Sendai Tsūhō — The Rise and Fall of a Domain's Exclusive Currency Born of Financial Crisis

In Hōreki 8 (1784), the Sendai Domain faced a grave financial crisis. Domain lord Date Shigemura found himself compelled to restore the domain's finances as its debts continued to mount. The Sendai Domain's fiscal difficulties stemmed from the fact that, under the strict controls of the Edo shogunate following the Kyōhō Reforms, domain revenues could not be increased, while expenditures from wars and natural disasters accumulated. In particular, the Kyōhō Famine (1732) and the subsequent Tenmei Famine (1782–1788) caused a drastic decline in agricultural production, further squeezing domain revenues. Against this backdrop, the bold policy of issuing an independent currency was adopted in order to stimulate the domain's internal economy.

However, this decision was far from straightforward. Minting an independent currency without the shogunate's permission was contrary to the laws of the time, and opinion within the domain was divided. The Sendai Domain judged that, for the sake of fiscal reconstruction, it was necessary to accept the risk of defying shogunate policy, and resolved to proceed with the minting. The Sendai Tsūhō was regarded as a trump card for invigorating circulation within the domain and restoring its economy, yet lurking in the background were problems that would later arise from the failure to report the matter to the shogunate. The minting of this currency was limited to use within the domain, and it was difficult for it to cross domain borders, but it is said to have nonetheless succeeded in providing a certain stimulus to the domain's internal economy. The issuance of an independent currency was truly a last resort staked on the domain's very survival, and it constitutes an important chapter in the history of the Sendai Domain. Comparing it with an overview and appeal of ancient coinage also brings the complex circumstances underlying it to light.

The Sendai Tsūhō was minted at the Sendai Domain's mint. The mint was located in what is now Aoba Ward, Sendai City, Miyagi Prefecture, and was an important facility forming the core of the domain. Local craftsmen were involved in the minting, and their skills were fully demonstrated. As a result, the Sendai Tsūhō, while using iron as its primary material, displayed refined workmanship. In particular, the iron currency reflected the technological standards of the time, and the craftsmen devoted great ingenuity to its manufacture.

The person responsible for the minting was Tamura Seiemon, a retainer of Date Munemura who served as the domain's financial administrator. He worked diligently on the reconstruction of the domain's finances and played an important role in the minting of the currency as well. In addition to iron, copper was also used in the minting; however, since the domestic supply of copper in Japan at the time was limited, copper examples of the Sendai Tsūhō became extremely rare.

This currency bore the inscription「仙台通宝」, and some pieces were abbreviated to「仙通」. These inscriptions featured a design conscious of circulation within the domain and were intended to demonstrate the domain's prestige. However, because they were minted without the shogunate's permission, their existence came to be regarded as problematic in later years. Until the currency became officially recognized as a sanctioned domain currency, its circulation was unofficial, so its value was confined to the domain and its credibility outside was low. Given these circumstances, the Sendai Tsūhō continued to occupy a delicate position in relation to the shogunate, even as it supported economic activity within the domain.

The Sendai Tsūhō began circulating within the domain immediately after minting. Merchants within the domain were initially skeptical about the value of the new currency, but gradually came to recognize its convenience. The Sendai Tsūhō came to be widely used in markets and commercial transactions within the domain, and it is said to have circulated actively especially in transactions involving everyday goods such as rice and cloth.

However, when the Sendai Tsūhō crossed domain borders, its exchange rate became a problem. Outside the Sendai Domain, the value of the tsūhō was assessed as low, and unfavorable conditions were frequently imposed when exchanging it for currencies from other regions. For example, it is said that a single Sendai Tsūhō was sometimes recognized as worth only half its face value outside the domain. For this reason, merchants traveling outside the domain were compelled to pay high fees to exchange it for other currencies.

What was the reaction within the domain? The appearance of the Sendai Tsūhō temporarily invigorated the domain's economy, but as the volume of currency in circulation increased, inflation occurred, leading to rising prices. In particular, farmers struggled to adapt to the new currency and were bewildered by the instability of rice prices. Despite these problems, the Sendai Tsūhō played an important role in supporting the domain's finances, and its presence became indispensable to the domain's internal economy.

Ultimately, the circulation of the Sendai Tsūhō demonstrated how the Sendai Domain's economic policy influenced not only the domain's internal economy but also its relations with the outside world. While supporting the domain's economy, the risks and problems inherent in the currency itself also came to light, and this eventually led to pressure for a review of currency policy.

From the end of the Edo period through the Meiji era, Japan's monetary system underwent great transformation. Following the Meiji Restoration, the government rapidly advanced centralization, and currencies independently issued by domains were gradually abolished. The Sendai Tsūhō was no exception: in Meiji 3 (1870) it was abolished, and a unified currency under the new monetary system was introduced.

The abolition of the Sendai Tsūhō was an important turning point for the Sendai Domain. The disappearance of the currency that symbolized the domain's distinctiveness had a significant impact on its economic policy. Nevertheless, the Sendai Tsūhō had been an important element supporting economic activity within the domain, and it continued to underpin the Sendai Domain's economy for approximately 80 years until its abolition.

After its abolition, the Sendai Tsūhō came to be recognized as an item of historical value and attracted attention among collectors. In particular, copper examples of the Sendai Tsūhō are of high rarity value and are sometimes traded at high prices in the modern antique coin market. The history of the Sendai Tsūhō occupies an important position in considering the history of domain notes and domain currencies in Japan, and research into it continues to this day.

In this way, the Sendai Tsūhō is not merely a regional currency; it has become an important historical document reflecting the economic conditions and political background of its time. Through the history of the Sendai Tsūhō, one can understand the changes in Japan's economic policy during the transitional period from the Edo era to the Meiji era. The existence of the Sendai Tsūhō is a fine example of how domain economic policy continued to support regional economies, and it is an indispensable element when considering its influence on later generations.