandise in order to serve as >g» -g- __^ Jxj |»i a price in the exchange of goods. The gold /m j^ -lyj o K^ ^^g qJ ^Jjq gj^e of one square Tsun and ■^ o W fX " ^C ]W ■''^sighed a Kin , the copper coins were round ZiO. ^fe ^. iA and had a square hole in the centre, the ^ o ^ ^ jffl, ^eigjjt ^ag ascertained by Tsus. The gold ^ SI ^ M o currency {took its name from the weight and) A^ jSj J- lu was called Kin (pound). Silks of a certain length , and breadth , called a p't /£ , were also 'a unit of value, but as copper-casA was by far more convenient, being easilier spread than cloth, better strung together than silks, and more profitable than the gold coins, it soon was preferred and generally used. 21 ^ ^iF Sll Tffi' Ttr ran The justices of the market, instituted TR -1J£ m m m jm ^by the book of rites of the Tieu-dy- TO T|J ^L H W ^^^7 ') ™^<^s money in bad years when Afe ^ 1^ 1^1 . =71 the people were visited by a failure of IP >i,>, 3C^ o MM J gj-op, epidemics, or a great mortality; and taxes were not levied on the market. According to the traAslgiion oiThu-U by M. E. Biot (I 315 n°. 3) , a great deal of money was cast in bad years in order to enrich to people.. — A slight economical error for that time, to be sure. By the rites of the Tseu, there were instituted nine different boards of administration for the revenues and' expenses of the crown and the Btate ^ jfj H ^ . We omit the special deno- minations of ieach of them , they are to be found in Tseu-li and Ma-twan-Un, but we will look more closely at the regulation of the budget and the general expenses of government, which will show us, that already in those remote ages, people were guided by prin- ciples which we find back in our modern politics. z z m^m ji z ^ z ^oZ -^ z ^h Mc^o^ i^ ^ ^ n ^ ^ Mo^oA m )i m^)^ ^ m M B ^ m ji m m.m n m m n m z w ^k.^ ^ '^ ]^ n ^ ^ M m ^ fflo^ #t w ^ ^ m^ The M^ai-fu or administrator of the Exterior magazine, manages the revenues and expenses of the state finances , in order to provide for a hundred different things , and he is prepared for (lit. awaits) all the necessary outlays of the country , which are regulated by law. (The expenses of all the public functionaries are fixed by law). He supplies the necessary outlays for the liste civile (dress abd wardrobe) of the king, the queen and the hereditary prince, and the general expenses of sacrifices, entertainments of prin- ces and their nobles , coming as guests to the court , mourning arrange- ments, court receptions and assemblies of the troops; and further for 1) The Thti-U. ^ j^ was formerly .called Thu-hean. ^ g , and is here called by that old name. 3) in is here continually used for "fl ZW[^i^ n ^2 mom m m z Bo^offiMrur^aEffi wi * z.^ ^ ji # ^oZ m n w ^ z B m.^ ^ z B r- m B ^ ^ m m m m ^oB ^ ^oWi z M. AM-^^^m^Mzz^m m M. z n MoM mz m u ^.m m MoMoM jl m rflj #jo:f^ ^o #o travelling expenses , and ■ the precious articles given away as presents. In general he receives all the money used for small expenses in behalf of the state, and at the end of the year he makes his balance, only the expenses of the king's and the queen's wardrobe are not included in it. The ts'uen-fu (which according to the Tseu-M is the collector of taxes) manages the money which is paid as taxes on the market. He collects the goods which are not sold in the market, which are pre- served for the use of the people. He publishes and puts down the commodities which he has bought, according to theii: market-price, and waits for the buyers who may at any time wish to buy them. Whenever they want fhe goods for sacrifices , the buyers on credit may , as a rule, not delay their payment beyond ten days, (and if the pur- chased wares. are destined) for mourning, they may not delay to settle their accounts beyond three months.. He consults the justices of the market about iihose persons who bor- row money from' him , and reckons the interest according to the wants of the State. He uses to receive and gather all the treasures in behalf of the state-service. At the end of the year he makes the balance of revenues and expenses, and delivers the surplus (to the BS^ '^ accord- ing to the Tseu-li). Now follows one of the few treatises of Ma-twan-lin himself, in which he expresses his opinion on the financial system of the TSew-dynasty. — We have abbreviated the piece a little, and given only that part which contains the author's own peculiar notions on the nature of money. It runs as follows : 1) ^ > 'lere used for ^. j 2) ^ fl^ = always, incessantly. # m ^c -^ M ^ n M t ^ m M M z m itfc m.h T Z 23 t m m m ZoW m m z ^ ^ ^ m w\ r^ ^ ^ m m tu :n M M. wi M.M ^.^o^ Zc m M ir. m w\ r- i*').t ii^ ^ ^ ^ rflj zfk BS i^ 1^ lit. ^ -^ ffi 1 M ^ ITTI. A ^ :5t M H When the princes of antiquity first formed the fundamental idea of currency, they really had directed their attention to its continual streaming and circulating. If that currency consisted of merchandise, some princes hoarded it up for the use of the people, but whenever it was really money, there was not a single piece which did not circulate. The one official who collected the taxes, the Ts'uen-fu, was very convenient to the people. Whenever the market was heavy with provisions he bought them, and when there were people who at all times came and were de- sirous of buying, he sold them. And if they were in want of ready money , he sold the goods on credit , or (first) he lent them the money they wanted , and (afterwards) gave them the goods. In this way the ancient sovereigns considered the people as their children. They instituted a thor- ough inquiry into the distress of the people, which was concealed from theii" eyes, and everywhere they relieved distress and want, and what regards their benevolent government , there was indeed nothing superior to that. Originally it was not with an intention to take profit that they determined to take interest, and is it right not to inquire into .the fundamental idea of the institution of that official , but always to harp . upon ') that same saying , that it was in order to curtail the great- public service of the kingdom?- He bought the provisions at a time that they were plentiful everywhere, and he sold them at the time when the de- mand for them was great. Now , this was united with the intention to buy generally cheap and to sell dear (when prices had risen.) 1) , ^ ,, iitlaiguage of another, used in a contemptible to tepeat, to assume the \'-^^^ j^ p^^^^ nabauwen, u z m ^.z- m m.B m '^ m Wi ^.m 1^ ^=?^ ^ ^ ^ ¥ ^.m z m m ^ m f)r ^ z B ^o m ^ z m ^s^ Mo^.^ ^ ■ The collector of taxes used his money to exchange it for goods and generally for rice, and the original intention was altogether to benefit tiie people, and not to increase their own profit. But ensuing genera- tions have subverted the good customs of antiquity; with united strength they effected the purchase of grains, but what they accumu- lated, they used for quite another purpose, and not in behalf of the people. Then, they only fearqd that the number (of consumers) should not be great, and that their profits should not be excessive, and there- fore they considered it (those purchases of grain with united strength) also as a reasonable way to manage the finances •). Now, the necessity that money should have the property of divisibility, begins to be felt, as appears from the next fragment in which Ma-twan-lin again pursues the thread of his history. ■f -^ -k m -Y M Tsew-dynasty fearing that, the money was too light , made in the !21th year of his reign (523 B. C.) great copper coins of ar diameter of 1.2 tsun and of a weight of 12 tsu. The design was Ta-fe'wen. or great currencySO (^7ioo ^^= 'V24) ')■ The body of the coin and the hole were all round furnished with a raised edge (in order to prevent the filing off of copper dust) '). But to meet the requi- rements of husbandry, they did not answer the purpose.' 1) The last sentence is antetMcal to the preceding "the ancient sovereigns considered the people as their children." 2) An onnoe was 24 Tsu. Thus, 12 Tm represent 50''/o of an ounce. As according to Amiot 1 Tsiin ■=. 0.0205 m. the diame- ter was on an average 0.0246. According to another statement niue of these pieces had a length of the foot of Hocmg-ti = ± 0.25 m. in which case the diam. ofone js^oia ^ +0 B :^ m 1^ A It Mc ^ r< ^ m w H King-wang of the Tsei f-dyii piece must have been 0.0275. It is utterly impossible to ascertain the exact size of ancient Chinese measures, because it was frequently altered, while the names remained' the same. _, 3) A difficult passage — R>| is the flesh or substantial part of the coin, Jap. 2. ■> Mimi, jHi is the square hole in the centre, Jap. y -f- Ana = '^ , ^ is pro- 25 A m ^ m m ^ A- m ^ m z m z.M z 4 ;^ # H S ^ :^ K Mil :^ € 1^ ^ is z * i z, }>i <« m ^ ^ is ^ # ^ 4^ Ho As the king was about to cast (those) "large coins", (his Ministei-) Mu- kung'') of Tan said: "You ought not to do this. Anciently they always tried to ward off the calamities of heaven, and therefore they measured their precious objects by weighing them in light and heavy ones, in order to relieve the people. And whenever the people feared that the money was too light, thoy made a heavier currency, and brought it in circula- tion. (B'or, says a note, when the coins are light the wares bought .with them are dear). And thus they had the mother (i. e. the large coin as unit of value) and the child (the little coin) was weighed in circulation, so that the people got them both. If (on the contrary) the heavy money was unfit, they made light money in great quantities, and brought it in circulation; they did not, therefore, abolish the heavy coins, and thus they had the child (as a unit) and the mother weighed against it in circulation. So the big and the little money were a benefit to the people. But now that the sovereign abolishes the light and institutes the heavy coins , the people lose their wealth in consequence of it ; and can this be without theii: becoming exhausted? and if the people are .exhausted and the sovereign wants them, he will have a people in sorrow and want. perly a, wall to defend a city, here the raised edge. In a Japanese book on CM- neae coins, the following passage, oconrs — Anew he cast coins. the outer edge and inner hole of which are furnished with a surrounding raised rim. Cf. 13ffl. 1) Mu-hmff, is a name which frequently occurs under the yJoK-dynasty. , 3) Occasionally, I have inserted in the Chi' nese test a note of Ma-twan-lin's in parenthe- sis r;. 26 mo^o^ ^^o'^ }\\ m )^ ^ ^ z ^ ^ m % m m m m -^ "kot^ m and this being so,- he < will have to levy heavy taxes in behalf of the people, and they, not being able to pay them, ■will have far-reaehing thoughts (will estrange their hearts from their sovereign) , and the. end will be that the people leave the country. But, moreover, to have taken measures for what is not necessary; while they are stUl to be taken for what is impending , and then afterwards to be obliged to repair the evil (caused by this injudicious way of pro- ceeding), will never do (lit. cannot enter together.) To be ablq to take measures beforehand and not to do so, is what I call to draw misery on ourselves; and to arrange beforehand what we are able to do after- wards, that is what I call to summon up calamities. Besides, you cut off the custom of the people to fill the treasury of their king, and that is as if you were stopping up rivulets and sources to make a dirty pool. The drying up of it will "be the result in no time. The king however did not listen. OHiAFTI^I?; II. HISTORY OF MONEY UNDER THE GREAT HAN-DYNASTY. THE TS'IN-DYNASTT. THE GOLDEN YI. THE HAN-DTNASTT. THE LEAVE-COINS. WEN-TI GRANTS THE PEOPLE TO CAST THEIB OWN COINS. SPEECH OF KIA-I AGAINST JJlEfi-COINING PRACTICAL VIEW OP THE SAME (QUESTION BT KIA-SAN. KINQ-TI MAKES PALSE COINS. — REIGN OP W0-TI. — HIS PINANCIAL MEASURES. — REPRESENTATIVE MONET OP SKDr-PARCELS AND WHITE METAL. — TIK TSEU COINS. — INSTITDTION OP ONE GENERAL STATE-MINT — EXCESS OP FALSE COINING UNDER TUEN-TI AND ADVICE GIVEN BT HIS MINISTER TO ABOLISH MONET. — INFORMATION ON THE EELATITE VALUE OF MONET UNDER. THE HAN-DTNASTT. — HISTORT OP WANQ-MANG. — HIS BEGENCr AND EE-ESTABLISMENT OP THE CURRENCY OP THE ANCIENT KINGS. — HIS FOOLISH INSTITUTION OP SEVERAL VAMETIES OP BEPRESENTATIVE CURRENCT. — HIS PALL, THE 5 T3U-00INS COME BACK. — SPEECH OF LIU-T'O ON THE DISADVANTAGE OF MAKING UNNEOESSABT ALTERATIONS IN AN EXISTING CURRENCT. — DECLINE OP THE HAN-DTNASTT, THE COIN WITH THE POUR OUTLETS. — BAD CURRENCT OP HIEN-TL — END OP THE REIGN OP THE HAN-DTNASTT. Other papers referring to money matters under the Tseu-dy- ■nasty do not exist. In his next historical record Ma-twan-lin passes a great many years when he brings us to the feudal state of TsHn, at the time that the last of the TSett-emperors is about to be dethroned by his too mighty and independant vassal. 28 m m M ^ ^ ^ U W i^oM.W^ 1" ^ i^ Eo E w i^ * w ji i. 7^ im i^ r- M ^ iff o ^o ^' ^h -^ "Tsutsoang-wang ') in order to make the money heavy, made the little coins equal in value to the great ones, but as this was not suitable to the people , they all- left their busine&s. Sun-siok ngao ^) was (then) prime-minister. The market-master , speaking to the prime-minister , said : "The market is thrown into confusion, none of the people is quiet in its dwelling-place, and trade is unstable". The prime-minister Siok Ngao reported it to the king, who gave order to return to the old state (of things) , and the people were thereupon tranquillized." ' In the year 221 B. C. the Tseus were at last dethroned by prince Tsing, pretended son and heir to Tsoang-siang-wang^), who now under the name of Si-hoang-ti (the first illustrious rulers) ^^ _^ ^ put an end to the division of China into many feudal states, and united the whole empire under his sway. Now, when the Ts^ins had united the empire, there were two different sorts of currency. The gold coin called Yi was the first sort and had a weight and value , as a note observes , of 20 ounces or taels. - The copper coins were in sub- m w ^ 3£ ^ m M. ^ ^ *fi ^n js ^ # tw MoM li I) ^ who 250 B. C. ascended the Throne of China. Mayers I. 228. 2) Mayers I. 129. 3) Mayers I. 597. 4) In Menoius' time (B. C. 372 — 289) the Ji also was a onrrent unit of va- lue, .as appears from tiro passages of bis works. See Meucius S, I. 2th part. stance equal to those of the Tseu dynasty; the design was "half an ounce" and their weight was according to that design. But pearls, gems, tortoise shells, sil- ver, tin and what further is con-, nected with these, were used as IX. 2. "There you have a gem which may be worth 10.000 7i." And B. II! 2th part , III. 1., where mention is made of presents . of so and so many Yi offered to Mencius by several princes. The Rev. -Dr. Legge reckons it at a value of 24 taels, but from Ma-twan-iin we learn it was only 20. 5) S^ is here used for SgB . 29 implements , toys , and precious articles , hoarded up in treasuries , but they were no (more) money. THE HAN-BYNASTY. The descendants of the first illustrious ruler who tried to secure the succession of his line during "a ten-thousand ages" by an atrocious and tyrannical policy, did not long enjoy the possession of "all territory under heaven." His son and grandson were murdered by intriguing eunuchs, and 14 years after the accession to the Throne, the Ts''in dynasty was extirpated, and "a soldat de fortune," Liu-pattg ^J ^ i) who made himself re- nowned in the revolution and struggle against the existing. power, took his place and founded the great ^aw-dynasty which, during four centuries, was* Master of the Empire. (204 B. C. — 190 A. D.) m M m^^iZ^")^- m ^ m m.m m W ^o^ #;'KofL ^ - ^ & ^ ^ ^o.i S ^ m M V\.}rM%^ m i>X m ^ m m^m ifn m n ^ m -^ As they judged the money of the Ts'in too heavy and incon- venient to be used, the Hans, in the first time of their rise, made the people cast, the leave-coins, so called, because they were as thin as elm- leaves ^), the gold coins were again of the size of a pound as under the Tseu. But those little copper coins were irregular (not of a size) and threw away all the benefit of the people. By the gather- ing and storing up of commodities , prices enhanced enormously. The price of rice increased to 10,000 cash a stone (picul) and a horse was sold for 100 gold-pieces. I) Mayers I. 414. 3) ^ = iMl Cf. Julien. Syutaxe Nou- velle I. p. 159. The construction is: j^J V. trans, to benefit, and ^ ^ its ob- ject. I have found a similar construction, Mat. VIII. 7a. ^ ^ ^ ^ in the speech of the minister Kia-I. Cf. p. 35 note 2. N. B. here ^H! is used instead of ^^ Julien, in loco gives a similar instance. 30 Accordingly, queen Kao-heu (185 B. C.) brought again in cir- culation pieces of 8 Tsu equal in value to the half-ounce coins . of the preceding dynasty, but at the same time the profusion of elm-leaves remained in circulation, because it was impossible to draw them back. Our chronicle is now fast approaching to flie reign of the Em- peror Wenti who during 22 years occupied the imperial seat., and is considered as a pattern of humanity, a prince, who in all he did, considered the weal of his people. In the 5*'' year of his reign, Wenti caused again coins to be cast of 4 Tsu, the design was "half an ounce." «, ..^ ^. With an intention" to root out false coining, ° /^ li6 l^t ^^^ people free to cast their own money. K m But this measure did not at all please his privy councilor and minister Kia-T who expected from it nothing but calamities to the government and the people; and his plea against free-coining which was delivered to the emperor, has always been considered as a masterpiece of sound reasoning. And whenever in later times the question arises anew whether it be better that inoney is made by the government or by the individual subjects , the opinion of Kia-I ') , is always brought forward as an irreversible proof that only the gov- ernment is able to provide for good and valuable currency. And indeed, it is a remarkable piece, not only for its economical worth-, but also as a specimen of Chinese eloquence, though we may find it somewhat too- lengthy. As it contains also some inter- esting and curious Chinese expressions and constcuctions, I will give the fragment as I have found it in Ma-twan-lin. It runs as follows: 1) On Kia-I, see Mayers N". 245, where i the institutions of the state, and that some is said that he introduced many reforms in I of his writings still exist. 31 SPEECH OE S.IA.-1 AGAINST EEEE-COINING [Mat. Till 5Z>]. ^ z ^ m m m: ^ 1^ u m ^ B w^ m ^ m. ^ 3 ^ ^IW A Pi It. 4 # o ^ ffij IIH 0o ^ffl ^ 1^ 1^ ^ ^ ^ ^o ffij ..R ^ :2: H ^ ®„ ^ Kia-l remonstrancing (against the ' proposed measure) said :" The Taw causes that it is granted to everyone in the empire to melt and cast copper and tin together in order to make money, but whosoever dares make false (coins) by alloying this mixture with lead and iron, shall have his crime branded in his face. But what concerns the circumstan- ces of easting money, we know that he who does not mix it, and does not make false coins, will not be able to get any profit out of it, whereas he, who mixes it only in a slight degree, will get a large profit. By this fact, therefore, evil is summoned up, and this law will be the cause of crimes and debauchery. Since it is your command that the common people shall entirely have the power of making money in their own hands, everyone will secretly cast and make it. And though the punishments to be branded will be the daily penalty of this crime , in con- sequence of the desire (of the government) to check the making of large profit and the adulteration of the coin in a slight degree, the influence produced (by these punishments) will not be great enough to put down this evil. At this tima the number of those who atone for that crime, will be large, — several hundreds in every district — and besides, the number of those who , suspected by the public functionaries , run away for fear of the bastinado , will be "also very great. This law of the country leads the people astray, and will be the cause of their falling into a 1) ^ ^S ^ lit. to hire and to rent, is here with the signification to be enga- ged in. Or, as Ma-twan-lin observes in a note mUMMM' 32 r- '^^ t(a isi M m z r- '^ m "^ -^ m ^ m Mo^o^ :2 ^ M m T' g^.pk m t^ m'^ wi m^ M ^ ^ i^ t ^0* W ^ ffiJ A ^ fM !it.^ it. A M B ^-A ^ 1^ r- m r< ± m m m B m M ^ ^.n/^ m^ m ^ m ^ ^.% n- n n m ^. m.m m.n m. m^ m. ^ m .% t :n t(u ^ m % % n And what will more accumulate the number of crimes than this reg- ulation? In former times, when the casting of money was prohibited, the guilty of death among the lower classes of the people were more frequent. But now that every one may cast money, the number of those condemned to be branded will greatly increase among the lower classes. But what advantage does the government derive from a measure like this? For the (different sorts) of money which will be used by the people in (different) provinces and districts, will not be of the same value. Some people will make use of light coins , (and if so) how much must they add to a hundred pieces ') (in order to pay other people who are measuring the value of a thing by. heavy coins)? Other people (on the contrary) use heavy coins , and an adequate weight (quantity) of goods will not be obtained by them. Which of the different sorts of money- (at the moment circulating), is legal tender is not evident*). . If the public functionaries are zealous and honest , they are greatly troublesome and vexatious, and yet their exertions will not be able to conquer the evil ; if on the contrary , they are indulgent and not ardent .in the pursuit , the people at market will make difference in the use of coins , and the different designs of the coins will cause great confusion. And if they too (the functionaries) are false in their dealings , pray , to what pass tte weigM of 4 Tm, 100 pieces of that legal money wiU weigh 1 pound 16 Tsu, and now is the question when the money in whish the sum due is paid, is less in weight, how many pieces are to he added to a hundred in order to make the payment equivalent and complete." i. e. how many per cent is the difference? 4) Different sorts of -coins of foregoing dynasties, e. g. the elm-leave-coins, the half ounce, 5 7iMand3 Tsu pieces were all still in circulation. 1) Mat. explains this sentence by ^ Al* ^ 3) 3i is here more exclamative than interrogatory. 3) The meaning of the last sentence , rather difficult to understand, owing to its pecu- liar Construction, is elucidated by the fol- lowing note of Ma-twan-lin's: "If a coin has 33 ^ It 4 ^ il m m pt m 1^ JBS, ± in iM: ii IIr! z m m ro .MiJ ^ ^R ^^ ro m ^ ® J^ ^ffi ^? 'W / Mi ?BJ » ITS ■ftu m- •may we not be brought.' At present husbandry runs the risk of decay- ing, and the number of people who seek to obtain copper, daily increases. They leave their ploughshares, they melt and cast, and blow the char- coal. "The bad coins are daily made in larger quantities, while the five species of grain are not made to increase. The virtuous are led astray, whereas the wicked are respected; the people are falling into a snare, and the number of executions will be enormous and without judicial inquiry. What expedient will put an end t&. such a desolate state in the empire. If the functionaries who now advice you , knew that , they surely would say: Forbid it, forbid it, that these evil practices may cease, for the wounds inflicted by it are sore indeed!. If your Majesty commands that henceforth the coining of money shall not be free, the money, no doubt 1 will become heavy again, and the advantages accruing therefrom, will be important. But even the penalty of being outlawed by all the market-folks ^) , will not be strong enough to check the ' false coiners, who have sprung up like clouds. The numbsr of false coiners will not be conquered for, while the law prohibits their number to be large (lit. overflowing) , the copper (which every one may easily obtain) is the cause that it will be so (i. e. that false coiners are still to be found ^).) .It would, therefore, be a great calamity, if copper was made to circulate all over the kingdom. That great calamity, however, may be warded off, and seven blessings will be the consequence of it. ical records call the punishment inflicted on a person at market, when he is driven out hy the multitude. Traduction du Tseu-li deM. B. Biot. Tome II..p. 332. § 26. ;,I1 ecoute la voix du peuple d'emandant I'execution ou la grace." 3) The meaning is that the circulation of copper will he the reason that the law is of no avail. ' ' 2) ^E jIj 3^ gE is the penalty of proscription by the votes of the people, ac- cording to the Tseu-li, OT^ '^? fol. 6S. IS ^jf f i ?BJ A ^ Tfr M -^ ^ Z "tfel • ■'"'' ^^ ^^** ^^^ histor- 34 K ipB B ffl w ^„i^ m m m # ± m 1^ m ffl iin ^„^ i[^ # ffi ^' UK::! Which are then those seven blessings? If your Majesty draws back the copper, and prohibits its circulation, the people no more will cast money , and the sentences to be branded will not increase — this first'ly — '). The bad money not increasing in quantity, the people will no more suspect one another — this secondly. — Those, who at present try to get copper to melt and cast money , will again turn back to their ploughs and fields — this thirdly. • — The copper will at last come to the crown again, the collected copper is then stored up in order to regulate the circulation of money (lit. to. regulate light and heavy). Now, if the money is too light, (i. e. that it is so abundant, that weighed against goods it has little value, or as there is more currency than is wanted) the government has recourse to the expedient of collecting it. Is it (on the contrary) too heavy (i. e. is the currency circulating too scarce in proportion to what is- required, and therefore heavy when weighed against goods) it has recourse to the expedient of diffusing it , and a . stability in the prices of merchandise will be the result. — This fourthly. — By making implements of war (of this superfluous copper), (provided) the prince have excellent and honest ministers, the quantity of copper in store will have certain limits, if one uses to consider the rate of its market price ') — this fifthly. — In consequence of the reduc- 1) Here also tlie choice of 'y as final particle is important. These blessings are no certain facts , hut mere suppositions of the minister KiaJ._ 'te is used for ^£ , See Williams. 2) 3) The meaning of this rather obscure sentence is , ' that the State may get some profit, when honest ministers lyill observe the coruise of the metal, and draw back the superfiuous copper, when the copper currency is too abundant, and make of it implements of war , which are always highly valued. At the same time the effect of this will be that the government store of copper will have certain limits. Sinologues will be aware how exceedingly difficult it is to ren- der into plain English those brief Chinese phrases, which by a literal translation would be altogether unintelligible. For instance , the iS and single words ®K and ^ meaning light and heavy, want the explication, which in the translation I have put in paren- thesis, otherwise the meaning would not be understood — "S* ^g dear and cheap, are to be taken as a compound, signifying, rate, course or market- price, just as the compound ^ A^ means quantity. 35 z- £ m ^ju^m.^ M m m.^ M mM m ^ m m ^ ^J^^ '^ ]^ ^.m m n ^ ^ m 1^ m.^ m M ^ ZA$ m ffii M -^ -b K\^ n ^ ± m.-t -M -^ T ^.m M.m')m tion of the prices of all articles of commerce (as soon as the money has a fixed legal value), when the periods of abundance and scarcity are in due proportion, and the government will be rich and well-fed, in consequence of the obtaining of surplus and profits , the people will no more be exposed to want, -^ this sixthly — And if we destine our hoarded treasure, to be given to the Hiung nu (the Huns), we shall put an end to the quarrels with that people, and our enemies will be brought to peace, — this seventhly. — Therefore he who governs the empire in such a way as to turn the existing evils into so many blessings , will do a meritorious work. Since many years the seven blessings have been opposed, and the evils have generally been predominant. Your ministers honesty is injured by it. His Majesty however did not follow the advice. Besides, another peril was impending, as Ma-twan-lin tells us, in his next fragment. In the neighboring feudal States of Wu and Tang ,• the vassals were rather independent and made their own money, which caused uneasiness for two reasons. I''- "That . this currency, being of a better quality, might easUy get an extensive circulation in the empire." 2°. "The wealth of those vassals was rapidly increasing by it, and as soon as it equaled that of his Majesty, it was evident that they would rise in reTiel- lion. The emperor was, therefore, not quite at his ease, as to the result of his free-coining system, and again asked, the advice of another minister of the crown, called Xiia-/Sa?i, who very practically decides the question as follows. -*st ,-, . 1 -J / i J j\ I 2) As to the. construction, compare page 1) S| lit. pushed aside (as not needed), j gg '^^^ g • . i i = 3C m.n -^ ^ m ^ z n M ^.^m.m m ^ m m ^ m m.'m m m m-\h m ^.m/A -^ m A n.'^ m -^ i. m s ^ ± z:^.± 'M ^ ^ m m Kia-san , the superintendent of the issue of State papers i) , pleading against (the adopted measure) said: He, who considers the currency as an implement of no avail (as a prerogative of the crown), may occasion the change of riches; now riches are the handle, which is held by the rulers of men. If you let the people free to make (the money), it is much the same , as if they'share the holding of that handle with the princes. That cannot last a long time. — Thereupon, the emperor again forbade the people to cast money. Wen-ti's successor, tie emperor King-fi, is said to have made money of false yellow metal, and. by doing so, he infringed the laws of the market. But the people then made use of the money introduced by the feudal prince of Tang ^, and false coiners appeared, who beyond all limits practised their profession. Only a great many sentences were able to put a stop to their unlawful proceedings. A more interesting part in the economical history of China is the reign of the next Emperor Wu-ti, who during 54 years occupied the throne. His was a glorious reign. He was victorious in his "wars in the North- West against the formidable Huns; the whole South Western part of China, — the modern province of Yiin-nan — was brought under the scepter of the Son, of Heaven, and his generals . carried the Chinese arms into the heart of Asia. Literature flourished, and an imperial University was established. 1) ^ ^^ Sang-'su is probably the the frequently occurring to? same as Sang-m, which was a title of tlie prime min- -isters under the5a»-dynasty; (Morr. in voce -W ^^~^'''- ''■'''^ compound in J^ is found only three or four times in Ma-twan- lin's records. Under Han-wu-ti , Wen-ti's suc- is found as a title of a r; ^ president of a central board of administra- tion. to disseminate the study of classical history and wisdom. The em- peror ' himself made many a splendid progress with, his gorgeous court, and gave magnificent feasts. The consequence of all those blessings was , that an enormous quantity of money was wanted , and as the base and worthless copper-casA, was not at all suffi- cient to pay for these sumptuous outlays, several sorts of repre- sentative currency were introduced. This expedient had the same fatal result in China, as in so many other countries were it was afterwards employed. In the beginning, it seemed" to be the cause of an inexhaustible source of wealth, but when the spleudid times and the delusions had pas- sed away, the State was almost on the verge of financial ruin. Wu-ti, in the first year of his reign (140 B. C.) "brought in circulation coins of a real value , bearing the design of three tsu , but five years later these coins were suppressed again , because they were counterfeited and clipped, and pieces of 5 isu, the standard- money of the fl'ajj-dynasty , were introduced "again. Counterfeiting made the money abundant in quantity but of little value, whereas goods were not so superfluous and rather high' in price (^ ^ ^ ffil ^ ^ ^^6^ ffij m): ^^^ in the distant parts of the empire, pieces of cloth were again used as a medium of exchange. Now the public officers proposed to abolish the existing pieces , which had a nominal value of half an ounce'), but which really contained only 4 isu, and to make again pieces of a weight of 5 tsu, furnished all around with a raised edge of the same substance (metal) in order to prevent the coins from being filed out, with a view of taking the copper dust. 1) Half an ounce is 13 Tsu. 38 ^o ^ ^o 7C ^^ *^® fourth year of the period Yueu'seu ^ ^ ^ (119 B. C.) a currency of white metal and ri^ Q P5 deer-skin was made. Ma-twan-lin quotes two pieces haying reference to the intro- duction of that earliest of token-money, and as they contain re- markable particulars of the origin, value, and use of the deer- skin currency , I will give the whole text and its literal translation without any further comment. Only I wish to observe beforehand , that these skin-tallies were purely tokens, and have had nothing in common with the leather-money, which was, during a long time, current in Russia. This Russian skin-money had a truly representative character, as the parcels were used instead of the skins from which they were cut; the skins themselves being too bulky and heavy to be constantly carried backward and forward, only a little piece was cut off, to figure as a token of possession of the whole skin. The ownership of the skin was proved when the piece fitted in the hole. Ma-twan-lin tells us: [VIII 8a]. m: ^ m ^ m m m m')m m "^ i^ o \^ M m n m ^^ ^ ^ )fi m m "M t') At that time the emperor's treasury was very empty , and among the rich merchants there were some who accumulated their wealth (riches) to succor the poor, they forwarded several hundreds of measures of •grain, and converted (their riches) into food =) ; there were others who (for their own profit) heaped up tens of thousands (pieces) of money, and who did not, relieve the pressing want of the multitude. The black- 1) ^^ g jj is ete Emperor. See 2r'«»7- hi'a Dictionnary in voce ^& IK ^ 2) lit. they melted to food. 39 ffoM m.m "^ m m n^ & n m ^ m m \^j. 'M..-V % -}j A^ n HoS j^oB^ "^ !^ ^ Mo ^ R ^ '^ -^ ^.m M m m m ^ m.m ^ \^j ^ ^ ^p n haired people were suffering great distress. It was then' that the son of Heaven , togethei^ with all his ministers , deliberated to make again a currency in' orde.r to supply what was needed. Now it was forbid- den to rear white stags in the parks, and in the privy treasury there was a mass of silver and tin. One of the functionaries observed (lit. spoke, saying): As to the skin-currency of the ancient kings, the feu- dal princes used to offer them as presents when they were invited to court. At present, you take pieces of the skins .of white stags, measuring a square foot and embroidered on the hems, to make of them a skin-currency, of a value of 400,000 (copper coins a piece), (and) whenever kings, feudal princes, and noblemen of imperial clans , are come up ' to court to have an audience with his Majesty and to offer presents, they ought to receive those skin-pieces as badges of honor. Thereupon they will be brought in circulation (as they will always be desired by persons who wish to have an audience). For those gifts of the emperor, the nobles who went to court, had to pay the fixed sum of 400,000 coins, as appears .from the second fragment bearing on the subject. It runs as follows: . ^ ± * 1 It ^ ti- iK m ^ ^ mM%.z^ m ^.m 4 M When Tsang-t'ang was holding the office (i. e.-was prime minister) and the Emperor, together with him (T'ang), instituted the currency of the white deer-skin, he also asked the opinion of 1-yen, the minister of acricnlture. The answer was: "to-day all the kings and feudal princes who are .coming to a general levee at court (make) use of the azure badges which have a value of (only) some thousands (coins). Instead of those badges, now the skins are presented to them, for which they 1) HM. flit ''■'' ^'^^ ^° *^^ innermost part of his telly. 40 have to pay in return 400,000 (coins). The origin and the end are not counterbalanced [i. e. the two obligations are beyond all proportion)." The sovereign was • not pleased, and as T'ang, the minister, reported that I-{yen) was hiding his real meaning in his inmost heart, the emperor ordered him. (Yen) to be put instantly to death. Another representative currency instituted by Wu-ti consisted of three coins of a different size and forifl , made of tin and silver melted together, and of a nominal value far beyond the intrinsic." The outward forms and the figures vrith which they are ■covered, are sym:bolical. In an old Japanese mint-book I have found an il- lustration of a worn copy of two of them, and the French Jesuit Pere du Halde in Ms work entitled »Description de I'Em- pire de la Chine" Tome II p. 166, gives also a drawing and description of them. As an i^ustration to the communications of Ma-twan-lin I have appended wood-cuts of these reniarkable coins. H ;S[ -htt §S "^ F^ ^ Ma-twan-lin continues: (The em- ° ^ 1.° ta A "C^ PSJ'Of) made also a white metallic gg' JiB i^ o ^hE /n 's^ o is currency of a mixture of silver and ^ ^ A ffl S W ^E ^^^ ' ^^^ considering that in Heaven ti -UU to -*f J. >ec» AH ^^^'^^ '^^^ nothing superior to the PP o wC /fl M: 3?B Ml 3^ dragon , and on earth nothing su- perior to the horse, and among men nothing superior to the tortoise, he, therefore, said in reference to those three sorts of metallic coins. — isi -«- Of the first was ^"^ said: It shall have 1^ ^ — ' a value of 8 oun- jg- -H- a ces (taels); make B. ^^ Wo it round; its de- ^ ^C J£ "^ise shall be a -r*. iifi ft dragon; its name -To Bio /v gj^^jj ^^ TsMani), ^ ^ o and its value 3000 (coins). 1) Tsaan. has tlie signi6cation of re- gulator, a pattern. 41 ^ ~h ^ Of the second -2-. _j^ Was said: Make it O o -^ M o different and smal- "Mt IM ler (in comparison "^. ^. to the first men- ^ .S tioned), and of a M ^ square form, its r devise shall be a IM. /J'* horse; its value 500 (coins). ^ /]> ^ • Of the third was said : Make it still smal- — ^ ^lJ^')0„ler and of an oblong form, its devise shall Wo ffl(o ^o iM, ^® ^ tortoise and its value 300 (coins). pEj 7:^ -^ cR . While the weight PWo _ a m . of the first was S !a> M'J S ®ig'i^' ounces, that [jri gpj . rt of the second was V-A m — /V six, and that of the third 4 ounces. From the drawing we see that the figure of the tortoise is not drawn on the third coin, but the surface of the coin reminds us of the back of a tortoise-shell with its sexangu- lar figures. The character J Wang , meaning THE KING, is found on every sexagon, and seems a representation of the human being par excellence. As to the symbolical part of these coins , Japanese and Chinese authors provide us with many explanations , of which we will give some without any comment. In a Japanese mint-book I have found the following passage "The round exterior form of coins is 1) I'o has, according to a note, the signification of oblong K Ffil -^- 4S emblematical of heaven , whereas the square form of the-iniier hole is au imitation of the earth')." The Chinese represents to himself the earth as a great square, and so he speaks of the ^ ~Jj , the four sides, in the signification of all territory under heaven , and of the pij ]^ , the four seas, as the universe, because the seas, in their turn, surround the earth. The firmament is a round operculiform covering over the earth. The dragon, the emblem of imperial dignity, is composed of parts of several animals just as the Egyptian sphynx ; one part of the year he dwells in the clouds, and another part of the year his residence is the ocean. It may be — but we advance this as a mere suggestion — that the dragon is the symbol of fertility and creative power,, as it is associated with the watery principle of the atmosphere, and composed of parts of several animals; per- haps the sphynx, turning its back to the Libyan desert where all fertility ceases, has an identical signification. Thehorseis emblematical of the earth, as the earth moves round the sun in twelve months and the pregnancy of the horse equally lasts 12 months. Medhukst in voce ^ says "77ie time, of its gestation is 12 months, hence taken to indicate the earth with its 12 months to ayear." The tortoise was anciently used in divinations. Further in- dications concerning the symbolic of dragon and tortoise are to be found in Mayers I no. 299. 