Minting Trouble in Copper Coins: Official Forgeries, Imports of Inferior Cash, and Monetary Governance in the Qing Empire, 1780–1850

Throughout the Qing Empire, two currencies dominated the economy: silver for large transactions and long-distance trade, and copper cash coins for daily exchanges. Most people earned their income in copper coins but paid taxes in silver, making the exchange rate between the two currencies critical for both individual tax burdens and state revenues. As a result, the Qing state made considerable efforts to stabilize this exchange rate. During the first 50 years of the Qianlong reign (1735–1795), Yunnan's thriving copper industry supported official mints in producing an average of 3 billion coins annually, creating a reliable and standardized currency supply. This stability fostered trust in copper currency, contributing significantly to the high Qing period's commercial expansion and economic growth.

However, from the mid-1780s onward, the empire faced mounting challenges as markets became flooded with inferior copper coins—containing less copper than official standards and 30% to 70% lighter than their official counterparts. Alarmingly, by the 1790s and 1810s, confidants informed emperors that certain provincial mints, rather than individual counterfeiters, were major producers of these inferior coins. Additionally, foreign inferior copper coins, particularly from Vietnam, entered Chinese markets. Between 1800 and 1850, the silver value of copper cash plummeted by over 80%, sparking considerable financial turmoil and social unrest.

This paper investigates why the Qing state failed to prevent mint forgeries and why local governments lacked incentives to curb the circulation of inferior coins. It also examines how changes in monetary governance intersected with the broader transition from the height of the Qing Empire to its decline. By tracing the trajectory of copper currency, this study highlights the complexities of Qing economic policy and practice, as well as the pivotal role of currency in the empire’s transformation during a period of financial and political upheaval.