Japanese currency has a history covering the period from the 8th century AD to the present. After the traditional usage of rice as a currency medium, Japan adopted currency systems and designs from China before developing a separate system of its own.
Before the 7th-8th centuries AD, Japan used commodity money for trading. This generally consisted of material that was compact and easily transportable and had a widely recognized value. Commodity money was a great improvement over simple barter, in which commodities were simply exchanged against others. Ideally, commodity money had to be widely accepted, easily portable and storable, and easily combined and divided in order to correspond to different values. The main items of commodity money in Japan were arrowheads, rice grains and gold powder.
This contrasted somewhat with countries like China, where one of the most important items of commodity money came from the southern seas: shells. [1] Since then however, the shell has become a symbol for money in many Chinese and Japanese ideograms. [1]
The earliest coins to reach Japan were Chinese Ban Liang and Wu Zhu coins, as well as the coins produced by Wang Mang during the first centuries of the first millennium AD; these coins have been excavated all over Japan, but as Japan's economy was not sufficiently developed at the time, these coins were more likely to be used as precious objects rather than a means of exchange; rice and cloth served as the main currencies of Japan at the time. [2]
The first coins produced in Japan are called the Mumonginsen (無文銀銭, or 'silver coins without inscription') and the copper alloy Fuhonsen (富本銭, coins made from an alloy of copper, lead and tin) which were all introduced in the late seventh century. These currencies (alongside other reforms) were based on the Chinese system and were therefore based on the Chinese units of measurement. In modern times the usage of Fuhonsen has often been interpreted as charms rather than currency, but it has recently been discovered that these copper coins were in fact the first government-made coinage of Japan. [2]
Japan's first formal currency system was the Kōchōsen (Japanese: 皇朝銭, "Imperial currency"). It was exemplified by the adoption of Japan's first official coin type, the Wadōkaichin . [3] It was first minted in 708 AD on the orders of Empress Genmei, Japan's 43rd Imperial ruler. [3] "Wadō Kaichin" is the reading of the four characters printed on the coin, and is thought to be composed of the era name Wadō (和銅, "Japanese copper"), which could alternatively mean "happiness", and "Kaichin", thought to be related to "currency". [1]
This coinage was inspired by the Tang coinage (唐銭) named Kaigen Tsūhō (Chinese: 開元通宝, Kai Yuan Tong Bao), first minted in Chang'an in 621 CE. [1] The Wadokaichin had the same specifications as the Chinese coin, with a diameter of 2.4 cm and a weight of 3.75g. [1]
Japan's contacts with the Chinese mainland became intense during the Tang period, with many exchanges and cultural imports occurring. [3] The first Japanese embassy to China is recorded to have been sent in 630. [1] The importance of metallic currency appeared to Japanese nobles, probably leading to some coin minting at the end of the 7th century, [3] such as the Fuhonsen coinage (富本銭), discovered in 1998 through archaeological research in Nara Prefecture. [1] An entry of the Nihon Shoki dated April 15, 683 mentions: "From now on, copper coins should be used, but silver coins should not be used", which is thought to order the adoption of the Fuhonsen copper coins. [1] The first official coinage was struck in 708.
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The Wadōkaichin soon became debased, as the government rapidly issued coins with progressively lesser metallic content, and local imitations thrived. [1] In 760, a reform was put in place, in which a new copper coin called Man'nen Tsūhō (萬年通寳) was worth 10 times the value of the former Wadōkaichin, with also a new silver coin named Taihei Genpō (大平元寶) with a value of 10 copper coins, as well as a new gold coin named Kaiki Shōhō (開基勝寶) with a value of 10 silver coins. [1]
Silver minting was soon abandoned however, but copper minting took place throughout the Nara period. [3] A variety of coin types are known, altogether 12 types, including one coin type in gold. [1]
The Kōchōsen Japanese system of coinage became strongly debased, with its metallic content and value decreasing. By the middle of the 9th century, the value of a coin in rice had fallen to 1/150th of its value of the early 8th century.
