History of Chinese Currency Through the Ages

The history of Chinese currency is a long and fascinating one. Chinese people have been using various forms of currency for over 2,000 years, with the first recorded use of coins dating back to the Zhou Dynasty in 771 BCE.

Coins were made of copper and were used to pay soldiers and officials. The use of coins continued throughout Chinese history, with the introduction of new metals like bronze and iron.

One of the most significant developments in Chinese currency was the introduction of paper money during the Tang Dynasty in the 7th century. This was a major innovation that allowed for the widespread use of currency and facilitated trade.

Paper money was first issued as a form of exchange, with merchants trading it for goods and services.

Pre-Imperial China was a time of significant economic change, marked by the introduction of various forms of currency.

Tortoise shells, cowrie shells, gold, coins, knives, and spades were all used as money during this period.

The earliest use of spade and knife money was in the Spring and Autumn period (770–476 BCE), as evidenced by archaeological findings.

Socio-economic conditions were favorable to the adoption of coinage, much like in ancient Greece.

Gold and cowries were used to the south of the Yellow River, but the use of tortoise shells as money remains unclear.

The earliest forms of Chinese currency were quite fascinating. Money of tortoise shells, cowrie shells, gold, coins, knives, and spades were used for exchange between farmers, artisans, and merchants.

These early forms of currency were used from remote antiquity. Archaeological evidence shows that the earliest use of spade and knife money was in the Spring and Autumn period (770–476 BCE).

While nothing is known about the use of tortoise shells as money, gold and cowries were used to the south of the Yellow River. The probability is that items often offered by dealers as coins, such as fish, halberds, and metal chimes, were in fact funerary items.

The spade and knife money were used as coins, but their use was limited to the Spring and Autumn period. Socio-economic conditions at the time were favourable to the adoption of coinage, just like in ancient Greece.

Cowrie shells were used as currency as far back as the Shang dynasty [1600-1100BCE]. They were highly valued due to their rarity and inability to be forged.

Inscriptions and archaeological evidence show that cowrie shells were important objects of value in the Shang dynasty. They were even used as gifts or rewards from kings and nobles to their subjects.

The character for cowrie shells, Bèi 贝, is still used in Chinese to represent precious things. It's also a radical in words for valuable concepts like jiàn 贱 (cheap; worthless) and guì 贵 (precious; expensive; honorable).

Cowrie shells were probably sourced from the South China Sea or the Indian Ocean. Their rarity made them tightly controlled as a form of currency.

The use of cowrie shells continued up to the Ming dynasty in remote south western parts of China.

In the Chu kingdom, coins were minted to commemorate important events. Ma Yin, the King Wumu of Chu, was originally a carpenter but was given the rank of Supreme Commander of Tiance, Hunan, by Emperor Zhu Wen of the Later Liang in 911.

The Tian Ce Fu Bao coins, made of iron, were minted to celebrate this event. They are a testament to the kingdom's ability to produce coins.

Ma Yin took the advice of his minister Gao Yu to cast lead and iron coins at Changsha in 925. This led to the creation of the Qian Feng Quan Bao coins.

These coins were made of iron and were worth ten copper cash. They were mainly circulated in Changsha and were traded by merchants, benefiting the State.

A hoard of over 3,000 Qian Feng Quan Bao coins was found near Changsha in 2000. This discovery highlights the significance of these coins in the kingdom's economy.

The Qian Yuan zhong bao coins, made of lead, bear an inscription also found on Tang coins. They are thought to have been issued by the Chu kingdom.

Similar bronze coins are sometimes attributed to Ma Yin, but could be funerary items.

Early Coins were first introduced during the Shang dynasty, with cowrie shells being used as important objects of value. Cowries were later imitated in bone, stone, or bronze and used as money in some instances.

The first metallic coins were bronze imitations of cowrie shells found in a tomb near Anyang dating from around 900 BC, although they lacked inscriptions. These early coins were found in areas to the south of the Yellow River, corresponding to the State of Chu in the Warring States period.

Some of the earliest metallic coins with inscriptions were the Ant Nose Money or Ghost Face Money, which have been found in large quantities. One notable hoard contained around 16,000 pieces, with weights varying greatly and alloys often containing high proportions of lead.

Here are some examples of early coins with inscriptions:

The use of lead in early coins is notable, with some coins like the Shun Tian yuan bao and Wu Zhu being made from iron, but others, like the Ant Nose Money, having alloys containing high proportions of lead.

Cowries were used as currency in ancient China, dating back to the Shang dynasty around 1600-1100 BCE. They were highly valued and often used as gifts or rewards from kings and nobles to their subjects.

The shells were also imitated in bone, stone, or bronze, which were likely used as money in some instances. These imitations have been found in areas to the south of the Yellow River.

Cowrie shells were used as currency as far back as the Shang dynasty, and the character for cowrie, 贝, is still used today to represent precious things. It's also used as a radical in words like 贵 (precious; expensive; honorable) and 财 (riches; valuables).

The shells were rare, couldn't be forged, and didn't occur naturally in China, which meant the amount of money was tightly controlled. This scarcity made them a valuable commodity.

Early round coins were first introduced during the Zhou period, around 350 BC. They circulated in both the spade and knife money areas.

These early round coins had a round hole in the middle of their face and were denominated in yǐn in the central plain and liǎng in Qin. They were a precursor to the familiar cash coin.

Archaeological finds have shown that most types of coins circulated together. A notable example is a hoard found in 1981 near Hebi in north Henan province, which consisted of 3,537 Gong spades, 3 Anyi arched foot spades, 8 Liang Dang Lie spades, 18 Liang square foot spades, and 1,180 Yuan round coins.

The round coins from the spade money area had a round hole in the middle, while those from the knife money area had a square hole. They were denominated in different units depending on the region.

