Yuan Silver and Paper Money Crisis

Timeline

1. 1350–1353Dadu · North ChinaTo cover treasury deficits, Emperor Shun of Yuan began printing Zhizheng notes in large quantities from the tenth year of Zhizheng, while halting old issues such as Zhizheng Yuanbao notes. Paper money depreciated rapidly; the public refused notes and barter became widespread, with rice and firewood prices soaring, and monetary credit neared collapse.
2. 1351–1356Jiangnan · JiangnanShrinking overseas trade and wartime disruption cut off silver inflows; Jiangnan merchant guilds hoarded silver and priced goods in silver. The note-to-silver exchange rate fell sharply — one guan of notes was worth only a few li of silver — and merchants abandoned notes for silver. Though the court repeatedly banned private silver hoarding, it had little effect.
3. 1355–1360Yuan-ruled territories · ChinaThe monetary crisis, compounded by famine and river-work conscription, led the court to pay soldiers and laborers with depreciated notes, which they refused. The treasury could no longer fund suppression of the Red Turbans or local warlords; regions minted their own copper coins and circulated private notes, and the national currency system existed in name only.