By the end of the 10th century, compounded with weaknesses in the political system, this led to the abandonment of the national currency, with the return to rice as a currency medium. [1] The last official Japanese coin issue was in 958, with very low quality coins called Kengen Taihō (乹元大寶), which soon fell into disuse. [1]
The last Kōchōsen coins produced after the Wadōkaichin include: [2]
| Inscription | Kyūjitai | Shinjitai | Year of introduction (Gregorian calendar) | Image |
|---|---|---|---|---|
| Wadō Kaichin | 和同開珎 | 和同開珎 | 708 |  |
| Man'nen Tsūhō | 萬年通寳 | 万年通宝 | 760 |  |
| Jingū Kaihō | 神功開寳 | 神功開宝 | 765 |  |
| Ryūhei Eihō | 隆平永寳 | 隆平永宝 | 796 |  |
| Fuju Shinpō | 富壽神寳 | 富寿神宝 | 818 |  |
| Jōwa Shōhō | 承和昌寳 | 承和昌宝 | 835 |  |
| Chōnen Taihō | 長年大寳 | 長年大宝 | 848 |  |
| Jōeki Shinpō | 饒益神寳 | 饒益神宝 | 859 |  |
| Jōgan Eihō | 貞觀永寳 | 貞観永宝 | 870 |  |
| Kanpyō Taihō | 寛平大寳 | 寛平大宝 | 890 |  |
| Engi Tsūhō | 延喜通寳 | 延喜通宝 | 907 |  |
| Kengen Taihō | 乹元大寳 | 乾元大宝 | 958 |  |
From the 12th century, the expansion of trade and barter again highlighted the need for a currency. Chinese coinage came to be used as the standard currency of Japan, for a period lasting from the 12th to the 17th century. [1] Coins were obtained from China through trade or through "Wakō" piracy. [1] Coins were also imported from Annam (modern Vietnam) and Korea. [1]
There is evidence to suggest that the Yuan dynasty used to extensively export Chinese cash coins to Japan for local circulation. The Sinan shipwreck, which was a ship from Ningbo to Hakata that sank off the Korean coast in the year 1323, [4] carried some 8,000 strings of cash coins, [5] which weighed about 26,775 kg. [6]
As the Chinese coins were not in sufficient number as trade and economy expanded, local Japanese imitations of Chinese coins were made from the 14th century, especially imitations of Ming coins, with inscribed names identical to those of contemporary Chinese coins. [1] These coins had a very low value compared to Chinese coins, and several of them had to be exchanged for just one Chinese coin. This situation continued until the beginning of the Edo period, when a new system was put in place.
The growth of the economy and trade meant that small copper currency became insufficient to cover the amounts that were being exchanged. During the Sengoku period, the characteristics of the future Edo Period system began to emerge. Local Lords developed trade, abolishing monopolistic guilds, which led to the need for large-denomination currencies. From the 16th century, local experiments started to be made, with the minting of local coins, sometimes in gold. Especially the Takeda clan of Kōshū minted gold coins which were later adopted by the Tokugawa shogunate. [1]
Hideyoshi unified Japan, and thus centralized most of the minting of large denomination silver and gold coins, effectively putting in place the basis of a unified currency system. Hideyoshi developed the large Ōban plate, also called the Tenshō Ōban (天正大判), in 1588, a predecessor to Tokugawa gold coinage. [7]
A common practice in that period was to melt gold into copper molds for convenience, derived from the sycee manufacturing method. These were called Bundōkin (分銅金), of which there were two types, the small Kobundō (小分銅), and the large Ōbundō (大分銅). A Kobundō would represent about 373g in gold. [1]
Tokugawa coinage was a unitary and independent metallic monetary system established by shōgun Tokugawa Ieyasu in 1601 in Japan, and which lasted throughout the Tokugawa period until its end in 1867. [8]
From 1601, Tokugawa coinage consisted of gold, silver, and bronze denominations. [8] The denominations were fixed, but the rates actually fluctuated on the exchange market. [8] Tokugawa started by minting Keicho gold and silver coins, and Chinese copper coins were later replaced by Kan'ei Tsuho coins in 1670.