451. Legge IH p. 335 sqq. The end of those glittering and mfedal-like coins was sad. They were counterfeited on a great scale, not only by the people, but also by the state officials. Their value in exchange diminished rapidly, and the people ceased to use them as objects of value; and though the emperor tried to avert the evil by no more issuing them, his efforts were of no avail, and at the end of 1) In a Chinese work the same is expressed by 0b "fc ^ j*b ^\t J^ -^ IBI . ■the year in which they were first coined , they did no more circulate. Now, again a new kind of money was coined, which in the first time of its existence met with better fortune. The pieces were called Yik-tseu ^ jTC which literally means bended round, or surrounded with red; or as Ma-twan-lin describes it. "The raised edge of the coin was made of red copper. J^it ^ il^ ^ ^ ^ "t^ o ^'i® Pi^*^® ■'^3'S worth 5 (probably 5 im pieces), — > '^ ^. The functionaries who collected the taxes, used not to bring again the false Yik-tseu-coms in circulation. But only two ^ o ^ K f5^ ^ years had passed , and the new coin was -7 "^^ IK ^ again very bad in consequence of coun- "^ o ^ ^ -^ terfeiting, and as even the sensible people ^ ^ ^ ^ ^ ^ did not think it right to use the coins at the legal rate, they were also abolished. Now Wu-ti having learned wisdom by adversity, found out the right principle, and money was made of a real value according to its design, and every province and district did not as for- merly make its own money, but a state-mint was established in the capital of the Empire, and three high officials of the Sang- lin , (an Academy of science of that time) ') , were appointed mint-masters. They had to do. their utmost effort in order to provide the whole empire with a good and valuable currency. To all money, not issued by the Sang-lin officers, the character of legal tender was denied. And all the metallic currency formerly in use was drawn back, and brought to the ^ang-lin-mini in order to be melted and recoined, and as they considered it too expensive to destroy the- few false coiners who still remained, they made !■) H ;{vfc Sang-lm, the forest of I science founded by Wn-ti of the ffm-iY- ' -«- 'VX^ ^ ' I naatv. Mavera T S92. superior men, was an Academy of nasty. Mayers I 693. u j^ ~f% P^ the most formidable and skilled of them workmen ^ ^ ^ in the service of the state '). ^ ^7^ in With this account end the records of Wu-ti's reign. For about forty years nothing remarkable seems to have hap- pened. The 5 Tsu pieces , issued by the Sang-lin mint-masters, will, no doubt, have been very good during the first years, but coun- terfeiting was soon again in full vigor, and under the reign of the emperor Yuen-ti it seems to have been so frequently practis- ed that a learned statesman presented a memorial to the Throne, in which he earnestly proposes to abolish metallic money and to go back again to the use of grain and cloth as a medium of exchange. That memorial, Ma-twan-lin's next, fragment, runs as follows: [VIII, 96]. ^ T> ^. li ^ ii W li K m iHo W '^ Under the reign of Yuen-ti (48^32 B. C). Kung-yu says: "The number of perscms who, in order to make money , are grasping at cop- per, amounts to 100.000 in the course of one year. The people cease to plough, and being engaged in false coining, they incur punishment. (Besides) many rich men accumulate money in treasuries, and are filling their dwellings with it, and yet they are not satisfied. The minds of the peopleare agitated ^), they leave their present employment and throw away their prospects. (Husbandry) cannot afi^ord to lose half of the hands that plough the field, and the false coiners are not to 1) However important many pieces of Ma-twan-lin may be -vpitli respect to the Chinese language, being necessarily confined- to space, it is impossible for me to give the whole of the Chinese text. The re- InarjEable expressions and curious construc- tions , however , will be carefully noted down at the foot of the page. In this fragment . we have an expression which reminds us of a latin construction.- "ff^ -& ^^ MMMW^ ^@ . Thereupon it was generally forbidden in provinces and single parts of the empire to cast money. Interdictum erat ne funder.'ent m n e t a m. 3) We have here ^ ^ in another sense again. The origin is here t\e exis- ting state, the present; the end means the future, 45 ^^ ■m. ^ ^ W la ffi .m I # 5 ^ ^ ^o-t #o^ iii be checked , (in their unlawful doings). It would be reasonable, therefore, lo put an end to that grasping at riches (lit. pearls, jewels, gold and silver). If the • officials who cast money , are henceforth prohibited to make currency, we may break with the practice of reckoning in commer- cial dealings the equivalent by cash') (lit. in silverweight). If taxes, salaries and rewards, were all reckoned by means of silk , cloth and grain , the people would henceforth turn their thoughts on husbandry and the cultivation of mulberry trees." Now, as for that advice to supersede ') in exchange the metallic money (by silk and grain, it is an inconvenience that) silk-pieces do not admit of being divided and torn to feet and inches (i. e. that sort of money had not the necessary quality of divisibility). The advice of (Kung) yu was also put aside). J^^o m i^ 4 ^ % ^ ft VX -^ M Another councilor, called Tan- tsuen -M- 'W , also speaking against that measure said: "The ancients used tortoise shells as a currency. Now, if it is because they changed it for money that the people are' impoverished , it would he reasonable to make a change, in the rae'dium of exchange." And , as the emperor asked Tan {tiuen) if it were possible to alter it , Tan replied that it was possible. But the advice of the officers of the privy council of State was also asked, and they judged that it was difficult to make a sudden change in the money which for a long time had been in circulation. From the days of the Emperor Hido-wu-ti (117 B. C.) when the Sang-lin officers began to make money, till the year w "^ ± i^ ^ 1) A note says, TO signifies : tlie reckoning' of the price of an object sold; what one reoieves in return for (the object sold) in Tsxe and Tsu (in silverweight) — A Tsse = 6 Tsu. 3) yt^ is most nicely used instead of 4^ . 3) ^a^ "T» /«■ '3 are the officers of the privy council of State. 46 -^ W J|5(i ^ -^- ■'^- ^^'J^r the Emperor Ping-tia reign, they !^ /V ^^ had made copper coins to an amount of more than ^„ -f- Zl 280.000.000.000 pieces. . The next fragment contains an information on the relative value of money in the time of the ^an-dynasty , collected from the histo- rical records of that dynasty and communicated Ky an author who lived under the AS'M??^-dynasty between A. D. 1000 and 1100, and who compares it with that of his own time. The author's pseudonym is ^ j^ Si-Kn, and of Ms family-name he is called ^ Ye. He ^observes: "In the historical records of China, the chronicles of Wang-Ma, it is related that in the time of the emperor Yuen-ti the treasury of the imperial palace amounted to 4.000.000.000, and the privy treasui'y con- tained 1.800.000.000 pieces of money; and he adds that that is ^ ^ a£ J^ much. If you consider it in relation to the /V. ^ ^ -^ present time , it is not yet so much as is paid ^ S Bl ^^ ^^^ y®^^' ^^ duties at a custom house , where — ' 1*^ -^ * considerable import and export of wares ^ ■^ ^ taies place. In the time of the Han-dynasij , the money was very heavy , whereas the goods were light »), and the prices ■ of grain were very low , for they were only 5 cash a ~F S IE M r!^ bushel. .Therefore says Zia(TFan-Ha the P "n^ W. '^ Wl ^.uthor of the chronicles), that a man ■^ — ■ '^ ^ W possessing 10.000.000 cash enjoyed a life ^ ^^ ^ ^i ^ (lit. wealth) free from care, and few prin- •^o M ^0 ^o B^ cipal officers did possess it, but it is also T* • ^ fi^ ^F true that at present the average of middle- class and lower families possess that sum of 10,000 strings of cash. ■ 1) Heavy and light are Iiere in the signification explained at page 33. 47 According to the regulations of the Han-dynasty a prime minister and the military commanders-in-chief of cavalry and infantry ^^ jI|o :A: # H liad a monthly income of 60.000 cash. Imperial historiographers and governors of provinces re- ceived 40.000. A commander-in-chief got , moreover, 350 bushels 9f rice monthly , and so it went on in a progressive ratio down- wards, so that a public functionary of inferior rank got 100 stone (picul). There were also some who got 8 bushels and a little more monthly". In this way the author proceeds, and, as under the reign oft he Sung-Ayaasty, when &k-l{n of the family Ye lived , there was much money, but all commodities and provisions were scarce and dear, and the governement sought to remedy the evil by introducing a new sort of money in. large quantities, he ends with stating as his opinion that the value of goods does not depend on the quantity of money existing, but' on several other circumstances. The high prices of provisions , therefore, will not fall ■ by a sudden increase of the quantity of money. In plain words he says: ^ ^ 1^ Stt "The quantity of money (necessary as an ■{Hj -ffi m" ^^ equivalent to buy goods, i. e. the prices of com- 55^ ■ ■^ ^ modities) and the value of goods do not depend ^ ^ ^ ^^ *^® larger or smaller quantities of money, ^ ^^ ^ which are coined". From this sentence we see how deeply Sik-lin was already convinced o'f the economical truth that "iNCEEASING THE QUANTITY OF MONEY IS NOT AUGMENTING THE WEALTH OF THE PEOPLE." 1) It is remarkable that the character p'i ^IK in this fragment, several times is taken in a signification contrary to what it commonly expresses; here it stands for goods, wares, whereas it generally signifies money, cur- rency. In the beginning of this fragment a ■ sentence , a common antithesis in Chinese construction, shows that abnormality very plainly. '^ ^ ^ @ g jfij ^ mm.. In the Ban-\>erioi the money was very heavy whereas wares were light (i. e. low) in value: See page 46, note 1 . At the next page it occurs a third time. 48 Now the same author proceeds to inform us how much at that time the people used for their daily expenses. - m^) + „W nrT. H m m m 4 5£ Woi>il A Z A ^ ^ H„|i + ^ ^„A X PI a: + — s^ ^ A •7^ Ml m. - m ^ As Li-huei the prime minister of Wen, the vassal of Wei, relates: "One man manages a hundred Meu (acres) of land; the acre produces one picul and a half of rice, total 150 piculs; one family consists' of 5 mouths ' j and a man eats one picul and a half a month.' On an income of 100 acres a tax of 15 piculs is levied, and as a man uses 90 piculs for food, there remain 45 piculs. The picul has a value of 30 coins, together (the 45 piculs) 1350 coins.- For sacrifices to the tutelary gods in their hamlets, the autumnal oiferings of first fruits and the offerings in the spring to their ancestors alone, they already use 300 coins, and the remaining money must find the 5 persons in clothes. For the clothing of one man 300 coins on an average are wanted, thus, at the end of the year, 5 men have used 1500 coins. But as there remained only a sum of 1050 coins, there .were 450 short. Hence you surely, should not attribute it (this state of things) to the scarcity of money. For although the prince takes care that the prices of commodities ^) are low (lit. light) , how should he be able to make them thus low (i. e. how 1) Just the same what we reekon a ■family at in our statistical returns. 2) The sentence is not quite clear, owing to the signification of the word TOg which in this passage has again a meaning opposite to that which it has commonly with other authors (See Note page -47) I shall he happy if any Sinologue will give another and hetter ' interpretation of the three objectionable sentences of Wanq-Kia's chronicles. [Mat. VIII lOo— 11«]. •49 would he be able to . make them so low that they should be in propor- tion to the small sum which the common people can lay out). If they cannot even spend one cash daily, I don't know on what they live. WANG-MANG THE tJSTJKPEK. Wang-mang was a nobleman of royal descent , living at the court of the Emperor Ts'ing-ti of the ^an-dynasty (32—6. B. C). He was generally esteemed by the court! as well as by the people for his high accomplishments and noble conduct; but unfortu- nately an insatiable ambition was the main-spring of all his good actions. At the age of twenty-eight he was already Com- mander-in-chief of the army, and when the emperor came to die, he became regent, during the minority of the hereditary prince. Incited by his ruling passion , ambition , he thought of becom- ing emperor himself, and aided by the imperious dowager Empress , mother to the deceased emperor, he attained his object. The two children who successively occupied the throne for. a short time, -were destroyed by the intriguing court-party of which Wdng- mang was the master-spirit; one was» poisoned, and the other was relegated in a state of strict confinement. Now Wang-mang himself -mounted the imperial throne and brought distress and ruin down upon the country and the people by the mad way in which he governed the state. The changes and alterations he made in the currency, minutely re- corded by Ma-twan-liUf are striking instances of his tyrannic government, and, as we shall see, the very money brought in circulation by him greatly contributed to accelerate his fall. 50 • ■ When Wang-mang acted as regent')) te annulled the decrees enacted by the Han-Ajuastj and reverted again to the money of the Tseu-dynasty , the mother and, child weighed in proportion to each other (See page 25). He also made again the pieces of King-wang of the Tseu of exactly the same dimeusions and design. Besides he re-introduced the knife-shaped coins, and called them Ki-tao ^ y} and Ts^o-tad ^ ^J . The former, properly meaning knives to make agreements or. bonds, had an arbi- trary value of 500 cash; the latter vrere called gilded kni^ves, because the cha,racters engraved on these coins, denoting the name' Eind value, were washed with gold ]^ ^ ^ ^ ^ '^; their value was 50 cash. Ma-twan-lin after giving a minute account of the dimen- sions of the several parts of these coins, tells us a dispute .between two scholars, one of whom asserts that those two knife- shaped coins of the same size did not answer the purpose, the gilded characters of the second sort being soon filed out and effaced by constant wear and tear , so that no difference whatever was to -be seen between the two sorts. The other who writes about 800 years after the money was brought in circulation , maintains that this opinion is false, -as still in his time there exist some of Wang-manges knife-coins, which are uninjured both in design and form, consequently quite answering the purpose. — I suppose that this worthy scholar will have had a specimen carefully preserved in a -cabinet of antiquities. There are some in the Musea at Leiden, London and St. Petersburg, but they show only the outer form of the coin ^). !)■ lit. was dwelling in the regency 2) M. DE Chaudoir in his Ueoueil de Monnaies de la Chine, etc. gives two illnstrations ol Ki-tao, on which the cha- The ancient 5 isu pieces still remained in circulation as long as Wang-mang was regent. '^ ^^ rifl 77 ^! ^£ But when (Wa?ig-)mang actually took possession of the imperial throne, and look- -'J TfJ ^, -y< ^ E|J ing at the word ^J saw that it was com- ^^ -^ ir .^ ^^ -^ posed of the character ^ metal and ^ JP -^ 7^ 77 W '^'li^s ') 'iQ abolished all ts'o-tao, ki- . ° ° too and 5 tsu coins , and made sev- -% SlJ: M-^ /y ^ eral new sorts (of currency) of gold, R ^ '^ -^ ^^ silver, tortoise shells, -cowries and cop- ■ per J3M (pieces imitating the . shape ^^ ^ ^§ ^0 ^J of a dress. See page 4.), and he called them precious merchandise and little money. Wang-mang's new currency consisted of 6 different copper coins , one gold-piece which , in imitation of the ancient rule of the Tseu- dynasty was called Jj* Kin (pound) and had a value of 10.000 copper coins , and two silver coins of different value , the unit of which was a ^ lieu; both had a weight of eight taels, but the coin made of the silver found in the districts ^t Tsu and ^^ SH *), being of a better quality , was worth 1580 , while that made of an in- ferior quality of silver, found elsewhere in the empire, was worth 1000 cash. Of tortoise shells, there were four different sorts of raoters denoting the value ^ [fl Bxe engraved. This is in striking contradiction to the information of Tsang-yen, a Chinese author who lived before the eighth cen- tury of our era. In a description of these coins, he positively sayS: H "a/" ^. 3" ^ -fk.. "Its mark on the left side is Ki, on the right side Tao, hut they bear not the character 500 (denoting the value)" Now either M. de Chauboir's imagination has been. too lively or the Ki- iao, he copied, were antiquities of recent origin. In the numismatical cabinet, oi the Leiden University I have recently found some specimens which are obviously false, as they are not in the least damaged. They. also bear the denomination of value, which TVang-yen denies to them. 1) :^J liu, is the family-name of the fifl»-dynasty, founded by Liu-pang B. C. ■195 [Mayers I N'- 414] and is composed of -^^ metal and |J or 77 knife and now the usurper feared that the metal- knives would keep the remembrance of the IfflM-dynasty alive in the hearts of the people. And as history informs us, he was iiot quite wrong in doing so, for a sediti- ous little song_ the subject of which was the money of the 5a«-dynasty contributed ten years later to TFcmg-mang's fall., 2) Tsu and S'i were parts of Kien-wei mSse-tsuen- Ma-twan-lin gives this uncom- mon sound to ;^£ in one of his notes. . 52 . various size and denominations , whicli ha,d an arbitrary valuation. Further 5 different sorts of shells or rather pairs of shells called ^ peng, and finally 10 different sorts of ^ shaped coins, an illustration of which is to be found at the next page, lii general the new currency consisted of 28 different sorts, made of 5 different substances and designated by 6 different denominations '). But the people did not approve of this new currency, the metal not being pure and solid; they were all in a maze of doubt, W iSt '|§ 9L' ^^'^ ^^'^^ ^ short time they did not use the money any longer, but continued to employ again the 5 tm pieces of the £^a?i-dynasty. :Mf ttg jM" Jii. -g" *^ {Wang)-mang being alarmed at this ■^-^ ^'' '=' -^ ^ '^1^ state of things, issued a proclamation, ^S ^k o ^ ^^ ^^ i© ^^^ which was said) : that whoever ven- mL ^ . -^ ^ (hi -J^ tured to hide the 5 tiu pieces in order »t,H m JS: Mro ■i^ ;^ ^^ ^^^^ ^^ lower people - — who as a 'j(\ Jflf* rfr 1^ ^ punishment for their crimes of oounter- ° -^ feiting money,, were condemned to be sold for. slaves, to do house and field work. Wang-mang was aware that his people were suffering severe distress. He, therefore, again abolished all this new eccentric coin- age, and only one "little copper "piece" remained together with the suitable "great coins." ■I) Only 5 substances because the ^^ and ^fc were bo{h made of copper. 53 In the year 14 A. D. he again brought. in circulation some of the abolished copper coins, but made a slight alteration in the Taluation..0^j)^^jf lt„ One of these coins was called ^ ^ ts^uen-.pu. Another of the same form is the piece called ^ ^ Jw-pu, a diagram of which is to be seen at page 4. It has been appended once more i^i order to enable the reader to follow Ma-twan-lin's description of the dimensions • of the several parts of the coin , as he probably found them in the Han-hi (the Annals of the Han- dynasty). The copy has been taken from a Japanese work on the subject, which is generally very exact in its statements. I have only translated those informations on the proportionate dimensions leaving it to the amateurs to ascertain from it the . measures in use under Wang-mang. ^ %J\ -^ -t ^ tL #. "The ho-jiu has a total length of 2,2 •fn *swn (2 tsun and 2 E, fun'*)) and is 1 tsim broad. The head has Y i zi H P^ ^ A ^ * li ..^ ^ 7^ ^ ^ \^ ^ a length of 8 jrwn or T-' ^ — — y^ -J- a little more, and a -"- - ^ "~" "^ ■" J^ width of 8 fun ; the . ^ ^ ^ ^ o — ■ round hole has a dia- I . -«- ^ -g| CL, meter of 2 fim and Va- • ^^ ^^ ■> ^^ -^ ° The foot-branehes are 31 ^ ^ m m ^ fw»^ long aiid the AX. -Jhf -jkt it _^^ space(between the feet) mi. >0 IX /^ ig 2 fun; the design li! . "M :^o "To is at the right hand ho, merchandise., and at the left hand pu, cloth, the weight is 25 tsu and the value 25 copper coins." But the recent innovations did not gain- the. approbation of the people, and vfith new force they took to the temporarily inter- 1) A /«» = 0,1 tsvM. hi I'upted' business of private coining. At firsb Wang-mang put to death all who violated the lavirs, but there were nevertheless so many false coiners that he began to feel alarmed. "kM ^f ^ M * -^ t^o^ ^'"^ W li * + # # ^ ^MIS M M m z.^ ^ n ^ m ^^ '^.f^ 1^^ M 'B i^ m ^ "¥■ ^.M i^ ^l 9 ^^ f- ^■ m m ^ ^ &')^ ^ A,^ ^ m \^m. # e i #„ E. m m M ^.^ r^ % ^ % m.# m w*oH ^c ig ^ w ^ T 5£ ^ H iS t:^ X # ^ ^ # ^ ^ j£ -r ffi $^„r, ^ ^ A ^„ 1^ 1^ ^ He commuted his punishment and ordered that every false coiner with wife and children should be reduced 'to the condition of state-slaves, and the functionaries who were aware of the existence of (false coining) in the Pi and Wu sections (under their supervision) -) and did not be- ■ tray them to the authority, incurred the same punishment, and those who did not stop the interdicted 'species current with the people were suspended in their offices, .fur the time of a- year. The result was that the oflBcials left their employment, and the number of those who acted against the laws was beyond all measure. As soon as 5 men were found together they were arrested and put in prison , and the prisoner-vans ^) and iron fetters of all parts of the empire delivered their prisoners to the mint-master') of Tsang-ngan {Sing-nan fu, the capital in that time). 'The number 'of those who daily suffered a- painful death was very large (lit. 16 or 17).. Now at that time there was a seditious popular song! "The imperial ox has a white belly The 5 tsu pieces ought to return." 1) p| white ia the color signifying evil, also that of mourning. BiOT trans- lates in loco, page 461. Le boevif sacre est gras. ^) P^ P^ and •^ IFu are denomi- nations of municipal sections . or wards, in- stituted by the Tseu-li. Cf, Tseu-li I 356 n° 28. 3y lit. carts with cages on them. 55 The champions of the right cause expressed thereby in a covert way that Wang-mang was designated by the yellow (ox), and the explana- tion was, that they wished to put an end to his tyranny. That is the cause why they alluded to the white belly. The 5 tsu pieces were the currency of the //an-dynasty, and they meant by them that the Han ought to return, in order to unite the kingdom again. In 23 A. D. the usurper Wang-mang was murdered and the descendants of the ZTan-dynasty again, took possession of the ancestral throne under the name of the "Later or Eastern jffan-dynasty." THE EASTERN HAN-DYNASTY. ^> ^ m m^ m. m i^ w M m.^ m m ,+ m ^ -^ M i It 4 ^ # WL fn wL MAfi OS /fJb il ^o ^ ® a 1i Shortly after the troubles occasioned by the bad government of Wang- mang, silk, cloth, metals, and rice, were used as currency. In the year 25 A. D. Ma-yuen who at that time was Sang-su in Lung-si ^) , advanced his opinion that it would be reasonable to cast again as formerly the 5 tsu coins ; the question was brought (lit. went down) *) before the San-fu (the-mint-college) which , in a memorial to the throne , was of the opinion that it could not be granted, whereupon the affair 1) ^ffi signifies ^o explain, to open out the meaning, and also to" loosen. 2) tIl ^ '^ ^' '^' Itt JM "' founder of the' Eastern fl«ra-dynasty. 3) A district in the N. W. of China, prov. 4) .TH is in the ori- ginal text. I have omitted the full-stop and translated ^a, ~T% , the affair went down to the San-fu ; compare next page where the expression ^a. ~K [JtJ EP appears without the full-stop between the two first characters. 56 ^Was abandoned (lit. was lain down to sleep), till Ma-yuen came back again, and tried to forward his former memorial to tbe imperial court, which however was very difficult as he had to send it ten consecutive times. Now , at last , his dispatches- 'were opened and explained (unfolded) , and his meanings were wholly made known. The Emperor followed his advice. The founder of the new dynasty began iil A. D. 40 to bring again in circulation the 5 tsu coins,. and the whole empire enjoyed its blessings. -^ ^i ^ S Under the reign of the Emperor Hwari-ti m„ 1^ ^1^ (147 — 168) the advice was given to alter, the 75' ^ ^ B^ money and' to cast large coins. But as Liu-tao \r. ^ ^ ^ said that this measure would be impracticable, it was given Up. Liu-fao's speech on that occasion is interesting, especially as his comparisons remind us of Mencius' manner of speaking. The following passage contains nearly the 'whole of it. SPEECH OF LITJ-t'aC m m m ^ ^ r- m m m m ^ A o M.§; ^ m M.^ 0.W m iK m ^ ^ m -^.m.^.m i^ 'B z m m.^ ^ ^ z m ^ r^ ^ ^^^ ± ^ m m.m i^ :^.^ ^ ^ ^ ^ Z m is: T\i^ m # ^■r^ ^ - ^ t^ m.± # ra ^ m.^ At that time there was a Sang-su who maintained that the people were impoverished and in want, because the "currency was too light and thin, which ought to be mended by casting great coins. The pro- position went down to be deliberated on by the mintTCoUege (lit. col- lege of four mint mastei:s). It was then that the very learned and elo- quent scholar Liu[T-ao), coming to the court, in order to give his advice , said. "The distress of the present times does not take its origin in the currency but in the fact that the people are suffering from Yamine, for the people may live a hundred years without a currency, but without food they cannot exist a single day, and therefore food is (at present) of the utmost necessity. Your councilors do not comprehend the first requi- 87 ^ ^ #v ^^ n Tj ^- .^ ;;c s Ihc ^ = o^ ^ ii^ T^ .^^ ^;f ±„ ^ ^ i^ 4^ ^ ^ ^, ^ m„ % ^ ^i. ffl * .^ MM )^ n ja 1^ MiJ ^. '^ T W ^ ^ ^ i?fe ^ ^ ^IJ m.m r^ It m m lit m ^ ^ ^ ^. m m m m ^^ M m ^ ^.m.m ^ m m site of agriculture. The frequent talking of the benefits of melting and casting (money) is because they are desirous of an opportunity, to bring false coins in circulation ,■ and in this way ') to capture the benefits which the soil yields , but as soon as those benefits are totally ex- hausted , those who appropiated them , will quarrel and fight. If you wish your people to live in a flourishing state and to increase in wealth, it is necessary, that they should be in a condition, in which they can quietly perform their duties, and are prevented from hankering after -large profits; only then the people will enjoy a state of compe- tence without care and troubles. As to the desire of your Majesty to cast money and to arrange the currency in order' to' repair its -present vicious state , it is just the same as if you would rear a fish in a caldron with boiling water, or roost a bird on a hot fire. Water and wood are essential for the life of fish and birds. But in using them in- a wrong way^), you will surely cause (the bird) to bB scorched and (the fish) to be cooked to shreds. Thereupon the emperor abandoned his purpose and the large' coins were not cast. We now approach to the end of the great jffctji-dynasty and Ma-twau-lin's informations regarding the last two emperors are of little economical Talue. There are, however, few places where the Chinese text is so dif&cult to understand as. in the fol- lowing piece -which refers to the money of the emperor Ling-ti, -who reigned 168—190 A. D. 3) "^ ^ has here another significa- tion as in the passage quoted from the Tseu-U See p. 22. It' rather means here it ^, the wrong, the improper time. See for the. different meanings of J. J. HOFFMANN, Japanese Grammar. 3d Ed. 1876; page 129. 58 ^ i^ In the third year of the ^ '^ period Tsung-})ing (180 A., 1^ .^ ^ ?^ ^' tl H ^ »•) the emperor. Ling-ti ^^m, ®,^ ^ '»«■ ^^ period rsMnc^-pingi (180 A.. -jt- -^ .J/ ^ -^ fc^ m pfj had coins cast with the de- -m M iK' #5- W e W T sign of the four outlets. |5I Brij PI % '^ P9 ^ ^ This money had on the »}&. SI 5^ ^ )^ ^M* f!^ ^^ reverse four ways (issues) , n* „ wli o ?— • >Tj 'S *— o sisfi the covert meaning of which , ^S ffil Itu Ci ^fe '^ according to the saying of those who knew it , was that whenever extravagance and oppression were too heavy, the figure of those coins would be a prognostic from which it appeared that this money would have A ways to escape. And as the revolution broke out in the capital, that money did indeed stream and diffuse itself over the- whole empire. The following explanations of the just quoted fragment will, I hope, prove an acceptable digression to such of my readers as are stu- dents of the Chinese language. Ma-twan-lin is sometimes very obscure, and a great many difficulties are often to be surmounted before his meaning is thoroughly understood, j^ is a character not to be met with in any Chinese dictionary. I first took it for 3|k to which it has a strong resemblance, but when I found the same charac- ter a second time in Mat. IX 3a, it was at once clear to me that in both places it stands for ^j^, which has the meaning of 1° a prognostic; omen, 2° a million. — I came to that conclusion in the following way: The seqond passage, Mat. IX. 3 runs ^ j|i^ ^ ^ j^ ^ ^ Han-yu was appointed Governor- General of the capital. The official title ^ dj^ ^^ ruler of the millions of the capital is often met with in history, (Morr. in voce g n°. 130) and the Han-yii in question was according to history indeed called ^ ^JS ^ (de Mailla-^isf. Gdn. d.'l.. Chine Vol. VI p. 439). Comparing the two passages of . Ma-twan-lin, it is evident that ^ is used for ^(^, and that in the above quoted sentence, ^(^ has the signification of prog- nostic, omen. 50 ^ stands for ^ the reverse of the coin, as is evident from a passage iu a Japanese book treating of the same coins itf^ ^ ■ those coins on which the strokes" of the characters are still vi- sihle, we plainly see on the reverse four outlets" — and that is the reason why that money is commonly called the money with the corners, -f^.'^ ^ ::i 1^7- ^ ^ S "S"^- If we look at the subjoined illustration of the reverse of the coin, Ma-twan-lin's meaning is quite clear. The four little strokes from the corners of the hole to the outer edge are the four outlets spoken of. — Biot in loco p. 439 writes "I'Empereur lAng^ti fit fondre quatre especes de pieces nouvelles. L'une d'elle se voit dans la Musfe de Kien-long". — We see how far he was from the right tract and was led astray, lo. by the wrong character -^ which made him take the object as a plural, 2°. by not knowing the meaning of p5| ttj ) and 3°. because the monogram j^ was not explained. This passage may serve as an instance of the many difficulties which Chinese authors may cause us by using incorrect and wrong characters'. The emperor Hien-ti tried iu the first, year of his reign to im- prove the money, and establish it on another b^sis in consequence of which he suppressed the 5 tsu pieces and had little coins cast. In order to obtain the necessary quantity of copper, he confiscated copper statues, figures of the Fei-Uen 1), and many other objects made of copper. The money , however , was without governing principle. 1) Fei-lien ^*J ^S is the poetical name of mL 'TQ t^^ ruler of the winds. According to the "Eites of the yJe«-dynasty", sacrifices were ofi'ered to him. Of. Mayers I. 137. 60 the design was badly made, and it was not convenient to the people in daily use. These few lines would suffice to get an insight into the po- litical history of that time. They are so many instances of mis- government and arbitrariness. Already during the reign of the Emperor Ling-ti the imperial authority had been undermined by eunuchs and designing courtiers, and the time of the fall of the ^an-dynasty was near. The emperor Hien-ti was to act the principal part in a drama that scores of tildes afterwards in all parts of the world would be represented by demoralized mo- narchs and their ambitious ministers. The leading personages are well known — a weak and effeminate prince and a major- domo who usurps the powers of the state and stirs l;he people to revolt, in order to dethrone his master aind take his place. So also here. The Generalissimo IVao-ts^^io, to whom the emperor had gradually deputed all his authority, abuses his power and involves China into a civil war. A descendant of the ancient ^Tan-dynasty gains a battle over that general, conquers Western China, and assumes the title of Em- peror, as the representative of. the legitimate line. Ts^do-ts^ao. himself established his residence in the North and called him- self king of Weij but after his death his son also assumes the title of Emperor of China. Finally,* one of Ts-ao-ts^ao^s former officers takes arms against the usurper and becomes the riva,l of his master. After much slaughter and. bloodshed he succ.eeds in establishing himself in the county called Wu, south of the Kiang, where he also assu- mes the title of emperor. Hence it is that in Chinese history we read of the three kingdoms, viz. So, W?i and Wu. OEEAFTKH III. HISTORY OF THE MONEY DURING THE PERIODS OF DIVISION OF THE EMPIRE. THE THREE KINGDOMS. THE TSIN-DYNASTY BE-UNITES THE EMPIRE. HWAN- HIUEN PROPOSES TO" ABOLISH THE MONEY. SPEECH OP THE PRIVY COUNCILOR KUNG-LIN AGAINST THAT PLAN. —- THE SAME QUESTION DISCUSSED IN- ANOTHER PART OP THE COUNTRY. DIVISION OP THE EMPIRE INTO NORTH AND SOUTH. THE SOUTHERN JLMPIRE, THE SUNG-DYNASTY. A SESSION OP THE PRIVY COUNCIL AND ADVICE NOT TO COIN TOO LIGHT PIECES. WRBTCHEU OONDITtON OP THE CURRENCY DURING THE REIGN OF THE "DEPOSED EMPEROR." VIEW OF THE POLITICAL EVENTS BY WHICH THE PdUK SUBSE(iUENT DYNASTIES ROSE AND FELL. — ADMIRABLE SPEECH OP A MINISTER ON THE NECESSITY THAT MONEY SHOULD HAVE A REAL VALUE. AND BE PERFECTLY COINED. THE LIANG-DYNASTY. INSTITUTION OF IRON MONEY; ITS FAILURE. THE TS'AN-DYNASIY. THE NORTHERN EMPIRE. THE WEI-DYNASTY. MONEY IS NOT USED AT ALL, THE PEOPLE ENFORCED TO USE IT. DISCUSSIONS ON THE INSTITUTION OF A NEW CURRENCY. —^ NORTHERN TSI- DYNASTY. ASStSBMENT INTRODUCED. GOLD AND SILVER MONEY OP THE FAR WEST. THE SUI-DYNASTY RE-UNITES THE EMPIRE. UNAVAILING MEASURES TO IN- TRODUCE A BETTER CURRENCY. MONEY SUPERSEDED BY OTHER OBJECTS. END OF THE SUI-DYNASTY. Ma-twan-lin's informations as to the transaction's of this period confine themselves to the measures taken by the three emperors, after they had founded their empires, and were sufi&ciently at leisure to thiuk of the interests of their .subjects. He first treats of the money introduced into the land of So, the present pro- vince oi Sse-tsuen, by the representative of the ancient imperial line, who after having conquered this country had estabished the seat of his government in I-tleu, then the capital of that part of China. 62 ^ m /^ M z #1 ^ M tl US ± ■ 4nt, A * 1^ m ^ M w w ± ^ As Tsao-li had seized on the land of iSq , he caused coins to be cast of a nominal value of 100. During the strusfgle of Sien-tm ') for the scepter of the Han (lit. of Liu = Liu-pang) he had agreed with his officers and soldiers that whenever the affair was decided, the public treasuries should not be plundered, the people being unprotected; but no sooner had they entered the capital , than all of them , officers- as well as soldiers , threw away their shields andspears, and hastened to the treasu- ries where they made themselves master of all the valuable objects. For the wants of the army was not even left enough, and {Liu-)pei^) was greatly concerned at this. — Liu-pa, the governor of Si-tsao said. — This evil is ^easily remedied, you have only to cast coins which have a value of 100 others and you will make the prices of all commodities on a level. {Liu-)pei followed that advice and within ten months the treasuries were filled (with money), the design of which was "Value 100"'. Also they happened to be made, and engraved as the 5 tsu pieces ^). Secoadly our author gives us some inforrnation on the econo- mical condition of the medium of exchange in the northern king- dom of Wei, where the son of the generalissimo Ts''ao-ts'ao under the name of Wen-ti had assumed the title of Emperor, 220 A. D. i)^y :t:'± the first ruler n f^ Liu-pei , afterwards the emperor i^H of ^ is designated. In this little fragment the three different names are al- ternately used. See Mayers I. N°. 416 i='. N". 88. \ •' a) The meaning of this phrase is ex- plained in Kin iu-ts'«en-/io-Hen Vol. I p. 13«. (a work already, quoted. See p. 24. Note 3) where we read that the form of the IM. perfectly resembled that of the -ft: ^^ of the .ffflM-dynasty, and that they even happened to he engraved with the very eharacters on them, but in rever- sed order, the ^E. teing placed at the right instead of .at the left side and the ^ at the. left instead of at the right. . 63 He introduced a currency of articles of consumption, as grain, rice, etc., but after a short time it was clearly proyed to be unsuitable. The fragment is remarkable for this, reasoli that the g,rguments against the fitness of the use of these commodities as a medium of exchange are the same as those which we find in economists of out time; as Mr. Stanley jevons, and Prof. suMNEK, in his work "A history of American currency*)." It runs as follows: ^ m.%^ m .n B m ± 1^ m.w ^ m s. B ^ ^ m m ^ % M m m r> m ^ ^^ ^ ^ ^ \^ m m m A ffi: B m m m % B ^^ m. m %\\M m m ^ ^ m ^ ^ 3g -g — if ^ Wc m m- ^o In the second year of the period Hwang-tsu (221 A. D.) Wei wen-ti abolished the 5 tsu pieces and ordered the people to market by means of grain and silks. Up to the time of the Emperor Ming-ti the money remained abolished , and during that time grain was used as such. But the cunning and false among the people gradually brought a large quantity moist grain to- market with a view -of making a larger profit, and they made a thin and sleazy silk to market with it. Although severe punishments were inflicted , the evil practice could not be checked. Sse-ma-tsi , (the first general and minister at the court of Wei), and others gave the advice, that according tl) their opinion the, use of money would not only enrich the country but also lead. to a decrease in the number of sentences. When the 5 tsu pieces were cast again, it would, moreover, be convenient. Thereupon the emperor Ming-ti introduced the 5 tsu pieces again. Sun-KHuen ^ ^ '), the monarch of the third empire of Wu , who did not take the title "of emperor before the year 229 A. D., l)jEyoNs. "Money and Mechanism of Exchange," p. 35. 36. Sumner p. 7. . 2) is here used for ^S . 3) On Sim-K'iuen. See.Mayers. I. N". 632. 64 introduced in the year 236 the so-called large coins one piece of which iiad a nominal value of 500, and two years later he made money of a nominal value of 1000 copper pieces. ¥^/ -iS. If A 4=^ 'i^&i money was very dear but it TpU ^ >f» A ^» jjad but an empty name, (the intrinsic ^. ^ ^ \^ ^ ^ value being in no proportion to the no- "M* y&" /tfel 'Sl ^ ~fc' '^ii'^O' This raised the discontent of the =^ ^ H/J o ^ ;© >«v pggpjg Q^ hearing that his people Wi o ^ o B Hi o ^ o^ o considered, this currency as unsuitable, -^ ife' '^ -i^ 1i^ VQ . (SMnj-isT'iMen diminished (the circulating ^, is to heap the one on the -other, to succeod, to contiiiue. — ■^ adjective attributive of ^& @ . 69 A m X z m M m. M,\M ^ m ^ 4 ii #1 0J 1. as. 0, A ^ ^ ^ ^ ^ ^oH m m JL ^ 11^ M X u - ^ ^ \>x z A ZM n Z ^1 •^ 4 T W ^ 4 J[^- abolished bow, after it has been in circulation, the people will suddenly lose all their profit. As till now the grain (produced) in the empire was weighed in order to circulate as food for the whole empire, some store- houses are overflowing, while the store-houses of others do not contain a single measure of provisions. Now if' this is to circulate as currency, the poor will be entirely dependent (lit. will have to look up to) on the rich. Such a manner of acting is moreover wrong in relation to the existing copper money. If it is abolished all at once (lit. at a single morning), you cause the articles (which till now were money), to he put aside, and this again causes the people who have money but no stores of grain, to be in want and distress. Besides, the abolishment will also give rise to trouble and mischief. It is more- over a convincing proof (against the proposed measure) that in the dis- tricts where at present money (as a medium of exchange) is used, no poverty prevails, while in places where. grain is used there is no wealth. Also have the people long since learned to suspect and dislike sudden changes. The proverb says: "When the profits do not amount to 100 per cent, I do not throw up (lit. change) my employment." Finally, money " is also much more convenient than grain. In the time of the emperor Mirig-tl of Wei (227 — 240 A. D.) the copper money was abolished and grain was used (as a medium of exchange), I believe ^), for forty years. As it proved to be inconvenient to the people, a great coun- cil was assembled at court. Of all the superior talents and eminent scholars who informed the government of their advice, there was not one who was not- of opinion that the use of money should be reverted 1) Cf. St. Julien. Syntaxe Nouvelle I, p. 80. 2) ^ . ?o iL ^ ^ 1?^ m ^ ^ m. nir. a ^ i^ ^. m i: Z ]>X ^ i^c M =i ± m rtj ^ M o/fl M 1^ ffl 1^^ 1^ ^ .7 m ^.^ iE N A>i to again. On the side of the people there was • a general desire of it , and at the' court 'the majority pleaded for it. The fact that all those wished to do awaly with grain and silks , and lagain to introduce the copper money (as a medium of exchange) is sufficient to set forth the . unsuitableness of grain and silks. Agreeably to that precept of warning we must act. It would be stupid to say this unsuitableness might be made up by an artifice; better it is not to proceed to the abolishment of the money. The council assembled at court for the greater part agreed to (Kung)-lin's opinion and so it happened that' Hwan-{hiuen's) advice was not followed. The views and arguments of the following speech fully coiji- cide with' those of the preceding. Hence we have followed Ma- twan-lin's example and inserted it after the plea of Lin. m m w m. vi z mm i>i n m m.o m % t^ r^ m :^ M. ^^M BM^m m mM^^MMM ^ .t ^ * W # 5i In the presence of Ts'ang-kuei , the Governor of the province of Liany- ts'eu, the officer of public administration So-fu, speaking said to him. (lit. to- [Ts'ang]-kuei). "The ancients employed gold, shells, and skin- paroels as medium of exchange, and put an end to the spoiling of grain and silks by the constant weighing and measuring. The two Han- dynasties caused the 5 tm pieces to be made and trade was not tram- meled by it. . I^anff is situated, the sentence is found Ts'ang- kuei occupied it K© "j^ Cf. Matw .VIII 37ffi where of Si-sze-ming another rehel , who conquered part of the empire is also said IS occupied (the Eastern provinces) Hb jftF ^* ^^ ^"^ °'° oiScer of puhlic administration Cf. Morr. W 137 — 1'39. ^)mz-mzm- 2) Jt» lamig was a province in the remotest comer of the N. W. pf the empire. TVung-kud is probably one of the governors who at the decline of the ym«-dyn. made themselves independent. On a Chinese map of the empire during the division into N. and S., on the spot where the province of n ^ m ^m m m ^ ni.