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Coinage at this time was used only by the aristocracy or religious elites, while the rest of the population functioned on a barter system in which value or buying power tended to be expressed in terms of silk, cloth, or rice.<ref>When a good was used as payment, its value was often counted in terms of ''jun-kinu''　準絹, ''jun-nuno'' 準布, or ''jun-kome'' 準米, that is, in terms of how much silk, cloth, or rice it would have been worth.</ref> One ''hiki'' 疋 of silk was generally valued as equal to one ''[[koku]]'' of rice (1 ''koku'' = 10 ''[[Japanese Measurements|to]]'' 斗 = 100 ''[[Japanese Measurements|shô]]'' 升), though this varied. Still, on average, from the [[Heian period]] through the [[Sengoku period]], one ''koku'' of rice was considered equivalent to one ''kanmon'', or 1000 ''mon'' in coins; one ''hiki'' remained steadily equivalent to ten ''mon'' of coins through the Edo period.<ref>Kobata. pp98-99.</ref> The direct association of goods, especially rice, with value, would continue through the mid-19th century; in the Edo period (1600-1868), lands would be valued in terms of their agricultural production, taxes would be paid in rice (or equivalents), and samurai would be paid their stipends in rice.

Coinage at this time was used only by the aristocracy or religious elites, while the rest of the population functioned on a barter system in which value or buying power tended to be expressed in terms of silk, cloth, or rice.<ref>When a good was used as payment, its value was often counted in terms of ''jun-kinu''　準絹, ''jun-nuno'' 準布, or ''jun-kome'' 準米, that is, in terms of how much silk, cloth, or rice it would have been worth.</ref> One ''hiki'' 疋 of silk was generally valued as equal to one ''[[koku]]'' of rice (1 ''koku'' = 10 ''[[Japanese Measurements|to]]'' 斗 = 100 ''[[Japanese Measurements|shô]]'' 升), though this varied. Still, on average, from the [[Heian period]] through the [[Sengoku period]], one ''koku'' of rice was considered equivalent to one ''kanmon'', or 1000 ''mon'' in coins; one ''hiki'' remained steadily equivalent to ten ''mon'' of coins through the Edo period.<ref>Kobata. pp98-99.</ref> The direct association of goods, especially rice, with value, would continue through the mid-19th century; in the Edo period (1600-1868), lands would be valued in terms of their agricultural production, taxes would be paid in rice (or equivalents), and samurai would be paid their stipends in rice.

These early currencies fell out of usage, however, in the tenth century. By the time of the issuing of the Engi taihô (901-923), the currency had become debased, meaning that a given coin, despite officially having a certain denomination, actually contained less precious metal than its nominal value. In other words, there was severe inflation, as a given amount of currency no longer had the value (or buying power) it once did. And so, people lost confidence in the currency, and it fell out of circulation.

These early currencies fell out of usage, however, in the tenth century. By the time of the issuing of the Engi taihô (901-923), the currency had become debased, meaning that a given coin, despite officially having a certain denomination, actually contained less precious metal than its nominal value. In other words, there was severe inflation, as a given amount of currency no longer had the value (or buying power) it once did. And so, people lost confidence in the currency, and the government stopped minting coins for a time.

Several centuries later, beginning in the 12th century, [[Song dynasty]] Chinese coins began to be imported in considerable volumes, as a natural result of increased trade with China. The Northern Song, in fact, minted more copper coins than any other Chinese dynasty, and though the export of coinage from China was banned, Chinese coins nevertheless flowed throughout the East Asia region.<ref>Kobata. p98.</ref> The court noble [[Saionji Kintsune]] alone is known to have imported as much as 100,000 ''kan'' of Song coins, enough to fund the construction of a dozen or more buildings. Song coins circulated so widely that as early as 1240 the [[Kamakura shogunate]] had reversed its various bans on the usage of cash, permitting its use everywhere but in the northernmost provinces.<ref>Kang, David C. “Hierarchy in Asian International Relations: 1300-1900.” Asian Security 1, no. 1 (2005), 65.</ref>