The material for the coinage came from gold and silver mines across Japan. For this purpose, new gold mines were opened, such as the Sado and Toi gold mines in the Izu Peninsula. Regarding diamond[ clarification needed ] coins, the Kan'ei Tsūhō coin (寛永通宝) came to replace the Chinese coins that had been in circulation in Japan, as well as those that were privately minted, and became the legal tender for small denominations. [1]
Yamada Hagaki , Japan's first notes, were issued around 1600 by Shinto priests also working as merchants in the Ise-Yamada (modern Mie Prefecture), in exchange for silver. [1] This was earlier than the first goldsmith notes issued in England around 1640. [1] The first known feudal note was issued by the Fukui clan in 1661. During the 17th century, the feudal domains developed a system of feudal notes, giving currency to pledged notes issued by the lord of the domain, in exchange for convertibility to gold, silver or copper. [1] Japan thus combined gold, silver, and copper standards with the circulation of paper money. [1]
Tokugawa coinage remained in use during the Sakoku period of seclusion, although it was progressively debased to try to manage government deficits. The first debasement, in 1695, was called the Genroku Recoinage. [1]
The Tokugawa coinage collapsed following the reopening of Japan to the West in 1854, as the silver-gold exchange rates gave foreigners huge opportunities for arbitrage, leading to the export of large quantities of gold. Gold traded for silver in Japan at a 1:5 ratio, while that ratio was 1:15 abroad. During the Bakumatsu period in 1859 Mexican dollars were even given official currency in Japan, by coining them with marks in Japanese and officializing their exchange rate of three "Bu"[ clarification needed ]. They were called Aratame Sanbu Sadame (改三分定, "Fixed to the value of three bu"). [1]
Meanwhile, local governments issued their own currency chaotically, so that the nation's money supply expanded by 2.5 times between 1859 and 1869, leading to crumbling money values and soaring prices. The system was replaced by a new one after the conclusion of the Boshin War, and with the onset of the Meiji government in 1868. [1]
Following 1868, a new currency system based on the Japanese yen was progressively established along Western lines, which has remained Japan's currency system to this day.
Immediately after the Meiji Restoration in 1868, previous gold, silver and copper coins, as well as feudal notes, continued to circulate, leading to great confusion. In 1868, the government also issued coins and gold-convertible paper money, called Daijōkansatsu (太政官札), denominated in Ryō , an old unit from the Edo period, and private banks called Kawase Kaisha were allowed to issue their own currency as well. Complexity, widespread counterfeiting of gold coins and feudal notes led to widespread confusion. [1]
Through the New Currency Act of 1871, Japan adopted the gold standard along international lines, with 1 yen corresponding to 1.5g of pure gold. The Meiji government issued new notes, called Meiji Tsūhōsatsu (明治通宝札), in 1872, which were printed in Germany. [1]
Silver coins were also issued for trade with Asian countries who favoured silver as a currency, thus establishing a de facto gold-silver standard. [1]
The National Bank Act of 1872 led to the establishment of four banks between 1873 and 1874, and there were more than 153 national banks by the end of 1879. The national banks issued identically designed convertible notes, which were effective in funding industry and progressively replaced government notes. In 1876, an amendment allowed the banks to make the banknotes virtually non-convertible. These national banknotes imitated the design of American banknotes, although the name of the issuer was different for each. [1]
Severe inflation broke out with the Seinan Civil War in 1877. This was controlled by the reduction of government spending and the removal of paper currency from circulation. During the Seinan Civil War, an original type of paper money was issued by the rebel leader Saigō Takamori in order to finance his war effort. [1]
In 1881, the first Japanese note to feature a portrait, the Empress Jingū note (神功皇后札), was issued. [1]
