The Origins of Paper Money

When paper money was created In the ninth century AD, The ancient Chinese invented the first paper money.  The money was called flying money because it could blow out of one’s hand. 

Paper money was made for one specific reason, to have money that is lighter and easier to carry around.  This idea first originated because higher individuals in the government did not want to get robed.  The money they carried around was gold, silver, and bronze.  Therefore allowing the crook to see where the money was and to be able to steal it.  That’s why higher people in the government decided that paper was light, small, and compatible, and so bad guys could not see the money and steal it. 

The Sung dynasty was the first dynasty that allowed paper money into the public.  It circulated successfully and the public liked the new type of money.  It was favored by high ranking officials (they carried around large amounts of it) Also it boosted the economy because gold and silver were harder to produce, but paper was very simple to make. So more jobs, more money more happiness.            

The Qing Empire used paper money for military use.  They only had small amounts produced, mostly military expenses. 

One empire used paper money as a benefit to the government.  What they did was make the paper money usable for only three years but the government got 8% of everything the person bought.

The modern money that China Uses today is very different.  All the money is produced by machine and it is made with much more worth that in the old times.  The styles and pictures of the old days of china are still on some of the bills today.  China is still using paper money today and it will probably be using it for much time to come.

China was the first to invent paper money.  It is usually how most people pay for products, but the next time you look at money that’s made out of paper, think about the long story it has to tell.