Several centuries later, beginning in the 12th century, [[Song dynasty]] Chinese coins began to be imported in considerable volumes, as a natural result of increased trade with China. The Northern Song, in fact, minted more copper coins than any other Chinese dynasty, and though the export of coinage from China was banned, Chinese coins nevertheless flowed throughout the East Asia region.<ref>Kobata. p98.</ref> The court noble [[Saionji Kintsune]] alone is known to have imported as much as 100,000 ''kan'' of Song coins, enough to fund the construction of a dozen or more buildings. Song coins circulated so widely that as early as 1240 the [[Kamakura shogunate]] had reversed its various bans on the usage of cash, permitting its use everywhere but in the northernmost provinces.<ref>Kang, David C. “Hierarchy in Asian International Relations: 1300-1900.” Asian Security 1, no. 1 (2005), 65.</ref>

The Edo period monetary system, or at least its foundations, was established quite early in the period. In [[1601]] (Keichô 6), the Tokugawa oversaw the minting of a series of coins, in fairly large quantities, explicitly for circulation. The largest was the ''Keichô ôban'', worth 10 ''ryô''; the ''Keichô koban'' and ''ichibuban'', gold coins worth 1 ''ryô'' and 1 ''bu'' respectively, were "face value" coins, with the value of one ''bu'' dependent not directly on the weight of the gold coin, but rather tied to the rising or falling value of the ''koban''. Silver ''chôgin'' and ''mameita-gin'' coins continued to be valued by weight, and circulated in paper wrappings.<ref>Kobata. p106.</ref>

The Edo period monetary system, or at least its foundations, was established quite early in the period. In [[1601]] (Keichô 6), the Tokugawa oversaw the minting of a series of coins, in fairly large quantities, explicitly for circulation. The largest was the ''Keichô ôban'', worth 10 ''ryô''; the ''Keichô koban'' and ''ichibuban'', gold coins worth 1 ''ryô'' and 1 ''bu'' respectively, were "face value" coins, with the value of one ''bu'' dependent not directly on the weight of the gold coin, but rather tied to the rising or falling value of the ''koban''. Silver ''chôgin'' and ''mameita-gin'' coins continued to be valued by weight, and circulated in paper wrappings.<ref>Kobata. p106.</ref>

Regional currencies continued to be used for a time, along with ''hankin'' and ''gokuin-gin'' certified bullion. [[Kaga han]] ([[Ishikawa prefecture]]), which is still known today for its precious metals, was one of a number of places which had its own systems of certified bullion (mainly in silver), including what was called ''shuhô-gin'' - certified silver in a vermillion wrapper. Bullion sent to Edo or other parts of the country from these mining areas was often stamped or otherwise designated by marking for that region. To take just one example, bars from [[Niigata prefecture|Niigata]] were stamped with the character ''ei''/''sakae'' (栄, prosperity). [[Akita han]] was also a major mining and minting area, producing gold and silver ''sen'' (coins in the same form as copper coins traditionally), along with ''koban'', crude silver ore (''jô-gin''), and certified silver (''gokuin-gin''). Akita employed its own producers of weights and scales.<ref>Kobata. p107.</ref>

Regional currencies continued to be used for a time, along with ''hankin'' and ''gokuin-gin'' certified bullion. Merchants in the [[Ise province|Ise-Yamada]] area began producing paper money as early as 1600. Many domains produced their own paper notes; the oldest known today in its original form was a variety produced in [[Fukui han]] in [[1661]].<ref name=currencymuseum>Pamphlet, Currency Museum.</ref> [[Kaga han]] ([[Ishikawa prefecture]]), which is still known today for its precious metals, was one of a number of places which had its own systems of certified bullion (mainly in silver), including what was called ''shuhô-gin'' - certified silver in a vermillion wrapper. Bullion sent to Edo or other parts of the country from these mining areas was often stamped or otherwise designated by marking for that region. To take just one example, bars from [[Niigata prefecture|Niigata]] were stamped with the character ''ei''/''sakae'' (栄, prosperity). [[Akita han]] was also a major mining and minting area, producing gold and silver ''sen'' (coins in the same form as copper coins traditionally), along with ''koban'', crude silver ore (''jô-gin''), and certified silver (''gokuin-gin''). Akita employed its own producers of weights and scales.<ref>Kobata. p107.</ref>