^^^ m -^ wcM m.i^ ^ m m m ^ 4^ m.iK M m m n.m ZM ^ ij ^ m x„x ^ \^ A m.± Z ^o^ f\] z :^ mM % m m u f-.j^ ^M w ii ^ MM When in the beginning of the rule of the Tsin-dynasty the country west of the (Yellow) river was totally ravaged and cut off from the re- maining part of the empire , no money was any longer used there. When the clpsely woven silk and hempen cloth was ripped up to jnAke parts of it, those pieces were spoiled, and it was difi&cult to make use , of them in the market. (The result was that) they had destroyed only the women's labour (the tissue) which was furthermore unfit to be used as clothing, and the bad quality (of these stuffs) 'was excessive. Though there are at present great disturbances in the provinces in the middle of the empire , yet these parts are perfectly quiet , it would , therefore, be reasonable to introduce here again the 5tsu pieces in order to further the uniformity in the transactions (i. e. to bring more uniformity in the commercial intercourse.)" . Ts'ang-kuei acted agreeably to this advice. He made it a rule to use money equalizing in value those pieces of silk. The money then had an extensive circulation and the people enjoyed the profits thereof. EPOCH OF THE DIVISION BETWEEN SOUTH AND NOETH. The conditioii of China during the reign of the Tsin-djnasij was very miserable. Since Yuen-ti had removed his residence to the new capital, south of the Yang-tsze-kiang , the powerful Tartar chiefs had pursued their conquest in the North, and estab- lished themselves in the aineieiit capital TVang-ngan, where they as- sumed the title of emperor of China. So arose the Northern Empire. The southern empire, China proper, was weakened by intestine war. The last monarchs of the Tstn-dynasty had neither the power nor the ability effectually to oppose the continual insur- ?2 rections excited By ambitious ministers and ctiefs. The minister Uwan-Muen of wliom we know that he had tried totally to abolish the money (See p. 66) had already conquered three fourths of the empire, and himself proclaimed Emperor by his army, when he" was defeated and murdered by another powerful chief, called lAu-yu who as yet had remained faitful to his sovereign. lAu-yu res- tores the dethroned prince to his dignity, bat perceiving how totally unfit he was to govern ^- for Liu-yu too was caught by the contagious disease of rebellion — ■■ he takes up arms against his master, captures the capital and causes the emperor to be put to death. For a short time an insignificant representative of the !/sJ»«-dynasty occupies the throne, -but fully convinced of his im7 potence, and fearful of his life, he abdicates in' favor oi Liu-yil, who now becomes emperor of the Southern Empire and the foun- der of the p ^ ^ ^ji # pf^r. ^ 3:^ ^ r*^ mju ^M m ^. — ^ ± A $fi A. i«:„H m..^ x^ ^jM.m m m r% ^ ife.„W ifi: :7: jt 4 ^ «„^ |^ Jt^ • m i^ m pf^^ i§oP ffij T W fi 1^ X # if :n ^„^ T^ ^iJ ^ ^ :^ m M. ^ 1^ A m %\\M m m n A^ It ^ A # m # ^ ^„ ^ M t.. m subtile (money) in the empire without giving a solution to the miserable condition ; on the contrary , by an extraordinary aflEluence of false coinBrs among the people, the currency in your empire will be totally debased and the quality will be bad in the extreme. In vain-you are laying heavy restrictions, where the profits are so great you will not be able to root out the evil , and within the course of one or two years the condition will be miserable beyond redemption. And this may not happen. This firstly. At present by melting and casting large profits are made (by the gov- ernment). But I do not see a reasonable ground to gain at once 100 or 200 per cent , and granted , we shall make such profit , we shall certainly have to await the end of the year (before it is certain that such a profit is made), and that also may not be. This secondly. The people will impede the change of the large money, and as they will fear that within a short time new restrictions will be issued, this will cause excitement and confusion in the market; the rich merchants will attain their object , and the poor people will be in want and distress. This may not be either. — This thirdly. Besides , I do not see any profit (in the measure) , but only hurtful consequences as . those mentioned. Let us then for the present desist from this plan by which we would draw down (upon us) the censure of all generations." The Emperor did not listen to that advice. The dangers against which the member of the privy council 1} JS is used instead of ^^ . 16 ' had so earnestly warned, actually came over the country when the tyrant who is known in history only hy the name of Fei-ti, "the deposed emperor," caused pieces of 2 tsu to be cast. Ma-twan-lin gives in his simple language a glowing picture of all the miseries of that time. "In the year 465 A. D. the deposed Emperor" cast coins of 2 tsu,' the design was King-ho ^ 5(^ (the year-name), the form that of the wheel-shaped small state coin. As soon as a ■ piece was paid and accepted among men, it served for a model to copy. Also the size and thickness were entirely a failure, it was with- out the surrounding rim, and the pieces which were not filed out or clipped were called- fetus ( ^ -^ lit. coming children). When they wanted to characterize the very light and thin pieces they called them Hing-ye ^% ^ i. e. weed-leaves. In the market they were generally made use of. In the first, year of the period Yung-hwang (the same year 465), which was the commencement of the destruction of all that was good, they were largely coun- terfeited; hence there was an inexpressible confusion in the cur- rency. One thousand coins piled together had only a height of three tsiln (inches). Those corresponding in size to tHe last men- tioned were called goose-eye-coins. ^@ ^^^ ^g and those which were still smaller were called Yen-Man ^^ i^ (little rings of the thickness of a thread)." -^ jjy -^ -y ^^ -jL "Ifyou threw them into the water they r^ "PPj --^ ^ "T* /V jj^ jjQ^ gjjjjj.^ g^jjj ^^ consequence they M ^ ^ ° 'K ^ ^ ^®''® ^I'Pken in the hands. In the market -jir »!>. -jT ^i« "jpi{ tt they were no more prohibited. A number -^^ 7^ ^ m\ .V^ .^ of 100,000 of those pieces was no more ^o — ' ™[ S>t .nl ?/£ o than one handful; a ieM(aboutIO pints) ■^ . -f- it 15© °^ ^"^^^ "o®* 10.000 coins; trade was ^° i yy '^ brought to a stand-still." 1) See DE CHAUDom, PI. Ill n°. 37—28. . : 77 The tyrant' liad not yet occupied the throne a single year ■when the courtiers and people rose in rebellion, and murdered him in his palace. His image was not placed in the ancestral- hall. "Under the reign of his successor Ming-ti only the circulation of the goose-eye-coins and of those which were as thin as a thread was prohibited; th^ rest remained in circulation. False ^^ P|^ ^ |§ g coining was suppressed with severity. At ^ Q nl o ^ the state-of&ces (the mints) the workmen pT Sir o 2?f> ^^ were dismissed, and soon after, coining . Was wholly discontinued , and only the different species of money, formerly in use , circulated. ■ Here end the informations on the money of the Southern Surtg- dynasty, and the first fragment of Ma-twan-lin now following is a speech delivered by the prime minister of the first Emperor of the next dynasty. The political history of these days is the same as that of so many other states, ancient and modern, in the lawless and rude times when submission to the sovereign lasted only so long as he had power to enforce his claim. The events which led to the successive changes of dynasty were in every instance the same. A prince of feeble character, who is only interested in some of his female subjects, and a general who having crushed a rebellion, dethrones his sovereign on .his return. Or instead of that general a first minister who in fact is sovereign while his Majesty devotes himself to the internal palace-policy. Such a minister is com- monly so taken up with his admirable management of the state affairs that he heaps honors and titles on himself. "One day he comes to the knowledge that he descends from . an old race of 78 independent vassals", powerful in the days of the Tseu-djnasij , or perhaps earlier; and he thinks it quite in accordance with the ve- nerahie tradition of his ancestors to elevate himself to the rank of titular prince of that imaginary territory. A placet to that effect is addressed to the emperor who happy to have an opportunity to reward the faithful services of his minister, signs the petition. The first step leading to the imperial^ dignity is taken. A short time after, another placet is presented, in which the faithful servant requests to be appointed king of the same ima- ginary kingdom. Again the emperor assents , because he has not the power to refuse. And so the second step is taken. The third and decisive step, is the coup d'etat; without the knowledge or assent of his sovereign he assumes the title of "Soil of heaven" and founds a new dynasty which he names after his imaginary kingdom. The dethroned emperor weeps and laments in his captivity that he should have lived. to see that day, — as Chinese history often relates — but, as a ruje, he need not complain long of it. His successor furnishes him with the means of making away with himself, and if it is contrary, to the dictates of his conscience to take his own life, a kind hand is always ready to ease him of his scruples and to be responsible for the death of his late Majesty. Such is, in the main, the history of the rise and fall of the four successive dynasties that have ruled over the Southern em- pire. And as to the condition of the .people and the country amidst so many intrigues and court-cabals, the history of those days fully verifies the truth of the Chinese proverb ^ ^'!^ 1^ Wi ^ ^- '''When sincerity is wanting between prince and minister, the ^kingdom ■ is in disorder." 79 As it would, therefore, be useless, to give a minute account of the political transactions which brought about the changes of dynasties,. we shall confine ourselves to what we find recorded of the money under each of the three dynasties. The speech on the necessity that money should have an intrinsic value , which now follows , may be considered as one of the most ex- cellent models of economical reasoning, which Ma-twan-lin communi- ' cates to us in his "Examination," It has, therefore, been given in full. K-Tjng-k'ai's speech. J*^ vj) o % m ^ m '^ "^ m =gu -JS^ . f^ . Wo ^ r^i =1 BP9 ^ IH m Mo ^ w w H M Po ^ ^ ^ tK ^ '^.m.m' m m m lit m m ii A ffiJ Moffiol ^ ^ ^\T- ^ ^0?L jn In the 4tli year of the period Kien-yuen under the reign of the em- peror Kao-ti of the Tsi-dynasty, the Sang-su Kung-k'ai very deferen- tially brought forward a propositioa, saying: The avenues and passes (leading) to the three divisions of the kingdom of Wu ') have during this year been covered with showers of rain , and consequently the purchase of- grain cannot be dear^). It is a fact that in the empire money is scarce, but it is not true that grains are cheap 3). Now this ought to be further inquired into (fit. this may not be left without inquiry). The wretched condition of the present cast money is chiefly to be attributed to the repeated alterations in the weight. The heavy currency excites discontent and is inconvenient in use, and that inconveniency in use is the cause that there is but a small quantity on hand. The light currency is of a bad quality, -and is frequently coun- 1) ^ S. Cf. Mayers. 11. 73. 2) The fields have been fertile , the harvest cannot therefore be poor. 3) He. means: The harvest being abun- dant, the prices of grain might reasonably be. expected to be low; yet the reverse happens-. But the reason of this must not be sought in the want of grain , but in the 'condition of the medium of exchange. The currency is scarce, and besides of a bad quality. Hence the dearness of food. 80 m m.m ^ r^ -^ m fi^.m z m ± ^n m M m^^ ^ ^ ^ ^ rfij ^ '^ m '^ \iX m ij z ^ ^^^ m Wi \>x x. ^ m m.BL #1: ^ ^'j m.M ^.M m 'It Ji H ^oS -Ifco^o^ 3i ^ ^ ^ ^oIIhI ^ m - ^.M ^ ^ ^ m -t- M.m m^ ^ ^ iK ^ illoX ^.^ g ffi} ^ ^ ^0^^ 7!; m^m M -^ Rs ra )i J ^^ m it ^ terfeited ,' and its being debased is the cause that misery is deep. (Tlie fact) that false coiners are not restrained by -severe laws, results' from, the way in which the money is cast on the part of government. Govern- ment is too sparing of the copper and grudges ') the expenses consequent upon the mechanical process. They who act up to such principles have a notion of money without (heeding'its character as) an instru- ment in daily, use to further exchange. Their purposes and de- sires are merely to make the pieces light and as numerous as possible. They take care that the mechanical process is as simple as possible, and the fabrication of the pieces easy; but they do not think and consider- what are the fatal consequences of it*). Since the princes of the Ilan- dynasty have cast the 5tsu pieces till the time of the emperor Wen-ti of the Swnsf-dynastj , more than 400 years have elapsed. In the way in which the money was fabricated , changes were frequently made (lit. there was abolishing and introducing), but the pieces kept their value of 5 tsu. And by adhering to that weight they could keep the fitness of a medium of exchange. By establishing mint- colleges and by taking care that the metal is of a superior quality, and by building on an exten-ded scale fonnderies for casting money , while the money has "a weight of 5 tsu , we will entirely act according to (those) rules of the ifan-dynasty. Because the treasury will be well-stocked there will be 1) to grudge. See menoius I. part 1. VII. S. Dr. LEGGE, Chinese Classics II. p. .15. 2) The words with which that nohle and intelligent Chinese minister so freely cen- sures the uneconomical principles of -the emperor's government are on a level with the following passage -quoted from Prof, w. STANLEY JEVONs' latest wort , Money and the Mechanismof Ejchauge,page 59. "Ruding is then, wmiuestionaih/ right in. saying that our efforts should he directed not so much to tlte punishment of the crime (of counterfeitvng) as to its prevention hy improvements im. the art of coining. We must strike our coiAs so perfectly, that successful imitation or alteration, shall be out of the question." Admirable is also Kung-k'ai's definition of a currency as "the instrument in daily use to further the ejcchange. 81 rfr ± ^ ft. i^ m A -0^5 ja '^ 7^ enough for ^J> M ^ iM: X5 ^ A 1 JSoS ^h A the wants of the empire , if the salaries are liberal , and the ■ duties and taxes small , the common people have enough to supply the necessities of their families. If there are for a time false coiners who imitate the new money , they cast no great coins but imitate the clipped pieces. And as then the (really good) state-money already circulates among the people, severe restrictions must be made against all coin that shall be clipped, too little or too small, cracked or without raised edge, so that (the false pieces) cannot circulate at all. And if the state money will have become small (in consequence of being clipped or worn), il must be weighed by tm an liang (ounces) ') and melted to be made into great coins again.- This is profitable to. the poor and well- to-do , and the ways of the rascals and cunning are obstructed by. it (i. e. false coining is made impossible). In the medium of exchange there will be a perfect uniformity and what is employed "far off as well as near (the capital) is of the same sort. The people take pleasure in their occupations ; in the markets and on the roads there arise no quarrels , and clothing and food are produced in abundance. Now your councilor is of opinion that- as the quantity of the circulating medium is small, it is right to mint again a large quantity, and to take care that the pieces have their full weight, in order to prevent in this way the false coiners. And if the emperor takes care that copper is on hand in the great markets' of all the districts, cabals (intending) the . emperor's fall then cease ^). 1) It is. then no more used as money biit 'according to its weight (tsu and liang) , it is transferred and drawn hack iy the gov- ernmeiit in order to he recast. •3). has here an uncommon signifi- cation. Generally it means the death of the emperor; in my opinion it is here ta- ken in the more general meaning of the emperor's fall; according to Williams it means alsp fall, ruin. 6 82 m ^ ^oM ^ ff( t^ m nio^ m b$» W -=>K^ € A i^ S!l fio^ ^ Ho^ ^o ffl ^I ^ P^ l?f? =g^o M ^ ^ ^1 H ^ :J^ H ^=® ^cE it tW ^to^ S ^ m iKo^j^ ^ m m m ^ n^ n ^ m m B m M ^^ ^ ^om ^ ^ n In the time of the emperor Wu-ti of the IZan-dynasty (140 B. C.) Ling- wang-tsze deferentially offered a memorial in which was said. "At present money is dear, and convmodities are cheap and the dan- gerous desire to make a profit of 100 percent is the result thereof that we are pushing our horns against that which is good. Who does not know the hardships of sowing and reaping, and yet the. value of' a bushel of grain is but 1000 copper-pieces ; who. does not know the toil of the loom and spool, and yet a piece of silk has hardly a value of 300 copper-pieces. And in this must the reason be found that the money circulating among the lower classes is so frequently clipped. If it is thought desirable to make an end of such a condition for good and all, care must be taken that the money generally received shall be round and great. .To receive back only one piece for the value of two pieces is more painful than being beaten with a whip .and cudgel , or being im- prisoned without knowing why. Even more than this (the grief at such a treatment), it makes that nothing is (henceforth) to be relied on')". THE LIANG AND tSaN-BYNASTIES. In the beginning of the reign of the imn^-dynasty, money was so scarce that it was employed only in the capital and its immediate vicinity. The merchants who carried on an exten- sive trade with distant countries employed exclusively gold and silver bullion as medium of exchange. . The emperor Wu-ti supplied this deficiency of money by casting ; large quantities of all sorts of coins which, however,, differed 1^ ^ ^ comparative — ^ JSfr without knowing tlie reason why — ^S ^S to tie and fasten, to imprison — ^ ]ffi|) liao is. used for jJS of the same sound.. 83 more in names than in value. We shall not follow -Ma-twan-liu's account of the names , dimensions and weights of all these sorts , as those pai-ticulars have little interest if they do not contain some" curious phrase or historical allusion , which requires to be elucidated. Of one of those sorts of money is told that it was commonly called boy's money ^ ^, as tEe people believed that a woman who carried this money about her, would be delivered of a boy. In the period of 520 — 27 the plan was suggested to supersede the copper money by iron money, in order to put an end to the speculations of some cunning traders who, taking advantage of the circulation of so many various sorts of copper money nearly equal in value, sought to make profit by continually exchanging one sort for another '). But now there arose another difficulty. Every one could easily get iron, and as the government itself could not resist the temptation to make large profits by the casting of money, false coining was greatly promoted; so that, when that iron money had been in use about ten years the circulating mass of it was like a mountain. J^ ^^^^^^HJ^lljo PSoA m MoZ ^ m=ffii ^ S ^ #o#; ^ + ]^ i ]^ i^.m m m m.)^^ ^ m B:% M.^ ^ m m m WLot- ^ ^ m The prices -of all commodities rose rapidly. Henceforth ' exchange was effected by cart-loads of money without caring for the number (of the coins) , and who quarrelled for a single string of 1000 pieces ? Travelling merchants and rascals (imposed upon the people, and) with the purpose of gaining profit, they made their way through the mountain-passes into the East , where they brought them in the market .at 80 per cent. The name was Eastern money. In Kiang-Ying^) they were worth 70 1) In the Vth Chapter the disadvantages of ' district oi Kiang-ling 77* l^s in Hing-tseu- a double standard in China will he treated of. . .■ „ _ '^^ 2) Kiang-ying is the. ancient name of the /« P™""''^ "^ •S^»-»«»- 84 ^ ¥.^ A ^ 1- iK m:m ^ ±oM 1^ m ^\% m.^ n ^ m B.-b ^o Poiii M m.m m it B.iim + -k ^ "f- m T m, ^.m -Y ^.% w + ^ PS ffij ffl ^. ^o :5ii M PBo iii per cent, (and there) they were called Western money. In the capital they had still a value of 90 per cent, and were called there great money (or long money). In the. first, ye&r of the period Ta-Tung (525) -the emperor decreed that they should be in general circulation at the full amount of 100 per cent. He dictated this to his subjects , but. they did not obey. A hundred of these copper coins fell lower and lower,, till at the close of that period the "worth of a hundred had come down to 35 (or 35 per cent). In the beginning of the reign of the Ts' an-dynasty. that ruled the empire after, the confusions occasioned by the fall of the iian<7-dynaisty , the iron money did not circulate any longer. The new princes reverted for a short time to the old 5 tsu pieces which, nleasured against the still circulating goose-eye- coins had a relative value of 1 to 10. Another ruler of the same dynasty again committed the folly to introduce pieces of the weight of &tm and a nominal value of fifty 5 ?si« pieces. But soqn the relative value was changed, so that they circulated together with the 5 tm pieces at the same rate. As • to this money Ma- twan-lin adds: Y" 4=f HFi 'I^ ^ M A ■ '^^^ people did not think them -r« >«4. >a -t=f -rt. i-u '^^^'^^^'^^^^ < ^J*d they • told one 3l ^ ^ „ ^ aft ^ another the false rumor that the ^ ^ 5lc ^^ ^ ^^ 6 tsu pieces had not graced the ^S^ ° _L iti. :£! M ViS ™^g^ of tlio emperor. "When Mi ^> ^ ^'J o Is .shortly afterwai-ds the emperor ^ ^ y^ IK -JL- ^ died , the 6 tsu pieces were done m SS i^ W -^ 4H *^^y ^it*>fo'"goo'^' andtheSfsw r)9- .nu Tp B ^ W pieces continued to circulate till the. end of the T s'an-dynasty. 'i) y^^ ^^ worse and worse. THE NORTHERN EMPIRE. In the Northern empire the Tartar chiefs Topa had etablished themselves, and gradually had they modelled their policy on that of the conquered people who were their superiors in civilization. One of their institutions was the casting of money which boi-e the characters Ta-ho (lit. great harmony) for its device; but, says the chronicle, "nowhere did it occur that it was employed". For a long time the want of money seems to • have been very slight, for Ma-twan-lin passes a period of eighty years without so much as touching, upon the subject. During this time barter was the only means by which business was trans- acted, which is evident from a decree, issued by his Tartar Majesty Miao-wu-ti, deciding that money should be used in his ^§ ^H Wk c ft empire and that the salaries "of all the state- — ' ^ o W ^i officers should be reckoned by it at this rate W o E '^ W ^^^^ ^^^ pieces of copper money equalled a 'M M '^ Pi®<5® of ^ilk. This decree was attended with the remarkable circumstance that -the coining of money did not, as usual, become a preroga- ■ ^ §|rI Wt >\ ^^^® °f ^^® crown, but that ttie people when- f'jji M^ ^^ ^ ^^^^ *^®y wished to have money cast might Tplf y^ ^^ :^ go with their copper- to the State-mint to tI^ oi^o '^o^o^^^® ^* coined; consequently the- moniey was made of pure metal and so it did not occur that it was either debased or mixed. This money had again the standard-legend of the Chinese coins , 5 tsit. Notwithstanding all this the people had a dislike to money and did not want to use it in their dealings. Hence it is, that some 86 privy councilors persuaded his Majesty to enforce the use of money as a medium of exchange, though they were of opinion that it should be left to the people what pieces they thought fit for this purpose. And says one of them: "The same money will not do foi- the different pa»ts of the kingdom , for in the South and East money is a great conTcnience to the people, as they have em- ployed it there already in former times; but in the high North, as for instance, in Peking, the Northern Capital, and an the far off districts and free states, where, till this day, no money is used, you cannot manage this » affair in the same way, but it will be necessary gradually to accustom the people to- it. The profit connected with the use of metallic money, compared with the simple mode of bartering goods, is iuiieed so great that it must be obvious to the people as soon as they can be gradually brought to employ it." I may be allowed to quote a little fragment in which the ex- cellence of the money as a medium of exchange is explaineH,' if it were only to coniplete what elsewhere has been said on the same subject (page 67). iK ^y m -^ n m -X- -r^ ^'^m ^ • a ^? # ^ n ^ # 4 m ^ s. ^ m ^.-^ is: M '^.R m m m.m pt. n r- mo^ i^'W z z m m m k z.m p^ :& m ^ ^^m^m^z w^ If silk is used (as a medium of exchange), it cannot be divided into portions (without spoiling it) , and if it is grain , there is the difficulty of transport. If, however, money strung together is used, people have 1) ~N in time, i, e. henceforth. 2) .|^ name of part of the country, a free-city or palatinate, see wrLLUMS. It frequently occurs in Ma-twau-lin's IXth. Volume. 87 nothing to do- with false measures, or take the 'trouble to measure the exact number of feet (of the silk pieces) in order to make them fit ac- cording to the requirements of exchange. This is much more convenient than the other. So I submit it to your Majesty's consideration hence- forth in all parts (of the kingdom) to circulate the Tai-ho money as well as the new coined pieces together with the old. money , and without paying attention to their size, if they are good, internal and external (i. e. not clipped and not debased). In the same fragment we find a report of an high functiona- ry on the produce of copper in the different parts of the empire. Here we have an exact statement of the .quantity of native copper and copper ore which was dug out of the different moun- tains and valleys. The report ends with an urgent appeal to the central govern- ment to build founderies for casting ' money in those places where copper is found, and to submit the coining of moiiey to a strict control. This advice was acted up to, and at the same time severe, restrictions and punishments were instituted • against false coiners, and rewards were promised to those who informed the government against the offenders. m m u u m -'4 ^ M ^ ^rw.^ X m ^ B.m m w. M m 7^ m m ^ In the beginning of the reign of the emperor Iliao-tswang-ti , the false coiners augmented again the quantity of debased coins, and it had come so far, that the false coins were whirled by the wind and floated ■ on (the surface of) the water. A measure (t'ew) of rice rose to the price of nearly 1000 cash. The privy secretary Yang-K'an in a memorial to the throne, said as follows: "Your minister resided for a short time in the province of Yung-tseu''). According to an account (of .. those regions) , the people 'together with the public functionaries cast 5 tsu coins. In order to promote the welfare of the people, that mean and vicious, state (of things) ought to be changed". A decree, containing the Emperor's will (on this subject) 1) A province .west of the Hoang-ho and North of the river Vei. m m m n %o ^ ^1) m, m A fr - m n n ^ M ^ Wc - ^ :^ Jr. 4 M ir z X 0. m z Tj 5£ wiJ ^ A m z 4 PI c T^ lip f P 1^ t^ A went down (was handed to the council of the ministers of the crown).*. But the eight seats (the dignitaries) of the Sang-su (the ministry, central board of administration) did not agree to it - (and they expressed, as their opinion) that at present one had rather rely on the principles of former times and that it would be sensible not to break with them. They tried to withdraw the imperial consent and decision to the fore-, going memorial and proposed arrangement ^) of the minister ' {Yang- K'an). 'But as K'an thereupon again in a very clever way lay open his arguments, the Emperor followed- his advice, and caused the btsu pieces to be cast. On this occasion one of th-e imperial historiographers Wei-kcio-tien also offered a memorial to the throne,. in which he said: The medium of exchange is the basis (foundation) of business and of the commercial dealings of all nations.. To amend a vicious state (of that medium of exchange) by making alterations in the fabrication of money is therefore one of the first duties a king has to perform in his government. During the present time private coining has brought over us a profusion of debased currency, and the officials who have to examine and stop (the circulation of) the bad coins do not 'suppress or lay hold of a single piece. The prices of copper are at present such that one gets a pound of copper for 81 citsh, while they who ca^t thin coins, make out of a pound more than 200 coins. This already shows how large the profit is. And though they are prosecuted by heavy penalties , and the number '^nm = n 2) ^S n regular series or arrangement. 3) VQ Rk the four peoples is here nothing but a plural, meaning the nations of the four regions of the earth. 89 m.m f4.n m A^o"^ ^ w.m w ^ m m -k w. 4l ■Afit m. ^ iil i^ ^ 1^ ^ m i ^ 3^ z IB ^ 7i< vCl\ ^ ^ A Pi- ±=1 4 t® ; -^ 4- z, 4 itk ra 1^ ^ iK ^ m ^ 3 ^ ^ of those who incur punishment is large , the false coiners arestill exces- sive in quantity. The money at present in use has only -the device of 5tsu, but it has not 2fsw real worth, the pieces are as thin as elm- leaves, and if the best string extant is cut asunder and the coins thrown on the surface of the stream , they have hardly any inclination to sink. Now this is the' result of following the old way (lit. an existing stream). The supervisors who ought to provide against it, don't suppress it, and your Majesty's government loses sight ' of it. But in what degree are those (supervisors) to be blamed for it ? ') In former times the emperor Hwn-Werv'-ti diminished the money by one fifth (of its value) and had the pieces of i tsu cast. Hiao- Wu-ti changed these again for 3 tsu pieces and made half ounces of them. Now all these princes converted the great currency into smaller kinds, and heavy money into light. And now it is argued that the present ought to be modelled upon the past, and that it is , • therefore , allowable to make a change in the great cur- rency. Now when the price of copper is extremely low, the Cunning among the people engross the raw materials , as tin , charcoal , lead , and fine sand, and in a pleasant way they find in false coining a means of subsistence for themselves. And if the result is that they cannot en- rich themselves by it, they have simply undertaken something that yields no profit, and therefore without more thought about (the matter) 1) The cunning imperial historiographer therefore mentioiis only the state-oomptrol- expresses hiniself here very diplomatically. lers, hut from the sequel it apjpears very He dares not say, "to what extent is the clearly that it was a home-thrust intended imperial government to he blamed," and for his Majesty. 00 tliey will give it up, and that so much the more when severe punish- ments are largely instituted against it. If your servant is to give his opinion (lit. to sound) on this matter, it will positively be this, that •the medium of exchange must continue to circulate , and that the money received by the State as well as by private persons 'be' true and good. It is , therefore , desirable to act up to the plan suggested by Wang-k'an, Now while several influential officers advice the Emperor to introduce agajn the 5 thi pieces, there is an bld^ servant who with all due respect and deference repairs to court, and offers a memorial in which he requests in a very pressing way to have the 3 tsu cast again, as in his opinion the 5 tsu pieces are too large to be used as a single and indivisible medium of exchange. He describes- a great many facts in the ancient and modern history of China, to prove that the value of the money was al- ways regulated with respect to the wants of the time being. . The peroration of the piece is really so eloquent that, on jeading it, one is inclined to forget that those opinions were delivered in the year 528 A. D., at the court of a Tartar prince in North China. Having adduced his historical arguments, he thus contitnaes: ^ ^o^ -k w M'j m A n^ M m M M 0. R a^ m B m m ^ m m ^oZ^ m m >^ M i^ 'M 4- m m '/^ ^ ^ m i^ "There is not a single piece, be it light or heavy, great or small, that has not undergone a change in the lapse of time. And in the present circumstances, no* the disturbances of the (yellow) caps have not been crushed , while whole . provinces and districts are ruined and the riches of the people are as scattered leaves, now the wants of the army and coiintry are few, the casting of little money may contribute so much the more to an increase of wealth. And what injury will this cause to the government and what impediments to your people? More- over the flourishing state of a reign is not the result of the money being large of size , no more than the decay of a reign can be attributed to the money being ^mall of size; if only that which is received in public as well as in private (dealings) has a real value (i. e. if only the 91 ^ ^oM m s. m ^ ^^ m fn. pt ^• i^ m m.m ^ \>x ^\^ n jcjr ^ z^ M. m m m.z m u ^ z it ^j^ b ^ ^ ^ n m.^ 4^ z n m ^ m intrinsic value • is looked to) the government can change (the outward form) ,. without causing any trouble. With the ancients this was practised already, and it would also be very proper, this should be imitated by the present generation '). Your minister ' (the minister is here K^an) now proposes, for. the sake of the commercial intercourse as well as to relieve the want (of your people) , to have 5 isu pieces cast. If that plan is adopted , the 5 tsu and the .3 isM pieces may be in. use at the same time, and. this can be without any loss, (on the contrary) the country will enjoy the advantages thereof". The Emperor declared (his readiness) to act up to that advice, but (said) that the affair could not at once be brought to a tinal decision. So in the year 529 a decree was issued that the 5 isu pieces sHould be cast; of the Stsu pieces, however, no mention is mg,de. Wlieii afterwards the government wanted to know what the money was worth, pieces of silk, representing a worth of 200 good copper coins were taken from the treasuries. State-officials were then sent to the different markets in- the country to sell them there. In some markets, says our author, those' silks were- sold for 300 copper coins, and this was not because in those places such silks were higher valued , but because the money was debased *). 1) Again an instance of what is said on the force of the final particle ^^ . 3) It is remarkable indeed tfcat we find also here an attempt to resolve a question of Political Economy which for all tim.es has been discussed over and again by Eu- ropean Economists. Adam smith, and after him many other authors have sought for a general measure by which the value of dif- terent commodities of all times and all places might-be compared. Smith after long considerations adopted labour, and among commodities, corn, the article most gene- rally consumed, as such a common standard. Now we ■ see here that the Chinese used silks to ascertain the value of money, as they presume that' silks at all places will have a same value. Cf ADAM 3M[IH , Wealth, of Nations. Book I. Chapt.'V. MICHEL CHEVALnsR la monnaie. Sect. II. Chap. II — V. Prof T. M. c. asser, Verhandeling over het begrip der VVaarde passim and page 283 — 387. Dr. s. van HOUTEN, Verhandeling over de waarde, page 139—139. 92 Jlerewith we are at an eud of Ma-twaxi-lin's informations as to the Northern PTei-dynasty, THE NOETHEEN TSI-DYNASTY In the North we now see the same drama acted that in the South already so often and so successfully had been represented. The prime minister, after haying obtained the title of king of - Tsi, dethrones the last emperor of the /FTei'-dynasty, and is the founder of a new imperial line known under the name of the Northern Tsz-dynasty. As to the currency during its reign, the money of the Wei's continued to be used, but as it was not in sufficient quantities existant to meet the general want, • several functionaries began to make thieir own money which generally was named after the district were it was circulating. The effect of this unwholesome condition was that all sorts of bad money arose. For this reason, after having, drawn back all copper money as much as possible, the emperor caused it to be cast into btsu, pieces, and to prevent the use of false money in the markets there was a balance placed at the entrance of every market- place, in the capitals as well as in the provinces, and principa- hties, and every private person who used scales in the market, was obliged to have them verified by the government standard balance. Assizement thus took place. A hundred copper pieces of 5 isa were to have a weight of 1 pound, 4 ounces and 20 tsu (i. e. 500 tsu)- in order to be employed as a medium of exchange in the market; and money greatly adulterated might not be used. ' One great advantage of this measure was,, according to the Chinese chronicles, that every indiyidual could nowmake money, if he liked; for provided his 93 pieces had the standarcl weight, anrl quality, they were current in the market. Another particular illustrating the despotic go'vernni'ent of those times may not be oniitted. ^ *l^ JSl o ^ o -^ ffij Notwithstanding the measures just ^ 1M o^ S^ ^ ^» mentioned the false coiners did j^ m W ^ ^ ^ ^°^ remain idle, and they, seemed jJt o IfL Tfj ^ ^R Gi ^"0 carry on such a flourishing trade ^1 ^ -^ ^ J^ o ^^^^ their worthless coins overwhelm- ^ o ^ ^^ f^ — ' ®i >& # - ^ ®o:^ m: ^ -t m m i^ ^ m m ^ y^> ^ sia A^ )r — 7t In the fourth year of the period Wu-te (622) under the reign of the T 'ang-djnasty , the 5tm pieces were abolished, and the Kai-Pung yuen-pao money was oast. Ten pieces had a weight of an ounce, and the weight' of 1000 pieces was estimated at 6. pounds 4 ounces (100 ounces). They hit upon the exact mean as for weight and size. A gen- eral money-office was established at Lo-(yang) (the capital of China under the T'ang), and likewise in Ping-tseu, Yiu-tseu, Yik-tseu and other provinces. (His majesty) gave the prince of Tsi and the .prince of Tsin four money-founderies each , and Pei-li , a principal minister of the right side , one foundery for casting money ^). False coiners were put to death, and their houses and property were confiscated. In the beginning when A'ao-few.took the decisive step and mounted the throne of the Suy ^) , the people fabricated a sort of money of no 1) -^E H>r F-u-sai lit. "Servant ar- cher'' Title of a principal minister i|jrt| *ff The Emperor Sin-tmng made the left and right Fu-sai officers, his ministers of State. (MoEB. in voce B , 4). 21 According to a map of the Chinese em- .pire under the reign of the T'ang-Apiaaij the provinces of Fing-iseu and Yiu-taeu are situated in the N. E. and Yik-thu in the South part (now the prov.- of Yim- nan.) There is also a Yik-tseu in the pres- ent prov. ■ of iSse^ts'tien , it is, however, only to be found on a map of China of the division into N. and S. . — ^S Tsin, is a little principality in the N. W. (prov. of Kan-su) ^C idem ■ in the N. E. prov. of San-iang. Hence it appears that in the most different parts of the realm money- foundaries were established. 3) fflA 'When Kao- isii took the decisive step and mounted the throne of the Stiy." This rendering is a little free, but justi- fied by the historical events which caused the accession of the prince of T'a/ng to the throne. The emperor Yamg-ti of the preceding (5'«j>. Mij # H ^ n ]ii^o# m m m ^ m )i M Z Z ^ -t i^ B.m ^ ^ i: Pi A r. ^ ^^i:^m^± m n "^ ^ m TfMo ^ B wi * Mij ^ M ^oT»^ m.m.m B i.^4^ n - m B m ^^ m^m ^ vi i„* ^ ^{i ^ >c.