In order to regularize the issuance of convertible banknotes, a central bank, the Bank of Japan, was established in 1882. The bank would stabilize the currency by centralizing the issuance of convertible banknotes. The first central banknotes were issued by the Bank of Japan in 1885. They were called Daikokusatsu (大黒札), and were convertible in silver. [1]
Following the devaluation of silver, and the abandonment of silver as a currency standard by Western powers, Japan adopted the gold standard through the Coinage Law of 1897. The yen was fixed at 0.75g of pure gold, and banknotes were issued which were convertible into gold. [1] In 1899, the National Banks banknotes were declared invalid, leaving the Bank of Japan as the only supplier of currency. [1]
During World War I, Japan prohibited the export of gold in 1917, as did many countries such as the United States. Gold convertibility was again shortly established in January 1930, only to be abandoned in 1931 when Great Britain abandoned the gold standard. Conversion of banknotes into gold was suspended. [1]
From 1941, Japan formally adopted a managed currency system, and in 1942 the Bank of Japan Law officially suppressed the obligation of conversion. [1]
In 1946, following the Second World War, Japan removed the old currency (旧円券) and introduced the "New Yen" (新円券). [1] Meanwhile, American occupation forces used a parallel system, called B yen, from 1945 to 1958.
Since then, together with the economic expansion of Japan, the yen has become one of the major currencies of the world. [9]
The Sinan shipwreck found off the western coast of South Korea in 1976 contained 26,775 kg (58,905 lb) of Chinese coins, mostly dating from the Song dynasty.
Early Japanese Coins. David Hartill. ISBN 978-0-7552-1365-8
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The yen is the official currency of Japan. It is the third-most traded currency in the foreign exchange market, after the United States dollar and the euro. It is also widely used as a third reserve currency after the US dollar and the euro.
The mon was the currency of Japan from the Muromachi period in 1336 until the early Meiji period in 1870. It co-circulated with the new sen until 1891. Throughout Japanese history, there were many styles of currency of many shapes, styles, designs, sizes and materials, including gold, silver, bronze, etc. The kanji for mon (文) also shares its name with Chinese wén, Korean mun, Vietnamese văn.
Wadōkaichin (和同開珎), also romanized as Wadō-kaichin or called Wadō-kaihō, is the oldest official Japanese coinage, first mentioned for 29 August 708 on order of Empress Genmei. It was long considered to be the first type of coin produced in Japan. Analyses of several findings of Fuhon-sen (富夲銭) in Asuka have shown that those coins were manufactured from 683.
Tokugawa coinage was a unitary and independent metallic monetary system established by shōgun Tokugawa Ieyasu in 1601 in Japan, and which lasted throughout the Tokugawa period until its end in 1867.
The 1 yen note (1円券) was a denomination of Japanese yen in seven different series from 1872 to 1946 for use in commerce. These circulated with the 1 yen coin until 1914, and briefly again before the notes were suspended in 1958. Notes from the Japanese government, known as "government notes," were the first to be issued through a company in Germany. Because they were being counterfeited, they were replaced by a new series which included the first portrait on a Japanese banknote. Almost concurrently, the government established a series of national banks modeled after the system in the United States. These national banks were private entities that also released their own notes which were later convertible into gold and silver. All three of these series came to an end due to massive inflation from the Satsuma Rebellion in 1877. National bank notes were re-issued as fiat currency before the national banks themselves were abolished. Both national bank and government one yen notes were gradually redeemed for Bank of Japan note starting in 1885. This redemption process lasted until all three series were abolished in 1899.
The 50 sen coin (五十銭硬貨) was a Japanese coin worth half of a Japanese yen, as 100 sen equalled 1 yen. These coins circulated from the late 19th century to the early 1950s, when Japan adopted a single currency unit and this coin was demonetized.