By the end of the 17th century, the shogunate took control of the silver mines and the minting of currency, established shogunate-controlled ''ginza'', ''kinza'', and copper mints in [[Osaka]] and Edo, and standardized the system, eliminating regional variant currencies, at least in theory. Though this might seem on the surface like it might stifle economic development, in fact, the opposite occurred, as regional differences in currency systems, and protective policies put in place by the various [[han|domains]], were eliminated, allowing freer circulation of money and goods throughout the country, especially in and out of the major economic centers of Edo and Osaka.<ref>Kobata. p108.</ref> Despite the shogunal ban, many domains continued to produce their own fiat money, at least at times. Akita han issued its own fiat money in [[1755]], in an effort to monopsonize rice; the project was short-lived, however, being shut down a mere two years later after [[tea]] merchants from [[Mino province]] complained to the shogunate about the non-convertible currency. In another example, [[Tokushima han]] issued paper money beginning in the 1680s in an effort to make up for an insufficient supply of silver. Most domainal efforts to print their own money resulted in unintended inflation.<ref>[[Mark Ravina]], ''Land and Lordship in Early Modern Japan'', Stanford University Press (1999), 59-60.</ref>

By the end of the 17th century, the shogunate took control of the silver mines and the minting of currency, and established shogunate-controlled ''ginza'', ''kinza'', and copper mints in [[Osaka]] and Edo. The ''Kan'ei tsûhô'' was first minted in [[1670]], and the system was standardized, eliminating regional variant currencies, at least in theory.<ref name=currencymuseum/> Though this might seem on the surface like it might stifle economic development, in fact, the opposite occurred, as regional differences in currency systems, and protective policies put in place by the various [[han|domains]], were eliminated, allowing freer circulation of money and goods throughout the country, especially in and out of the major economic centers of Edo and Osaka.<ref>Kobata. p108.</ref> Despite the shogunal ban, many domains continued to produce their own fiat money, at least at times. Akita han issued its own fiat money in [[1755]], in an effort to monopsonize rice; the project was short-lived, however, being shut down a mere two years later after [[tea]] merchants from [[Mino province]] complained to the shogunate about the non-convertible currency. In another example, [[Tokushima han]] issued paper money beginning in the 1680s in an effort to make up for an insufficient supply of silver. Most domainal efforts to print their own money resulted in unintended inflation.<ref>[[Mark Ravina]], ''Land and Lordship in Early Modern Japan'', Stanford University Press (1999), 59-60.</ref>

Meanwhile, precious metals, especially silver, flowed out of the country in great volume, especially through [[Nagasaki]]. In the 16th century Japanese silver mines had become much more productive just as Chinese ones began to wane, spurring this considerable outflow. Copper mines similarly saw a considerable increase in their output in the 17th century, but by the end of that century, Japan's silver mines were already beginning to run dry. This led to dramatic devaluations in the coinage, and rampant inflation, at various times over the course of the Edo period, as the shogunate attempted to implement financial/monetary policies to address the declining supply of precious metal. The Keichô ''koban'' weighed four ''momme'', eight ''fun'', and was 862 parts gold to 132 parts silver. After [[1695]], it was debased to 564 parts gold to 432 parts silver, with the total weight of the coin remaining the same.<ref>Arai Hakuseki, Joyce Ackroyd (trans.), ''Told Round a Brushwood Fire'', University of Tokyo Press (1979), 296n239.</ref> One of the most significant instances of this came in [[1718]], when the value of the gold ''ryô'' dropped by about 20 percent. One gold ''ryô'' had been equal to roughly 60 ''momme'' of silver, and was now worth roughly 50 ''momme'';<ref name=obtaining/> one ''chôgin'' (43 ''momme''), therefore, had been equivalent to roughly 71% of a gold ''ryô'', but was now worth closer to 83% of a ''ryô''.<ref>Timon Screech (''Obtaining Images'', p79) cites the figures as 65% and 95%; however, calculating directly, using the figures 43, 50, and 60, results in the percentages 71 and 83.</ref> Meanwhile, the ''[[Genroku]]-gin'' pieces of silver (issued 1695-1706), made of 646 parts silver to 352.6 parts copper and 1.4 parts gold, were replaced by the ''Hôeigin'' in 1706-1710, made up of 507 parts silver 490.6 parts copper and 1.2 parts gold.<ref>Hakuseki, 296n240.</ref>

