Review How to make change in ancient silver? How much is a tael of silver worth now?

Mondo History Updated on 2024-02-01

This is an interesting question about China's historical currency, and it is also a complex question involving economic, social, cultural and other factors.

As a kind of ***, silver has been used by humans since ancient times to make ornaments, utensils, sacrifices and other items. However, silver, as a currency, did not always exist.

In Chinese history, the time when silver was used as currency began roughly in the Song and Yuan dynasties and ended in the late Qing Dynasty and early Republic of China, about 700 years1.

During this time, the form and circulation of silver also underwent many changes. Originally, silver did not have a fixed shape or weight, but existed in the form of raw ore or ingots, called raw silver or gross silver.

There is no uniform standard for this type of silver, and it needs to be weighed on a scale to determine its value. Later, in order to facilitate transactions, people began to break silver into small pieces of various shapes, called broken silver or change.

This kind of silver also does not have a fixed weight, but it has a certain shape, such as fish scales, chicken hearts, lotus flowers, etc. Later, in order to regulate the market, officials began to issue silver ingots or silver ingots with fixed weights and imprints, called whole ingots or full color.

There are clear standards for this kind of silver, and it can be used directly for settlement.

There were also many ways in which silver could be circulated in ancient times. The most common is bartering, i.e., exchanging silver for other goods or services.

This method requires both parties to negotiate the ** and quantity, and then use a scale to weigh or visually determine the transaction amount. Another way is to exchange money for silver, i.e., to exchange other metal currencies (e.g., copper coins, coins) for silver.

In this way, the exchange rate needs to be determined according to the market at the time, and care should be taken to prevent counterfeit or inferior currency. Another way is to exchange bills, that is, to use paper or cloth to record the information of loans or transfers, and exchange them for physical silver when needed.

This method requires a certain credit system to ensure the authenticity and validity of the bills.

Ancient silver, as currency, required a system of weights and measures to measure its weight and value. In Chinese history, the system of weights and measures has undergone many changes, and different dynasties and even different regions have different standards.

However, it can be broadly divided into two types: one is the two systems in units of two, and the other is the money system in units of money.

The two systems are one of the earliest and most common systems of weights and measures. Two is a unit of weight, equivalent to 3125 grams.

According to the two systems, one bucket of rice is equal to ten taels of silver, one tael of silver is equal to ten cents (or ten cents), one cent (or one penny) of silver is equal to ten cents (or ten cents), and one cent (or one penny) of silver is equal to ten cents (or ten cents).

The advantage of the two systems is that it is simple and straightforward, and it is easy to calculate, but the disadvantage is that it is not flexible enough to adapt to changes in the market.

The money system is one of the systems of weights and measures that developed later.

Money is a unit of face value, which is equivalent to the cents of the present. According to the money system, one tael of silver is equal to one thousand copper coins, one penny of copper is equal to one penny of silver, one penny of silver is equal to ten cents of silver, and one cent of silver is equal to ten cents of silver.

The advantage of the money system is that it is flexible and can adapt to changes in the market, and the disadvantage is that it is complex and cumbersome, and it is difficult to calculate.

There were also many ways to exchange silver in ancient times. The most common is the exchange of copper coins, that is, the exchange of copper coins for silver, or the exchange of silver for copper coins.

In this way, the exchange rate needs to be determined according to the market ** at that time, that is, how many copper coins can be exchanged for one tael of silver, or how many cents of silver can be exchanged for one copper coin.

This exchange rate is not fixed, but fluctuates with supply and demand and inflation.

For example, in the middle and late Qing Dynasty, due to the influx of a large number of foreign countries into the Chinese market, resulting in the depreciation of the Chinese market, the exchange rate was reduced from the initial one tael of silver to one thousand copper coins to one tael of silver to five hundred or even three hundred wen.

In addition to the exchange of copper coins, there are other ways to exchange. For example, the exchange of other metal currencies is mediated, that is, gold, tin, red money, etc., are exchanged for silver, or silver is exchanged for these currencies.

In this way, the exchange rate needs to be determined according to the metal content and purity of the time, and care is taken to prevent counterfeit or inferior coins.

There is also a way of exchanging in kind, that is, daily necessities such as rice, cloth, and salt are exchanged for silver, or silver is exchanged for these items.

In this way, the exchange rate needs to be determined according to the price level and the quality of the goods at the time, and care must be taken to prevent adulteration or spoilage.

The value and purchasing power of silver as a currency in ancient times were not fixed, but changed with time and region.

