The Ashikaga Shogunate and the Policy on Imported Coins — The Currency Strategy of Muromachi Without Local Coins

In 1336, Ashikaga Takauji established the Muromachi Shogunate. His goal was to establish a new government to replace the Kamakura Shogunate, as a descendant of the Minamoto clan, and to bring order to Japan. However, to establish an economic foundation, he chose not to issue his own currency. This decision was influenced by the technological and resource constraints of the time. Especially, the nationwide supply of gold, silver, and copper to support circulation was difficult, and there was also a shortage of artisans needed for coin minting. Thus, Takauji focused on coins imported from China. By managing the coins flowing in from the Yuan and Ming dynasties, he reduced issuance costs significantly while supporting the domestic economy. When the Ming dynasty was established in 1368, the Yongle Tongbao was introduced in large quantities through tribute trade, and the shogunate positioned it as the recommended currency. This resulted in more active domestic commerce. Takauji's policies were passed on to his successors, becoming a crucial pillar supporting the Muromachi Shogunate's finances. The shogunate further facilitated coin circulation through taxes on specific industries. The pawnbroker tax and sake brewer tax are notable examples. Although these policies temporarily stabilized the shogunate's financial base, their functions gradually became obsolete with the rise of Sengoku Daimyo.

Economic development during the Muromachi period was significantly supported by the circulation of imported coins through tribute trade. Tribute trade refers to formal trade relations with the Ming, leading to the massive influx of Yongle Tongbao into Japan. Especially in the mid-15th century, Ashikaga Yoshimitsu invigorated trade with the Ming, making it one of the financial pillars. During Yoshimitsu's era, merchants in Kyoto actively engaged in domestic and international trade using these coins. Due to its quality and stable value, the Yongle Tongbao was trusted within Japan, forming the basis for commercial transactions. This further stimulated the circulation economy and promoted the development of commercial cities. For instance, port towns like Sakai and Hakata thrived through trade utilizing imported coins. However, as the influx of imported coins increased, domestic shortages of coins also arose at times. Although the shogunate responded by reminting some coins, this sometimes led to a decline in coin quality. Such situations also affected the populace, spreading anxiety about price fluctuations and coin reliability. In rural areas, where coin circulation was limited, barter continued to be the norm, accentuating economic disparities between urban and rural areas.

The circulation of imported coins had a significant impact on the Japanese economy during the Muromachi period. Especially, the influx of Yongle Tongbao contributed to the revitalization of commercial activities, aiding the development of cities such as Kyoto and Sakai, which were economic centers. Merchants actively facilitated domestic and international trade using these coins of stable value. This led to the opening of markets in various regions and the expansion of product distribution networks. However, along with the increased circulation of coins, a decline in their quality was also observed. While the shogunate reminted some imported coins, this occasionally undermined trust in them. Consequently, public anxiety about coins spread, particularly in rural areas where coin circulation was limited, barter remained prevalent, and economic disparities with urban areas widened. The common people had to contend with price fluctuations of essentials, feeling the instability of their lives. Meanwhile, some merchants capitalized on these economic fluctuations to make profits. For example, Osaka merchants timed their buying and selling of goods based on anticipated changes in coin value. This led some merchants to accumulate wealth, contributing to urban development. However, such economic instability greatly impacted the lives of commoners, sometimes triggering uprisings or riots.

The coin policy of the Muromachi Shogunate gradually became obsolete with the rise of Sengoku Daimyo. Especially after the 16th century began, various Sengoku Daimyo introduced their own currency policies, and the shogunate's authority gradually waned. For instance, Oda Nobunaga stabilized the economy within his territory by issuing his own coins in the 1570s, solidifying his governance base. Consequently, the shogunate's currency policy became increasingly ineffective, and different currencies began circulating in various regions. Amidst this, the Yongle Tongbao remained a trusted currency, but its circulation gradually diminished. Furthermore, Toyotomi Hideyoshi implemented the sword hunt in 1588, disarming peasants while also working towards currency unification. This led to further development of the monetary economy, gradually resolving the economic chaos of the Sengoku period. Such historical developments were carried forward into the Edo period, influencing currency policies under the feudal domain system. During the Edo period, more systematic monetary systems, like types and market value of Koban coins and details of Edo silver coins, were established to ensure economic stability. Although the Ashikaga Shogunate's coin policy evolved with the times, its influence persisted into later eras.