Meanwhile, precious metals, especially silver, flowed out of the country in great volume, especially through [[Nagasaki]]. In the 16th century Japanese silver mines had become much more productive just as Chinese ones began to wane, spurring this considerable outflow. Copper mines similarly saw a considerable increase in their output in the 17th century, but by the end of that century, Japan's silver mines were already beginning to run dry. This led to dramatic devaluations in the coinage, and rampant inflation, at various times over the course of the Edo period, as the shogunate attempted to implement financial/monetary policies to address the declining supply of precious metal. The Keichô ''koban'' weighed four ''momme'', eight ''fun'', and was 862 parts gold to 132 parts silver. After [[1695]], it was debased to 564 parts gold to 432 parts silver, with the total weight of the coin remaining the same.<ref>Arai Hakuseki, Joyce Ackroyd (trans.), ''Told Round a Brushwood Fire'', University of Tokyo Press (1979), 296n239.</ref> One of the most significant instances of this came in [[1718]], when the value of the gold ''ryô'' dropped by about 20 percent. One gold ''ryô'' had been equal to roughly 60 ''momme'' of silver, and was now worth roughly 50 ''momme'';<ref name=obtaining/> one ''chôgin'' (43 ''momme''), therefore, had been equivalent to roughly 71% of a gold ''ryô'', but was now worth closer to 83% of a ''ryô''.<ref>Timon Screech (''Obtaining Images'', p79) cites the figures as 65% and 95%; however, calculating directly, using the figures 43, 50, and 60, results in the percentages 71 and 83.</ref> Meanwhile, the ''[[Genroku]]-gin'' pieces of silver (issued 1695-1706), made of 646 parts silver to 352.6 parts copper and 1.4 parts gold, were replaced by the ''Hôeigin'' in 1706-1710, made up of 507 parts silver 490.6 parts copper and 1.2 parts gold.<ref>Hakuseki, 296n240.</ref>

The debasement of coinage in the Genroku period, down to coins of only 57% gold and ingots of only 64% silver may have created as much as five million ''ryô'' in savings (or profits) for the shogunate, providing a much-needed boost to the shogunate's finances.<ref>Robert Hellyer, ''Defining Engagement'', Harvard University Press (2009), 59.</ref>

The debasement of coinage in the Genroku period was the first major debasement in the period;<ref name=currencymuseum/> the change to minting coins of only 57% gold and ingots of only 64% silver may have created as much as five million ''ryô'' in savings (or profits) for the shogunate, providing a much-needed boost to the shogunate's finances.<ref>Robert Hellyer, ''Defining Engagement'', Harvard University Press (2009), 59.</ref>

===Prices===

===Prices===

*1000 ''ryô'' - [[Yoshizawa Ayame I]] ([[1663]]-[[1729]]) was the first kabuki actor to attain an annual salary of this amount.<ref name=leiter/>

*1000 ''ryô'' - [[Yoshizawa Ayame I]] ([[1663]]-[[1729]]) was the first kabuki actor to attain an annual salary of this amount.<ref name=leiter/>

==Denominations Chart==

===Denominations Chart===

{| border=1

{| border=1

|-

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| 1 ''koku'' of rice

| 1 ''koku'' of rice

|}

|}

==References==

==References==