It is not an easy task to accurately assess the value and purchasing power of ancient silver. Because there is a big difference between ancient society and modern society, whether it is the price level, income level, consumption structure, living standard and other aspects.

Therefore, there is no uniform standard and method for comparing ancient silver with modern renminbi. However, we can make a rough estimate with the help of some reference indicators and data.

One of the reference indicators is the purchasing power parity (PPP) method based on rice.

This method believes that rice, as one of the livelihood commodities of the Chinese for thousands of years, can reflect the price level and living standards of different periods and regions, and can be compared with modern society.

Therefore, we can calculate the value and purchasing power of ancient silver based on the ** of rice. For example, according to the record of "Ming Shilu", during the Zhengde period of the Ming Dynasty (1506-1521), the ** of one bucket of rice was one cent of silver, and one or two pieces of silver could buy ten buckets of rice.

According to the National Bureau of Statistics, China's national consumer consumption index (CPI) in 2020 was 1021, of which the grain ** index is 1058。

Assuming that the ** of one bucket of rice in 2020 is 4 yuan, then according to the purchasing power parity method, one tael of silver is equivalent to 400 yuan.

Of course, this method can only provide a rough estimate because it ignores the influence of other factors, such as the amount of money, inflation, income distribution, consumption preferences, etc.

Another reference indicator is the salary-based income parity (IP) approach. This approach argues that wages, as one of the main ways for people to obtain income, can reflect the income level and living standard of different periods and regions, and can be compared with modern society.

Therefore, we can calculate the value and purchasing power of ancient silver based on the level of wages. For example, according to the "Qing Historical Manuscript", during the Qianlong period of the Qing Dynasty (1736-1795), an ordinary Beijing official (below the sixth grade) received three taels of silver per month.

According to the National Bureau of Statistics, the average wage of on-the-job employees in China's urban non-private units in 2020 was 93,371 yuan. Assuming that there are 30 days in a month in 2020, then according to the income parity method, one tael of silver is equivalent to 10,374 yuan.

Again, this method can only provide a rough estimate because it ignores the impact of other factors, such as occupational differences, tax systems, welfare packages, etc.

Combining the above two methods, we can derive a rough range, that is, the value and purchasing power of a tael of silver in ancient times is equivalent to about 400 yuan to 10,000 yuan in modern times.

Although this range is broad, it can also reflect the scarcity and importance of ancient silver.

As a currency, the anti-counterfeiting and credit of ancient silver is a very important issue. Because silver is a kind of silver with high value density and plasticity, it is easy to be forged or adulterated by people.

If a currency loses its authenticity and credibility, it can lead to market chaos and economic crisis. Therefore, in ancient societies, various measures were taken to ensure the anti-counterfeiting and credibility of silver.

One of these measures is official regulation and management. In ancient societies, there was a great deal of control and responsibility over money.

* It is necessary not only to formulate monetary policies and regulations, to stipulate the standards and scope of circulation of money, but also to set up special institutions and personnel to supervise and inspect the quality and quantity of money.

For example, during the Wanli period of the Ming Dynasty (1573-1620), the Ministry of Household Banknote Customs Department was set up to manage the business, and the banknote customs officials were sent to various places to check the authenticity of the goods.

During the Qianlong period of the Qing Dynasty (1736-1795), a silver vault was set up to store and issue silver ingots, and it was stipulated that silver ingots could not be circulated unless they had been officially inspected and printed.

Another measure is the inspection and credit of the people. In ancient society, the supervision and management of the first class is not perfect and effective, and many times it is necessary to rely on the power of the people to ensure the anti-counterfeiting and credit of silver.

There are various inspection methods and credit mechanisms among the people to identify and protect the authenticity of silver. For example, one can judge the purity and quality of silver by looking at its color, luster, hardness, weight, and other characteristics.

One can also check the authenticity and integrity of silver by weighing, cutting, piercing it by using tools such as scales, knives, needles, etc. One can also increase the credibility and liquidity of silver by establishing credit relationships and credit histories.

For example, merchants can conduct credit transactions with each other by signing contracts, issuing bills of exchange, using deposits, etc. Ordinary people can also borrow credit from each other through introductions from relatives and friends, neighborhood guarantees, credit evaluation, etc.

Ancient silver, as currency, was an important phenomenon and feature in Chinese history. It not only reflects China's connection and exchange with the world, but also influences China's social structure and class relations, and stimulates China's cultural creation and artistic expression.

It is a highlight and treasure in Chinese history, which deserves our in-depth study and appreciation.

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