Here are some examples of early round coins:

It's worth noting that early round coins were made from a variety of materials, but the article doesn't specify what those materials were.

Crude lead coins were a common sight in ancient China, particularly during the Tang dynasty. They were often made unofficially by merchants or people, and were found in large quantities in towns.

One type of crude lead coin is the Kai Yuan tong bao, which is based on Tang dynasty coins. These coins have a local style with numerous reverse inscriptions, apparently series numbers, and a great variety of designs.

Some Kai Yuan tong bao coins have crescents on the reverse, while others have meaningless characters. The Kai character sometimes looks like yong, and characters and legends are often reversed due to the incompetence of the workmen.

The value of crude lead coins varied, but in 929, the Chu authorities fixed the value of a lead coin as 1/100 of a bronze coin. This was a significant development, as it established a standard for the value of these coins.

Here are some examples of crude lead coins with their respective values:

In 962, it was decreed that lead coins should circulate in towns, while copper coins should be used outside of them. Those who contravened this rule risked the death penalty.

The Imperial Dynasties played a significant role in shaping the history of Chinese currency. The Qin and Han dynasties introduced the first standardized coins, with the Han dynasty's coinage featuring a square shape and a square hole in the center for easy counting.

The Tang dynasty saw a significant increase in trade and commerce, leading to the widespread use of copper cash coins. The Song dynasty, on the other hand, introduced the first paper currency, known as "jiaozi", which was initially used as a medium of exchange for merchants.

The Ming dynasty's coinage featured a more intricate design, with the use of multiple denominations and a standardized system of weights and measures.

The Qin dynasty was a pivotal moment in Chinese history, marked by the unification of China under a single ruler, Qin Shi Huang Di, in 221 BC. He introduced a standardized currency, including the Ban Liang coin.

The Ban Liang coin was originally called "half liang", written in Classical Chinese as 半兩 (bànliǎng), and was notionally 12 zhu or about 8 g (0.28 oz) in weight. The liang was a small Qin unit of weight, also known as the "tael" or "Chinese ounce", approximately equal to 16 g (0.56 oz).

Qin Shi Huang Di also introduced regulations concerning metal and cloth money, which were discovered on bamboo tablets from the Warring States period. Archaeologists found a sealed jar containing 1,000 Ban Liang coins of various weights and sizes at Zhangpu in Shaanxi.

The Ban Liang coin was first issued in the Warring States period by the State of Qin, possibly as early as 378 BC. This was a remarkable achievement in standardizing currency across a vast territory.

Han was a powerful and influential imperial dynasty in Chinese history.

The Han Dynasty ruled China from 206 BCE to 220 CE, a period known as the "Golden Age" of Chinese history.

The dynasty was founded by Emperor Gaozu, who was a member of the Liu family and a descendant of the famous Confucian philosopher, Confucius.

The Han Dynasty is famous for its economic prosperity, cultural achievements, and military conquests.

One of the most notable achievements of the Han Dynasty was the construction of the Great Wall of China, which was initially built to protect the Chinese Empire from nomadic invasions.

The Han Dynasty also made significant contributions to the development of Chinese philosophy, particularly Confucianism and Taoism.

The Northern Wei dynasty was a significant player in Chinese history, established in 386. It's fascinating to note that the Northern Wei had been around for nearly a century before they started using money.

The first coin issued by the Northern Wei was the Tai He Wu Zhu, introduced in 495 by Emperor Xiao Wen. It's possible that it was minted at the capital Datong in Shanxi.

The Tai He Wu Zhu coin was a game-changer for the Northern Wei, marking the beginning of their use of money. This was a major shift from their previous nomadic way of life.

The Yong An Wu Zhu coin was introduced in 529 by Emperor Xiao Zhuang, during the Yongan period. It's worth noting that these coins continued to be cast until 543.

The Yong An Wu Zhu coin was widely circulated, and it's said that private coins with nicknames such as Yongzhou Green-red and Liangzhou Thick were also in circulation. These nicknames suggest that the coins had distinct characteristics.

Here are some of the nicknames given to the Yong An Wu Zhu coins:

The Northern Zhou dynasty was a significant period in Chinese history. It was marked by the introduction of new coins, which were a crucial part of the economy.

One of the notable coins from this era is the Bu Quan, which was issued in 561 by Emperor Wu. It was worth five Wu Zhus and had a distinctive design feature that differentiated it from earlier versions.

The Bu Quan was withdrawn in 576 due to counterfeiting. The authorities took steps to address the issue by banning the use of this coin.

Another important coin from the Northern Zhou dynasty is the Wu Xing Da Bu. Issued in 574, it was intended to be worth ten Bu Quans but was soon found to be of reduced weight. This led to its ban in 576.

The Yong Tong Wan Guo coin was introduced in 579 by Emperor Xuan. It had a nominal weight of 12 zhu and was meant to be equivalent to ten Wu Xing coins.

These coins, including the Bu Quan, Wu Xing Da Bu, and Yong Tong Wan Guo, are known as the "Northern Zhou Three Coins". They are notable for being written in the Yu Zhu style of calligraphy, which is highly admired.

Here are the key features of the Northern Zhou coins:

The Southern Han dynasty is a fascinating period in Chinese history. It was founded by Liu Yan, who proclaimed himself Emperor of the Great Yue in 917, later renaming it the Han dynasty.

Liu Yan set up his capital at Canton, which he renamed Xingwangfu. This marked the beginning of a new era in the region.

The Southern Han dynasty was known for its lead coins, specifically the Kai Ping yuan bao, which were cast by Liu Yin, the founder of the Southern Han Kingdom. These coins were made to commemorate the Liang dynasty period title.

Here are some key dates associated with the Southern Han dynasty: