1824. 
sury; and to accept, in lieu of it, bills, 
which were put in circulation, under 
the name of feg thsian, flying money. 
However,’ before the lapse of three 
years, they were compelled to suppress 
the use of this paper, in the capital; con- 
fining it to the provinces. 
During the reign of Thai Tsoo, who 
ascended the throne about the year 
960, paper-money was, then, so much in 
request, that in 997, the quantity in cir- 
culation was reckoned to amount to 
1,700,000 ounces of gold; to which, in 
1021, the value of 1,130,000 ounces 
was added. 
Tt was, however, in the country of 
Shoo, now the province of Szu-tshahooan, 
that real paper-money, i. e. assignates, 
which assumed the place of money, 
without being guaranteed by any depo- 
sit whatever, was introduced by Tshang 
Yoong, in lieu of the iron coin, which 
was felt too heavy and inconvenient.* 
They were called Tshee-see. During 
the reign of Thin Tsoong (from 997 till 
1022), a kind of paper was current, 
called Kiao-tsu, or changes. They were 
payable, every three years; and each 
was equal, in value, to one ounce of 
pure silver. Sixteen of the richest 
houses had undertaken the manage- 
ment of this financial operation; but 
they, at last, failed, and gave occasion to 
a great many law-suits. Upon this the 
emperor prohibited private individuals 
from issuing paper-money, and esta- 
blished a government bank at Y-tsheoo. 
In the year 1032, there were 1,256,340 
ounces in Kiao-tsu in circulation. In 
1068, it was found, that there were 
forged ones among them; and the same 
punishment was decreed against the 
forgers as against those who might 
forge the government seal. Subse- 
quently, and at various periods, Kiao-tsu 
banks were established in various pro- 
vinces of the empire. The notes of 
one province had no currency in ano- 
ther. Often, too, the terms of repay- 
ment, and the mode of their circnlation, 
were changed. 
In 1131, under the Emperor Kao 
Tsoung,'a paper-currency, under the de- 
nomination of Kooan-tsu (treasury bills), 
was emitted, to such a degree, that it 
caused the people to murmur, In 1160, 
still under the same Emperor, another 
* The first iron coin was introduced, into 
China, by the rebel Koong Sun Shoo, who died, 
thirty-six years after Christ. His example 
was, however, not followed, till the year 
524, since which time, it has been frequently 
m ployed, 
On the Origin of Paper Money, 
391 
species of paper was created, called 
Hoei-tsu, or “ conventions,’ worth from 
200 to 1000 farthings, of which, in 
six years’ time, an amount of nearly 
44,000,000 of ounces, in value, was put 
into circulation. Besides these, there 
were the Kiao-tsu, and several kinds of 
provincial notes, which all together went 
on increasing so much under the dynasty 
of the Soang, that they continued losing 
in value, and the price of provisions 
rose, to a frightful height, notwithstand- 
ing all the shifts and contrivances of the 
government, to keep up the nominal 
value of their paper. 
During the course of the 12th cen- 
tury, China was conquered by the Toon- 
goosians, who formed a new dynasty, 
under the name of Kin. It may be 
supposed that the long wars impove- 
- vished the country, and thus the new 
monarchs were likewise compelled to 
have recourse to paper-money, of which 
they created a species on the same plan 
as the Kiao-tsu. Their value was of 
100,300,700,900 and 1,000 pieces of 
copper. The notes were exchanged 
every seven years for fresh ones, on 
which occasion the government deducted 
fifteen pieces of copper in every 1,000, 
to cover the banking expenses. 
During the latter half of the 13th 
century, the Mongols became masters 
of China, and founded the dynasty of 
Yooan, which reigned from 1279 till 
1367. Even before the entire subjection 
of China, their monarchs introduced 
paper money among the Mongols. But 
it was not till 1287, that they established 
a new species of this circulating medium 
in China, under the name of Pao-tshhao, 
or precious paper-money. From this 
time the quantity of paper went on in- 
creasing. A note of 1000 pieces of 
copper, of the years 1264 to 1294, re- 
placed those of 5000, of the years 1250 
to 63; and of those, of the years 1305 
to 1311, 1000 pieces again replaced 5000 
of the former. They were worth an 
ounce of pure silver, and the tenth part 
of an ounce of gold. By these constant 
changes, and the increase of paper- 
money, the country was at last entirely 
ruined, and the Mongols compelled to 
leave it. 
The very poverty of the country, how- 
ever, obliged the succeeding dynasty of 
the Shing rather to increase than dimi- 
nish the T'shhao ; and they even went so 
far, as to prohibit the use of gold, silver, 
and other precious things, as means of 
traffic. Nevertheless, the paper declined 
so much, that. the people gave no more 
~~ than 