The Ryukyuan mon was the currency used in the Ryukyu Islands. The Ryukyuan monetary system was based on that of China, like those of many nations in the Sinosphere, with the mon serving as the basic unit, just as with the Japanese mon, Vietnamese văn, and Korean mun. Like Japan had also done for centuries, the Ryukyuans often made use of the already-existing Chinese cash coins when physical currency was needed.
The Tenpō Tsūhō was an Edo period coin with a face value of 100 mon, originally cast in the 6th year of the Tenpō era (1835). The obverse of the coin reads "Tenpō" a reference to the era this coin was designed in, and "Tsūhō" which means "circulating treasure" or currency. The Kaō is that of Gotō San'emon, a member of the Kinza mint's Gotō family, descendants of Gotō Shozaburo Mitsutsugu, a metalworker and engraver from Kyoto appointed by shōgun Tokugawa Ieyasu in 1600 to oversee the Edo mint of his shogunate and oversee its coinage. All mother coins were produced in Edo before they were sent to other mints where they would place the individual mint's mark on the edge of the coin. The coin circulated for 40 years, and stopped being produced during the Meiji Restoration after the introduction of the Japanese yen. Today these coins are now sold as "lucky charms" as well as being collected by numismatists.
Nagasaki trade coins (長崎貿易銭), also known as Nagasaki export coins, refer to Japanese mon coins specifically cast for export by the Tokugawa government between 1659 and 1685 during the Sakoku era. Though the inscriptions on the coins often match Chinese coins from the Song dynasty they’re often cast with different typefaces such as the fact that the Genpō Tsūhō (元豊通寳) produced at Nagasaki was in Clerical script while the Song dynasty’s versions were in Seal script and Running script. Due to the success of these coins they’re often still found in modern day Vietnam and Java, and were copied by contemporary Vietnamese mints as they had become the de facto standard coinage in Vietnam as native production had declined in the 17th century. As the export of gold and silver was banned by the Qing dynasty Japanese merchants were most likely to go to Hanoi and Hội An to gain access to Chinese products causing these coins to start circulating en masse on the Vietnamese market. A special “5 elements” series of Nagasaki trade coins were also cast for export to Taiwan.
The Kan'ei Tsūhō was a Japanese mon coin in use from 1626 until 1868 during the Edo period. In 1636, the Kan'ei Tsūhō coin was introduced by the Tokugawa shogunate to standardise and maintain a sufficient supply of copper coinage, and it was the first government-minted copper coin in 700 years. The government adopted the coin after its successful introduction in the Mito domain ten years prior in 1626, the third year of the Kan'ei era. These coins would become the daily currency of the common people and would be used for small payments.
The Yongle Tongbao was a Ming dynasty era Chinese cash coin produced under the reign of the Yongle Emperor. As the Ming dynasty didn't produce copper coinage at the time since it predominantly used silver coins and paper money as the main currency, the records vary on when the Yongle Emperor ordered its creation between 1408 and 1410, this was done as the production of traditional cash-style coinage had earlier ceased in 1393. The Yongle Tongbao cash coins were notably not manufactured for the internal Chinese market where silver coinage and paper money would continue to dominate, but were in fact produced to help stimulate international trade as Chinese cash coins were used as a common form of currency throughout South, Southeast, and East Asia.
The 10 sen note (十銭紙幣) was a denomination of Japanese yen issued in four different series from 1872 to 1947 for use in commerce. Meiji Tsūhō notes are the first modern banknotes issued after Japanese officials studied western culture. There circulated alongside ten sen coins until their withdrawal in 1887. The other three series of ten sen notes issued are in some way tied to the impacts of World War I and World War II. Taishō fractional ten sen notes were issued as a response to a coin shortage that was caused by the first of these wars. They were eventually suspended in the early 1920s when things had settled down, and were later demonetized in 1948. The last two series of ten sen notes were issued by the Bank of Japan rather than the treasury. First series notes were issued as ten sen coins could no longer be produced, while the A series was released after the war in a futile attempt to curb inflation. These last two issues were demonetized at the end of 1953 when the Japanese government passed a law abolishing subsidiary notes in favor of the yen. Ten sen notes are now bought and sold as collectors items depending on condition.