*§ ^^ :^ ^ ^ ^ # more than a silkthread in thickness; 80.000 or 90.000 of such pieces hardly filled a half-/iM (bushel). Then the Kai-Puhg-yuen-pao pieces were cast. The characters occurring on that coin were made by Ngeu- yang-siim, under-secretary of the censurate. The characters (words) and the writing accorded with the workman- ship. The words were (written) in the tswen and li writing, in three different writing-manners '). Of these words first came those at the top and then those at the bottom, moreover the left-hand came after the right hand (characters^). Kien-hoei-ts'ui of TUng says that when Siun showed a model in was: (of this coin) , her august majesty queen Wen-tefc reaching for it, left on it the impression of one nail, and that this is the reason why at the top of (the obverse of) the coin, there is the mark of a nail. An ounce is 24 tsu, hence a copper piece weighs a little less than S'/a tsu. Comparing the ancient weights with the pres- ent, the ratio is of 3 to 1. So that at the present time the money is somewhat heavier than 7 tsu ancient weight (2'/2 X ^) > thus as heavy as the old 5 isw pieces, plus a weight of a little more than 2V2 tsu. . We see that the intentions of the government regarding the 7\^ ^ is lit. to enter a doorway. Ac- cording to WILLIAMS ^3 signifies also a Rubicon; an important point in one's life. 1) Tiiaen is the seal, H the oificial-writ- ing manner. Three different writing-man- ners. Of. Matw. IX ii; where of a coin of the SiMff-AyAasty is said ^^ ^ft it-f BH. — wH the (legend) was made in three different writing-manners, strait-hand, running-hand and grass-writing, de ohaudoir in loco. PI. VI. 40 — 42 gives a diagram of each of them. 2 ) Right and left side are as in heraldry. Just as a coat of arms, a Chinese coin has its own right and left side and not that of the looker-on. See the diagram p. 100. What Matw. calls the left is as seen by us the right side. The same fact is obvious from Matw. IX 2 a. 103 issue of this new money were good in every respect, and the opinion of later times has been very favorable also. "This money is so excellent, says Sui-ye, (the author quoted page 16) "that as soon as the T'a«(/-princes began to cast it, it spread all over the empire; and even up to this day it is frequently met with," but, continues he, "under the T'an^-dynasty itself, these coins were not on hand in such large quantities". [Matw. IX. 42a]. This last remark explains much of the history that follows. Also Tung-lai the other writer on money (See page 13) speaks in high terms of this nioney. He says [Matw. IX. 376]: "From the r'a»i^-dynasty to the five dynasties it has not been necessary to alter the value of the Kai-yuen-t^ung-pao money once fixed, because with this money the exact proportions had been so ad- mirably hit upon. :^ ^ ^ ^o But now the money was really so good, there was at once a great demand for it, and the Chinese, these matchless false coiners, found in this fact a fresh opportunity to exercise their occupa- tion with double zeal, and to render the judicious measures of. the central government ineffectual by melting the good money and to circulate it again mixed with other baser metals. Mr. JEVONS says somewhere in his admirable work on money: "The annals of coinage in this and all other countries , are little more ihan a monotonous repetition of depreciated issues, both public and private, .varied by occasional meritorious but often unsuccessful efforts to restore the standard of the currency". This is perfectly applicable to the history of the money under the T'aw^-dynasty, as recorded by Ma-twan-lin in the last part of his eighth volume, and if I had no other task than ta give an 104 accouut of Chinese' money, this short quotation would suffice to characterize the time which now follows. Involuntarily I recall the time when I was preparing this part of the work, the many weeks of incessant and dull labor necessary to get an exact view of the history of this period. All the time I felt as if I were wandering about, in an unexplored desert where for miles together nothing remarkable meets the eye, and where the mind grows weary with an eternal and mournful monotony. Yet occasionally I found an oasis which I have not failed carefully to mark down. To these most fertile spots I intend to devote a few lines th'at he who goes out on such a wandering expedition after me may know where to find a resting- place, worth his while to examine more narrowly. I shall, how- ever most earnestly try to make the passage through the dreary sands as short as possible. And might it appear to my reader that the bridges I have built here and there, to get over such places as were well-nigh insurinountable , are too light and dangerous, I kindly beg him to fortify the frail , structure with some timbers of his own store. In a short time false coining had so considerably increased that 40 years after its issue, the new money was abolished again, and the state-money was provided with a new legend in order to check the use of the false Kai-yuen pieces. When this measure threatened to become fatal to trade it was soon retracted. The swarms of false coiners increased again, nay, it came even so far that there were who made false money in vessels and on rafts in the middle of the river ^ \iX ^ ^M'l^^ ^ • Then the government ordered that the circulating false money should be accepted, a measure which did not improve the matter, to be sure. ^ ^ w 7^ w 165 , „ ^ During the period I-feng (676—79) [ ^ lil the people living on the river Ping- ■ ^ kiang ') made a regular employment of =77 4^/ rft ^^'^® coining. Hence it was ordered that TO ^ 'r o a journey to that river should be un- iiii ^S i^ dertaken with a view to examine the ^^-^ •'»T Kcis tC- &F\ «>-r >bfe >'-r- ni^tter , and that the officials should set /T JEIRJ /-L 5^ /_L afoot an inquiry and persecution. What there was above 100 pounds of copper and tin (aboard a vessel), should be confiscated by the government. Another measure to diminish the circulating quantity of bad money was, that grain and rice were taken from the state-gran- aries and brought to market, and the bad money was accepted as legal tender to an amount of 100 pieces to a measure. "To a measure , says our text , 100 pieces of false money were accepted as a part of the payment" il" _^|] ^ ^ ^ ^ ^ ^). The false coiners expiated their crime with their lives, and the accomplices (lit. those who supported and protected them) were persecuted and sum- moned before the judge". ^^^^^^„P^#^. Queen Wu-heu again tried another expedient to check the deeply-rooted evil in some degree. Henceforth it -was not allowed . to make payment in pieces strung together, hut they must cir- culate loose, that the copper, tin, and iron pieces might.be dis- tinguished at once. The haunt of the false coiners was the country called Kiang- Hoai ^}j^ J<|| -^ I^ , and they were so skilful and cunning that notwithstanding the repeated efforts of the government, the offi- cials were unable to do anything against them. Ma-twan-lin says: 1) In the North of China, province of San-tung. 3) The false coins were in this way re- duced to a sort of chajrie or token. which only to a certain amount were al- lowed to circulate as legal tender. It was thus a legitimation of false coins hy the government. 106 -^ «w. yiL i-" ^firr a^- ■• ''''^ *^® district of Kiang- W ^o'^ t^ W 7jt» 'lS„/-I ftoai a large quantity of money @ r^ T^i, ^^ iS '^ $& i'^ ^^^ ''^®*'' ^^^'^ ^^ many as ^^ y^^ _j^ ^^^ ,,^ ,,, . 10 various sorts; it was mixed m M ^ ^ ^ }i^ m with iron and tin, light of Jffir ^ >* J-J -f^ ^^ ^fi quality, and spread in great . ■ ° , » , ° -( , , , ° /,g »jv. profusion ; often it had not ■^ o >5> «>^ /^„ ^ ^'o ^S even the form of money. A ^ ^^ M 'M — ' ^ ^ ^'^°°^^ P^®°® °^ money was * *^ '>T 1^ '^ v® 4- commonly worth 7 or 8 pieces ■^ m /-L F^ EB tS T of this money cast in large quantities. Eich merchants gradually collected the good money to sell it to the false coiners of Kiang-hoai. In the capital the quality of the money had remained still very good, but every year it was collected and transported by freights an" cartloads". And as a ptoof how far the Chinese were advanced in the art of making false money, our author says: "Some melted in a short time 100.000 pieces out of tin in the form of copper- money. ^ ^ ^ ^ ^ , ^ ^ ^ "g • After so many abortive attempts the imperial council was at a loss hoTV to proceed , and an assemhly of the Lords of the realm was .called in order to advice his Majesty in "this juncture. When they were assembled an imperial message again raised the •ques- tion whether it were desirable to retract the existing prohibitions against the ■ casting of money by private persons , and to leave it entirely free.- In that case the state should have to exercise only a strict control over the money- brought in circulation. Ma-twan-lin gives: 1 the imperial message. 2 two speeches, one defending the other attacking the proposal. 3 the imperial de- cision. Many passages of this fragment show us that notwith- standing the wretched social condition of that time the humor of the Chinese statesmen was not quite extinct. 107 ^ ^ jni. yij 0, m .4 M illr. a ^ ^ ^ 4 A lltr . M m .0 o ;^ ,5 j: ^ fj^ m :^M M ^ ^ "^ R M. ft # ^ 7i< K >ftii' + ^ In the 22°'' year of the period Kai-yuen (734) 3'^ month 2l»' day an imperial decree was issued (in which was said) that pieces of silk might not be measured by a foot or an inch to serve as a medium of exchange , and that edible pulse and grains might not be used any more by hand- fuls and spoonfuls to barter what one had for what one had not. The reason why the ancients made money was to circulate merchandise and silks. Though at present-the government ■ casts money, what is paid for (by means of money) is not much, and though the generally received principle in the making of money is to economize the expenses of the fabrication, labor and expenses are as yet important, while the amount of what is provided for common use is not equal to the want, and perpetual complaints are made of the bad state of the money. What in the lapse of time has continued to exist without change? Formerly in the time of the reign of Han-wen(ti) , while free coining was already granted to the people, it was not prohibited by that sage prince, not- withstanding Kia-1 thought it wrong. Those old times are past and gone, the present is before us. Living in other times and under other circumstances (lit. while the details of the events are different) it is desired that private persons are not prevented from casting money. How far is that right? When in a general assembly of ministers and lords the question was discussed , whether it should be allowed or not , the privy councilor Ts 'ui- mien spoke these words: "If we allow the money which is in common use in the empire to be c^t by private persons ^), the people will un- 1) lit. The actual-money of the country, inversion wMcli reminds us of Thomas Car- whicli at present is used , if we allow it to be lyle's style, cast by private persons. It is a rhetorical 108. m m m m m IE g 4- m w\ m m ^i MiJ ^J -^ :J^ tfii ife. o ^sa n z M Tftr, m ^ # ^ * m m m m ^ i^ '^ 7i ^ m ^o# # ^ ffi ^« ^ M»=fefr ^ ^.i? muz ^')# :^„Koro iij ^„m li ^ A # IE flj .^ ^ij JL H M MiJ jf MiJ ^o this end is that by which a sage prince is characterized. Now if in accordance with the principle of free coining, we take severe repressive measures against the false money, so that the officials positively and surely shall seize every person (who violates the law) and that all shall know the restrictions, we shall indeed act according to the policy of the flan-dynasty , though I fear that even then we shall not quite act up to the old traditions of the illustrious T'ang. Now if the cop- per, received as taxes by the government (service), is held back, money may be made of it in the state-foundaries and if we accurately esti- mate the unit of value , private persons will not be able to make profit. It will be easy to distinguish them (those coins) in the long run and very difficult it will be to adulterate them. If we, moreover, take care that the old seals are upheld, and that we do not transgress the fixed measure and limits, the money will be an object which has its full value as a medium of exchange. As the profits derived from coining cannot be large in this way , what can. we then further expect of the casting of money by private persons, as' after wards we shall have enough for general use? Liu-tsi , an officer of the left palace gate and secretar;^ to the board of control of government officers ') said: "It lies with the prince to give and it lies with the prince to take. As the people honor their prince like (the light of) the sun and moon and as they are attached to their prince like to their fathers and mothers, the prince uses such expedients, and his being able to do so is (a visible proof of) his 1) For those official titles see mobr. in voce ^ 76 j" 138. The high officers at. court where dividecl into those of the left and those of the right side. side was first in rank. The left i«M-& first reminds us of the manifold in- stitutions of the ancient kings, he quotes the piece of Kwan-tsze already treated of page ■ 10 , with the intention to show that only the sovereign has a right to manage the monetary, affairs of a country. no ro n w] ^M 5^ Si L^ ± m ± ^ -X- "^ z m% n z n - f^ T 4 ^ li A'o^is.Mij hf m n M -tkoT,^ ^ m wi r, m.z m ^ m -^ w\ ^ A z m m ^o^ m ^%^ mm % >lm t power as the ruler of men. Now the present money is the medium of exchange of the lowest sort of the ancients. If your Majesty rejects it and thrusts it on the people, he who is at the head wUl no longer be able to govern those who are under him, and the subordi- nates will not be able to serve him who is set over them. This may not be. — ^ This is my first objection. When commodities are cheap, this is prejudicial to agriculture, and is the money base, it affects trade, hence it is the duty of a good ruler of the empire to excercise control over the relative value of com- modities and the quality of the money. Are commodities heavy (when measured against money) the money is light. The fact that the money is light results from the quantity of goods. Is it (the money) much (in abun- dance) a law must be passed to suppress it , and in this way to make that it becomes scarce, and consequently heavy; if it then gets too heavy again, a law must be passed to diffuse it, by which it is made light again. Surely, this is the fundamental principle by which the value of the money is maintained. Now would you put this in the hands of the people? Such a thing may -not be. — This is my second objection. — If in casting money it is not mixed with lead or iron, it does not yield any profit, and if mixed with it, the money is bad. If the restrictions which cannot be made severer, are not yet sufficient to check and prevent it 1) j^ ^ ^ to transfer. — to put in another's hand. Another in- stance of Ifo in this signification may perhaps be found in the passage on page 34; where I, however, took Ida as an adjective of the compound Tgj "g* . As far as I know, Ida in the signification of t o transfer occurs only connected with "Sv The construction of the preceding sentence ,^on page 34),however, J^ ^^ ^ ^^ allows us to take l|^ there also as q, verb. Ill fiSi ^ w * A ^ i^ 1^ di: -fee A f Pi Bt ^ A rfi) i rfij A A T- ^ ^ m 4 ^ 4 m A m m M ^ m z m m')M A. X ^.A W IP -i* ^ H (this mixing lead and iron with the copper)' and that while at present the roads leading to private coining are blocked up , the people still con- tinue to adulterate and run heedlessly on death in order to violate the law , how much more will this be the case if that source is opened and the people are desired to tread that way. This is making snares and pitfalls and enticing the people to run into them. This may not be either. — It is my third objection. . — Further , if you grant the people (the privilege) to make money without their being able to make profit by it, they will cast no money; but if it yields profit, then they desert their fruitful fields '') and are these deserted , thistles and weeds will not be ploughed up , and we shall soon come .to cold ^) and starvation. This may not be either. — It is my fourth objection. — If the people who then will cast money are rich and opulent , rewards and encouragements will be of no eifect, and if they suffer want and poverty, threats and restrictions will be of no avail, and that your lawful orders will not be executed and that your people will not act according to reason and sense will be the consequences of this , that poverty and wealth are not in proportion , (that with the one wealth and with the other poverty will be the reason of the violation of the law). Now if you allow private persons to cast money, the poor, to be sure, will not be rich enough' to do it, and then your, servant fears that the poor will become still poorer and over- awed by the power of the rich families. And if the rich families oc- cupy themselves with it, they will steal the more. In the time of 1) ^g properly "so uth" is hero used for fertile, as the south is "the region of heat and vegetation, where things get nouiish- meut. See Williams in voce tv^ . 3) Because silkworms will not be reared. 112 m ^ ^ M tk t)k m -t^oA m iK ^ "M m m m n m.b. m m m m ^ m ^ ^^ Mij ^ iiri M WfM T m ^o^.m m m.jhoi^ z m. ^ UM^ m M- m n z ^ It 1^ m r- m Kij m^m m n ^m ^ ii ^ m.t^ ^M s lioS ^ r" <=» -U m m z n X mm ^ ^ ffi B$ i!^ mjm^ m ^ ^i A ^ m r^ m S i^ X 3£ M Went* of the Jfan-dynasty free-oolning was the cause that the feudal princes of Wu and P'i were as wealthy as the emperor himself, and that the treasures of the lord T'ang-Puny were equal to those of aking. — AH this were the results of the easting of money'). Certain it is that , if you wish coining to be granted to private persons , it is bestowing upon them an advantageous power, and it is giving that lever out of your hands. This may not be. — This is my fifth objection. — Tour Majesty, undoubtedly, still adheres to the opinion that it is hurtful when the money is heavy (dear) and that it yields little profit when the fabrication is expensive. Why then your servant wishes to teU you that you should leave- off following such stupid calculations. The reason why the money is dear is that the number of persons (making use of it) is daily increasing in comparison to the number of consumers of former times, while the number of foundaries is not increased above the old number; besides, the state-money is heavy in proportion to the price of copper (which is now) rather higher (than formerly). Now this again is the reason that the false coiners break the heavy coins to make light ones of them. Are the restrictions on that money mild, it is brought in circulation, and are they severe, it ceases (does not take place) and then false coin- ing will come to. an end of itself. The reason why the money is now scarce , and why the quantity which is east , is not in proportion to the want , is the dKirness of the copper, and the copper is dear because it is in great demand for various purposes, for copper is still more suitable than iron 3) Those princes revolted against Scm- wen-ti (See Mat. VIII. 7a), — p. 35. 1) ja = m:^ 3) 3fi = ^. 113 ^ ^ A <^ m ^ m.m r- wi -^ -j^ ^ m "^ z^ ^ m m m m.i^ r^ ^.m ^ ^M ^a ^ rfii r- m m :^ iu MiJ M 11^ m m M.^ m tm m i^ m i^i ^ m m - m m m w\ z m.A^zm^^^n T M^ X r- m '^ m m w\ m B ^ z ffc ro H ^0^,^ ^ m M Wo^ m *o z.m m.w\ w\ m ^.^ m m^.i>x ^ to make arms , and better than lacquerware to make vases ; without loss however you can forbid this. Why should your Majesty not prevent the people? If you forbid it, copper will not be so generally wanted, and this will cause the price to fall, and then you will be able to supply the want of money. Is that copper, moreover, not so widely diffused among the lower people, false coiners have no opportunity of making false money of it; nor does the state-money get broken, and the people do not violate the law any more and are not put to death. The money increases daily, and this again yields profit in the end. So a single act results jn four successful consequences. I beseech your Majesty to consider this maturely. His Majesty's sublime decision in this matter makes us strongly suspect that he has not listened at all to the sage counsel. Seven months afterwards another imperial decree is issued commanding that in great commercial transactions merchandise should serve as legal tender, while in smaller purchases in the market, partly money, partly merchandise should be employed. The- decree reads thus: m m ^M 7J -^ m m m m n ^ z '^.-^ :^ m *„^ m Mo^i: + ^ In the same year on the 6*^ day of the lOtt month an imperial decree was issued in which was said-: If the medium of exchange be- comes generally circulating, this will be an advantage in daily use, and while the silks have been the origin (of the medium of exchange) 114 HoMo^ ^ r^ i^^ ^ g£ P ^jf i a m m m M ^m % ^ ^ a^ m f\ m t- --^ M m s~m #o^« the copper money has become the end. What was cheap in the begin- ning has become dear at last, and this causes a state of wretchedness which is very deep. If the laws dictates it to us , it is meet that changes are brought about. Hence from this day forward when farms, dwel- lings , slaves and horses happen to be sold , use shall be made of the silks , silk gauze, floss silk, and other varieties, formerly employed for. this purpose. For what further is sold in the market to an amount of 1000 cash and a little more, both money and merchandise shall be used. He who acts against it shall be tried as a criminal. It need not be said, that the Emperor's' ineffectual measures did not improve matters of all. We again proceed to communi-" cats the history of the miserable condition of Chinese society at that time, as stated by the chronicles, but soon we shall have reached the time that history is silent on the subject. The ministers who commonly proved to possess more sense than their royal masters did not lose courage yet. A short time after the events mentioned above when the mass of bad money threatened to ruin trade, the prime minister Li-lin-fu proposed — a measure already practised before -^ to bring to market a quantity of silks, and to sell them for bad money. jJ Fsl _g. (^® ^^° made this known to the 'm IM t\J kiK m >>>. people,) the vice-president of the min- 'TT 'S r^' TIj ' /S" o "nP ^^*'^7 °^ ^^^ Yang-kue-tU, desirbus of -^ Bfl R M ^ 'fS gaining power by means of public favor, m yJ O o ^ » •gA W exclaimed , cracking a whip at the gates ^g o P 'fT ^f ^p ^|j of the market: "ti-ade must come back, h3 la' Sis MS. ykS *"*^ to-morrow it will be decreed that Pfa m 'fi^ IW 'W the old money shall circulate again." In the same vray the government continued to cast money and to exchange it for the false coins. The consequence was not that 115 the people ceased to make false money, but that the taxes must be made heavier, and that the false coiners enjoyed the profits arising from this measure. In 758 Ti-wu-ki, vice-president of the board of finances and shortly afterwards prime minister, brings another hackneyed pro- posal on the carpet, viz. the institution of a currency which, as a Chinese author on money says, was only a equivalent ') for money as it consisted of coins as large as the circulating pieces, but which according to their legend were worth from 10 to 50 cash. The law having so often been changed within a short time, prices rose enormously; for a measure of rice 7000 copper pieces were paid, and on the roads hundreds died of sheer want. The people had at last recourse to stones used for grinding rice , which had a fixed value , and for that reason were called money of an intrinsic value in contradistinction to the money properly. so called, which had no intrinsic value. We read in Ma-twan-lin: -fe- ^yjuji -j^ ,/g% T-n Stones for grinding rice were received as 'n iS -^ J^ '^ money of an intrinsic value, and bartered tiS' ^§ ^ ^ W ^^ for (real) money which had no intrinsic value ^ r Mj j^j^ gg (lit. hollow or empty money); they were ! •> m (generally in use) to a value of 10 cash, '^ ;& W H^ ^ In consequence of this , the money was called ^^ /sft _X- >tefe -^ money of an intrinsic value , and money of ■^ c ^g ) ^ W no intrinsic value. By way of a change we find now some statistical returns of what the people want to live on, together with an account of the money cast in the state-found aries. The passage is remarkable as a counterpart of a similar account under the j?an-dynasty (See page 48). 1) He uses the word )^ an equiva- lent, counterbalancing against. The meaning must, however, be that it was a representative equivalent, which ought to counterbalance the real, a token- money. 116 133 + i^,H ^t ^ + ^ m ^ + z z PI H >^ ^ H M i^ M m ^ m z -{^ m M # 'If M ^ m ^ i^ w m.m A m m ^ 51 Tit A % A A 4 ^ ± At that time a councilor spoke: When we glance at the time elapsed from the period THen-paoCli'Jr) up to the present (763 — 65) there are more than 9.000.000 families. If" your Majesty reckons that farmers of the first class procure food for 9 persons, and farmers of the second class for 7 persons, and you take the second class as standard (roughly calculated) it amounts to a number of 63.000.000 souls. If the weak •and strong are taken together, one person consumes a quantity of 2 sang daily. Thus, 1.260.000 hu of rice are wanted daily. The annual necessary expenses (reckoned in rice) (for food of the people) thus amount to -453.600.000'' hu (bushels ') ). We reckon for clothes as much again, and furthermore for ceremonies and sacrifices which take place both in days of prosperity and tribulations still as much again. Now .there reipains the three years' store which is intended to relieve the misery arising from inundations, times of drought and other calamities; this represents a capital of 136.080.000 hu in" rice. If we take the •expensive, cheap, rich and poor sorts promiscuously, we reduce the value of that rice to copper money 2). 1) liter. ^ is a little more than a According to wiLtiAMS, 1.031 liter. W' hu is here = 100 ^r . The meas- ures in China have undergone frequent variations. From the calculation it appears that a year is reckoned at SCO days. 2) TTie councilor's meaning is, "By re- ducing this to money you can calculate- how much money is wanted". An easy matter prohably for his contemporaries who knew th'e price of a cup of rice , but for us this calculation is very difficult as the councilor does not state the price in money. His conclusion, however, is very unecono- mical and he forgets that the money con- stantly circulates, and in that way performs the same service in exchange repeatedly, so that a people hy no means wants a quantity of coined money as would he. nec- essary to pay for what the whole people consumes . a year. Regarding the same question, which our Chinese adept in sta- tistics decides without hesitation Dr. ADA.M SMITH in his "Wealth of nations" B. II. Chapter II observes: "What is the proportion, which the circulating money of any country tears to the whole value of the annual produce circulated by means of it, it is, perhaps impossible to determine. It has been computed by different authors at a fifth , at a tenth , at a twentieth and at a thir- tieth part of the value." 11? ^ M u ^ w ^i "B z- m ^^ -b m m ==- n m.\>x m ^m n\ m m "s ^ ^ ^•^+ M m m. i>i z -i' n m =1 M -^ i ^ m M: m u m^^.m M -t 3L T & 'M ^ m m m m m mom - -\^ m m m'm z z m m: m ^ mm m m ^ M M m m 1^^ m r^ }^ m ^ n m ^.m.m ^ M ± m ^ n M mo^ -^ :r m.m m m M Vi ^-^offij ^ ^. m n z -z- }^M m ^.% m =^ - If we reckon high and low, rich and poor, good and bad fields together, a king produces 50 hu on an average, hence (the quantity of rice above mentioned, necessary to. supply the want of the people) answers in lands to 27.216.000 king. The quantity of money gets less every year by keeping it in money- boxes, by hoarding it up in treasuries, and by being destroyed by fire or dropped in the water; and if there is an interval during which copper is dear and the money is cheap, it is melted to make tools of it, and within a lapse of time of 10 years, the quantity of money is almost exhausted , and no longer sufficient to supply the want of the time being. The head comptroller of the salt and iron duties ^)^ Liu-yen (says) what is employed in the provinces of Kiang and Ling , and what is produced by the country of Zin-iu (as a medium of exchange) is a heavy , mean , worthless merchandise of a soft (unfit for money) substance. What circulates in the capitals is not sufficient to supply the want of the outlying provinces. Besides in the provinces of Kiang and Hoai (where the false coiners are most active) the (still existing) money is gathered. (Hence it is necessary) to buy copper , lead , fuel , charcoal , and to cast money in- abundance, so that every year more than 100.000 strings of copper money are circulated in the capital and as far as the provinces The- Chinese aathor proceeds with showing how much money there is act'ially in cir- culation, and how all .sorts of influences comMne continually to diminish this quan- tity which is already much too small. This leads him to the conclusion that it is de- sirable that the Government should cast money on an extensive "^scale. i) The salt and iron duty was a kind of income-tax levied on every person or on every family since the reign of- the Tsi- dynasty (479—502) There was a register of the tax-payers. 118 of King and Yang-tseu '). Acting according to this principle the money will be increased daily. Of the statistical returns of the amount of money cast at that time the following extract will suffice. The total number of money-foundaries was 99 , distributed among, the provinces. Every foundary was worked by 30 men. Yearly, in every foundary, there were fabricated 3300 strings of 1000 cash (1 string was worth about six shillings). The cost of each string was 750 cash, so that the profit of the state amounted to 33 per cent. In the whole empire 327.000 strings of copper money were fabricated a year. Some pages further we read that an adept in money-matters proposes that in the foundaries still to-be built near the Red Cliff ^ ^ , the money should be cast in such a way that the cost of bullion, wages, and transport shall not exceed 900 copper pieces a string; then ai trifle will float (will be the profit). ^ ^ ^ ^ Jl '^ . Wi W ^ ^o Now we find a series of reports from the comptrollers of the iron and salt duties , who earnestly complain of the bad money which they commonly receive, and in consequence of which the taxes- do not yield enough to provide for the wants of the State. Mat- ters were worst in the districts of Kiang-lioai. Concerning this ■ fact Pao-kt says: "When exchanging good for bad money we received a tub of tin , lead and copper promiscuously g|^ ^ ^ |Jb) ^g . The influence thereof on the prices of commodities was enormous. Afterwards we still perceived a slight increase of bad money, and when we set afoot a strict inquiry in the several districts of this province, we found that in the mountains as well as in the flat country, there were subterraneous vaults containing ^ I) Tlie^io-nncesot Kmg-tseu mi Tang- that of Yam/ 117"" east of Paris. The tseu are situated west and east of the ca-' meaning is thus, throughout the whole pital. The longtitude of King is 109' 44', empire. 119 money cast by private persons. The rascals and cheats who supplied one another with this bad money in order to bring it in circulation had been steadily on the increase. But now that the ofScials charged with this inquiry are aware of the real condition, and the way in which- the false coiners dealt, they have instituted rewards and punishments in a very judicious way, and thus checked the increase of these evil practices." Another provincial functionary states that in his districts the money which still contained an amount of pure cojpper was melted and made into all sorts Of objects, and the profit gained in this way was so considerable that he feared that if no severe repressive measures were taken, the time would soon come when there was not a single good copper piece extant. "Of 1000 good coins they extract 6 pounds of copper, and when they melt this mass ■to make it into instruments and other objects, a pound of copper obtains a value of 600 cash." So they make a profit of 260 percent. He therefore requested the central board of administration to make severer regulations against the melting of money. The Emperor's decision is remarkable. His Majesty decreed that his people sbould be at liberty to melt money- but that the tools made of the copper might not be sold at a price exceeding 160 cash a pound. In this way he thought to be able to make this occupation so little profitable that people would soon take a dislike to it. — One or two years ago m. emile de lAVALAYE, of Liege, gave a discourse in the Students' Literary Club DocTRiUA at Leiden. His subject was that the decline of the States in ancient and modern times was chiefly to be attributed to the in- sufBcient knowledge of Political Economy of their rulers. The absurd, regulation's of the "sons of heaven" often remind me of the 120- spirited and captivating causerie, and I cannot but regret that the learned speaker was not then acquainted with the history of money in Ohina. He would without douht have found it a for- cible argument in favor of Ms somewhat hasardous hypothesis. All of a sudden there shone a light through the Egyptian darkness which overhung the Chinese empire, but it was only a- dim and faint glimpse, which was visible to Tanish imme- diately afterwards, and its existence was even too short to give a satisfactory description of it. I mean the apparition of paper- money. History says: m M m ^ m m u\m f^o^ m m n.moT^ t§ 'M n m m m m mi m M M m m.m ^ ^. ^.d^\ Under the reign of the emperor Hien-tsung , ■ because, money was scarce again, the use of copper tools was prohibited. In that time travelling mercliants who came to the capital brought with them the money they ■ had received in the outlying provinces , and deposited it in a government- bank. Likewise did military and civil officers and rich families , that they might travel unburdened through all parts of the country. (Instead of their money) they received certificates of indebted- ness (lit. corresponding billets) ; these bore the name of flying money. The imperial governor of the capital Pei-wu proposed to suspend the issuing of flying-money to the merchants. Man wird sich nicht mit Bors und Beutel pla'gen; Ein Blattchen ist im Busen leicht zu tragen. says )Groethe in his splendid satire on paper-money (Faust, Part II). Our Chinese chronicle says in prose very much the same, and surprising it is that an institution which would have proved to be a great benefit to the Chinese society of those days, was 1) JO = ^' I 2) |)^ is the word generally used for bank. 121 abolished without so much as even to mentiou the reason why. Yet shortly afterwards this apparition is. seen once more, but still dimmer than the first time, and then it disappears altogether to return more brilliant and more fully developed 150 years later under the reign of the ASww^-dynasty. A little while after the short-lived apparition of paper-money, in the year 809 the quantity of money circulating in the capital was uncommonly slight, trade was dead, ^^ ^ ^ and the money still in circulation was no more in demand. ^ ^ |||f i^ ^ ^ P5 Private persons tried to circulate silver money by working the silver mines in the Wu-ling mountains, biit this was soon prohibited by government. Some high functionaries of the central board of administration then proposed to try once more paper-money. Ma-twan-lin's communication is short: % % m. m ^ mM.n m m m \ i ZM m m ^.m m m p m m ^.m Since the flying money was forbidden in the capital, the families had hoarded up the money in treasuries and the prices of commodities had somewhat fallen. (Some functionaries) i) suggested to allow the merchants to have their' salt and iron appraised at the ministry of finances, and that on the flying-money (which they received in return) from the mint-college, they were to pay a premium of 100 cash on every loop string. But when there were among the merchants none that went there, it was allowed again to give the merchants, the full value when exchanging their strings (for notes). ■As has already been said, no further mention of paper-money 1) 'The names ot the offices and fanc- tionaries are omitted. The names of all pnhlic functionaries of ancient and recent times are to be found in the Rev. moemson's Dictionary of the Chinese Language in voce K . It is a pity that the whole long list , which forms a volume by itself has been put together without a practical method or arrangement. 122 is made. Probably the "credit of the state was so shaken that the people did not yenture any more upon paper-money. One tyrannical measure now succeeds the other. A decree was issued ordering that nobody was allowed to possess more than a cer- tain amount of copper money , and those whose treasure of copper money exceeded this sum were obliged within a fixed time to exchange it for government products; state-officials residing in the market for that purpose. But as the merchants tried to make some profit by that exchange, a full year had elapsed and the decree had not been carried into effect. Severe measures were then taken to execute the laws. m.m i\L r^ m - m r^ -^.m ^ w + ffij m ^,#ft M iifc„# m ± -&- ^..=^ -^ n & M ^ -^.m M ^ B M r^ ^^ iK m A n.M ^ M ^ B m ± ^ti n iWM m m m ^ \n n.M ^ ^ m ^ ^ t^ m ^^ im m ^ M w y T-.n In the IS'"" year (817) an imperial decree was issued that from that time forward all civil and military officers without any distiaction of rank, together with all functionaries charged with the government of provinces and districts down to the subalterns and soldiers, all mer- chants, monasteries and temples, hamlets and market-places might not possess more than a sura of 5000 string in ready money. When there were whose fortune exceeded that sum the decree allowed them a month's time to lay out their money in the market. If (after that time) there were who had again received and hoarded up money, they requested a second respite, if they had not been able tot get ready in the first, but this last respite might not exceed two months. When those respites were past, such private persons ') as had violated and transgressed the law ^) EI ^ - ^ private persons C£ K'ang-hi's dictionary in voce ^ . 123 were put to death. Then the people bought on a large scale farms and houses to convert their fortune (into landed property) and precious things fetched high prices. Now Ma-twarjL-lin takes up the pen in order to show the folly and uselessness of ihose last regulations. Since his cri- ticism on the financial system of the Tseu-Aynastj he has been silent, except some explanatory notes to elucidate the texts he quoted. But now that no voice, is heard of the ministers or learned men of the time to pronounce judgment on such ar- bitrariness, he addresses us himself, and in a few lines he gives an excellent critical review of the absurdity of such- measures. 'i^ u,± k m r^ ^ m o ^ B3 rfc" m di^ m.^^ ^.^ ^..m B ^ B m M w m ^m m ^ m m ± M ^„K ffl„^ ^ ^ M ^z^mwmzB'm. K m Ajn.n m.^ m m m Z ± M When we observe those who afterwards governed the country, they were hot able to regulate the wealth of the nation in such a way that they made the condition of the poor and rich equal, and they tried in vain to invent means to check violent and oppressive actions. What re- gards the bringing of all into one hand , it was to be tolerated , when the people were prevented from bringing the fields under their names ') , but to prevent the people from hoarding up money, is that not a little too bad? For he who buys land intends to. engross all, and therefore those who are at the head of the affairs should surely make regulations by which this enormous possession of landed property (lit. King and Meu, both superficial measures) is restricted. Those, however, who hoard up money have made up their minds to make it stream and to circulate it. In the beginning the rulers of men did not trouble their heads about the enactment of laws teaching the people how to exert 1) jfj name — is here in the posi- tion of a transitive verb with ffl as its ob- ject. I have not found another instance of that particular use of the noun. 124 m t. m '^ M,m ^ m ± m ^ z ^^ PI z.M^ m f4 m m w m m a. tfu ^ B M ^\M ^ ^ ^ m ± m m m m X m m.z m ^.m ^^ m '^\m z IE m.z^ wi m ^ B m n m m m ^.^ m themselves to turn over their capital. Now because the money is heavy and commodities are light (because money is Scarce and commodities abun- dant) they have put a limit to the hoarding up of money; but the fact that there is such a proportion between money and merchandise (lit. that money is heavy and merchandise light), is for those who possess ready money and are greedy of gain, an intelligence at which they rejoice. For who does not cherish in his inmost heart the thought, what others cast away I take. Verily, it is not necessary to make prohibitions by law to force them to this. This only opens the door for accusations and complaints, and causes needless vexations in a high degree. A few more pages of our chronicle we have to wade through before we are at an end. But all is barren from Dan to Ber- seba. Fresh regulations on the possession of a certain amount of copper money were issued. Whereas in the foregoing parts we have often seen that among the ministers of State and the high functionaries many an enlightened councilor .succeeded in preventing the bad measures which the government was about to take, of the addresses which in these days are presented at court the one is still more absurd than the other. As there was nowhere any longer money on hand, the attention of the govern- ment is directed to the temples of Buddha, with their bulk of metal statues, tools and vessels. So the following decree was issued : 125 _. ' ^ Tai-ho (829), it was ordered that ^o f^ P^ §W} ^ kX A^ the Buddha-figures and ornaments M ^- -TlOiffi ^ -— *'^°^^'^ ^^ inlaid with lead, tin, flR) o ^ V i^ ^ a^ ^ o girdle either of gold, silver, brass' ) or ^k ^T yft 1^ "^ aS ^*®^^ blued and polished. Only for kc Aim .fet- A I iLjj. mirrors, gongs ^), nails, rings and W J^ ^ ^ /K ' buttons, copper might be used. The attention of government once directed to the temples, it was not long before religion itself was laid under requisition. Because the Empire was in" want, the service of Buddha was abolished by the Emperor. Our chronicle says: ^ t& ^t VI 'fi* S- 16 The Emperor Wa-tswMgf having :^ KftioS^ K^ m m 'i^ abolished the so-called Feu-tu- ^o ^H ^o ilH ^ ^o :^ (Buddha) service, Li-yeu-yen, IM i^ '{^ :6k "* '^^ ^^® director of the mint in Yuiig- W H 1^ ^|i /!