From Copper to Silver: The Evolution of Chinese Currency

For centuries, China’s monetary system revolved around copper coins, with gold reserved for high-value transactions. Silver, though prized, remained scarce and was rarely used in everyday commerce until the Ming Dynasty (1368–1644). Early Ming rulers initially banned private silver transactions, enforcing a paper currency system with the Da Ming Baochao (Great Ming Treasure Note). However, rampant inflation from overprinting eroded public trust in paper money.

By the mid-15th century, merchants in prosperous coastal regions began unofficially adopting silver for trade. The government finally legalized its use in 1567 under the Longqing Emperor, decreeing that transactions over 0.1 tael (roughly 3.7 grams of silver) could combine silver and copper. This pivotal reform cemented silver’s dominance in China’s economy, shaping taxation, salaries, and even cultural practices for centuries.

The Practicalities of Silver Commerce

Contrary to the neat sycee ingots (often called “yuanbao”) depicted in films, most transactions involved broken silver—irregular fragments cut from larger bars. Carrying scissors and small scales became routine, as buyers and sellers negotiated precise amounts. Jesuit missionaries marveled at the skill with which even children could estimate cuts:

> “A Chinese needing 0.2 taels or 0.005 taels would clip the exact weight in one attempt.”

Standardization was loose. A 50-tael ingot (≈1.8 kg) bore inscriptions verifying its origin and purity, but smaller pieces required constant weighing. Market stalls kept 戥子 (děngzi)—delicate balances capable of measuring fractions of a fen (0.01 tael).

Measuring Silver’s Purchasing Power

To grasp historical values, economists often use rice as a benchmark. Ming records indicate:
– 1 tael ≈ 2 dan (石) of rice
– 1 dan = 120 Ming jin ≈ 188.8 modern jin (94.4 kg)

Thus, 1 tael bought ~189 kg of rice in the late 1500s. Adjusting for current rice prices (~¥1.75/jin), this suggests:
1 Ming tael ≈ ¥660 today

However, volatility was extreme. During the 1588 famine, rice prices spiked to 1.6 taels/dan, while luxury goods like silk or carpentry services held steadier values (see table below).

| Commodity | Price (taels) | Modern Equivalent (¥) |
|——————–|———————|———————–|
| 1 dan rice (normal) | 0.5–1 | ¥330–660 |
| Pig (live) | 1.2 | ¥792 |
| Carpenter’s daily wage | 0.05–0.07 | ¥33–46 |

Wages and Livelihoods in Silver

Official salaries reflected stark hierarchies:
– County magistrate (七品): 45 taels/year (≈¥29,700 today) plus housing and servants
– Groom (马夫): 40 taels/year (≈¥26,400) no benefits
– Street vendor (per “The Oil Seller and the Courtesan”): Could save 16 taels/year after expenses

Notably, Tongfu Inn’s fictional maid Guo Furong earned 0.2 taels/month (¥132 today)—a pittance, though room/board offset low wages.

Silver’s Legacy: From Ming Tax Reforms to Global Trade

The Ming’s silver standard had unintended consequences:
1. Trans-Pacific Links: Spanish galleons shipped Mexican silver to China in exchange for porcelain and tea, fueling globalization.
2. Taxation Crisis: The Single Whip Reform (1581) mandated silver tax payments, straining peasants during shortages.
3. Artistic Depictions: Literature like The Golden Lotus meticulously recorded prices, offering economists rare insights into Ming inflation.

Today, China’s monetary history reminds us that currency values are never static—shaped by harvests, policies, and the scissors of a street vendor.