250 PROCEEDINGS OF THE AMERICAN ACADEMY. 



from it that thin inner rind which lies between the coarser bark and the wood 

 of the tree. This being steeped, and afterwards pounded in a mortar, until 

 reduced to a pulp, is made into paper, resembling (in substance) that which 

 is manufactured from cotton, but quite black. When ready for use, he has 

 it cut into pieces of money of different sizes, nearly square, but somewhat 

 longer than they are wide. Of these, the smallest pass for a denier tournois; 

 the next size for a Venetian silver groat; others for two, five, and ten groats; 

 others for one, two, three, and as far as ten besants of gold. The coinage of 

 this paper money is authenticated with as much form and ceremony as if it 

 were actually of pure gold or silver; for to each note a number of officers, 

 specially appointed, not only subscribe their names, but affix their signets 

 also; and when this has been regularly done by the whole of them, the principal 

 officer, deputed by his majesty, having dipped into vermilion the royal seal 

 committed to his custody, stamps with it the piece of paper, so that the form 

 of the seal tinged with the vermilion remains impressed upon it, by which it 

 receives full authenticity as current money, and the act of counterfeiting it is 

 punished as a capital offence. When thus coined in large quantities, this 

 paper currency is circulated in every part of the grand Khan's dominions; 

 nor dares any person, at the peril of his life, refuse to accept it in payment. 

 All his subjects receive it without hesitation, because, wherever their business 

 may call them, they can dispose of it again in the purchase of merchandise 

 they may have occasion for; such as pearls, jewels, gold, or silver. With it, 

 in short, every article may be procured." 



Farther on Polo says : 



"When any persons happen to be possessed of paper money which from 

 long use has become damaged, they carry it to the mint, where, upon the 

 payment of only three per cent, they may receive fresh notes in exchange. 

 Should any be desirous of procuring gold or silver for the purposes of manu- 

 facture, such as of drinking-cups, girdles, or other articles wrought of these 

 metals, they in like manner apply at the mint, and for their paper obtain 

 the bullion they require. All his majesty's armies are paid with this currency, 

 which is to them of the same value as if it were gold or silver. Upon these 

 grounds, it may certainly be affirmed that the grand Khan has a more exten- 

 sive command of treasure than any other sovereign in the universe." 4 



The corroboration by Sir John de Mandeville, of the fact that paper 

 money was in use in China at that time, will not perhaps be accepted 

 as testimony of much value, but inasmuch as his account of travel is 

 supposed to contain much that was appropriated from the stories of 



4 As will appear later, the whereabouts of existing examples of these Mon- 

 gol notes are unknown. I am indebted to Mr. Worthington C. Ford for 

 photostats of some of these latter from illustrations in Chuan Pu Tung 

 Chih, a Chinese numismatical work. 