< 7K ping proposed to. have all the ^|RI '^ ^S .^o ^* ^ copper statues, mallet-bells, gongs _j- ^«. =Kn. =^ KA AS? ^'I'J clapper-bells confiscated by the ^Jv Xiii ^ bR ^ B^ body of itinerant officials. In the several districts of the "empire a large quantity of copper would cer- tainly be found. But enough of this. Intestine division and anarchy increase , more and more. However brilliant and glorious the beginning of the T'an^-dynasty had been, the end was most miserable. Our history is silent on the last 40 years of the existence of this impe- rial line. In what "way a new creation sprung forth from this chaos will be shown in the next chapter. With the end; of the rule of the Tang-djnastj Ma-twan-lin closes his eighth volume. 1) ^fij yf^ a sort of brass resembling gold. It is imported from Persia. 3) ^S^ a musical stone, suspended on a frame, one of the eigbt musical instru- ments, says MEDHUBST, was struck in tbe temples to call tbe people to prayer. A gong is properly an instrument used in ' the army, a brass drum fe|| . HISTORY or THE MONEY UNDER THE SUNG-DYNASTY. THE 5 IMPERIAL • FAMILIES. FREE COINING AND ITS ■ EFFECTS. . A CONFLICT BETWEEN CHURCH AND STATE. ■ — SPEECH OF THE EMPEROR AND REPLY OF AN ECONOMIST BELIEVER IN BUDDHA. THE SUNG-DINASTY , NEW REGULATION OF MONEY-MATTERS. THE HISTORY OF THE DOUBLE STANDARD IN CHINA. THE ECONOMICAL INNOVATIONS OF WANG-GNAN-SL 1" STATE ADVANCES TO CULTIVATORS OP LAND. 2° PROHIBITIONS AGAINST THE EXPORT OF COPPER SUSPENDED. AN OLD WAY TO PAY NEW DEBTS. CRITICAL OBSERVATIONS ON MONEY BY TUNG-LAI OP THE FAMILY LIU. Many years were, yet to • elapse before the end of the reigning dynasty was near, and China was delivered of the weak and despotic descendants of the duke of T^ang. But the fall of this dynasty made, if possible, matters worse than ever. The chief generals did quarrel and fight among them- selves; anarchy and confusion ran riot, and the conntry was la- cerated as before by civil war. Within the time of 53 years (907 — 960) there reigned five different imperial families; two of these were of Tartar origin. In these times of commotion and bloodshed , the monetary history is confined to the abolishment of the existing and the introduc- tion of all sorts of restrictive measures, which were as thoughtless and tyrannical as those described in the preceding chapter. The following are some loose fragments which give an insight into the political and economical state of affairs and which also in a grammatical point of view are the most remarkable parts of Ma- twq,n-lin's book, 127 ^o4 m m m n< m.^.m m K :i ^oM ii ^ A Hu-si coming up to the audience-hall , spoke as follows : To command a thing and to have it carried into effect, to prohibit a thing and to cause it to cease, he alone may do who is compelled to it in behalf of the people. Now if (the emperor) Si-tsimg should wish to prohibit the melting of., copper money and (to command) the breaking of the copper statues, it would be such- a case '). Those copper figures reverenced and feared by the people , though you break them now , yet it is sure according to my conviction *) that the result will not be that a sufficient quantity of copper money can be melted. When Ean-yu was • appointed imperial governor of the capital , and he was at the head of a well disciplined imperial army, he has not ven- tured to violate those laws'), and it is said that he too wished to abol- ish Buddhism. This too was a similar case (to the present) ^). 1) Then it would be in the interest of the people that such a thing happened. "The king cannot do wrong". — Hu-si's Words justify this interpretation. He says, pur- suing the thread of his discourse after some digression, "but I am not aware that his Majesty wishes to prohibit it". 2) Subjective opinion of St(-si expressed by ^S is clear here. §0 also at the end of this fragment. 3/ The law j^P signifies here Buddhism % = ^(£ Cfr. page 58. 4) The following may serve as an expla- nation of the historical allusion, and the meaning of the speaker, that , what the most vehei^ent antagonist of Buddhism and the most powerful man of his time has not dared to undertake, may no more be or- dered by the present ministers. Be fM . Han-t/ii, a statesman and phi- losopher under the Tang-ijJi., was renowned for his antagonism to the religion of Buddha and his undaunted fidelity to his prince. In 819 A. D. he presented a remonstrance against the public honors with which a finger-bone of Buddha, a relic to which supernatural influences were attributed, was to be conveyed to the Imperial palace. Han-yil'3 diatribe against the alien super- stition is, according to matehs, still re- nowned as one of the most celebrated of ' state papers, but it only roused the Em- peror's wrath against the author who was banished to a remote region in the South of China. An extract of the remarkable remon- strance , as it is found in de .mailla, Hist. Gen. d. 1. Chine Vol. VI, p. 433, runs as follows: "Buddha est une idole des pays 'occidentaux k la Chine. Votre Majeste, "par les honneurs et le culte qu'elle lui "rend cherche k se procurer une longue "vie et un regne heureux et paisible. Parmi "les anciens rois, il y en a beaucoup qui "ont joui d'une longue vie, tandis que le "peuple vivait dans une paix const^nte, "cependant il n'y avait point alors de Bud- "dha; ce n'est que sous I'tsmpereur Ming.-ti "de la dynastic des Han '58 — 76 apres J. "C.) que sa doctrine s'est repandne dans "I'empire, et depuis cette ^poque, les trou- "bles et les guerres se sont succedes, en- "trainant a leur suite les maux et la de- "cadencc des families imperiales. De tous g 130 m M.m n m W 4 m ^ m ^M ^ Htj djo^ ^ m m # li # ^ ^ SI tflj ^oZ When money is melted to make I rfBi o ST Z- ^ H w ^ ^ ^ ¥ i« + a tenfold gain is made tools of it, by it. And is it now allowed (so people argue) that the money which serves as an equivalent for aU other merchandise , whether its value be on a par, high or low, and that is cast by tho. government without reckoning the cost and without regulation when it shall cease , is melted without any prohibition')? Notwithstanding it is a fact that it is melted and that tools are made of it, the money though gone, these tools remain! Now if these tools are scaittered over the four frontiers of the empire, (if they are) transported by freights and cartloads , earned into foreign countries, and come back again to the southern Barbarians, what then "les princes des dynasties posterieures il "n'y a en que Ww-ti, de la dynastie des "ladngs, qui ait ocoupe le ti'one pendant "quarante-huit ans, et que n'a-t-il pas fait "pour obtenir de Buddha la pais et la fe- "licite? II s'est vendu jusqu'a trois fois et "s'est fait esclave dans un de ses temples ! "Et sa recompense fut de mourir miserable- "ment de faim. Cependant, il ne faisait, "disait-il, continueUemen.t ces actions, si "pea convenables i. un prince, que dans "I'esper^nce du bonheur qu'il attendait de "Buddha, et il n'en a ete que plus mal- "heureux. ''Buddha n'est qu'uu homme originaire "d'un royaume des barbares de I'occident "de la Chine, qui ne counaissait ni la fi- "delite qu'un snjet doit a son prince, ni "I'dbeissancfe d'un fils k I'egard de son pere. "S'il vlvait encore, et qu'il vint S votre "cour, tout ce que votre Majeste pourrait "faire, serait de le recevoir avec magnifi- "cence, de lui faire quelques presents et "d'envoyer le recouduire jusqu'aux frontieres "de I'empire, sans que vos peuples y eus- "sent le moindre part. Get ' homme , ce "Buddha est mort depuis longtemps, on a "presente a votre Majeste- un os desseche, "qu'on dit 6tre de lui, aurait elle dfl "le recevoir dans son palais? J'ose done "lui demander, qu'elle fasse remettre cet "OS entre les mains des censeurs de I'em- "pire, afin que le faisant passer par I'eau "et par le feu, on abolisse ce culte si per- "nicieux. Si Buddha est tel qu'on le dit, "qu'il ait le pouvoir de rendre les hommes "heureux ou malheureux, je consens que "tons les maux qui en pourront arriver "tombeut sur moi, tant je suis persuade de "son peu de pouvoir". Under the Emperor Ma-tmng he was restored again to his high office, and was appointed generalissimo of an army with which he crushed a rebellion in the North of the Empire (de mailla Hfst. gen. d. 1. Chine tome VI p. 439. etc.). When by his efforts peace was restored "Mu-tsung, lid donna un emploi, dont la jurisdiction s'etendait sur torn les soldats, ce qui leur ijispira tant de crainte . qtiauoun - nosait manquer a son, devoir". This Hu-si expres- ses by ilJB ^> where he says: Even he, the vehement antagonist of Bud- dhism, when appointed- oommander-in-ehief of the whole imperial army durst not violate the law, and abolish the statues of Buddha. &^t\^f^W- "^^^ "S^* ""* left army of divine stratagems. Name of an army, which distinguished it- self on the Western frontiers of China. It continued to be a honorary appellation till the time of the iTm-dynasty. Mobr. in voce- ^ n=' 84. 1) Yes, it is allowable, is the meaning of Sii-si with this question; for when the money is melted, the tools remain hence no wealth is lost. 131 ^Q. m v\ X Z -x^ z Z n if z a. It rfij ® ffij ^ Alt /nj A #1 ii.m 'i& ^ z m n m % m^) constitutes the proper loss, (lit. what of that loss is then specially the loss), and if you can tell me that, I am satisfied (lit. and stop there, nihil amplius). But I am not aware -that the emperor Si-tsung has prohibited it (the melting of money) ^). Now if the treasures of far off. countries are not exchanged for. currency,- may I know how the money is spread? Why, it is indeed because the treasures of distant countries have been exchanged for it *). [r/ie speaker now abruptly leaves this subject and proceeds with stating the reason why the want of 'money should be attributed to no other cause than the badness of the quality']. What the great ones are fond of, the lower orders like to imitate (i. e. government makes the m'oney bad, and the people follow the example). In addition to this , the official seals are not well sunk , and the legal regulations (respecting the coining of money) are violated. The money which has its full intrinsic value becomes scafcer every day, whereas the false money increases daily. Truly, when it (the money) has no more the price (value) of a pre- cious object , and (when) the money which has certain limits , is no more extant, were all creation of copper, and the whole world (lit. all that 1) Come tack to the Barba- rians i. tj. the native coppef which we have received from the Barbarians, comes hack. to them made into all sorts of tools. Copper was also imported from Persia. 3) These words should have been spo- ken in the beginning of the speech, bat in consequence of his meditations on "the Mercantile System," the speaker had. lost the thread of his argument, and takes it up'.to drop it immediately afterwards. 3) He means to say — You, ministers, think that the money, if spread among the people, gets lost hecause.it is melted, and that this is -prejudicial to the country and the people. But you are mistaken; we get in -return the treasures of distant coun- tries and you are misled by the fact that it does not go away in the form of coined money ' with which these treasures are bought, but in the form of copper tools. But the people melt it, and niake tools of it because the Barbarians give ten times more for a quantity of copper in the form of arms and tools than in the form of coined money. JSu-si is an admirable econ- omist, but it is a pity his reasoning is not a little clearer. 132 ± -^ m r- ^ m m A "^ m ^o ^o^ ^ ^0^0 ^'oX z ^ m ik i^ mom m m m ^ w Wiom m m ^ m M m ^.^ m ^ is light and dark) of charcoal, it would nevertheless be impossible to supply what is wanted. And how could the few tools and Buddha fig- ures bring al)out a change in this. Therefore, only when without cupidity the utmost disinterestedness is observed , we shall succeed in producing for the people a common treasure which has an intrinsic value. Moreover, if care is taken that the seals are well sunk, and the legal regulations are maintained , nnd the casting (of money) is not discontinued , the money of the Middle Kingdom shall really be able to stream throughout the most exquisite of countries. THE SUNG-DYNASTY. The people and the army , impatient of the perpetual change of princes and families, had got such a strong dislike to their insignificant rulers, often mere infants, that they had already long looked out for a leader firm and energetic enough to restore order and peace in the confused realm. And when they thought to have found such a man in their favorite general, they were quite ready to rise in his favor and drive away the reigning sovereign. An opportunity to carry out this bold reso- lution soon presented itself. After the death of i^i-tsung a child having become emperor under the regency of the Empress-dowager, the lji.ao Tartars had taken advantage of this circumstance to invade China and extent their territory. To check the further progress of this formidable foe, a numerous army was sent out under command of the idol- of the people, the generalissimo Tsao-kwang-yin ^ ^ ,^' One evening when the army lay lit. to keep diligently. 133 encamped near the capital and the commander was soundly asleep, he was roused by a stir without. On leaving his tent he saw a clamorous crowd of officers and soldiers who had just returned from a public meeting in which their general had been proclaimed Emperor; and before he was but half apprised of the cause of all this noise and uproar, the yellow mantle, the emblem of the imperial dignity , was' thrown over him and he was hailed as "the Son of Heaven." The new-made emperor returned immediately to the capital where he was enthusiastically welcomed by the people. The boy-king abdicated of his own accord and the revolution was accomplished without the least violence, without so ■ much as even the shedding of one drop of blood. Tai-tsu was the name of the emperor and the dynasty was called the Sung- dynasty after the district of Sung-tseu, of which he had been governor. When hearing that the renowned warrior had ascended the throne , the Tartars lost courage and retired into their own dominions. The new emperor immediately applied himself to remove the evils which had arisen in the last reigns and was careful in adopting all such measures as promoted the welfare of the people. Among others the monetary system was completely re-organized. A new sort of copper money was made, bearing the legend of "Current" treasure from the beginning of the /Swj?^-dynasty." •^ TC aM W" "^^^ decrees by which people were forbidden to possess more than a certain amount of copper money were an- nulled, and in different parts of the country copper-foundaries were built, bearing such promising names, as "The Eternal Pros- perity," "The Eternal Peace," "The Long Repose," "The Flour- ishing Country," "The treasures-producing Mint," and iron-foun- 134 darles styled "Beneficial to the People," "To the support of all ," etc. The two most remarkable events , however, recorded in the history of the money were, 1° the introduction of the double standard, and 2° the issue of paper-money: As to the former, I have carefully collected all the passages in the Chronicle referring to this subject in order to-be able to give a complete history of the double standard in the Chinese Empire. Paper money forming one of the most interesting subjects in the history of Political Economy, a separate chapter has been devoted to all the matter relating to. this currency under the Sung-djusLaij. THE DOUBLE STANDAKD. The want of a sufficient quantity of copper very probably gave rise to the use of iron money. This new currency was first made by private persons at the close of the period of the "five impe- rial families," and during the reign of the Sang it was circu- lated in large quantities by the government without however su- perseding the existing copper money. It was principally in the western provinces of ^tj j(| Sse-ts^uen, |^ ^ Sen-si, and in the eastern tea-districts of jji§ ^ Fu-kien , that this iron money was employed in large quantities. The legal ratio was such that 10 ironpieces had the value of 1 copper coin, ^ ^^^ o Hi "f" ^ HH ^ — "o ^^^ i* is evident that those pieces of the dif- ferent metals were not equal in size. For we read, "that the Em- peror built three state foundaries for casting ii-on money, and that a string of the money made there was to have a weight of 135 12 pounds and a few ounces in order to correspond in worth with a string of copper money weighing 5 pounds exactly." The cal- culation occun-ing in another fragment [Ma-twan-lin IX 7o] varies, though the relative values are nearly the same. iM! ^- ^i /&■ -L -I- -4- r-) "In the casting of money VI- a composition of 88 ounces y^ -.5 — ' &r yVo mo /> yu was commonly used, and the th. "5" "?t ■^" i^rti -i- EFi ^S thousand coins made of it ? 7 m S " weighed 80 ounces. Of the iBoyL MM m^ ^ ^ % HrJiO parts of which that com- _l_ _L _JU Ea -#■ ^& ^^ position consisted were 6 _ •^* _^ ;^"' '^° parte of copper and 3 parts — ' Pwo^ =. ^llo^^ of lead and tin. Of all these V^ '^^ a httle more of each of the iMj ^S /fl ^ ^ /> /> three" sorts of metal was used in order to make up the lOtli part). In the casting of iron money 240 ounces were used, and the thousand coins made thereof weighed 192 ounces, this was the general rule." (80:192 = 5:12.) This copper money contained 3 pounds and 10 ounces of pure copper, and 2 pounds of alloy. .The alloy was composed of 1 pound 8 ounces of lead and 8 ounces of tin; and about 8 or 10 ounces were lost in the process of making it. From this account i.t ap- pears that the relative wtfrth of the two metals was about as 1 to 8.5 and not as 1 to 10 as we should presume from the above cita- tion '(p- 134). Ma-twan-lin, it appears, feared obscurity from these Contradictory passages, and therefore he says in a note, that the little iron pieces, 10 of which were worth one cash, had been abolished, and that at the same time the relative value of iron and copper money had been altered, as the iron money circulating in the province of Sse-ts'uen of the nominal ratio of from 10 to 1 , in weight,, gave a ratio of 25 pound of iron to 5 pound of copper; accordingly a real ratio of from 5 to 1. This had not been done to depreciate iron money, but simply as a measure of utility, because the 136 magistrates of the districts where iron money circulated, had perpetually complained that the money was so heavy that it was not possible to make use of it, and — says one of them — "if it was made a little lighter of weight, it would have this advantage that one might easily equip one's self for a journey" ^ ^ ^Ij ^ ^ ^ iffio "^^^ weight of this iron money was likewise the cause , that paper money was frequently used in those districts , as we will see in the next chapter. In consequence of the use of two sorts of metal as currency, the -Chinese got in greater difficulties than any European govern- ment has ever been on this account. The objections to the use of the double standard, if stated by a thorough Chinese, would be of quite a different nature from those which French and English economists have raised in a great number of books during the last 30 years. Were it not that seen from a Chinese .point of view the question presents some new aspects in- teresting enough, I certainly should not venture once more to treat of it. We have not as in Europe to do with two precious metals like gold and silver which drive each other out of the country as soon as either of them is overvalued, and oblige the governments to buy back the runaway servant at a high price of their neigh- bors; in. China foreign trade had in this respect very little in- fluence on the prices of bullion. The great drawback, however, was this, that the intrinsic value both of iron and copper was so little that it was not possible to estimate a constant legal ratio between them. Further , what lately , wherever in Europe the double standa,rd is adopted, has been effected by the free market of foreign countries, was done in China by the false coiners. 137 These persons speculated ou the relative value of the two sorts of money, which constantly varied, and they always coined the cheaper currency in order to exchange it. for the dearer; and the difference was not 2 per cent, as in the Netherlands from 1816 — 1839, or even less, as in France up to 1869, hut generally from 100 to 200 per cent, and this caused that the depreciated currency cir- culated at a high premium, or was peremptorily refused in the market. It is also remarkable that in order to remove the diflS- culties of a double standard, the Chinese financiers at length took the very same measures as afterwards were taken in Europe; they instituted again the single standard under the flag of th'e bimetalic system. All along the western frontiers of China, from the southern provinces of Yiln-nan and Sse-ts^uen to the North-western province of Sen-si, a numerous army was constantly kept in the field to resist the warlike Tartar tribes who perpetually invaded the Middle-Kingdom. Great sums of money, were required to provide' such a host with provisions and arms, but the large supplies of money were not sufficient to meet the ever increasing want. Some magistrates of those parts then suggested that at those places in the moun- tains where considerable quantities of metal were found, forges and foundaries should be erected. This plan, was acted up to. But now it -occurred that in some districts the mountains contained much iron and hardly any copper, and as each of the magistrates of these districts wished to have some money at his disposal, they sought and obtained the permission of the Central board of ad- ministration to cast iron money. Ma-twan-lin says on this subject; 138 ^, m-^oiK ^H m m t^ ^o^ ^h 7% m m m m.i^ M m^m :Bt m m wm m tL m '^ m ^ m ^ X m % m. 1 # ift HU ffij 5|c :^- :^oW ^ if n ^No^ if ® H - ^ m X X mm "^ n '^ i^M A- m >h m n A^ +o|i ^ Tsang^kuei, the head official for the transport of government goods, in the province of Sen-si, and Fan-yung, the civil magistrate of the headquar- ters of the array in the district of Yung-hing '), had already proposed to cast large copper coins which were to circulate together with the small coins , (in such a way) that one large piece should be worth 10 small pieces. (Tsang)- huei and others had also suggested , there being plenty of iron in the district of Tsin-faeu'^), to have money cast there, and when {Tsang)-kuei ■nas obliged to go to Ho-tung, he had in the provinces of Tsin and Tse-tseu large iron coins cast, one of which was again worth 10 small coins, in order to meet the expenses of ttie army encamped in Kwan-tsung '). A short time afterwards the mint-college reported that east of the Hoang- ho , the casting of large iron coins had been discontinued, and that in Sen- si (thus West of the Hoang-ho) the people again ran after the yel- . low copper of the mountains of Tsu-tsien-ling , in the district oi 1-tseu, where the foundary, "the Universal kindness", had been built for the fabrication of large money. In the name of the government it was, therefore, ordered that in Kiang-nan large copper coins should be cast, and that in the districts of Kiang-Tsi-Sao-l-axiA Kwo-tseu small iron coins should be cast, and 1) Prov. of Sse-is'wm. yjjil lit. to know, is the title given under the Sung and sulsequent dynasties to a civil magistrate appointed governor of a district. yyH . . . ^p. lit. knowing the military affairs was the title of the same official in the head- quartets of an army in field. 2) In Ho-tmig , prov. of ijj [ftl . 3) ^S\ Pn Kwan-tmng is an ancient ' name of the province Sen-si and adjacent parts of Ho-nan. mayehs, II. 309, ■ 139 that all these (coins) should be carried to Kwan-thmg , where the money of those different districts should circulate together. In this way there circulated four different varieties of coins, two of copper and two of iron. The relative value of the two copper varieties as well as that of the two iron, was as 1 to 10. The- casting of the larger iron coins, however, was soon discontinued. If we inquire into the metallic worth of these coins, it appears that the government had again been misled by false theories, and but too soon would suffer the consequences of it. A. -JU '^ ^fe "pfT _L. On the whole, of three of these ■^ small copper coins, one large copper coin could be cast , which then obtained ^ E. i^ ^ i^ 7& Vd. 's^ A^ *■ ^°^*'^ of ^0 small pieces. Conse- . quently there came among the people • 'W o 1M ^it o WC I sIkI a great many false coiners , and in the W0l ^S & 'k' ^^ currency there arose a great confusion. —L. Da AT-i . ^'^^^ result was that) the prices of all *S? o 3v fHj »|bJ :iZ. articles rose enormously, and both with the government and with private persons this caused great uneasiness. _A still greater difficulty was the relative value of iron, and copper money. A magistrate suggested that the woiih of the iron money in Ho-tung should be as 2 to 1 little copper cqin , but after a year it was thought necessary to make 3 iron coins equal to one copper coin, and in private dealings it frequently occurred that 5 iron coins were given for 1 copper coin. To resume what has been said',_ there were circulating to- gether:' 1" large copper pieces of a metallic worth of 3 and a nominal value of 10 small copper coins. 2" small copper coins which generally commanded agio, when circulating together with the small iron money. 3" small iron money which had no con- stant value. As such a condition proved to be untenable , various measures were suggested to bring, about a change. Among others an assayer 140 of the mint-college ^ ^ ^ ^ ^ij ^ proposed ks medicine, to melt copper and iro.n together , and to make the weight of a coin cast of that mixture, equal to that of the circulating cop- per money, and to determine the proportions so "that one piece ^0 "^ J§ ^ fili) contained three parts of copper and six ^ >r» ^ ^ parts of iron , and of both metals a little ^ ^o ^ ^ more for the remaining 10* part". In this way, "he was convinced", as good a currency might be made, while the cost of fabrication should be less aiid the profits of the government larger. The fun of the whole thing was that when this worthy assayer made a trial in his mint to cast money in this way "the workpeople ^ ^0-31 ^ ^ took a dislike to it, as the iron was too ^o ^ >\ -^ ii& ^Bxd of nature and therefore too difficult $ "S^ ]^o ffS to work, while the quantity (i. e. the real value) did not come up to what it should be; soon afterwards it was, therefore, not made any more" (Mat. IX 7a). Very sensible, however, was the advice given by a commit- tee, appointed by the emperor to make an inquiry of the advan- tages and disadvantages arising from the use of the double stand- ard. This committee consisted of the mint-college ^ ^ , together with Ts^ang-fang-pirig ^ ~^ ^ and Sung-Ui ;^ )||jj , two men of high reputation in those days ') , and the cabinet-minister Ye- ising ^ '^ , who before being a minister had been member of the mint-college , arid has held that office after his resignation. The report of this committee suggests : 1" to fix a better ratio between the value of large and small copper money, and 2" to determine the relative value of copper and iron money. A deputation of 1) Cf. MATERS, I. 9 and 639. 141 two members of this committee went to his Majesty, as soon as the report was ready, and spoke about these words: "Your Majesty when instituting the large copper money had thought to derive great profits from it. So it promised to be in the beginning, but when afterwards, in consequence of the little metallic worth of that money ,« the prices of all articles rose, that wrong proceeding at last made reprisals on the government, -^ ^ "^ ^ _t o ^^^ ^J t^is you have lost in the end more than you had gained in the beginning. And even though your Ma- ^ g ^o TO '^ ^ J6sty were inclined to reduce the -fj 0*^0 ^C ^ -^ ^ present money which has an empty Klj ^^ ^ ^ ^ name to its real standard, and were ^ !^ ^ ^^ y^ willing to put up with losses, as by 5|C yti Jf ^ "tlr repairing the bad condition you will not escape to suffer the loss yourself, yet we fear that this new regulation will not easily be brought in execution". "Now we would recommend you to make the value of one ^ — ■ ^ piece of the large copper money equal to three ^ ^ ^ pieces of the small copper coins, in the different ^o /J"* ^§ districts where both sorts are in circulation". "The reason, however, why at present the false coiners do not exclusively occupy themselves with the casting of iron money, is that they can gain more by casting the large copper pieces. But as soon as the exact ratio between the copper coins is res- tored, they will cause new confusion, because they will then make small iron money. To prevent this likewise we would furthermore ^U ^§ J^ suggest to you to make it a general rule that three ^S ^ yJ^ pieces of iron- money shall be equal in value to — 'o ^ ^ ^^^ (small) piece of copper. Moreover do we 142 advice you to cease the building of state-foundaries on such a large scale." The emperor consented to all this and made use of the advice given. The government went even further by estimating the relative value of the large and small currency of both copper and iron as 2 to 1. False coining was entirely discontinued, and the manifold complaints of suffered wrong, made since a long time, were not heard any more. The apprehensions of the committee that the new regulation should cause difSculties proved to be well founded. For the Western parts of the country were choked with iron money which now, it is true, had obtained a certain worth in relation to the copper money , but which , on account of the little stability of its worth,, proved to be unfit to serve together with the copper money as a measure of value. They experienced the fatal conse- quences, but missed the right understanding which would needs have led to a satisfactory solution of this knotty question. In order to get rid of the great mass of circulating iron money, the government determined to buy one pound of this iron money at 't 40 pieces of the new copper coin which was reduced to a value of 2 cents ;^ ZIL ^ ; but enacting this law they committed the fault not to stop the circulation of iron money as legal tender. What now happens is communicated by a head-official for the government transports in a report to the central board of admi- nistration: "For 40 copper coins", he says, "we get one pound of bad iron money, and 1000 pieces of small copper money may be exchanged for 1000 iron pieces of a value of 2. A thousand small iron pieces contain 6 pounds of iron, and if people cast 2000 pieces, of it, and exchange them for 1000 copper pieces. U3 the government i ia my humble opinion, sustains a considerable loss". (This is prefectly right; the loss amounts to more than 50 per cent; for 1 pound of iron = 40 copper coins, thus 1000 copper coins are worth 25 pounds. of iron, and if 12 pounds of iron made into 2000 small iron pieces, are exchanged for copper money, 1000 copper coins are received for it). "It is a wretched condition because the iron pieces reduced S ^^ :^Jx ^ ^ value of 2 cents are bought and sold in ^Po "^ Hi bullion at half the price which they have as coined ^ y\^ money". That the difficulties of the double standard were not solved as yet, appears further from the statements commu- nicated by the historiographer Tseu-yin in his report to the Emperor. X ^ ^.r^ m t m m m m ^o^ m # ^ ^ ^ n.^ > If we consider that "the amount of the money fabricated by our dyn- asty is 1.000.000 string yearly, and that perpetual complaints are still made that the money is scarce, it must be attributed to this that it is imported and spread . among the Barbarians. . Let us closely examine (the condition) of the three provinces of Uo-pek, Ho-tung and Sen-si. In each of them the ground produces iron. Now we see that at present in Sen-si the number of tens of thousands of iron coins worth 2 cash which are cast there, is very large, and that it circulates together with the copper money; but that among the people the iron money is thought light and base, so that 15 pieces of iron money are made equal in value to hardly 10 pieces of copper money, while by the government the iron and ■ copper money is employed on a par. In consequence of this the law of the issue of receipts for salt (on the part of the government) shall surely . become a dead letter in the long run '). Though there is small iron money extant in the province of Ho-tung , yet the number of pieces is very little. Only in the province " of Ho-pek no money has. been oast as yet, now your servant and others (likewise) have been told thai some- body whose advice was asked, had said that, iron money might be cast for those three provinces together , and that the districts where this 1) Because the government in the pay- ment of these bills gives copper and iron money at the same ratio, and the people, Vhen paid in iton,' will consequently lose B0°/o. For this reason they will further- more refuse to accept the salt receipts which may expose them to such a considerable loss. U1 money was to circulate and be employed should be only the provinces situated along the extreme frontiers. The ready copper money circulating on these extreme frontiers should be entirely exchanged for iron money. (This copper money) was then to 'be conveyed with boats to the adjacent interior provinces, and if that advice was taken, the miserable condition in which (the medium of exchange) is at present, would soon be at an end, without having directly forbidden the export of money abroad. n )i "^ X m m ^ "f- m ^t z,m }^ ^.m m.M m m m - m ^oir ^ m m u B u ^ m m.^M s b* - w # M m z ^.tL m ^ i\^ % m m u m mM m m f& M^ m m^ m m ^t m^^ m :\^ot u fs - ik ]iX z m ^ m ^ ^ ^ n ^oS-.i^ ^o^ ra.ffo m. MoM mM.'B, % ^ m urn ja The functionaries stated that north of the Kiang the relative worth was such that 1 piece of copper money was equal to 4 pieces of iron money. This was put a stop to, Since the period Kien-tao (H65 — 74) the copper money circulating north of the river was then already entirely exchanged for iron money ;. or 1 string of copper money was exchanged for one . Hoei-tsze '') of 1 string. The thus collected copper money was sent to the provinces where it was still circulating, and in the districts of Kien-kang and Tsin-kiang ^) , and the other districts and encamp- ments situated on the river, in. custom-house offices, at ferries and boat-stations , the officials charged with this (duty) exercised a strict control. Moreover, both north and south of the Kiang state- offices were established where one sort of money might be exchanged for the other. Generally, when private persons sailing along the river, went from one bank to the other, and when they passed through the districts situated on the extreme frontiers, the passage and outflow (lit. the oozing through) of copper money was checked by severe measures. What is further, recorded as to the relative value and the use of money of the two metals we find inserted in the chapter on paper money, but upon the whole it is so short of interest that, #.-™ fu) and tsin-Ucmg-fu are both situated south -f' Hoei-tsze bond, is the of the r«Mjj-tee-*iaffl^ ll6° and 117" east of name of a credit note. Cf. Chap. VI. p. 186. Paris. The Tang-tsze-Hang thus was the 2) Kien-Hng (ancient name of Kiang-niag- line of demarcation of copper and iron money. 148 though not entirely solved, we may easily conclude to have come at the end of the question. The Chinese saying: "If a man's fate is to have only eight-tenths of -a pint of rice, though he traverse the empire all over, he cannot get a fall pint," is perfectly applicable to the Chinese government of that time. In speaking of the disadvantages of the double standard we have said that the influence of the free market, the greatest' drawback of the bi- metallic system in the present time, was of very little importance for the China of those days. Independently, however, of the existence of the double or single standard the export of money to the Barbari- ans was, especially in the latter part of the 11*^ century, enormous. Their perpetual wars and constant intercourse with the Chinese had taught the Tartar tribes to appreciate the use of money, and as they did not make it for themselves, it ,was natural that they tried to get it from their neighbors who, in spite of the. severest prohibitions instituted by the government, always found means to supply them with the quantities of money they required. We have already seen it from the passage quoted on page 145 , [Matw. IX 14a] which, though not very clear, is wholly ex- plained by the following little fragment which is appended to the report on the paper money of the Tartars [Matw. IX 28a]. rh ^& Jh ^ »Vg'i\r=:. In the period Tl< en-yew (1086 — 94) when ni ^ m ^ S cu. ^^'^S'-P^'^S'O the envoyreturned from the ffl m"o^ ^o^ Im iiao-Tartars, he also states in th« report ^ 'F^ ^iJ ^ ^ ffl °^ ^^^ doings , that at the Northern fron- ^ ^ "tiers there is especially a want of "ZT fu ?S» W IhJ ^M money and that only tlie old money of the Middle Kingdom is in use there. 11 Tlttpi-nvv n.m. nf ^^ ±*fr c. I '«« who lived 1039—1112. Cf. Mayers I. 1) Littciary nanje of |^ |K Su- | 524 and above, page 145, 149 If we consider how in our times, now the gold standard has been more generally adopted in Europe, the Asiatic countries have become the mai-ket for the superfluous silver, it will be easy to understand, how, in the times mentioned, the comparatively small amount of money flowed to the western countries where it was greedily sought after. If the process by which the money was made had been better, and if the Chinese had known the art of striking money, the same circumstances which now proved to be fatal to the country might have been attended with the greatest benefits ; but from the different minute informations given by Ma-twan-lin, it appears that the making of money was a troublesome and laborious work, every little piece being cast separately. The way in which the copper mines were worked was moreover far from perfect. According to a statement given by Ma-twan-lin in particulars [IX 126 — 14o] it appears that about the middle of the 11*^ cen- tury more than SVa million string of money were fabricated a year in the whole empire; of these about 900.000 were iron money. By this proportion between copper and iron it ought not to be forgotten that moreover the quantity of money, and especially of the cheaper iron, which was thrown into the market by the false coiners, must have been enormous. A second statenient of about the year 11 .0 shows that since that time, however, less money, only 4 million string, was cast in the. empire [Mat. IX 206— 21a.J Owing to the war the foundaries in the Western provinces had produced hardly any money, and accordingly they had been shut up for a while, for, though they had no work to do, the great number of officials retained their offices, and for this reason the 150 cosl of fabrication was so heavy that the government paid 2400 cash for the fabrication of one string of 1000 cash. Another reason why there was less money circnlating, though not stated, must have been the gradually increasing issue of paper money, About the close of the 11*'' century two measures were taken which in our eyes deserve high praise, but which, applied to Chinese society, proved to work in an opposite direction. These measures introduced- by the learned but too theoretical prime- minister Wang-ngan-U ^ ^ ^ were: 1°. The system known as ^ ■^ , the state-advances for tha cultivation of fields , given to such people as were too poor to defray the necessary outlays. 2°. The suspension of all restrictions on the export of money abroad. Ma-twan-lin only_ notices these subjects in passing, and in such terms that it is- evident he attacks not .the system but the man. And indeed a man who abolished the time-honored institutions of his country, introduced all sorts of novelties, and taught his countrymen new-fangled ideas, such, a man was a monster in the eyes of the true-born Chinese '). To show the real worth and honorable intentions of the min- ister we shall, besides quoting those allusions to this subject scattered about our chronicle, communicate to our readers what we have found elsewhere rega,rding this system of state-advances. DE MA.ILLA. toDie VIII p. 266, says that the minister Wang- ngan-si proposed this plan to the Emperor in order ■ to meet the wants of the people, and also to take care in the interest of the state that no fields should remain uncultivated. In the 'capital a central office should be established, from which agents should 1) The same Wcimg-ngan4i tried to in- I ment. Mayers I. 807, troduoe a system of universal militia enrol- '' 151 be sent into the several provinces, who in spring-time advanced to people vrho were too poor, the seed which, taken from the state-granaries; was to be returned in autumn with a certain gain proportionate to the harvest. This means would produce that all the field suitable for cultivation yielding their fruits, there would be abundance of food among the people while the wealth of the state would be increased by it. Of this plan so excellent of itself, MAYERS says: I. 807. "Whatever benefit might have accrued to the agricultural classes from the system of government loans, was wholly neutralised through the rapacity and villany of the underlings and satelhtes into whose hands the disbursements of the advances and the collection of interest lapsed, distress and impoverishment taking the place' of the expected advantages to the people, whilst on the part of the state vast sums were irie- vocably lost." In consequence of this after having been displaced by another, that unlucky minister saw after a short time his whole system condemned and rejected. Maters says of him: During his life he shone, On the con- fession of his most vigorous opponents, -as a celebrated scholar, and as a man who by the brilliancy of his genius blinded his faults. ^ The first of the fragments alluding to the system of Wang- ngan-U is part of a speech delivered by Tfang-fang-ping *) , in which he says that the quantity of money in the empire is in- sufficient for the wants of the people land points out the several causes which have occasioned ,this want. [Matw. IX 10&]. . 1) The same official that was a member of the committee which adviced the gov- ernment as to the measures to he taken in order to avoid the dangers resulting from the use. of a double standard. Cf. page.140. 152 w mM m :7n ^ ^ # n ss .^ ^ ft X ^ 4 ^ Z ^ lit y'^ ^0 ^.3l ■^ ^ Now they received, (it is trtie) on behalf of the government-service'), (a sum of) more than 75.300 string in money, and the 83.600 string lent as advances for the cultivation of land, yielded a sum of more than 16.600 , compound interest , but of all this no more than 3000 string was received yearly. The restrictions on the export of copper abroad, and the laws on the selling of copper were also suspended , so that it is spread abroad to the Barbarians , , while at home they connive at its being car- ried to the foundaries and being broken. While the coining of money has its limits the destruction and diffusion is unlimited , and the result is that the money is no more to be had. The second fragment reads as follows: z^-^ w m z r^ ,Wr -B W ^ ^ ^ X Since Wang-ngan-si had the 3E ^ 5 in ^ ^m 1^ ^ m reins of government in his hands, he began by suspending the restrictions on the melting of copper. Now vUlains melted the money daily to make tools' of it. And when the export of copper along the stations of the custom-house officers on the frontiers , and in vessels across the sea was not controlled ^) any more , the money wanted for the use of the country diminished greatly. Likewise the method of supporting by state advances for the cultivation of land , demanded much money. Of all this the result was that among the people there was. a great want of money. Hence it is explained what (Ts'angr-) fang-ping said at the end of his speech. Tlie third allusion we find in the beginning of Ma-twan-lin's 1) >^ the government service; >f^ ^S money on behalf of the government service. 2) ^m means to hlame, to reprove. I have, however, taken it here in the mean- ing of ^^ ^g to examine, to inspect. w # M Mi m z jS C jW\ 153 • VIII Volume, in his own criticism on the transactions of the Ts«M-dynasty , and the way in which they had regulated the in- terests of the state advances , in those times supplied by the ^ jj^ , (the collector of taxes) to the people for sacrifices and mourning. ■fe^ & ^ •fi* -fi -f^ 1^ ^"^^^ ^'"■''^9-kie-fu (nom de ffs M> M m f^ M S plume of Wang-nan-si), esti- ^X j^ ~c. ICu ^ M\ 3E '"^ted the total sum of interest ii ^B. ~fT -^ ^ ™ proportion to the wants of the ASi ptx I o <^ j\ country, when he committed the Z ^ o ro is 'o W ^^°^ io introduce the method of ^ nl* :j^ iJ^ 'Hr state-advances into China, and of ASt o i4>c TSt. 1 J r± tiiose of the commentaries of sub- ®C W '^ ^ H sequent scholars who treat of it, •^ IM ^ I^ ■&■ B6 some say that he made accrue int- ^m li^ M <. m m erest on interest, others that he did not take compound interest (lit. that he let rest interest on interest). However as regards propriety all this is not as it should be. Finally we have given a single fragment discussing the second measure of the unhappy minister: the suspension of all restric- tions on the export of money. [Matw. IX 14a]. ^ ^ m ^ m m^m m m ^ w M w a«w ffi ^& ^ M ^o-b m z m m ^ ^\^ m m ^ m ^.m ^.m ^ M ^.m « ffi itfc tij g n m m is. m m \i\M m m Somebody who made a communication on this head ^) said that since the 7tt year of the period Hi-ning (1075), when the restrictions on the export of money were entirely suspended, in consequence of these measures, heavily loaded wagons passed the frontiers through the passes, and sea-vessels heavily freighted sailed out. In the districts and en- campments situated along the frontiers the money went abroad. Only a certain tax was levied there on every string and that was all. This resulted from the fact that the medium of exchange of the Middle King- dom was generally in use among the Barbarians. When the time will have coihe that Western civilisation has penetrated into China and the sons of "the Empire under Heaven" 1) ift = ^ . 2) lit. The speaker said. 154 read Wang-ngan-si's History in the light of the science of Poli- tical Economy, the impartial critic shall appreciate the good principles of the rejected system, and say after a Chinese sage: "The prescription was good but the medicine bad." Vast supplies of money were continually wanted. The war devoured treasures and the paper money which for a time had supplied the insatiable demands, began to lose its credit. In addition to this therfe were the export abroad of coined bullion, and the influence of the false coiners; for China too was to obey the economical law that as soon as the quality of the 'money becomes bad, the quantity must be increased to restore the balance and to meet the demand for the requisite quan- tity of currency. Reading the history of the second part of the 12*'^ century we might fancy to have got back to the days of , the T^ang-djnasiy: — decrees were issued prohibiting the pos- session of more than a certain amount of copper; monasteries and temples were despoiled of their treasures , and that good examples might not be wanting, the emperor himself ordered the ofScers of his court to take 1500 different objects made of cop- per from. the imperial treasury, and to sacrifice them on the altar of the country. These measures enriched the country with 2.000.000 pounds of copper. i^ S H^ & Bfl ^ "^^ ^^ consider these facts, [says Matw. !*; IX 21a], "we see here the same (excess) J^ fnJ Vm 1^ r/f 1m^ ^s under the reign of the T'angi-dynasty if-l/ ^ -Jg >^ 4=f- gn in the time of the period Yuen-Zio (806 — ■ \9x ° I ht> ° I*-' ^'^^'" ^^^ *^i^ '^^ ^^^ result of this TJC HE wh ^ ^ /a that among the people money was scarce , ■^ te ^ fSJ M. -^ and consequently could not circulate, and T=r /^ eft -T*" » -«• ^^'^ ^^ expenses of the government were -"t o ^^ o ^ •Hr' yX ^hJ heavy , while it had not the power to increase the fabrication of money. For that reason they passed to such extreme measures. 155 The further informations are devoid of interest. The govern- ment continued to cast pieces of 2 cash and to tak6 care as much as possible that the money remained in the country , hut no law could stop the outflow, and the cunning merchants knew how to keep up their prosperous, though illegal, trade. Ma-twan-lin's last fragment i) dates from the year 1210, the third year of the period Kia-ting under the reign of the emperor Ning-tsung. At that time money was cast, which had a metallic worth of 3 and a nominal value of 5 cash. ■ Then there was a councilor who feared that this profit en- joyed by the government would cause a great increase in the number of false coiners , and that consequently the value of prom- issory notes would fall. Another councilor, however, was of opinion that it was highly desirable to make the money light; for though this might not act as a check on false coining, the promissory notes must necessarily get a higher value , because as soon as the money. was bad, these notes would be in great demand, and consequently rise in value. Our clever economist, however, forgot that those notes, exchangeable for that debased money, must needs get lower in value at the same time. We conclude this chapter with a critical view of the learned Tung-lai of the family-name of Liu, as read at the end of the IX*'' volume of Ma-twan-lin 2). • In the part not quoted, he' tells us how, in the beginning of the ;SM«^-dynasty , they had adhered to the right principle of 1) We omit the part referring to the A\ 2Ii. ^^ the little peace-money, which afterwards was instituted, and circu- lated for a long time. It seems to have been good, but. nothing interesting is com- municated beyond its institution. 3) The subsequent part of the essay of which the beginning is quoted page 13 ssq. 156 casting money of a qnality as good as that of the Kai-yuen money in the times of the 2"a?j^-dynaaty. But when the continuous wars drained the resources of the country, so that the scarcity of money became very great, those good principles were lost sight of. He then proceeds as follows. ^o^ ^ m %\\ ^o^^ -0 ^ ^o^s pt # ^ ^ ^ m.z M ^^ m M \>x -k mM m % ^^ r^ iK zm mm m ^im m m w\ Mij B m ^=4^ A m m m m m ^.^i m m m m ± .^ r^ ^ z m w m m m m ^ m m 1^ m ^.m % n ^ :^ ffi ^ IS ^ ^ fij.^,* \^J ^M ^ m m.x..m ±.il ^ # ^ IS: ^ :^ Afterwards the money though abundant in quantity, got very thin and bad and (consequently) unfit for use. At that time (the government) only stri ved after obtaining much m oney, but the fundamental rules (lit. the highest rules of propriety) were not thought of. The reason why the state has insti- tuted money was to measure the beginning and the end of light and heavy (of weight), and it did not occur that they took profit out of it as long as they (really) considered -it as a precious object. But those who reckoned the coins so that they were not pure , only thought that when- ever that which was gained in-coining was much, profit was made. But surely, they did not understand the importance thereof that the money came back again in the possession of its full value (lit. just and excellent). What is .gained in the fabrication of money, however much it may be, is only a slight profit in comparison to the great profit that it comes back (to the government) still in the possession of its full value. The theory of Kung-1 of Nan-tsi regarding the casting of money is , that it is not allowed to be sparing of the copper or to grudge the workmanship, for as soon as the copper is not spared, the casting of money is without profit, and if no profit is to be made, the false coiners do not eare to arise, this again is the reason that the money comes back in its full value as it was cast, when it is withdrawn as well as when it is issued again , and that it does not answer to an inferior 157 m m m ^ t m t^ \ ^ z in 1m z X, ^ n ^ 7^ tifi ifj ^ ^ W ^^ m Z : 3£ 7^ ± z A ^ m ^ B ^U :J^ ^ ^ >^ :^ ^ ?L w. m m 7^ Ha m z 4^ K ^ z. Ml ^h m. n T la: part (of the whole). Now this is the greater profit (of the two). If, on the contrary only the smaller profit is aimed at, the money becomes at once light and bad, and if this is so, rascals try. to imitate it, and everybody is able to do this, because the principle is neglected' to make it pure and of its full value ; the supposed profit spreads (now) in every direction , and so by (the pursuit of) a smaller profit the greater is lo.st. This is what Kung-I of Nan-tsi has said and. it is a theory which admits of no change ^). Various persons have since because the money was bad, constructed theories in" which there is neither rhyme nor reason '). Some thought that the remedy lay in this that a law should be enacted to stop the bad money; others were of opinion that, as money was about the same as the produce of the soil, the objects of which it consisted might not be of the same sort at all time. But all these theorists have not tried to comprehend what the origin and reason (of the institution of the money) has been, nor have they been able to understand the object of it, and that this would have been the greater profit of the government, when they' who were at the head of the affairs had not been sparing of the copper and had not grudged the workmanship , and by this had caused that false colliers could make no profit. If we consider in particulars the regulations according to which (in different times) money is made, perhaps those regulating the 5tsu pieces 1) The profit is toUow. and is spread in -the four (directions). 2) Kimg-I of Nan-tsi is obviously the same as Kiing-Kai whose speech is treated of on page 79. The Chinese have frequently different names. See mayers. Introduction to "the Chinese reader's Manual". 3,1 ^Q' I confused, disorderly. 4) j& H properly a list of the ar- ticles. 158 ^M m ^ z z n % m z r^ n w ^ ,4. ^ ^ ^ m Wi ^ ;j^ ^;f ^ :^ M M pk Z Z % MoZ it. ^ m n J^ ^B ^ to ^>c # 36' < lit j^ Ti: lit /It IE ;i ^ :! rlr Fjf n 5^= Jii ^ i^ #oM : of the Tseu, T'sin, and Jian-dynasty, and those regulating the Zai-yweM pieces of the r'angf-dynasty , may serve as examples, as these sorts have had the real (value) of money. If we mark the money made for a certain time, as when Liu-pei cast the great currency in order to meet the want of a medium of exchange for the army and in the market i) , or when Ti-wu-ki caused the Kien-yuen coins to be cast^), these sorts were equivalents for money (i. e. tokens). When Wu-ti of the Ban-dynasty made a medium of exchange of white deerskins, and W-ang-mang . of tortoise shell and cowries , these were the wood-worms of the money '). At a time when they saw that there was a great abundance of money, some wished to have the money abolished, others, when seeing the great scarcity of the medium of exchange continually wished more money to be cast. All these theories were erroneous and wrong, and only prevailed for a certain time , and may not be applied as a general rule. At present (also) the theories of profit and loss are very common, and the profit and utility of the money consist in the exchange effected by it. If we penetrate to the foundation in arguing (on the value and meaning of money, we arrive at the conclusion) that money is an object that in a time of famine cannot feed (us), in a time of cold cannot clothe us, but coming to the service of all occupations, all sorts of precious things may be procured by it. Hence it may not be bad! If this is so, although the vitality of the earth is ^pent to the 1) Im-^ei 230 -A. D. the first emperor of the kingdom of So during the division of the Emirire. Cf. p. 62. 2) Ti-mi-ki, a prime-minister under the Z"«j;^-"dynasty, 738 A. Q. Cf; p. 115. 3) By this expression he prohaMy means that these sorts of money would increase as rapidly as woodworms propagate. Cf. p. 137 were the same expression occurs. 15f> * z a PH ^ ^ z lit III t:^ ^. 1^ m. ^r -A^ z w, nL^ last , there is still a surplus of grain and silk , and what is hoarded in mountains and in moors, all this gets its importance (lit. profit.) Though money is scarce, provided it have its full value, the fact that the real and nominal value are on a par, is the profit of the govern- ment. This is also the theory advanced by Kung-I. . It' is a necessity' and a duty always to strive after the old and just, and if one knows to manage the money in such a way , • that it is an equivalent for- a real value , then matters wUl go right '). I) ^^ ^[ >^ The terseness of this phrase renders it almost unintelligible to one who is no Chinese. *M signifies here the exact connterbalancing , the- precise ratio between the nominal and real value of money. PAPER MONEY OF THE SUNG-DYNASTY. ORIGIN AND DENOMINATIONS. PKIVATB BANK IN SSE-lJ'UBN, ITS INSOLVENCT AND INSTITUTION OF A GOTEENMENT-BANK. — WAT OF ISSUE OF BILLS OF EXCHANGE BY THE STATE. — EECEIPTS FOK QOTEENMBNT PRODUCTIONS USED AS MONET. — RESEEVE FUNDS. — TJEEMS OF REDEMPTION. — HISTORT OF THE BILLS OF EXCHANGE, AND BILLS OP CREDIT. THE SOUTHERN SUNG-DTNASTIE. BILLS OF THE PROVINCE OF SSE-TS'UEN. — HOEI-G>0^0^«— A history of the development of the Chinese people compared with that of other nations , ancient . and modern , ■ which have existed and still exist in all parts of the world , would be an int- eresting subject indeed. A great many points of comparison and resemblance would be found in the course of the development of the human mind , which in the history of those different nations have ultimately led to the same results. And as the Chinese people existed and had already a his- tory before that of other peoples commenced, and the Chinese people has continued to exist, and its history uninteruptedly goes on from age to age, when that of other peoples ceases and disappears, these points of comparison, only slightly modified, present themselves 161 to us over and over again. But for the very reason that the Chinese people at one time had the start of all other peoples in civilization, we find such ideas and institutions as are only' the fruits of a rather high stage of intellectual development, with the Chinese generally earlier than elsewhere. So also with the history of the rise, the progress, and decline of paper money; for the Chinese had already suffered all the misery arising from an overissued and depre- . ciated paper currency when it was hailed in Europe as the inven- tion of the philosopher's stone for which had been sought so long. At what time we are to fix the first appearance of paper money , or rather of a representative currency is difficult to say. The white dear-skin parcels of Han-wu-ti were a similar kind of money, and in treating of them (See page 39) we have seen that the Chinese chronicle already refers to the • circulation of a similar currency in olden times, about which history is silent, at least as far as Ma-twan-lin . records it. A little work on Chinese money begins its account of the j^ ^ lit. bills made of the bark of the lij ^ 'fQ ^ mulberry-tree, with this information: "Pe- ^^ "^ 1^ ^ ^*"S' ' ^ij^ister of Hien-yiien , began to make pa- ^ o ^ -^^ ■ E P®*^ money of silk shreds." Hien-yuen is one of the names of the emperor Hoang-ti, the third emperor of China . mentioned in history, who is said to have reigned about 2697 B. C. Such vague reports are of course of no value whatever. The first trustworthy appearance of paper money we have in the reign of the T'an^-dynasty (See page 120) but, even then, we do not perceive the least method or systematic development in the institution. Not until the reign of th,e (Swfi^-dynasty we see this system 11 162 fully developed, bat what originally was a blessing bestowed on China became a "bane of bliss and source of woe" by the stupi- dity and cupidity of the government. Before treating of this institution, it will perhaps be well to mention the different denominations with which fhe Chinese have tried to express their notions of the now well-known and current technical terms: credit, assignment, paper, bond, bill of exchange, reserve-funds, time of redemption, etc. 1°. Flying money ^ ^^fei-tsien (See page 120) was the simple and natural denomination assigned to it, when the Chinese began to appreciate the great advantage that it was not heavy like the strings of copper and iron casJi. It is remarkable that about the same idea suggested itself to abam smith when he wished to give his readers a notion of paper money, where he speaks of "commerce and industry, as it were, suspended upon the Daedalian wings of paper money ')." But the Chinese idea exactly tallies with that expressed in goethe's Faust where Mephistopheles plays the trick upon the emperor to give him a paper currency, and the- Marshal apprising the emperor of the effects of the new institution says: 1) Adam smith compares the metallic and the paper money to two ways, one of which is a highway on the sarface of the earth, the other a way through the air. The few lines which contain his metaphor follow here, to show that SMITH even in his allegorical comparison was much more practical as to the con- ception of the diiference between coin and paper money than our Chinese au- thors. See Wealth of Nations B. II. Chap. II. Edition of m'cullooh , page 141. "The gold and silver money which circu- "lates in any country may very properly "be compared to a highway, which, while "it circulates and carries to market all the "grass and corn of the country, produces "itself not a single pile of either. The ju- "dicious operations of banking, by providing, ''if I may be allowed so violent a meta- "phor, a sort of waggon-way through the "air, einable the country to convert, as it "were, a great part of its highways into "good pastures and cornfields, and thereby "to increase very considerably the annual "produce of its lands and labour. The "commerce aiid industry of the country, "however, it must be acknowledged, though "they may be somewhat augmented, cannot "be altogether so secure, when, they are "thus, as it were, suspended upon de Dae- "dalian wings of paper money, as when "they travel about upon the solid ground "of gold and silver." 163 Unmoglich war's die FLtJCHTiGEN einzufassen; Mit Blitzeswink zerstreute aich's im Lauf. 2°. Convenient money 'j^ ^ pien-tsien y was another denomi- nation which we meet with in the very first fragments referring to paper money. But more remarkable than these are two other denominations which arose not until the institution had reached a higher stage of development, and which were intended to express the thought of the Chinese at the sight and use of such a simple shred of paper circulating . as money. They are V ^51 isien-yin, 2° ^^ tsHng-t''i. 1° ^8 m tsien-yin is the term the Chinese use to express their notion of credit; ^| yin properly signifies the bending of a bow, the stretching of the string. If we hold to this primary signification ,- it is clear how the Chinese have come by the secondary meaning, as it is in fact a stretching of money, money which becomes money only after a certain lapse of time, when the string is let loose; thus credit. The simile could not be chosen better; Very exactly it describes the suspension which is created by credit, and which does not terminate before payment takes place, or, to make use of the same figure, when the string is let loose. The (ob-)ligare and the solvere of the Roman civil- ians was a similar figure. Biot in loco ') has taken this word in another meaning when he speaks of ^^ ^j signifying Jntroduction de monnaie mStalUqve. It is true that, as all dic- tionaries tell us, the character ^| means also introduction, but this too is already a secondary signification of the cha- racter, as the bending of the bow is thfs introductory 1) Journal Asiatique. Sept, 1837, p. 229. 164 act to shooting. Besides, what would be the meaning of In- troduction de monnaie mdtallique in the institution of paper money which is the very opposite of me bailie money? Perhaps the history of the Austrian Metallicken ran in the mind of the learned au- thor when he wrote that explanation. Henceforth , in the translation of our Chinese text, I shall render the character by the term bill of credit, as it commonly occurs in the. meaning of the bill which is the bearer, of the debt; as for instance in j\\ ^| t¥uen-yin, meaning (bill of) credit of the province of Sse-is'uen. 2°. Still more peculiar is the second term 7^ :^ tsHng-ti by which the meaning of promissory note is designated, and by which the nature of paper money is so perfectly expressed. The character ^S means corresponding to, counterbalancing, weighing against; i^ signifies to carry or hold in the hand, and also to bring forward. The two characters combined mean therefore to counterbalance a real possession. The first time Ma-twan-lin uses the expression (IX 25a). it serves to explain the nature of the receipts issued by the state for government pro- ductions "These receipts," says the author, "could unobservedly help ^ (^ Pff • (to supply the deficit in the state finances) as they •^ Ji& )^ counterbalanced the actual possession" (of those articles yearly stored up by the state). But the same combined expression occurs further as a noun which is either subject or object of a sentence; for instance in Ma-twan- lin, IX 29a, where we read ^ ^ >^ H^ "in consequence of (the' bills) weighing against a real possession they lost their office," and a little earlier fRj M ?Bi .ffl IS ^ ^ > "and the making use of false (bills) weighing against a real pos- session was severely punished. The real meaning of that com- 165 pound expression is the assignats of government money or gOTernment productions, and we may safely translate it by assignments, checks, or promissory notes. Eight or nine passages have I found in Ma-twan-lin, where this word is em- ployed, but to avoid needless repetitions they will further be treated of when they occur in our chronicle. For the bit of paper itself (a meaning not conveyed by the charac- ters above treated of) there exist several terms which are employed alternately. Of most frequent occurrence are : 1°. ■^ tsao, a combina- tion of the radical ^ kin metal and the phonetic element ^ sao , scarce, which according to the explanation given by Klaproth in "ie • Journal Asiatique," (1822) would mean manque du mdtal {monnayi). 2°. j^ tsii which is the name of the Broussonetia-papyrifera '), and refers to the material, of which the bill was manufactured , a fibrous substance forming the inner coat of the bark of the Broussonetia. 3°. 1% pal 4*. ^ p'iao. 5°. ^ m. 6°. ^ kmen. 7°. ^ Men. 8". |Jl|^ t'ie, etc., all of which have the signification of tablet, billet, document, slip of paper, card, etc. They occur alone or in combination of other terms which make the meaning still clearer, and most of them will often be met with in the sequel of this chapter. Lastly , there are three more words used interchangeably for diffe- rent varieties of paper money, and in this case we are fortunate enough to have in English equivalent terms of the same chara- teristic meaning. They are the words ^ -^ '^) Kiao-tsze, bills of exchange; '^ -^ Hoei-tsze, agreements, bonds; and ffl -^ Kwan-isze, frontier-bills, ' which last were a sort Ewa-wi p. 7-7. 3) -+" is often added to names of things, 1) See HOTFMANN et sohultes, "Noms indighies d'un cfioix de plantes du Japan, etdela Chine," n". 94. thuneerg, "Flora Japotiica," page 72—77. savatier, Livres as a formatire of a noun. 166 of promissory notes used in the armies encamped on the wes- tern frontiers of the Empire , and with which the caterers for the army were paid. The government, as it said, made use of these receipts , in order to prevent the enemy from taking posses- sion of the metallic money in case the camp might be plundered. The true reason why those frontier-bills were frequently em- ployed was, as history informs us, because this was the easiest way for the government to pay its debts contracted in behalf of the army. In Plutarch's Life of Lycurgus we read: "He (Lycurgus) first , abolished all gold and silver currencj, and orderfed to make use of a single iron money, and to this he gave a great Weight and dimension , together with a slight intrinsic value , so that the equi- valent of ten minas required a large depository in a dwelling, and a- yoke of oxen to transport it i)." It is very doubtful whether this part of Lycurgus' reform was really beneficial to the Spartans, and whether they- would not have soon made an end of it, if their attention had not been entirely absorbed by warfare and public meals. — In the wes- tern part of China where nature and circumstances had blessed the inhabitants with no less inconvenient a currency than the Spartans received from their legislator, the people were cunning enough to substitute the sroAAou a-TOiS/ioiJ xa) oL I W ^ W 7lco# ® i& A # * It - m -t m m ^ ftoM r^ft n nio in order to receive the bills in return for it. Furthermore an order was sent into all the provinces that generally as soon as the travelling- bills') of the merchants arrived , they should iinmediately be accepted and transferred, and that no stop might be put to them. He who was disobedient to this order should be punished with a fine. Since that time they were neither stopped nor refused. At the end of the period Tsi-tao (995—998) the quantity of "money convenient to the rnerchant" amounted to 1.700.000 string, and at the close of the period T'ien-hi (1017 — 1022) in consequence of a continual extension, this was increased by an amount of 1.130.000 string. All these, however, were vague reports, and of a regular system there was no question as yet. Ma-twan-lin seems even to have quite lost sight of the paper money , as after these three fragments he devotes many pages exclusively to the metallic money. Sud- denly [Matw. IX 1 86] he begins a new chapter , entitled ^ -^ - Bills of exchange, in which all informations on the issue of thos'e hills from 1021 to the beginning of the next century are suc- cessively communicated, though without the least comment. We have given the whole of it with a verbal rendering, but to the better understanding of some allusions and expressions a few introduc- tory words will be necessary. Before the bills of exchange were brought in circulation, the Chinese seem to have had another sort of paper currency, in some 4) ^^ ^S S I Have translated by the travelling bills arrived. ^K" means to prepare things for a journey, but also, to offer, to send. Hence it might also be translated by: when the bills pre: sented by the merchants arrived. 170 respects resembling our dock- warrants and bills of lading, bills conferring authority to receive a certain aniount of government products, as salt, alum, tea, iron, etc. These were transferred from hand to hand hke. money, and had great credit with the people, as the lands and manufactories belonging to the state yielded a large quantity of productions; especially in the encampments where that last sort of bills was made use of to pay the purveyors who in their turn transferred them to their creditors. And so they circulated till at last they fell into the hands of a merchant who was in want of the articles the bills authorized him to re- ceive, and consequently realized them at the government granaries'). When, however, besides these produce-receipts, there came other bills which could be exchanged for real money, and which did represent not only a certain sum and often a fractional sum as the produce receipts, but were to be had of any amount and for even sums , they were generally preferred when payments were made, and it was not long before merchants and traders refused to accept the produce-receipts and compelled the government . to shut in some . encampments the offices for the issue of these notes. We read however that, in the, time when the paper money was depreciated, those offices were opened again. In the second place I wish to notice the way in which the pay- ment of bills was guaranted by the government, and something about the tim'e at which they were redeemed. The principle, that a bill should be convertible at any time , the Chinese have never known , and from the beginning we see that only at prescribed inter- vals the bills could be exchanged for specie, A term of three years was 1) An allusion to this we iind already in the seoond of our fragments referring to paper money (See page 168). From some vague allusions it also appears that the government discounted those bills and paid them in money, at places where no com- modities were stored up. Cf. for instance p. 146 note 1. 171 generally adopted. So the first series of bills of exchange was emitted to circulate for a period of 65 ye'ars; every three years there would be a fixed time at which the holders could demand specie payment for their bills. The fund which in the first time of the issue of bills seems really to have . been deposited at a ratio of '/? of the amount of the bills then issued, was Tery characteristically called ^^ ^^ pun-tsien lit. basis or fundamental-money, capital. Surprising it is that Ma-twan-lin does not give the least in- formation on these triennial times of redemption, but supposes his readers to be acquainted with the term J^ employed by the Chinese for time of payment due, which frequently occurs in the fragments he borrows from the annals and chronicles. This forms an additional difficulty in Ma-twan-lin's text, and though by comparing the several passages all doubt is soon solved, yet I have thought it desirable to give the explanation as it is found in the Chinese encyclopedia M ^^ ^- Vol. 35 pag. 216, where we read the following phrase , after the origin of the paper money has been explained. "Thereupon they instituted the H j^ ^ ^ ^ ^=^ law of checks, every bill of ex- I ■ ^ ^ ;>' /^ • M: <5li™g^ '^^^ of °^® string, every • "^ " "^ _ three , years there was a time of — •■ _/^ ^ 5(3 ^ml ^ BX falling due in order to pay them m -4- EE T^ . ■ @)| ^^''^ (convert, exchange them). Jf o T^ ,... )VT mi Beginning from the year 1011 S. ^ # ■# ^=#J')to the year 1076, thus during ^ ->• ->• jjc \*j -^65 years there were 23 terms "^ <- <- "" f^ <- (or intervals) =), It appears, however," that the people were so much in want 1) @|| ^A check, signifies the two halves of a written agreement or hond of which each contracting party retains one. K'ang-M says g)J #J ^ ij^ 2; A great difficulty in the text is occa- sioned by this that the word ri con- stantly occurs in the same fragments both in it's primary and secondary nieaning. 172 of this "convenient money" tkat at the prescribed intervals hardly any bills were presented. The consequence was that the govern- ment became improvident, and the increasing wants of the army .induced it at last to use the reserve-fund deposited in the bank. This is evident when we compare Ma-twan-lin's fragments, and it also explains what follows the sentence just quoted from the Chinese Encyclopedia. "Though they were uncommonly con- venient, yet it happened (in 1076) that they could not be ex- changed." g| M ^^^ ^ ^ hI #o. The above information will be sufficient to understand the frag- ments bearing upon the issue of bills of exchange which now follow'). THE KIAO-TSZE OE BILLS OF EXCHANGE. ^ : m m M i^ ^ W -\^ :k 'S m ^lir^.Tt m ^ :r. m^^ W M t^ m.^ 5S: 1^^) Since the period THen-sing (1023-^1032) the Kiao-tsze were limited to a fixed amount of 1.250.340 string. When in the first year of the period Hi-ning (1068) there appeared for the first time forged (bills) , (it was enacted) that this offence should be punished according to the laws of the forgery of state seals. In the 2nd year (1069) it was ordered that in the district Lu-fseu^) a bank for the issue of Kiao-isze should be established, because in the province of Ho-tung the transfer of iron money to the government as well as to private persons involved so much trouble and cost. !)• Whenever Ma-twan-lin begins, a new, ■ fragment , the Chinese text will commence with a new line. 3) Here, fpr instance, §5 is used in its common signification of to limit. S) Lu-tseji is the same as Lu-ngan-fu prov. of Sen-d, So-tung. 173 floit ^oitb H # 1^ #,^ ^ H ^ 0j I® - a - JL it + Hfct — ' M U -^ M. — ' ^< ^ ^ :J^ fl w A ^0 ' •Sv Next year (1070) the officer, charged with the transport of grain, as- serted that in consequence of this law (by which bills of exchange were instituted) , alum and salt were not accepted ') , and that by this the state revenues and the estimate of the expenditure (lit. rations and forage) of the army were injured; he adviced to abolish them. In the 4th year (1071) they were again in circulation in the prov- ince of Sen-si , and in the encampment in the province of Yimg-hing 2) the bank for the issue of salt-receipts was suspended. Wen-yen-po had said that these receipts were not convenient, and shortly afterwards the decree (by which they 'were instituted) had been retracted. In the 5tli year (1072) the 22ud term of . redemption of the Kiao- tsze was come, and as there were a great many in circulation (to be converted) at the last interval ^) , an order was issued to make other Kiao-tsze of 25 terms to an amount of 1.250.000 string in order to honor with these the number of the still circulating bills of 23 terms. Since that time date the Kiao-tsze of two different terms of redemption. in the 9tli year (1076) the decree by which in. Sen-si the bills of ex- change had been instituted , was revoked again , because Simrkiung who was at that time appointed in the districts of Hi- en Ho-tseu (to col- lect) the treasures and profits (i. e. taxes), said that the merchants made prof- its by their trade at the expense of the government. Besides the value of the bills was already injured. 1) Salt and alum, i. e. salt and alum- receipts ; the'y were not So current as the bills of exchange.- •2) In Sse-fs'uen. 3) The 33rd term was the last of'the first series issued, see p. 171 4) (qB thhj is the name, under the i f5 ^ # ffl \^ # m m M pp + ^ ft - B m m M K ^ i^ IS PJ3 l H i exchange" into that of "Bank for the issue of bills of credit". Now he wished to adjust (i. e. to increase, to supply to a fixed quantum) the number of the- notes which were (already) emitted with bills of 43 terms, and when the old seals were made use of to bring them in circulation, the people would not be brought in doubt and anxiety, and then credit bills might be made anew. The emperor followed that advice. There came also an imperial order (relating) to the number (to be employed) in Sen-si and Ho-tung. The limit of the value of a bill of credit was from 5000— 7000 cash, but in Ts'ing-tu-fu (the value was so- reduced that) they had hardly a value of from 200 to 300 cash. Kio-'pu, an ofBcer for the transports, a short-sighted muddy-headed fel- low,, proposed as a judicious means of arranging this dangerous state (of affairs) to make it a .rule in circulation that when among the people business was transacted to an amount of 10.000 cash and more , it should be ordered that half this sum should be paid in money and the other half in credit bills. Speaking about it he said, that when the bills of credit were used together with the copper and iron money, it would be difficult to compare the increase or decrease of their value, and that when it was ordered by law that, what in the future would be Stipu- lated for in iron and copper money, should be paid partly in bills, they would have a value corresponding to that of meta,llic money. The advice given in this report was listened to. 1) ^h ^R" an excellent, clever (way;. iH . . . it is about the same as the immediately following expression jM 5^ regulator. — ^J ^B when not used as opposites, they mean sharp and injurious, formidahle, dangerous. 176 ra m m - 4» + Ji :toM m ^ n i^ >ci^ ^^ m.>^ :K^ ^m # ff i 1^0^ ^ W 4 3''H W ^ ^ ^ M II ^^')#. ^ ^il ^ ^ ^JoPT ^ It ^ ^ ^ — ^ot; M ffi It ^ ^ ffi ii It # zi gfi :5t ffi Ho- §1 ■ ft Ts'ang-Peu , a magistrate of the district of Wei-tsew communicated in' his report that of the credit bills , which originally had a value of 1 string , at present each bill ') had but a value of 100 cash (He thought how- ever) that as soon as it was certain that the officers would have no objection to accept, them , the minds of the people would no longer be suspicious , and that they might be transferred again from hand to hand in trade , and that the general circulation would increase , and raise the value to the legal rule (i, e.- to the original value of issue). He re- quested (the government) to set the example (of going in the right path), and from this time forward to invite the high and the low to accept them, by making henceforth no longer payment in ready money, but to pay entirely in bills of credit , or in the payment of ready money to charge a deduction of from 1 to 2 (tenth-parts) , with the purpose to make that, being considered profitable, they would be accepted and employed. Nobody, public or private person, would in that way be obliged to experience constraint or restriction ^). But it would be necessary strictly to control those persons who should thwart the plan and refuse to circulate the. bills. This advice was followed. Generally, when formerly the paper money of the first issue was made , the deposited capital of 360.000 string ^) had been fur- nished. But in consequence of the new bills and the, old ones circu- lating together, in the period Ta-kwan (1107), no reserve-fund had been deposited, and the coining of new bills increased beyond all limits , 1) ^^ ^^ eaoi piecite. jg^ is a classifier of written documents, papers and dispatches. 2) ijij — M( lit. to press down with the hand , and to rein in , hoth horrowed from the taming of a horse. 3) This deposit is somewhat above 8/7 of the amoutit of the bills-issued in that time. Cf. p. 172. ■ 177 -&=M n m m m m m n m.m m iikzmmmmmmi^M-\^- till at last a bill of credit of a string of 1000 was worth but 10 cash. The bills of credit circulated during the period of Ts'ung-ning (1102 — 1107) in the districts east and west of the capital, in HoaUnan, and in the imperial residence. Only in Fu-kien, Kiang-tle and Hu-kwang they did not circulate. Ts'ao-ting is of opinion that they did not circulate in Fu-kien because that province was the birth-place of (the prime minister) Tsai-king '). From the fragments in -Ma-twan-lin's "Examination," which in- form us about the southern branch of the iSMn^-dynasty, it appears that especially under the emperor Kao-tsung 1127 — 1163 the issue of paper money was expanded in the most reckless manner, and that in this way the foundation was laid of the wretched condition to which the state finances were reduced at the close of the (Swn^-dynasty, a condition only to be compared with that of i'rance when the blow had fallen and the full light shone upon the ruins caused by the splended but destructiye fire-works of JOHN LAW. A short historical introduction will be necessary to understand the monetary history of that time. Up to this time the Tartars had incessantly harassed the Chinese, but after the consolidation of the Empire under the T'aw^-dynasty they had not been able to do much harm. In the beginning of the 12*^ century, how- ever, having taken advantage of the confusion of Qhina, they had come pouring in from the northern regions. About the years 1125 — 27 1) Tsai-king was a prime minister of the i unadvised way of administering the govern- emperor Rod-tmng who greatly contribnted ment affairs. Mayers. I 749. to the bad condition of the empire by his 178 they had settled themselves in great numbers on the Hoang-Tio and in Kai-fung-fu, the capital of China, and from that time they kept the country in awe and were the actual masters of the erapire. At last they imprisoned the emperor Hoei-tmng^) and Jiis whole family, and when his son and successor Kin-tsung hu- miliated himself so far as to go to the hostile camp and to be- seech of the Barbarians the deliverance of his father, he too was made prisoner, while his family and the treasures found in his palace were seized upon a short time after. With these rich spoils, consisting of two emperors, two empresses, the consort of the future emperor, all the male descendants, of the Sung- dynasty, and a very numerous train of attendants, the Tartars marched back to their own dominions. A younger brother of Kin-tsung, the carried off emperor, who in the south commanded a company, being the sole re- presentative of his line was proclaimed "Son of Heaven," and, as formerly the Emperor Yuen-ti, he fixed his residence in the south at Kiang-ning^ or Kien-kang on the Yang-tsze-hiang , m which he made the capital of the empire, awaiting better days and preparing to deliver his imprisoned relations. A sad one is the history of this prince who for a long series of years struggled with disappointments, saw his best schemes frustrated and missed the grand aim of his life. With great zeal he de- voted himself to his arduous task, but he wanted that energy, that indomitable will which alone would have been able to accomplish his bold plan; moreover he tasted the sad experience that the men he trusted in most, proved to be mere flatterers and traitors. 1) This emperor had abdicated in favor of his son. 179 After six years' captivity his father died in the foreign country; twenty-two years later death delivered also his ill-fated brother. Exerting himself to the utmost to rescue them, Kao-tmng was obliged to keep a numerous army in the field and to de- vise a hundred various means to provide for the necessities of his soldiers. The country got exhausted and overwhelmed with paper money that after all sorts of desperate plans of redemption and conversion became totally worthless. The wretched prince seeing his relations die in captivity without being able to de- liver them, his people miserable without having the power to relieve them, felt no longer proof against his wayward fortune and abdicated in behalf of his adopted son. He retired into se- clusion for the rest of his days, and, after 26 years, he died at the age of 84. His successors were as unlucky as himself, the war against the Tartars devoured the entire revenues of the state, for besides the expenditure of the army , heavy tributes must be paid to the victorious enemy. The issue of paper money was continu- ally expanded, many provinces had their own bills; high-sounding names were invented to entice the people into accepting new issues ; it came even so far — and here again we have a remarkable point of resemblance to modern history — that, when the people had no more faith in the old paper currency, bills literally bearing the name of silver and gold metallics, were issued with the promise that they would be convertible into those precious metals, deposited in the treasury for this purpose. How far the Chinese government has been able to fulfil that promise will be learned from the chronicle. Ma-twan-lin has a few lines relating to paper money, delivered by the emperor Kao-tsung himself. The one points to the ne- 180 cessity to have a reserve-fund In order to maintain the credit of the notes, the second expresses his Majesty's opinion that it is the duty of the officials to uphold that credit with the money in their cashes vrhen there is danger of a depreciation of the bills. The latter anecdote is surely more a proof of his Majesty's sim- plicity and good-nature than of his sagacity. The passages read thus: [Matw. IX 30a and 31 J]. "Ml M Jto^ m m m w m * m m. it n. mi Tit n ^\ m m m m m ^ 51 p M ^ ^ ff Under the reign of the Emperor Kao-tsung, in the sixt month of the 3rd year of the period Sao-hing (1133) a proclamation was issued (in which was said) that in the province of Sse-ts'uen , since the reign of the first two emperors of the present dynasty, the reserve-capital was always beforehand calculated for the number of credit-bills which were emitted to meet the expenditure of the border-fortifications, and the reason why this law did not operate badly was this that the heavier metal was always deposited in order to balance the lighter bills. But when in the time that these bills were printed, the quantity of the different materials which must be procured, ever increased, the metallic deposit was seized upon, and gradually spent in consumption. This was the reason that the fixed rules of the circulation of credit-bills was vio- lated daily. Moreover, since the minister Tsang-siun opened Siuen- fu^), and Tsao-k'ai was made head of the purveyance (department), in order to supply the capital for the government purchases and the pay and rations of the soldiers, the increase of the credit-biUs got greater every day, and nothing was able to check it. 1) J[[g[ 55^ are the two first emperors oftlie«««?-aynasty^ iiii.'"!*^^ ^o 2) This will have been about 1163—64. when Tianff-niin defeated the Tartars. Fur- ther iuformation explaining the historical details of this allusion is not within my reach, hut the meaning is clear that the cost of the support of the army tempted the government to expand paper money. 181 ':^ m m m.^ m m M m m % m i^oim m "^ ^ m }\\ m m.n.t ^ m # m.m "f-.m When the emperor Kao-tsung once spoke of the bills of exchange of the province of Sse-ts'uen, he stated as his opinion, — in consequence 'of a saying that it were best to suppress all talk of the character of the paper money as an equivalent for the real holding of a property; — that when there were among the state functionaries who had 1.000.000 string of money in cash, they ought to use that money to buy them up themselves, in case the prices of the bills of exchange began to fall. (In this way) everywhere the result would be that they did not depreciate. The two passages are taken from that fragment in which Ma- twan-lin treats of the credit-bills of the province of Sse-ts^uen. These bills were a continuance of the credit-paper issued there on the part of the government some time after the abolition of the private bank at 1-tleu in 970. Before proceeding to a new invention of the Emperor Kao-tsung, the issue of frontier- bills in behalf of the army, we shall first treat of this sort of bills of which many particulars are communicated as to the quantity issued, convertibility, depreciation, etc. CEEDIT-BILLS OP THE PUOVINOE OF SSE-tS'uEN. Wl^ m MMoik mm ^m ;ii ^ -b ^ ^\ % ^^ m. m ^ M. ^oM m iJo^o In the 2nd month of the 7ti year, Wv-kiai, second commander in Sse-(fs^uen) and Sen-(si) ') proposed to institute silver-bonds in Ho-tsi'^). In the 5tli month the Tsung-su-sang said that the number of issued credit bills was already very great, and that the losses should be considered which would be the consequences of this law (of ex- 1) Wu-Hai was second in rank to the I 2)^Jlo-tsi is situated on the frontiers of commander-in-chief Tsimg-aimi . matebs I. | Sse-is'uen and Sen-si. 865. He was the terror ot the Kin-Tariars. - 182 in It. ^\i % M M K fP II ^1 m + ^ ^>^ ^ H W ^. W A + 5» PS pansion), ^ ^ ^ 1^ sS # ffl j5^ r^ Accordingly . m ^o^ ^ ^- It € there tr, it ^ 2i^ ra ^ ^ - ^ ^P*! Wo Jt :So JUL II came an imperial decree to stop it (the issue). When in the days of the first two emperors of this dynasty bills of exchange of two (different) terms were issued in the country of So , eVery term amounted only to i .200.000 string; when it was ordered to bring in cir- culation those of the third terms of redemption there were above 37.800.000 string; come to the last year of the period Sao-hing (H62) it was in- creased to an amount of more than 41.470.000 string. On the other hand the total amount of the circulating iron money was 700.000 string. As salt, wine, and other government productions were secretly (em- ployed) to give assignats') on, Wang-tU-wan-g , the official charged with the victualing of the army, suggested to expand the coining of credit notes in order to meet the perplexed state which was before the eyes. He wag not able, by this measure, to prevent the far-reaching thoughts (harbored by the people) against the imperial government. The order was then given to fix the amount of the notes still to be printed , at 3.000.000 string. But [Wang)-tU-wang who was charged with the execution of this (decree), limited the quantity and coined as many as he thought would be necessary to supply the want. (The consequence was that) afterwards (Wangytsi-wang had coined only an amount of 1.000.000 (string) more. Soon afterwards, however, a successor of that modest official makes use of the permission once given, to issue the remaining 2.000.000 string of paper money. In the year 1178 the officials 1) ^ ^ ^ tp make assignats. 2) The fall stop oiight to be put after the character JS 183 report that the total number of bills in that part of the country- amounted to 45.000.000 string, and that if the issues were not dis- continued, the time would soon come that they were not current any more. They insisted on placing a fixed limit upon the amount of bills which might be issued, an4 beyond which it should be prohibited to issue more. Vt ^ "that advice was followed," says the chronicle but contrary to this the next fragment tells us that 13 years later the credit-bills of the province of Sse-t^'uen were increased again with bills of a new term. ja a ^ ^.r^ m m Mi m.^ ^ m T m ^7i. ^ j£oj^ * ^ M H # ^ ^^^ r^ 'W B ^.^ ^ -^ Mom 7^ m m m -^ m ^ ^.n m ji ^. At the end of the period Kia-t'ai (1204) in the reign of the emperor ISing-tsung the number of bills of two terms which were issued was above 53.000.000 string, and that of the bills of the third issue was also increased ^). In the last year of the period K'ai-hi (1207) the head official who was charged with the purveyance of the army, stated that the total amount was not sufficient for the wants of that year. They then at- tempted to issue small Hoei-tsze, but they could not bring them in cir- culation. In the beginning of the period Kia-ting (1208), when every string had only a worth of 400 pieces iron money, and even less, 13.000.000 1) For bills of two terms, see page 173. Bills of the third term may be those who were first issued A. D. 1107. Cf. page 175. These seem to have been convertible every year. Though no express mention is made of this fact, 1 have arrived at this conclu- sion as in a subsequent fragment (page 185) is spoken of bills of which the 93rd and the 94th terms were issued. In the year 1210 there could be impossibly a 94th term of the first issue, coirfertible every three years and emitted in the years 1011 and 1073 the first being only of 23 terms. When we however consider that the payment was de- ferred every now and then, which we find expressly mentioned with regard to 'the Hoei-tsze or bonds, 1210 can be the year of the 93rd term of the bills which were first issued in 1107. In other autho- rities treating of the subject more systema- tically and minutely, we can perhaps find the confirmation of this suggestion. 184 ^ m ^ ff(.^\o7>, ^..n Mo ill ai -t: W >C1> m ^f" *^ - ^kM m # ^ ^.^h "^ ^ m ^ M m^ fjr m - m m ^ m - "& r^ ^ m m ^ ii It M n.^ W tTo^ * ^ H ^o3l # X H ^oK l^o^ ffloW ^\ ^ i\^ m -^ M ^ m m m M^ It ^ :^oii m ^ ^ ^ ^ pg ^ bills calculated in gold and silver had been issued at a time. When half a term was withdrawn and had returned (to the government^ , they were not used any longer already at the end of the same year. For from all the districts of Sse-ts'uen, thousands of persons had gone away hun- dreds of miles to repair to the distant (from their home-steads) exchange- office (lit. the place where [the silver-bills] were collected), and the time of redeeming had already approached ; but at the time when payment was to be made , (it appeared that) the functionaries had again deceived ') the people. Thereupon trade was brought to a stand-still and the people grumbled and were dissatisfied. The worth of a credit-note (nominal 1 string) was so (reduced) that it was disposed of for 100 cash. The functionaries who were charged by the government with this, made a proclamation that 13.000.000 credit-notes should be withdrawn and ex- changed by the government, and that after this the notes of the third issue should continue to circulate in the same way as before. Moreover, at the places where the payment was to take place, a pro- clamation was made that , in order to receive gold or silver people must go to TUng-tu-fu where a government- office (lit. enclosure) was esta- blished to withdraw and redeem. them. (The result of these measures was that) the minds of the people gradually became at ease, and that then the value of the credit-notes (of a string) was a little more than 500 iron pieces. Where across the boundaries (of Sse-ts'ueri) copper money was employed the worth of a credit- note- was 170 pieces (of copper money) and no more ^). 1) Jgh ^* to play, to make the wicked. 3) As we saw in the foregoing chapter, iron money was exclusively ased in those western parts of the empire. 185 ^ .Pp # ^ m =+ — — ^ .91 z B ra ^ ^o¥ W WiM ^ ^ ^ ffl to M # ^ 91 ^ m A K *i: m j|^ ^ m ^ .P^ li')i ^ -b ^ m m & 3c ^^m n :fi ^ ^ m ^ ^ iio+ H Moll ^ n - ^J 1^ ^ 2i^ ^ ;^ ^ ^o^.^ ^ # ^ 5S ;'L #^|J )^oW ^ In the spring of the 3rd year of the period iTia-fmgf (1210) the func- tionaries who were charged with this, had redeemed 91 terms, to a total amount of more than 29.000.000 string. Of these they had re- deemed 12.000.000 string with the balance of the account of the tea and horse officials '') ; and it was announced to the illustrious functionaries of the Board of works ^) to exchange for the notes still in the store- vaults, the value of which was calculated in the gold and silver that was in the cash of the functionaries who superintended the border- fortification, the damaged (lit. bored) Hoei-tsze. What then remained should be exchanged for credit notes of the 93rd term. There was also made a 94tli term of the credit-notes to an amount of more than 500.000 string to redeem with these what at one time had been issued by the officer I^ing-sung who had been sent out to relieve the people '). When those credit-notes were employed by the people to pay the taxes, they had a value of 8000 a 100 pieces. The sort which had been calculated in gold and silver was added to it (i. e. were accepted at the same value). As a rule (the taxe swere paid) in 7 parts of the new credit bills and 3 parts of gold or silver (bills). The quality and sort of that gold and silver was appreciated on the part of the government in such a way that there was not a single piece that was not defective and too short (all of them were of a bad 1) Jai^ ^& m name of ofiEicials who bartered the government-tea for horses among the Eoei-hi-{ [gj ^ )Tartars. They were first appointed under the Sung-dijaasty. For particulars. See mobr. ^J n". 115 (p. 824). 2) 3 ytp» , the superintendent of the Board of Works, who arranged the works whereon the people should be engaged. 3) ^.^ 'ftp is the name of an officer, who was sent to relieve the people, when they were suffering from some cala- mity produced by natural causes, morr. 'BT n°. 11) (p. 823). 186 ^ It 5ioPS #0^ n IS ^ m '^ AfiCo^ ffij ^ H i + ite.^ ^^ ^ quality). For 100 old bills (f/oei-feze) 20 new credit-notes were received. (The consequence of all this was that) when in the 1st year (1208) and in the 3rd year (1210) thus twice the old Hoei-tsze had been withdrawn from circulation, the value of the new (notes) was in the end again equal to the old') ones. We now return to the beginning of the reign of the emperor Kao-tsung, when in behalf of the army a new sort of bills was issued. [Matw. IX 24a— 30a]. THE HOEI-TSZE OB, ^ONDS. m m -^ mMom ft ^ mit m ^ ^o5t 7^ m :^ ^ n z ^.m #• A m m p m r^ ^.m m.m m Under the reign of the emperor Kao-tsung in the first year of the period Sao-hing (1131) the officials requested in behalf of the camp and halting-stations in the province of Wu-tseu ^) for the necessary money, in order to make the palisades (fortifications). As these parts could not be reached by water, and the weight of the money made the transport (in another way) troublesome, it was ordered to the ministry of finances to make frontier-bills for ready money and to send them to the prov- ince of Ww-tseM, where every stranger who entered this province, was summoned at the custom-house. As soon as those frontier (bills) had arrived, they were forwarded to the custom-house for goods to be ex- changed there for money. If there were some (of the merchants) who wished to receive in return receipts for tea, salt, aromatics, or other articles of com- merce, this was left free to the functionaries of the districts. With frontier-bills the government purchases of grains were paid. In the beginning it could not be prevented that they (ready money and notes) 1) ^o# means obviously ^ ^^ | ^"^J^ ^ ^^^^"^ - *>"= P-™- 187 m.i^ ^ ^ m ^ m m. z A ^ ^ ^ ^ fl) ^c 5» pR -*-* i*fc\ ■T-o:^' E Zl ^ 1t .^ofl ^ z, A It B 4ie * ;^ # 1') ^ m m & % ^)^ m m m m * # jt 4£i HPJ m ^ M ^ were settled on a par '). The custom-house for goods paid only one part on the three on the day that they were redeemed. The people complained of this, and were dissatisfied 2). In the second month of the 6tli year (1136) there came an order to. establish a bank for the issue of the bills of exchange (Kiao-tsze) which were already circulating. The ministers then said that when liis Majesty had instituted the frontier-receipts for ready money, the functionaries, charged with the execution, had entirely lost sight of the original in- tention. When now a change was attempted , and bills of exchange again were made, while the government was without metallic deposit, how would the people have faith in them. They concluded that it might not happen. Then the bank for the issue of bills of exchange was abolished again, and the custom-house for goods was ordered to have frontier-notes coined to (supply) the ready money wanted for the construction and re- pair of palisades and parapets. 1) A sinologue will observe that there are a great many difficulties in this fragment. In W^. K»i ^Iie mouosram Ssl stands for monogram ^^ -+' , the frontier notes — and the literal translation is: the notes in hand or in possession, i. e. as soon as the notes had arrived. The position does not admit to take ^M in a locative case with themeaningof "at the frontier." Porthe same use of that word Cf. page 318. note 3. — gin las tere the meaning of "^g to clear, to exchange. In the following parts it occurs three times more in that same signifi- cation, Cf. p. 187, 205 and 213. A similar expression is found in wilhams' Dictionary in voce ^\ p. 540ffl — ;^ HE, is stiU more difficult to explain. I believe the meaning is this: In the beginning, when those bills were first issued the government settled the worth of paper and metallic- money at the same ratio, notwith- standing, at the very first redemption, the restitution was only a third part of the sum for which they had been given in payment. The same expression occurs again Matw. IX 29a Cf.. page 201. 2) The single place where de mailla in his Hist. Gen. d. 1. Chine alludes to pap- er money is when treating of the institution of the frontier-notes .of the province of Wu- tseu Vol. VIII p. 603. He has only one ad- dition to the information which Ma-twan- lin gives , viz. that those notes were stamped at ten comers {Toarg^ues a dix coins'). 188 m^m m w 4)1 ^\ n. ^^^ i^ ^ m Ml - m ^ ± ft A PI + =1 mo ^ TC # ^ - 1 = + A S -T- ■7-0 + ^ ® ^ ^o# ^ H S ^ ^ -f-. In the 29tli year (1459) the government coined frontier-bills in order to provide for the whole garrison '). To receive them people) went to the central-ofBce of three districts. Hoai-si and Hu-kwang were each to receive frontier-bills for 800.000 string, and Hoai-tung bills in behalf of the general garrison for 400.000 string. Those bills were of 5 different sorts of from 10.000—400.000 pence (10 — 100 string^)). These bills for the general garrison were made for a circu- lation and use of three years. In the second year it would be allowed when payments (of taxes) were made in copper money or silver at the government offices, to pay in these bills half of the sum due. In the 30tli year (1160) Tsien-twan-li , vice-president of the ministry of finances possessed of an imperial authority issued again Hoei-tsze (to meet the necessities) of the palisades (fortifications). Of the ready money circulating within and without the fortified places, that which agreed with the pieces issued by the government, might be entirely ex- changed for Hoei-tsze. People went to the left government-treasury to. deliver it. In the second month of next year an order was dispatched to the Hoei-tsze bank and to the officials attached to the government stores ^) of tea , in which was said that it would be expedient to settle^) the accounts of 1) ^ lit. the whole occupation. We see here a considerable expansion of the first issue, which was only for the fortifi- cation of the encampments. The fact reminds us of the time of Louis XIV of France, when similar billets were issued, called, "Silleta de V extraordinaire des guerres, de Vartillerie, de la marine" Cf. Les Eco- nomistes du dix-huitieme sieole. Paris, Guillaumin. 1843. page 444. 2) They were probably for such a large amount as they ought not to circulate as money, but only served to pay the merchants who purveyed the army. 8) The sentence B^ ^^ .... 1^ -^ is an example of a rhetorical inversion or ante-position. 4) ^^ J^ government-stores of tea. ^^^ is an enclosure, set apart for the gathering of grain. 5) gm , this is the second passage in which this word is used in the meaning of '^ Cf. p. 187. 189 H ifco^ :^ ^ 'PI ^^ Ft # m\n -topf? « « ^ - H ^o^ ^ ^ m ^ !:.# p ^ li ^ ^ :^ M -^cTi p ^ a i-oioii mm n m m ^^ m^m im ^i m. -tk i^ ^ p '^ ^ ^ m m^^ A m m ^.m u » B')± n ^ m ^ ^ MX=^= the travelling merchants (with the government) by means of receipts for tea, salt, aromatics, alum, and other government productions, which (estimated in money) annually represented a sum of i 0.000.000 string. In secret it might serve to support (the State-finances, as these receipts) balanced an actual possession of merchandise , (and the government had moreover the advantage) that it had not to rely on metallic money alone as basis (in exchange), while on the other hand it had not entirely to look up to the Hoei-tsze to meet the wants of the empire. In the 12tli month of the 32iid year (1102) an order was issued to institute punishments for forgery of Hoei-tsze. The offender was put to death, and the reward (given to the informer) was 1000 string. If he did not claim that reward, it was given as an perqnisity to the master-controUer. If there were among the villains and their accomplices') some (who denounced themselves) by confessing and avowing their crime, they could by special permission be exempted from punishment. They were also allowed to receive a reward in money , or if they wished it they were free to be rehabilitated in their former reputation and honor ^). Now //oei-tsze were made daily. The functionaries of the mint partly impressed their seals on them, and every 10.000 bills were forwarded to the ministry of finances to be sealed there again. The paper for the Hoei-tsze was at that time taken from the provinces of Hoei-tseu-fu S) and Tsi-tseu *) and afterwards they were made in Tsing-tu-fu =) and also in Lin-ngan-fu ^). In the beginning the Hoei- 1) t^ iteC Jr 2c ar^ accomplislies. gj" has here the 3d tone and the meaning of to confess guilt. 3) •'pp a numerative. 3) ^^ B reputation and honor '}tm "^ I I to rehabilitate. 4) it is allowed, it is at liberty. 51 Soei-tha en Tsmg-tii-fu were situated in Sse-ts'wn, and thas supplied the frontier- bills for the encampments. 6) Tsi-tseu and Im-ngan-fu are situated in the province of Tse-ldaiig in the east of the empire; they supplied the ca ' ' and the regions of Soai. 190 3L W ^ # ffl ^S- ± ft ^ ^ t^ 1^ ^ •^ Wc X # Z TC .Tfe 4» ffl iM: iM: 1^ It It 5 X ^ :J^ PPO ^ it jf o * It # teze circulated only in the parts of the two Tie rivers, afterwards it was ordered to circulate them in Hoai , TseQdang) , Hit-pek and west of the capital. Except at the offices where the duty on salt') was paid and metallic money was used exclusively , it was allowed at places which could not be reached by water or by roads , so that the government could not furnish another kind of money, entirely to make use of Hoei-tsze in exchange ^). In the districts and encampments . situated along the river it was a rule that people paid one half in money and the other half in Hoei-tsze. When a mort-gage was made, or lands and houses, cattle, food, waggons, vessels, and other similar things were sold the people were free 3) to use only Hoei-tsze. Under the reign of the Emperor Hiao-tsung in the first year of the period Lung-hing (1163) it was notified to the officials who coined the Hoei-tsze that the year-name of Lung-hing and the state-seal of the minister of finances should be the seals to be used to stamp the Hoei- tsze. Then Hoei-isze of 500 cash were made, also were there made of the value of 200 and 300 cash *). In the 5tli year (1167) a Hoei-tsze bank was established in Kiang-tseu, 1) An income-tax levied on every one of the people. It is remarkatle that the government did not accept those taxes in paper money. 2) ^te to transmit, to hand over. — ^^ to pay out. 3) has here the same meaning of to be allowed as at the foregoing page 189 note 4. 4) Since the Hoei-isze were generally used as medium of exchange, they were no more of those large amounts of 100 strings of canA. 191 In the second year of the period Kien-t'ao (1166) in consequence of what was said by the councilor of the left side, Yen''), viz. that the Hoei-tsze had greatly diminished in value, a sum of 1.000.000 ounces of silver was given out of the left and south treasury (to redeem the depreciated paper money). After these fragments we have a minute report of an official of the ministry of finances , from which it appears that in the last seven years (1161 — 66) especially, an enormous quantity of paper money had been issued. When afterwards the government ordered that the taxes for the fall amount should be paid in ready money, these bills were soon reduced in value. In order to avert the dangers resulting from a depreciation , arrangements were made to convert the old worthless Hoei-tsze into another sort of paper currency; a measure which seems to have succeeded. But when a large number of Hoei-tsze had been redeemed in this way, new notes were issued again. The worn and torn bills were accepted by the government at 10 per cent of their original value and , it is a noteworthy instance of tyrannical government that a heavy punishment was inflicted on such private persons as ventured to vie with the government , and buy them at a lower discount. Our chronicle relates the particulars in the following, way: i:^o^ ^ m ^.^ ^ -V m if.M n -^ ^ n A T- fn -b i: ^o H i m ±iE In the 1st month of the Srd year (1167) T'ang-tsuen , the official who was charged with the disbursements at^the ministry of finances, reported that from the 31st year of the period Sao-hing (1161) till the 7tli month 1) Yen is the same as Jdanff-t/en , a func- tionary who continually warns the govern- nient against the perils of an overissued popel currency. Cf. p. 303. 2) g w K i ja :ffi six different banks were established to receive and collect them , it was ordered to issue bills estimated (at a certain sum) , and (further) it was ordered to give a number of 5000 to the support of every TseM-district in the country, and to send them to the custom- houses (in those districts) and then to invite the " people to exchange their Hoei-tsze there (for those new bills). After this the government should wait till (those 5000 biUs in every province) would be sold out. If the demand for them continued steady , the government , • if it wished entirely to withdraw the Hoei-tsze from circulation, for a certain time might continue to emit these bills at the banks. In the 6tli month Ts'ang-hoai , the minister of finances ') , reported that besides the Jloei- tsze virithdrawn from circulation (by the government), there still circu- lated (^Hoei-tsze) for an amount of 4.900.000 string among the people. He requested to keep these in circulation (and not to redeem them). In the 42tli month (1167) there were separately made Hoei-tsze for 5.000.000 string, because there circulated among the people many that were damaged and worn. Shortly afterwards another decree was issued that the value at which worn Hoei-tsze of a nominal worth of 1 string could be exchanged should be 100 cash. This might frequently be repeated till the money, procured by the government for this purpose, would be wholly spent. The obstinate houses that would continue to receive them at a reduced value should be tried and punished for the offence^). 1) ^T to give instruction, 2) ^ ^l the demand increasing. 3) P ^isherefor | .| ^iS^ ^ see the next fragment; 4) Jj^ j^ .to draw and pay back. 5) By this the government would compel the holders of torn bills to etchange them 13. 194 Thie next fragment is reuiarkable for the great many partic- ulars it contains regarding the exchange of old bills for new ones. The way in which the conversion was effected was now much less tyrannic than the one just mentioned; and this must be mainly attributed to the cleverness of the man who managed these affairs. But the end shows again that the best measures were ineffectual when the state finances are so hopelessly deran- ged. Immediately afterwards we read that twice in succession the redeeming the Soei-tsze' was deferred, each time for a period of three years, while at the same time the issue was increased. i\xm m ir m ^ m,m.i^ #«# #,ra m,m -m m ^ m.m ^ - ± "f- m ^. "^ m ^ ^ m ^ M m: M- m m m m r^ m ± M..m i^ m n ^.mMM In the 4tli year (1168) the old Hoei-tsze which were already drawn baet and which were damaged, obliterated, quite torn to pieces and full of holes , were forwarded to the HoeUtsze bank (with the order) to make them heavier (in the future). In the previous (third) year a new issue of Hoei-tsze had been coined for an amount of exactly 10.000.000 string, and in proportion as (the bills) of that issue were coined, new bills were Btchanged for the old ones. Ts'aiig-hoai who was the head of the ministiy of finances had , at the same time that he carried into effect the command (to make bills) ordered that money should be cast. The Hoev- tsze alteady printed and put up , were transferred, to the left treasury. Those of them which would be smuggled and get outside the issue-de- partment should not be accepted in payment of taxes. Tsiang^fei said in a report: During the last month the Hoei-tsze which were in use have been withdrawn and redeemed with gold and silver (now* the same course must be pursued), and if the number of at 10°/o of their orihinal worti, and i oept them at a higher rate should be puii- etery private person who continued to ac- I isheS. 195 m m m m ^ ^ m -n,:r -^ m "f- lit lit Tc 4t A in m^-:^ m m^m B.^ m W # It B>r m.W # « I? ^ *^P ^ ^ m A - ^ ^ ^.^ n -rn'M m ^ ^ j^^mn^n^zM: — ' zz.m. m ^ n 1^ n.^ m.^ ^ h ^ m ^ M ^,M m "^ m MM m ±„^ #• issued Hoei-tsze gradually increases, gold and silver must continually be given to veithdraw them. Developing (this principle), the report of this excellent minister says ■further : The means rto make that they do not depreciate , is now to collect, them together, and then again to expand them, at one time to withdraw them and at another time to bring them in large- quantities in circulation, and in this way always to balance them that they may remain at full value. Now if on the 1st day of the 4tli month of this year workpeople are appointed to print and coin them, an amount of 10.000.000 string m9,y be ready at the end of this year. When at that •time the exchange of the old /foei-teze, begins, on every bill which is exchanged a premium of 20 eash shall be demanded. It will be suffi- cient that the piece which is left of the bill presented, is a little more than half {the original pap.er) : and when of the old bill which is torn or damaged only the character ^W {Kwan-s t r i n g) or the character in- dicating the number of hundreds of cash, is left, and the seals can still test the genuineness , it may be presented to be exchanged. Now when among those bills are forged ones, the functionaries who examine theni must dispatch them to the department (where they are made). Those functionaries who ejamjne them will receive further instruction ') from the government. Every time when the examination brings to ligEt a forgpd bill of a string , . the person who after having been traced out , is proved to have exchanged this bill first, shall have to pay a sum of 1) Probably farther information, f. i. I uineneas could be recognized, about secret ' marks by irhicli the gen- 196 M M # ^f* m ^ ^M # m m "f- zi pg rflj w w m a i!i ^ # # .^R 16 M n M H M !9 >g - m ^ mM ^.^ #o- ^ # ^ ># H H ^ ^ pg ^ 1^ pg + g ■f- pg ^,m « Hoi^ z: # ^ ^ ^ P 'S M 3000 copper pieces in money to the functionaries who have verified and proved it. When those functionaries use their common sense they will terminate the whole affair without having forged bills. Both the naiue and surname of the offenders sha;ll be published as a punishment fqr their offence. From the 1st day of the 12tli month the oflSce for the exchange of Hoei-tsze was opened, this lasted till the end of the lOth day of the 3rd month of the next year (during 3 months and 10 days). After that time it was all over, nor was it practiced again. In the 3rd year of the period Sun-hi (1176) it was proclaimed that the 3rd and 4tli term of payment ^) should be delayed three years each. Furthermore it was ordered that the depot where the government stores of tea were kept and the Hoei-tsze were, issued, should take the copper plates of the 4tli issue, and continue to coin and print Hoei-tsze for an amount of 2.000.000 (string) and to send them to the Southern treasury, charged with the administration of the border fortifications. At that time the amount of the revenues at the D^artmeut of finw ces was I'i.OOO.OOO string in the whole year, half of which consisted of Hoei-tsze. Of these the Southern treasury took 4.000.000 , exchanging them for gold and sUver, and what was then again brought in circula- tion did hardly amount to 2.000.000 string. 1) THa is the first time that we read of periodical terins of the Hoei-tsxe. The first issues of the year 1131 seem not to Jfave had those regular terms of redemp- tion as the bills of exchange of Sse-ti'tten (p. 171). The Eoei-tsse were originally a sort of currency used in the army, very much the same as that issued in times of war in Europe for instance by Frederic the Great and in the late French-German war, convertible either after a fixed term or immediately after the expedition. In China this Sort of bills was issued to be redeemed after 3 years; other issues followed probably for the same interval of time till at last they were also made with periodical times of redemption; but we do not know how long the whole time of circulation was then regulated. Now we find it instancesd that when a term to repay the notes had come, the necessary money was wanting and the payment was delayed for another period of three years. We shall soon see that the imperial government was not ill-pleased with the measure, as afterwards the redeem- ing of new issues was likewise postponed. 19? The two following fragments contain some information on the money among the Tartars who had established themselves in the northern parts of the empire and in Kai-fung-fu the Chinese capital. In many respects this part is important. It corroborates the fact men- tioned before that the Tartars had learned the use of money from the Chinese, and how they managed to transport Chinese money from the neighboring southern parts over the Hoang-lio and to bring it in circulation in their own territory. Furthermore we are told how the notes were signed and sealed, and herein do we find the key jto decipher some difficulties presented by the almost invisible seal-marks on the note of the Tai-min^-dynasty, a pho- tograph 'of which has been subjoined to the Addenda. As the whole system of paper money among the Tartars was borrowed from the Chinese we may safely conclude, that the Chinese notes were signed and marked in the same way as related in this fragment. M -^ ^ -ik ^- ^ ^M - 'A^ * p ^ m n m m Wi.'U ^ ^ ^=1 ^ ^'=^ W M^m m.U ^M T> IE ^ ^M iz ^oM #c^ ^ X * ^ m^)W m m m Fan-tsing-ta'a "History of the grasp of the reins ')," contams the in- formation that originally the captives of war had no money about them. Only Yang-wang-ling has once tried to east it. When the money of the period Tsing-lung^} {1156—61) was not supplied any more, (lit, was cut off) and circulated only in a small quantity (the Jfin-Tartars) employed ' the old money of the Middle Empire exclusively , and not liking to leave money behind' them in Ilo-nan, they also imitated the paper money of the Chinese , and established in Pien-king ') , (their ca- Tartars. »n Gl the court of Fim was the 1) Fan-tmig-ta is a distinguished Chinese author however, I have not found that mention was made of the Ijg| ^gi |^ " which I literally translate hy "The history of the grasp of the reins." ^ SS) A yeainame of the Kin or Niit-tsi- name of the town Wa ^r ^S- Kai-fung-fu, in the province of Hainan, at the time of its capture by the £2»-Tartara. 198 n m ^ m 'it m p ^ m m X i^ \ B ^ H -b ^ W + m m s* # ^ A ^ =w: ^ ^ ao#c ^^ ^ 1" #.^ # ffij ^ #»^ ^ m ^ P ^ iitctf ^ #o#oH ^ ilP :;^ m i^c pital) a bank for the coining of Soef(tee) , and called this paper money. Kiao-tsao (i. e. biills of exchange). Like the ready metallic these notes circulated, but unobservedly they drove the copper money out of circu- lation there, and entirely transferred it to the North. And no sooner had they crossed the {Hoang-]ho- than they used money and no notes. The design of those notes was mostly "Bills of exchange of the Southern Capital')," and it was the wooden seal of their department of financess which determined their value. From a report lately published, of an assistant-official of the Sang-su-sang ^), who was charged with- the issue and management of the IIaei{tsze), appears that in the "Southern Capital" was the issue bank for the notes, and that they were made of a value of from 1 to 3 string. As soon as those bills of exchangb were regulated , the' people were allowed to bring their money and receive notes in return. The state money and the money coined by private persons, circulating in the districts south of the river, Vas sent (tb the north) as soon as it' was received in payment at the treasury.. The cost of the bringing (them) in circulation , labor and ink amounted to~ 15 cash a string. After a terra of 7 years they were redeemed. When redeemed' before the proper time only 70°/^ of the value was received. He who forged them was beheaded and the reward of the denunciator was 300.000 cash. On the front and .back of the paper they were warranted by the seals impressed on them by the officials charged with the control at the department of finances , and by the officials appointed 1) The Southern capital of the Tartars in the Chinese dominions. ^> 1^ ^3 "h "PL "" assistant offi- rer of one of the ministers is here a Chinese, not a Tartar official, nothwithatanding the 'npn j^ -^ is the name of a -prime minister of- the ITm-Tartars and the Ttten or Mongol dynasty. Matw. speaks of his own time when the y«e»-dynB9ty , sat on the throne. 199 Z ZMM Z }\\ M ^ ^ ^ o m m M m m^^\ m ^ fn a -^ n m Ak^^m '^ ^ ^^ m z m M ^ ^ ^ w, M B w\ ^^ m ^ ^^if ^ m m m.m :^ ^ m m ^ m ^ M m M m # m m ^ m -o#.# w m. n m w. B m ^ m m m "f-M t? ^.pIo m ^ fi m 1^ m-^ m ^^ ^ at the bank of issue. !i\.t the four corners of the notes dragons and cranes are engraved as ornaments. When in the period KHen-tao (1165 — 74) on the part of the districts of Yeu-Si- and ffu, Tsung-fan was sent to Pien-king , the capital of the empire of the Bn-Tartars , there circulated bills of exchange which contained all that we have just. seen. At that time shreds of paper weighing against money, were employed in China. In this way Hoei-tsze were found in the eastern and southern provinces ; moreover there were credit notes for the province of Sse-ts'uen, bills of exchange for the Jloai regions , and Hoei-tsze for the Hu country ; and when at the plaices where metallic money was cast, they worked no longer after one and the same model, and because of the continuous want of metallic money, (the number of notes) had ever increased while they had fallen in value, (this resulted) that they were no longer a medium of ex- change weighing against a real property ') ; and this was the reason that they (the Xin-Tartars) employed only the bills of exchange in circulation , and (that they collected) in Ho-nan the old Chinese money and carried it over to the north of the river. It seemed that the ex- change for bills was very easy. ^ ji ^ 4. ^ ^ i^ ^ T-. A m m ^ ^ ^.