WHI-Chap15-flying money

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Flying money is the name given to the letters of credit used during Tang and Song China. These letters of credit allowed merchants to deposit a certain amount of cash or goods one place and then withdraw the equivalent in cash or merchandise somewhere in China. The letters of credit were one of the many methods tried by the Chinese government to replace the copper coins which they were becoming unable to produce. This method ultimately failed as the merchants would be unable to pay what was promised and such.

papmny.jpg

An example of a letter of credit

Traditions & Encounters page 389

For other business practices from the Song and Tang dynasties, Objective 5

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