China
China had long used silver as monetary units, along with the cast copper-alloy cash. The use of silver ingots can be traced back as far as the Han dynasty (206 BC-220 AD). But prior to Sung era (960-1280), those silver ingots were used mainly for hoarding wealth. During Sung Dynasty, though first time in history the government became the sole issuer of paper currency after 1024, cast coins and silver were still used as a medium for money. On the Shanyuan Treaty signed with Liao Dynasty at 1004, Sung agreed to pay an annual indemnity or tribute of 100,000 tael of silver and 200,000 bolts of silk. This was the first time silver in tael (Chinese:??) was used as indemnity in foreign treaty. Silver ingots were made into the shape like boat or Chinese shoe during Yuan Dynasty (1271–1368), and was called "yuan bao" (??) - literally "treasure of Yuan". This often became the shape of silver ingots in the following centuries.
The use of silver as monetary standard was much established during the Ming Dynasty (1368–1644). Paper money were issued as monetary standard at the beginning of dynasty. But due to the rapid inflation, the issues were suspended in about 1450 although notes remained in circulation until 1573 (see Chinese currency). Meanwhile, the silver was much available through the foreign trade with Portuguese and Spanish starting the 16th century. The great taxation reform by Zhang Juzheng (Chinese:???) at 1581 (9th years of emperor Wanli) simplified the taxation and requires all the tax and corvee paid in silver. This can be seen as the firm position of silver in the Ming’s monetary system. But the reform would have not been a success or even feasible if the enormous silver were not available through the trade and imports from America mainly through Spanish.
During Ching dynasty (1644–1911), the silver ingots were still used but various foreign silver dollars in the south coast area through foreign trade have become popular since mid-Ching era. It was apparent the silver ingots became awkward and more complicated to use as compared with the foreign silver dollars, which with fixed specification and fineness of silver can be counted easily. However, Ching dynasty very much resisted the idea minting the silver coin of their own. It was not until late Ching at 1890, the first circulating silver coin was introduced at par with the Mexican Peso by Kwangtung province, and soon it was followed by other provinces. For these silver coins, tael was still seen as the monetary unit as on the coin the indication of 7 mace and 2 candareen (i.e. 0.72 tael) meant for one dollar; the monetary unit Yuan (Chinese: ?, literally "roundness") didn’t appear yet. Note for the treaties signed between Ching dynasty and other countries, except for the Treaty of Nanking where the silver dollar was indicated, the indemnities were all in tael of silver (see the Treaties of Tianjin, Convention of Peking, Treaty of Shimonoseki, and Boxer Protocol). It was not until 1910, the 2nd year of Xuantong (Chinese:??), the silver coin in "yuan", which subdivided into 10 jiao (Chinese:?) and 100 fen, and is equal to 0.72 tael 0.9 fine silver, was officially announced as the standard monetary unit, and the next year 1911, the silver Yuan (dollar) called “ Great Ching Silver Coin” was issued.
The silver standard was again adopted and codified by the newly established republic in 1914, with one yuan being equal to the same 7 mace and 2 candereen 0.9 fine silver. After the Chinese Nationalist Party unified the country at 1928, the yuan was again announced as the standard unit in 1933, but this time the relationship of yuan to tael was abolished as one yuan being equal now to 26.6971 gram and 0.88 fine silver. It was at the same year 1933, the time when most of Western countries mainly Britain and USA have left the gold standard because of the Great Depression, it was said that China almost avoided the depression entirely mainly due to having stuck to the silver standard (see Great Depression). However, the US silver purchase act of 1934 created an intolerable demand on China's silver coins, and so in the end the silver standard was officially abandoned in 1935 in favor of the four Chinese national banks "legal note" issues. China, and the British Colony of Hong Kong which followed suit in this regard in September 1935, would be the last to abandon the silver standard. Hong Kong then adpoted the gold exchange standard and the Hong Kong dollar took on the exact value of one shilling and three pence (1s 3d) sterling.
China use of the silver standard is reflected in the name for bank “??” (literally “silver house" or "silver office”) and for the precious metal and jewel dealer “??” (literally “silver building” or “silver shop”).
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AI