^ m. mo~ # E M # -b ^ois In the 1st year of the period Sao-hing (1190) under the reign of the • emperor Kwang-tsung it was ordered to prolong the 7tli and the 8th term with three years each. The ministers observed that the fixed term for Hoei-tsze was three years , but that now in consequence of the double 1) In tie Bj^ression ^M ij^ the character ^ is here superseded by ^^ 200 m m^m mi^#7c^ ^ + m :^ it ^h :^ H -f- ^.^ ^ 1^0^ expansion, (that term) had already come to 9 years. By what means was the confidence of the people to be preserved. (For answer) there came an imperial order that, with the lOth term the regular intervals should be restored. ■ In the 1st year of the period of King-yuen (H93) under the reign of the emperor Ning-tsung an order was issued that the limits of the , Hoei-tsze should be a fixed amount of 30.000.000 string. And when they (the Hoei-tsze) were increased beyond that amount, it was allowed to stop them, and bring them forward that they might not circulate. The phrases and expressions especially of the latter part of the fragment which now follows, are so vague and obscure that I have long hesitated whether I should insert it. However, as I have till now never shunned the difficulties in Ma-twan-lin's text, I will try also to explain these to the best of my ability, the more because the fragment gives a lively picture of the always increasing misery caused by an imprudent issue of paper money. % m m m ^ ^Wi ^ %.n n m ^ ff # ^ ^.m + m m m ^ ^ If #" :;^ # ^ t ^ ^ u m ^.^ - m m -. z m MM m.m m m ^ ^ M, >Wcothi — ' .A ^ ^^ m '^ m^ "f- M ^k ^ m m mM w. ^ m m m Wi m In the 2nclyear of the period Zio-tmgi ("1209) the ministers reported that the Hoei-tsze of three terms (of redemption) were so increased in number that they were no more a means weighing against an actual possession of money. Then an order was given to the treasury which supplied the wants of the border fortifications to issue notes estimated in gold and silver , (and which should be printed) on the part of the government on paper mixed with satin , and (saturated with) olibanum. Of these should be collected to a number of 200.000, to supply therewith the state bank at Lin-ngan-fu. When this sort which had been added to (the already circulating bills) 201 MM m. ti'offl m ^ tt ^M m M ¥ii m n m i^ m^i^ n ^ # m^n m m m.m m i^ m was received (at the Bank), in the withdrawing and redeeming of the old Hoei-tsze, a new note was exchanged for 2 old ones, and it was looked sharply to that these new Hoei-tsze should balance an actual possession (of money). It could not be prevented that accusations and denunciatigns arose everywhere, for the root was torn up, trunk and all, (i. e. they sought to get out of it as much as possible) and conse- quently there arose an inquisitive government. In vain there circulated lists of prices (i. e. nothing was either bought or sold) ; the different villages and places looked out for each other, and the' punishments for the use of forged assignats were made severer i) , and moreover it was dictated that '(the notes) should be put on a par') (with money); the tyrannic officials carried their point ^). In the last part of his "Examination" [IX 32a— 336] Ma- twan-lin treats of the paper money of the Eastern provinces of ffoai and Hu, instituted there at the time that the government had already enjoyed in the North and West the large profits ac- cruing from an unlimited issue of a currency which could he made at so little cost. The following passages taken from these chap- ters are interesting as they reveal the causes which ultimatily led to the total depreciation of the paper currency in consequence of its heing circulated over the whole of the immense realm. 1) ffllKUt^ a page 164. 2) Vfy §^ is the same expression which in the beginning of the history of the Hoei- tsze caused difficulties. Cf. page 187. 3) Cf. with this passage and that of p.- 207 — 209 the next fragment painting the misery causedly an overissue of paper money in Austria, quoted from Prof, sumneb, "History of American Currency p. 313. In 1810, the next stage was reached, a stage which the student of paper money meets so regularly in its history, that he anticipates it sooner or later, in one form or another, in every new instance. A new class of notes was issued called "redemp- tion-notes," to represent coin, and to ex- change for paper at the rate of, one for three. By using these, the government prevented its expenditures from running up such enormous figures. This plan , and others intended to support it, failed to attract even the 'popular attention; all confidence in the promises of the government was lost. The misery was "wide and deep, reaching even the well-to-do classes. Persons on sal- aries found themselves in the pecuniary po- sition of day laborers; the peasants and country people who tilled the soil had its products for food, bat trade was brought to a stand-still," 202 THE BILLS OF EXCHANGE OF THE BEGIONS WATEEED BY THE HOAl-RIVER. M m m ^ ^oW. # * # i; ^ » ^ ^ m m -M n.m.=^ t> ^. ^,^.^. ^^.A n ^ m r^ -\^ ^ m p # ^ n % ^^ M^ m m ^ n. ^ S.H W - ii Pfl W # MI5 * ^ M M n w m ft m^-T # ^ In the last year of the period Sao-hing (1162) regarding the circula- tion of Hoei-tsze there was no distinction made as yet between the two Jioai-districts and. Ilu-kwang. In the 1st year of the period KHen-tao (1163) Lin-ngan-tseu , vice- president .of the department of finances, reported that -in consequence of an inquiry (made) at the department, (it appeared that) the reckless cost of printing and the supply of the 'Hoei-t?ze were very great, and as the deposited capital was not sufficient, the result would be that the paper should fall in value. He therefore insisted, upon procuring a separate number of 200.000 Iloei-tsse onr which should be printed on the reverse that sent to Hoai-nan, they should circulate in these districts of the country and in the encampments , while they might not pass the bound- aries to other districts. In the 6tli month of the Qnd year (1166) it was ordered to coin se- parately bills of exchange {Kiao-tsze) for an amount of 300.000 string, of a value of 200, 300, 500 , cash and of one string , which were to cir- culate only in the subdivisions of the ifoai-regions. To further the withdrawal of the Hoei-tsze circulating before that time , they must be " received as payment in exchange at a general rate of one half in bills 1) Hoai is in the North-EaBt, Bu in the I regions were afterwards allow^ to circulate South-East of China. The bills of the Soai' ' in the .S«-regioTis. 203 -tfec ± m ^ K ^ sg ff j^ a w M m ik m j^ a m W j^x m Mi A Z % mm w. u m A z of exchange (^Kiaorts!se) and the other in metallic monqy. This not being convenient to the coming and going •) (the merchants) , it was ordered to provide for a quantity of 200.000 Kiao-tsze, and for as manySbei- tsze , and to send them to the custom-house for commodities of Kien- kang and Tsin-kiangrfu , in order to make that the people coming from HOai (i. e. the North) and crossing the Kiang, and those who coming from the South of the Kiang crossed the river IToai , could all exchange their money (at that office) for the money which was. cur- rent (within the boundary-line) where they made use of it. Before the last year of the period Sao-hing (1162) the use of copper money was prohibited in the district of JSoai, and iron money had been sub- stituted for it^), and the Soei-tsze which had been employed till now, were also Superseded by Kiao-tsze ; , and when this paralyzed trade and the people of the district of Soai were in want, Liang-yen, an councilor of the right side said that there was nothing so good as the old regulation and (that nothing was) so convenient to the people, as when the iron money was spread and the copper money was (generally) received, and that, if it was ordered that the two sorts should circulate together, so that 2 pieces of iron money were equal to 1 piece of copper, this would undoubtedly result in. the abolishment of the bills of exchange. The emperor said, we too know that this will not do any longer, were it alone because in those parts a legion (KzMn = 12.500 soldiers) of lancers is encamped; and when, Liang-yen too reported, that the .Kiao-tsze* were inconvenient, all the 1) For in that case they were still obliged ■to carry ^ith thein the heavy copper moaey. 2} Compare what is said on this measure in the passage quoted page 147. When confronting these two passages it appears pears that the whole circulating medium in the Eastern regions coin as well as the pa per money has undergone a change in that period. 204 1^ m 'ii. o Wi M. "B ^ ^^^ m n, mo^ m n ^ 1^' ^ m ^ t^ i^ ^ H m 1^ ^ ^oX n m u m m ^ "f- -^ ^ H ^ X m ^ Wo^ ^ m m ^ n m ^ ^ m m :k m ®oiio# w.m m- ^ Mo^oU m m ^^ m ^ 7^ m - ^o + K ^ ^o # M ^ ^ M H 3t P^ ^ T 11^ -T-o '^o -T- Vi ife ^^ #off m ^ n i^ m m UoX magistrates and officials for the transport of grain in the two ffoai- regions were directed that each of them should send in a report on the advantages, disadvantages (in use), and the number of the bills that was issued. But the copper money and the Hoei-tsze not being allowed yet to come across the Kiang, this made that the people living there as well as the travellers still experienced the inconvenience. On this the order was issued that the copper money and Hoeirtsze on the same footing as before might circulate and be employed across the Kiang. The Kiao- tsze which at that time still circulated among the people might be re- ceived at the government offices in exchange for a metallic currency made for this purpose. The Kiao-tsze in store at the government (of- fices) which were still extant, were from that time to be sent up t« the left government treasury in order to be converted there. After the order was issued that the copper money together with the the Hoei-tsze as in olden times might circulate over the Kiang (in the districts of the Hoai) , it was also ordered that in the divisions and sub- divisions south of the Kiang, where the Hoai-kiao-tsze , circulating there, were considered by the people to be very convenient, up to the ISth year of the period Kia-ting (1222) should be printed in addition for an amount of 3.000.000 (string). However, since that time this number was in- creased daily, and the value of this paper consequently diminished daily and the character of the paper money , i. e. the balancing an actual posses- sion of the merchandise , lost its effect also here. 205 THE HOEI-TSZE OF THE REGIONS OF HU. m m ^ ff m "f-^s. m m ^ # *i m - ^ 1E» M ^'It j^ EL tt: ^ B\ T ^ m '^ m m.i,m m m ^ M^ u ^ ^t M. m ^ i^ ^ Wl> M Under the reign of the Emperor Hiao-tsung in the Ist year of the period Lung-hing (1163), Wang-ki6, superintendent of the purveyance for the troops in Hit-kwang, said that at Siang-yang(fu) (in the north of Hu-pek) and Ying (the then capital of Hu-kwang), and at other places the heavy payments for the army were settled') both in copper money and in those (notes) for silver ^). Tlierefore at the great army- cash where the money for the border fortifications was deposited, "con- venient" Hoei-tsze of a value of 500 and 1000 cash had beeii printed. Emitted in behalf of the camps they circulated as ready money west of the capital and in the districts of the province of Hu-pSk, where they were in general circulation and use '). * (As the want of paper money was thus obvious) he requested, in case the Hoei-tsze were coined again , to have printed on the Hoei-tsze which should be emitted, that they should reach (lit. below i. e. to the south) as far as the territory of the transport-officers of Kiang-si and Hu-nan% Furthermore the bills presented (at the offices), and circulating among the people ought to be closely examined, and the torn and illegible (effaced) old tea-receipts should be confiscated by the officials in order to make again Hoei-tsze of them. That advice was followed. After the 1) Bm occurs here once more in the signification of to settle, to pay. ^) ^3 pti "m* ^*^' ^°^^ ''°^^^ '°'^ silver which were added to the already circulating credit notes; it is the notes which were estimated in silver. Cf. p. 185 and 300 , where the same expression is found. 3) Originally issued in behalf of the army they soon got a more extensive cir- culation in Hu-pe , and in the neighborhood of the capital of Hu-hnang (^ing). 4) ^S Si is here borrowed from the making of money. Sll is to be taken in the meaning of "to collate," 5) The meaning is that they were to be current also in these southern parts, and for that reason should be given in payment by the functionaries who bought there grain for the government. 206 m m "k.m m m m i^ ^ ^m ^ 5i % % ^ '% ^\i^ tt *K„M mm m n m„^ -f- mM n « ^ T- It B^ It # 4 ?L^ g ^ ;^X # ^'M^^ B)f ^.^ It t^ ^ ^ H ^,1^ 7^ Rl^ MiJ t tf ^ ^,# w :m m ^Mi 1,^ 5t ^ ffi m ^ ^ it :^ X ^>>r^^ * ^ ^o license to make and issue them had been granted (to the armyrxjash), the number of the bills which were coined, also increased daily. But now the bills issued by this ofBce circulated in the above-mentioned districts and in Kiang-ling^), situated south of the capital ,' a place where trade was yery brisk, and to the merchants of those parts (such a lir mited circulation line) not being convenient, the office for the issue was ordered to transfer the copper plates from which the bills were printed to the Sang-su-sang. Further (it was ordered) to redeem the burnt and torn notes of the issued tea-receipts and the circulating Hoei-tsze, and that the central office for issue should be called "the ineeting-placie of. the merchants of the districts of Kiang-ling ^nd Ngo-iseu" '). The government salt annually bought, and sold by the merchants produced returns to an amount of several millions of strings of money. As (on account of the cost of transpoiit) it was difficult to get ip return a iremittance in goods, and as the Hoei-tsze of the proviace Qf Hu^pek might not cross the boundaries of that province, Hoei-tszfi were generally taken with which tea- receipts were bought, and thesp were sent to the districts of Kien-kang and Tsin-kiang-fu , and other places whej-e they were in demand in trade. But who shall of his own accord go and buy tea-receipts now that the circulating Hoei-tsze are 1) ;j(CJ^ I take for Kia«ff ( '^ ) linrj , situiated in tjie south qf Eif-jjek ; three lines lower mention is made of y7" l^p and the substitution of yf^ water for YT river is Tety possible. S) As to the signiBcation of m^ ^R (=^) Cf. p. 192. 3) Ngo-&u is an ancient name of Wu- ■iiamg-fw,'^ Q JlfJ in de prov. flVi-pe*, situated east of 'Kiav^-Ung. 207 ■ WM ^ m ^ m m ^ m m wt M ^ ^ =^ m 7^ m ^j£^ r- Wi ^ ^ m n .^ W :f[i # ^ m.n.^M ^L# ii^ current everywhere. Because the number of credit bills was increased every year, and because they were not current any longer in trade, the army should positively be in want of food. But notwithstanding this the government lost sight of the warning embodied in the course of thingSj and caused again Hoei-tsze for the province of Hu-pek to be made for an amount of 2.000.000 string to redeem with them the old Soei-tzse. The fragment which follows now is found in Ma-twan-Un IX 29a — b succeeding that of page 201 ; we have purposely given it here at the end of the historical part, as it is a real cry of distress which broke from the hearts of a people bending under the insupportable burden of a totally depreciated paper currency, a condition at last resulting from the thoughtless extension of the representative medium of exchange as we have seen from our chronicle. m ic i^ m m ^.^oB ^ ^ m :k w w ^.^.± n -^ mm ^ r- M m.m n.m m ^ m 1^ :^ i^ ^ m m ^ m m - m m ^,z i^ B ^.^^w.m u (Some 'provincial magistrates of which 1 omit the names'')) lost ' their offices because of the assignats *). After having tried for years and months to support and maintain (these notes) , the people had no longer any confidence in them, but were positively afraid of them. For the payment for government purchases was made in paper, the fund of the salt manufactories consisted of paper, the salaries of all the ofScials were paid in paper, the soldiers received their pay in paper. Of the provinces and districts,, already in arrear, there was not one that did not discharge its debts in paper. Copper money which was seldom seen was considered a treasure. The capital collected together 1) The translation is a little freer I 2) Cf. p. 164. than of other passages. 208 ^ m.m.^ '^ z m u m ^ ¥^ m m.w m m #i *,« ^.m :^ ^ ii.ife z A- ^m m ^ ^ z m.m.A^ m m m.± m.n ^ m ^jj.^ i^ ^ ^ ^.m n ^ tfii ^. i^ A # ^ ^ ffli mm ^ m ^ B M.'p.R m.M ¥^M -^ z &i ^ m in former days to supply the border fortifications was qnite exhausted and was a thing not even spoken of any more. So it was natural that the prices of commodities, rose while the value of the paper money fell more and more. Among the people this caused them, already disheartened, to lose all energy , the soldiers were continually anxious that they should not get enough to eat, and the inferior officials in all parts of the em- pire raised complaints that they had not even enough to procure the common necessaries. All this was a result of the depreciation of the paper money. And is the paper money depreciated, the metallic money is consequently depreciated likewise*). When in ancient days , as the money had its full value , paper money was issued,' the effect was convenience and profit, but when at present, while there is a total want of metallic money, paper money is made, the effect of that paper money is corruption and disease , and moreover forgery increases daily. Even when it was earnestly desired that the paper money should not depreciate, it is not possible to attain that end now. And yet in the beginning of the period Kien-lung (960) under the reign of this family, the proceeds of the taxes were little as yet. In the east the rebellious tribes were subdued and, in the west the enemy was defeated , but arms and food ') were not cut off on the roads , and they (the rulers of that time) did not try to have recourse to paper money 1) a legal addition to the salary of officials. 2) This means perhaps that copper coin was then issued so hase as to he on a level with the depreciated paper as it was in Austria in the year 1810. 3) the eifect, the result, the fruit. 4) ^S to lean on for aid, to have recourse to, 209 m M %M n i.^oT ffij ^ o-SJv* ^ S ffij ft * ^ 'It ^ ^ JL^ >!f ft Jt?i JJL 1^ m iii^^^^^^:^ iM: m ^ ^ ^ M ± m ^ IS ^ ^oft M ^ ^ ^ iM: ^ ^ to make the state firm., strong and united '). Since the period Tsing- k'ang (1126 — 27) abroad, the Barbarians were driven out of their country, and at home, a new dynasty was established'). (Then there was really a great want of money) but at the left advances were made, and at the right the payment was delayed, and there was no day when this did not occur , and yet they have not tried to take recourse to the paper money to mend that condition '). When come to the last year of the period Sao-'hing (1163) projects were made to meet the general wafit of a medium of exchange , and- come to the emperor Hiao-tsung (who ascend- ed the throne in 1163), ever making projects and inventing means, this (paper money) was devised , but it was not yet attempted to do to the utmost what was not wrong*). In that time at home there were three imperial palaces- built, and abroad there were the usual yearly ex- penses , but in making paper money the only fear was the over-issue (that ■ too much would be made) and in redeeming them it was feared that it would be impossible to pay them up to the last, or that there would be something by which the confidence vs^ith the' people might be shaken. But since the reigns of the emperors Kwang-(tsung) and Ning- 1) b3 ^Q is literally to found a state. With the consolidation of China into 960 after the division under the "five families" in view, the rendering, though free, is justified. 3) In 1137 the southern 5'mmj' ascend the throne. . The driving out of the Barbarians is little more than boasting. Cf. p. 178. 3) pip Jrat to repair, to fit up, to renew. 4) i . e. the issue of paper money was not yet- so far extended as might have been without risking the credit of the state; 33n jjb is by ante-position put at the beginning of the phrase. 14 ■2i0 (isung)' the number ^hat was made exceeded all limits and the depre- ciation was worst, And yet (however wretched the condition may be) there is a luminous point. When a proper and moderate use is made of them without awaiting help from boggies in oaves and woods, and it is attempted to observe a due proportion in motion and rest, so that there is not at once a flood of issue-, such a proceeding, notwithstand- ing, the present depreciated condition may be the means by which it is possible to rear the paper money up to its original state. Now that the historical parts are treated of as far as Ma-twan- lin's book gives them, I .will proceed to give the criticism of the authors who witnessed the social ruin of those times. First of all the opinioir of Ma-twan-lin himself, a piece so excel- lent as to the economical principles which are promulgated in it, that for this little fragment alone the author has already a high reputation') in the eyes of our modem writers on money. And indeed, albeit that his theories have been somewhat altered and modernized by authors who copied from each other the pas- sage of M. E. biot's essay*), which is already translated rather freely, Ma-twan-lin nevertheless fully deserves the praise which has been lavished on him. Our author's opinions on paper money are so true and correct, his criticism of the history of his time so sound and judicious, that this passage, which moreover excels in elegance of style and language, is unquestionably the best in the whole book. [IX. 33a— 356]. 1) Cf. Dictionnaire de rEoonomie polir tiqne article Papier-mounaie, par CouRCELLE Seneuil. A. N. Bernadakis, Lepapier monnaie dans I'antiquite. Journal des EconomiBtes, tome 33 (1874) pag. 366—367. 2) g Journal Asiatique (1837) in loco page 248. 211 ma-twak-lin's ceiticism. m')r- z ifi: mM m m % m ^ '^ ^ ^oM ff(.\^ m WoB^ n ^ ^ m m ^ m. MM mm m m -^ 1. ^ z z ^ i^o^ ^ -Ki ^ ^ ^ w # s n mo mM.'^ ) « # M M #.^ n zm - M ^ ?r II :)^ # :7 # m.ii # Mij ^ IfTt, %7 ffoS ^ofH ^ w >^ A ^ iil ^ t.^ began ^ 1. to make and ^^ # * # fr m m 4 It rfli It ^ mulberry-tree. That, slight value, several casting of it , ' stand circulate bits of paper made of the bark of the at the time when the money was heavy and of government work shops were established for . the to reason , but with respect to the paper money which is light of weight while it has a great value , it had , in my opinion', been sufficient, when only the capital (of the empire) had been resorted to to have it printed and made. At present, there are, besides the already circulating Hoei-tsze, the credit notes of (Sse) thuen , those of the Hoai provinces and the Hoei- tsze of the Hu regions , and each of those, provinces prints and makes them for itself, and the end of it is that the re-payment does not take place, and that they are no more a means balancing the actual posses- sion (of money). How is this? With the very first intention. to institute Hoei-tsze, it was not originally so that the Hoei(tsze) were looked upon as money, but they were then considered to be of the nature of the receipts for tea, salt, and other government productions, balancing money only temporarily.' (Only these points of difference there were between these three sorts of credit notes) that the receipts for commo- dities were upon the whole of a greater value. When one took a sum of 4 string 800 cash (4800) to the government salt stores, one received in return a bill which Could be exchanged for 200' pounds of salt. The Hoei-tsze however were only of one string and lower down to 300 and 200 cash. Furthermore there was only, printed on the receipts that the merchants must present them in order to receive for them tea, -ra, . I have, therefore, rendered it by in my opinion. See the preface. 2) 1^ = '^ Cf. p. 187. 1) ^S is here an exellent instance of expressing the sabjective meaning of the ituthoT in contradistinction to the foregoing. 213 m m. m ^ ^m i^ - ^ it k # # ^j ^ i w\M jr M. % m. ^-n ^.^\ m K MM 'm z ^ ^m. ± u. n ^ ^ f)r MM "H Z iliI,.^oM I& m. ^ i}l^ ^ '^.^ m 'ji- m^ % ^ u z m ^M ^ m ^^ )\\ - m m. Wo# mM ^ a m ^ ^ "^ ^ m )^ m \^ m iK ^ m ^nj ^ ^ ill z m.R m r- f- m im m M.^M m ;^o^ # m MoMi] # p m w: ^ ^ ^M^mzR'^^Hm^ salt, aromatics (or other) articles, and therefore for these notes a sepa- ration and division into several districts was necessary, as, for instance receipts for lump salt could only circulate in Sen-si, while receipts for crushed salt are current only in the Kiang and Hoai regions. The Hoei-tsze, on the contrary, served to be given and taken in pay- ment, when private as well as public persons bought or sold .something, without the occurrence (of the fact) that they disappeared, not to be used any more (like the receipts). Moreover, another evidence that they served as a substitute for the ready metallic money, is that they were made of the value of from one string to 200 copper pieces. And so much the more, now by means of a shred of paper of the size of one foot a quantity of many pounds of copper could be substituted, now by" circulating the lighter, the heavier was actually employed, and the strength of one man was sufiBcient to make that a quantity of tens of thousands of strings at a fixed time arrived at places some thousands of miles distant , what necessity was there then that Sse-t¥uen should have Sse-ts'wen receipts of its own, and Hoai, its own Hoai notes, and Hu its own Hu bonds; and this must needs be the reason that afterwards som'6 were abolished and some remained in use , that the names (of the notes) were continually altered, and thai in this way the people not knowing any more what to trust, grew suspicious? When the various tiotes were made for the two Hoai districts, for King-{tseu-fu) and other districts of H n-kwang axii Hu-pek, the original intention of the government and its desire was that they should be used only for a short time, and then to abolish them. Btit it did not know that, once fal- 1) lit. pearl or bullet salt and salt powder. 214 ^ m ± M m H i^ m n m m.m ^.z ^ Hioii # m J^ n m n m r- z ^^ 0^ w ^ ^ M ^ r- m m ^ ^\^ m n ± A m m 3 ^ M'i ^« Hf r!^ :^ #1 ^ >lf :Jt i^ The rich people of the present time haye made it their business to hoard up the money in their depositories, and likewise, after having exhausted the taxes, the government has piit the money of the empire in the royal treasury. And what is once put in it cannot be got out again; and then the paper money has been instituted and brought out to supersede') (the copper money). But that (paper money) is not so advantageous . as the copper money to circulate through the empire. Though ever so much copper money has been hoarded up, what then is the difference between this and other, goods? But people do not search into the basis and origin of things , and they think that paper money should be used only because there is a want of copper money. But now the paper money circulates, and the quantity of money is little , • the result of this will be, not only that no commodities are to' be had or to be seen, but also will it be cause that even no money will be had or seen any more. But since the corruption and misery of ancient and modern times have succeeded each other till this very day, it has always been seen that when matters had reached a climax, a change was nigh , and as once that change comes a whole revolution is the result , and so it must be positively now that a new way will be opened , but we do not know what that way shall be. If once that revolution has been brought about, it cannot be changed any more. When the paper money is now abolished it may result in the re-appearance of the stored up metallic money. Now as the way of wealth and power is situated ■ 1) ;«c tai is here again very probably used instead of ^^ iai to supersede. Ct. ' * I page 46, note 3. ' ^ 217 A M ^ M w a ^ m.f^ 5M m ^ z m mM,^ * m ^.z aio H^ i:.^^o^ 4 n.^ M #1 i: ^ IE ^ * ^ ^ ^ M-.M'J ^ % there where is abundance of commodities, and in consequence of those commodities being in abundance they are cheap , and for that reason the money is dear , (i. e. gets back its original value i), and if the money has again its value it may be weighed in light and heavy, and barter and exchange can go on again , so at present, now the money is of very little value , and this again results from the scarcity of commodities , not even a saint would be able to point out the means to bring about a radical change in this condition ^). But no saint did descend from Heaven and the Chinese, earthly beings as they were, continued to involve themselves in still greater difficulties, and the revolution which the prophetic look of our last quoted author had foreseen actually came but too soon. Ma-tv^an-lin has brought his "Examination" down only to this time, but from Waw^-A'i's Continuation of Ma~twan-lins work') we learn how one issue succeeded the other, how every time new names where invented to delude the people, solemn promises were made that henceforth the government, should fulfil what it had charged itself with, and how the result was that again and again old debts were paid by incurring new in order to defer the impending bankruptcy of the state. I will not weary my readers with the details of the sad his- 1) In contradistinction to the condition of the present time when money is cheap or has no value' whatever when people wants to buy something with it. 2) The construction of this phrase is; •'to point out a means hy which a radical change might he brought about, he who is not a saint would not he able to do. tion of the General Examination of History and Scholars by ^f xjr Wang-kH, 218 tory, but only quote the last few lines of Wang-Jd's monetary history of the -SMw^-dynasty which run as follows: [Wang-kH XVII, p. 15&.] m ff m ^ m wm.u m m m z ^ ^o^ "f-.m n m M m ^ w.m ft ^ It. we examine the historiographers of the SMMjf-dynasty, we see that already in the time of the emperor Ning-tsung (1195^-1225) the Hoei- tsze did not circulate any longer (lit were stopped in their course). The prices of all commodities rose enormously. The -people Could not endure their misery any more, and the government did not more know what to do. As it had come so far (Kiar)sse-Pao^) suggested to alter the paper parcels which balanced the actual possession, and to exchange them for frontier-bills for ready money, estimated in gold and silver. But when those silver-bills circulated the prices of commodities suddenly rose still higher. The incessant attacks of the Mongols who already under Ghen- gis Khan had conquered a great part of Asia, at last overthrew the feeble structure, and made an end of _ the ASttnor-dy nasty. An alien mounted the throne, and since that time the nomadic prin- ces have ruled over the Middle-Empire for about a century. The assertion that paper money has been one of the leading causes of the fall of the jSww^-dynasty is a thesis which will hardly be gainsaid by those who have read the history of this institution from its glorious beginning to its wretched end. It is indeed not to be wondered at that after those fatal re- sults which China was to experience twice more in after times, the government superseded the paper money by a metallic cur- rency, and for ever abolished paper money issued by the State. l)Xii(t-»»e-^'flo, was the perfidious premier I the whole of China. Mayers I. 252. of the emperor Tu-tsung (1265 — 75) under bh hH ^g*. _, , „_ \ whose government the Mongols conquered | *) ^ - ^ "jf Cf. p. 187 note 1. 219 Had that history been known earlier, it might have taught a great lesson to Europe and America, and preserved them from those evils which were to work incalculable misery and irreparable loss; evils which in many countries of the world reveal themselves, alas, too strongly in the social condition of the present time, and which are so well expressed by Webster who, speaking of paper money, says: "We have suffered more from this- cause than from every other cause or calamity. It has killed more men, pervaded and corrupted the choicest interests of our country more, and done more injustice than even the arroyrs and artifices of our enemy." ADDENDA AND ERRATA. Page 14 Chin, text Column 3 n« 6 for j|^ read » 31 line 1 , for remonstancing read remonstrating. » 84 note 2, Cf. page 110 note 1. » 42 note 1 at the end for .;^|» |^ ^ H , read :^f» Ig » 94 Chin. text. Column 3 and 12 and line 6 irom the bottom for ^ read |[{] . » 95 note 1. When the proof heet was ready to be printed, I fouad in another Mint-book, spl^^l^, kindly lend to me by Prof, schiegisl, the information that the country Wu-yik-san-li was situated east of Cophine on a distance of 12.200 U from Peking. J^ -^ li|^ @ *:i^l|:::^::iWMmMiWSetc. > 166 note 1 for Capus read Caput. r ■ :»»«*■'■'*--:' -V I f?? ) (-Wi •J#^»!»jf^ 'TfVSSS' '^.^J- 1/ ' 5 M-:'- hJ. ^i::.i %. *'iii^ W. VISSERINC. Chinese Cun'eih 'cy Original m the Asiatic Uuseu Phcti-ltthi'/]nipJia' .-iAmoji .Anixt C HiNESE Banknote of the Tai-Ming dynasty. I. I. # m n M BJ A dragon . -ea- .-ja n la- 0j design ten strings ffi of 100 cash w ^ each. Hi «^H ff # O ■k m ^ m m m p >-b to 7i t ffl w m ^ O 1— ( 3* ^H «B -^ # ^ l-t ^ A m ^m m 09 H ^ -ffi ^ im ^ ^ ^ if ^ . ^ ^ M ^ M ff ■ ■ ■ ■ • ■ ^ DESCKIPTION OF THE FAC-SIMILE OF THE CHINESE BANKNOTE OF THE TAI-MIN6 DYNASTY. belonging to the Collection of the Asiatic Museum of the Imperial Academy of Science at St. Petersburg. ACCORDING TO SU-WEN HIEN-T'UNG K'AO. Size of the original 32—21 cent"'. Vol. XVIII p. 104. T + M m ^ ■k m It :ft M St ^1 ^ # ff :*: m m w m :^ # ^^ '^ A tm n ^ m m ^ A ± ;^ ^ ^ ;i #. «J ^ ^T ^ m m m % mm m In the 8th year of the period Hung-wu (1375) the emperor Tai- tsu issued an order to his minister of finances to make the Pao-tsao (precious bills) of the Ta-ming dynasty, and to employ as raw material for the composition of those bills the fibres of the mulberry tree '). They should be made of a square form, one foot in length and six tsi'm (^/,g foot) in width; the substance (the paper to print the bill on) should be of a green-blue color. Outside (in the upper border) was the figure of a dragon , and the crossbars which were at right angles with the front, were orna- mented as balustrades of flowers. Of the inscription the front part runs "General current precious bill of the Tai-ming dynasty". At both in and outside there are eight characters in seal writing run- ning "Precious bill of the Tai-ming dynasty current, in th6 whole empire". In the centre a drawing is made on the bill, representing a string of 1000 cash in the form of ten strings of 100, which thus makes one Kwan (string of 1000). Below this the inscrip- tion runs: [Chinese text on the bill). I) ^x *ffi . The translation by the fibres of the mulberry tree is a little free, *jm properly signifies the culm or stalk of grain. But we know from elsewhere that paper is made of the ^s Moras or more generally of the JjSg , the Broussone- tia papi/rifera , and not of the straw of cereales, I have closely examined the stuff of the original bill and found no traces of straw whatever; I have therefore ^S taken in the possessive case and Jffl in the signification of the fibres. "According to a memorial presented by (our) minister of fi- "nances it is assented: to print and coin the precious bills of the ^''Tai-ming dynasty, which together with copper coin are every- " where current. He who makes and uses forged bills shall be be- "headed, and he who denunciates or arrests (the forger) shall receive "a reward of 250 taels of silver; besides he shall receive the "moveable property and real estate of the criminal. "The ~ day of the ~ month of the ~ year of the period ''Hung-wu (1368-1399) ')•" Of the two red seals there is quite as much discernible on the photography as on the original. With the aid of the magnifying glass and by consulting Wang-h''is history I have tried to make them out and believe them to be as follows. 1 2 ^ ^ m ^^" .1. Seal of the officials under the Tai-ming dynasty who bring the bills in circulation*). 2. Seal of the bank were the precious bills are printed and coined. I) The just date is not readable on the original. Perhaps it was written in pencil and has disappeared in the course of time. The fold in the midle of the bill and its con- trited state in that part are evidences that it has been in circulation and carried folded in the breast pocket or money belt. The fold is easily to be distinguished on the photography. 2) J^ ;^ -^ Cf. MORR. in voce *^ n° 114. Those officials occur in Wang-k'i'a Chronicles as issuers of the credit bills. Cf. further p. 1S9, 190 and p. 198, where likewise is spoken of the red seal marks of banknotes. II. ^ t m y% M m^M ^ m m mmm^ ^m ^ ^ m ^ M m :H- *& ^ M ¥ 7% m e w -t M ^ ^zmM M mz^m ^ n ?Tf IX. DESCRIPTION 01-' A GOVERNMENT BANK-NOTE OF THE YEAlt 1858. (belonging to the Numismatioal Jliiseuni at Leiden.) The four characters at the top of the bill coutaiu the name of the Bank. "Everlasting flourishing State-bank". The seal mark at the bottom on the original printed in red and seal char- acters, likewise contains that name. The vertical column of characters at the right side reads as follows "Valid bill equalizing 60 cash of copper money, certified". The column of the left side, "20*'* day of th^ lO*'' month of the 18* year of the period Hien-fung (1858) mark; {littera) Kien, n^ 170". The square seal mark between the two columns is also printed in red, and contains 16 characters. It reads: "It is given in payment of taxes. "Among merchants and "people, ciirrent together with coined copper cash, it is successively "given in payment and circulates". At the bottom another seal of an octangular form contains the two following fragments of a sentence taken from *Hhe Great Learning" Ch.X, 19. and having reference to wealth. The meaning is: "Let those who produce it (wealth) be many, and those who spend it be economical." In every octogon of the border one of the eight diagrams of the emperor Fii-M is put as ornament. The inscription outside the border reads again, "Bill correspond- ing with copper coin Utiera Kien n° 170". That column which on this note is accidentally preserved in its whole, is generally cut through, for when the bill is issued, the one half remains in the book of the banker as a means of controlling. Another bill, belonging to the "JiJcole des langues orientales vi- vantes" is issued by a joint-stock bank (lit. money-shop erected in association) -^ ^ ^^ -g^ at Shang-hai. Besides , almost the same inscriptions as the government note above treated of, it con- tains the remarkable addition by which its character as a bill to the bearer is expressed, eU^^nUA. ^- ®- '"The bill not the man is recognized". "According to a memorial presented by (our) minister of fi- "nances it is assented: to print and coin the precious bUls of the ^^Tai-ming dynasty, which, together with copper coin are every- "where current. He who makes and uses forged bills shall be be- "headed, and he who denunciates or arrests (the forger) shall receive "a reward of 250 taels of silver; besides he shall receive the "moveable property and real estate of the criminal. "The ~ day of the ~ month of the ~ year of the period ''Hung-wu (1368—1399) ')." Of the two red seals there is quite as much discernible on. the photography as on the original. With the aid df the magnifying glass and by consulting Wang-k'ii history I have tried to make them out and believe them to be as follows. 1 ■ 2 en # Bj .1. Seal of the officials under the Tai-ming dynasty who bring the bills in circulation*). 2. Seal of the bank were the precious bills are printed and coined. 1) The just date is not readable on the opginal. Perhaps it was written in pencil and has disappeared in the course of time. The fold in the midle of the bill and its con- trited state in that part are evidences that it has been in circulation and carried folded in the breast pocket or money belt. The fold is easily to be distinguished on the photography. 2) J^ ^ ^ Cf. MORE, in voce *^ n° 114. Those officials occur in Wang-k'i'a Chronicles as- issuers of the credit bills. Cf. further p. 189, 190 and p. 198, where likewise is spoken of the red seal marks of . banknotes. spend it be economical." In 6very octogon of the border one of the eight diagrams of the emperor Fu-hi is put as ornament. The inscription outside the border reads again, "Bill correspond- ing with copper coin littera Kien n° 170". That column which on this note is accidentally preserved in its whole, is generally cut through, for when the bill is issued, the one half remains in the book of the banker as a means of controlling. Another bill, belonging to the "Ecole des langues orientales vi- vantes" is issued by a joint-stock bank (lit. money-shop erected in association) -^ ^ ^ •^ at Shang-hai. Besides , almost the same inscriptions as the government note above treated of, it con- tains the remarkable addition by which its character as a bill to the bearer is expressed, SS" M ^ oS A. ^- ®- "The bill not the man is recognized".