The 20 sen note (二十銭紙幣) was a denomination of Japanese yen in three different government issued series from 1872 to 1919 for use in commerce. Meiji Tsūhō notes are the first modern banknotes issued after Japanese officials studied western culture. These notes were replaced due to counterfeting by a redesigned series called "Ōkura-kyō" for "sen" denominations. Both of these series were officially abolished in 1899 in favor of notes issued by the Bank of Japan. Government issued notes only returned during the Taishō era in the form of an emergency issue due to a coin shortage. These were only issued between 1917 and 1919 before they were finally abolished in 1948. Twenty sen notes are now bought and sold as collectors items depending on condition.
The 50 sen note (五十銭紙幣) was a denomination of Japanese yen in six different government issued series from 1872 to 1948 for use in commerce. Those in the "Meiji Tsūhō" series are the first modern banknotes issued after Japanese officials studied western culture. Counterfeiting eventually became an issue which led to the issuance of "Ōkura-kyō" notes in 1882. These were issued as part of a larger series featuring Empress Jingū on the obverse. Both of these series of fifty sen notes circulated alongside fifty sen coins until their abolishment in 1899. No additional notes were issued for this era as the other four series are tied in some way to the world wars. Fifty sen notes returned during the Taishō era in the form of an emergency issue due to a coin shortage and rising silver prices. These were issued between 1917 and 1922 before the situation settled enough to resume coinage. Silver became an issue again during the Shōwa era in lieu of the Second Sino-Japanese War, which prompted the government to issue "Fuji Sakura" notes in 1938. As the war raged on, the notes were changed in design to be more nationalistic. The "Yasukuni" series was issued from 1942 to 1945 depicting images related to State Shinto. These were allowed to be released again for a final time after the war had ended. Fifty sen notes were last issued in 1948 featuring no references to the Emperor. Pre-war notes were abolished on August 31, 1948, while the last series continued to circulate until the end of 1953. Fifty sen notes are now bought and sold as collectors items depending on condition.
The 2 yen note (2円券) was a denomination of Japanese yen issued in two different overlapping series from 1872 to 1880 for use in commerce. Meiji Tsūhō "two yen" notes were the first to be released as inconvertible government notes in 1872. These notes were produced both domestically, and in Germany using western technology. While they had an elaborate design, the notes eventually suffered in paper quality, and were counterfeited. Two yen Meiji Tsūhō notes were not redesigned with other denominations in response to these issues. The series as a whole was affected by massive inflation that occurred during the aftermath of the Satsuma Rebellion in 1877. Too many non convertible notes had been issued to pay for the expenses incurred. Government notes stopped being issued in 1879, and the Bank of Japan was established in 1882 as a way to redeem old notes for new ones issued by the bank. This redemption period expired when the notes were abolished on December 9, 1899.
The 5 yen note (5円券) was a denomination of Japanese yen in twelve different series from 1872 to 1955 for use in commerce. Only those from the "A series", which was issued from 1946 to 1955 are legal tender today.
Meiji Tsūhō (明治通宝) refers to the first paper currency that was issued by the Imperial Japanese government during the early Meiji era. After the "yen" was officially adopted in 1871, the Japanese looked to the Western World for their improved paper currency technology. An agreement was made with Italian engraver Edoardo Chiossone, who designed 6 denominations of Yen, and 3 denominations of Sen. The Japanese Government's decision to issue these notes as fiat currency ended in disaster as inflation rose following the Satsuma Rebellion. Meiji Tsūhō notes were ultimately demonetized towards the end of the 19th century.
The Nagato Mint was a mint for the production of bronze coins located in the Chofu Anyoji neighborhood of the city of Shimonoseki, Yamaguchi Prefecture in the San'yō region of Japan. The site was designated a National Historic Site of Japan in 1929.
The 10 yen note (10円券) was a denomination of Japanese yen for use in commerce.
