Yamashiro Bitasen — The 'Bad Money' of War-Torn Times and Economic Transformation

In the mid-15th century, as the authority of the Muromachi shogunate began to wane, Japan's monetary economy reached a major turning point. Domestic coin minting had almost ceased after the late Heian period's Imperial Twelve Coins, with most circulating coins being Chinese 'Ming coins' brought to Japan through trade with Ming or privately. Ming coins like 'Hongwu Tongbao' and 'Yongle Tongbao' were prized for their quality and formed the basis of major economic activities. However, the supply of Ming coins was not always stable. As the Ming Dynasty intensified its maritime prohibition policies from the 1480s, the influx of coins into Japan decreased, leading to a severe domestic coin shortage. To remedy this shortage, locally produced 'private mint coins' began to appear everywhere, and poor-quality coins started flooding the market.

'Bitasen' refers to coins that emerged under such circumstances, heavily worn, chipped, or of inferior quality due to private minting. During the era of Shogun Ashikaga Yoshimasa, the Muromachi shogunate was already facing economic turmoil by the 1460s, and the Ōnin War, which began in 1467, exacerbated this chaos. This great conflict, with Kyoto as the main battlefield, lasted for 11 years, during which samurai from all over Japan converged on the capital, accelerating the circulation of inferior private mint and damaged coins around Kyoto, especially Yamashiro Province. In regions like Bizen Province and Suō Province, lords minted coins independently to strengthen their economic power. These regional private mint coins often contained high levels of lead or tin, with a low copper ratio, and were of notably poor quality. Unlike ancient Japanese coins such as Ancient Currency Overview and Charms, these coins proliferated without state control. The seisen shortage and economic chaos of the turbulent times laid the groundwork for bitasen to sweep through Kyoto.

As the circulation of bitasen became more widespread, a severe monetary gap emerged in Kyoto's market. High-quality Chinese coins like Yongle Tongbao were called 'seisen', while heavily worn, chipped, or poorly minted coins were distinguished as 'bitasen'. A clear exchange ratio developed between seisen and bitasen, with common practices in Kyoto markets exchanging 1 seisen for 2 to 4 bitasen, sometimes even more. For example, records from the early 1500s mention exchanges of 1 kanmon (1000 coins) of Yongle coins for 2 kanmon of bitasen.

In this complex monetary situation, 'money changers' played an essential role. They appraised seisen and bitasen, set exchange rates based on quality, and made profits by exchanging. For instance, in the 1490s, there were many 'coin dealers' in Kyoto, who possessed the expertise to discern the authenticity and quality of coins. At their storefronts, coins brought in were meticulously graded based on whether they were seisen or bitasen and the quality level of bitasen, with a fee charged for exchanges. Although this appraisal and exchange process was complex and elusive to commoners, it was an indispensable service for merchants, leading to wealth accumulation among money changers. They also acted as financiers, accumulating and lending money. People of that time, unaware of Basic Knowledge for Coin Auctions, were tossed about by this complex monetary system and money changers in daily transactions. While this diminished monetary reliability and led to economic stagnation, it also fueled the emergence of a new business—exchange.

The adverse impacts of bitasen circulation on the economy were issues the Muromachi shogunate and regional Sengoku daimyo could not ignore. Price fluctuations became routine, trust in commercial transactions was lost, and economic activity declined. To counter the spread of bad money, the shogunate and daimyo repeatedly issued 'coin selection orders (erizenirei)'. These orders were laws meant to distinguish between good-quality seisen and inferior bitasen, restricting the use of bitasen, or banning the circulation of specific coins.

The first large-scale coin selection order was said to be issued by the Muromachi shogunate in 1484. This order aimed to regulate market confusion by banning certain inferior coins and setting exchange ratios between seisen and bitasen. However, with an absolute shortage of seisen, it was impossible to completely stop bitasen circulation. The populace had no choice but to use the bitasen they had, and merchants had to accept bitasen to maintain customer transactions. Throughout the 1500s, numerous coin selection orders were issued by the shogunate, shugo daimyo, and even temples and shrines. For example, Hosokawa Masamoto issued one in 1502, and in 1532, local rulers in Settsu issued another, demonstrating a diverse range of issuers. Nevertheless, these orders had minimal impact, as legal measures out of touch with ground realities were often ignored or circumvented, and bad money continued to deeply infiltrate the market.

The repeated issuance of coin selection orders was not solely about exchange rate stabilization but was also seen as an effort by feudal lords to favor the circulation of coins minted within their territories. However, this inadvertently cemented the gap between seisen and bitasen. Amid the flood of inferior coins, people unknowingly learned How to Identify Forged and Altered Coins, finding ways to avoid low-quality coins. Yet, the economic turmoil of this era vividly illustrates the significant societal impact of coin quality.

As the turbulent era drew to a close, and Oda Nobunaga aimed for national unification, he focused on economic policies alongside military reforms. One of his iconic economic policies was 'Rakuichi Rakuza'. This policy abolished the privileges granted to specific merchants (za), allowing everyone to engage in commerce freely, and aimed to revitalize markets. Within this Rakuichi Rakuza decree, Nobunaga introduced groundbreaking policies for bitasen circulation.

Unlike previous coin selection orders that sought to prohibit or restrict bitasen circulation, Nobunaga allowed certain degrees of bitasen circulation. For instance, the Rakuichi Rakuza order issued in 1567 in Mino Kanō explicitly stated, 'Yongle coins are allowed circulation, bitasen too are allowed circulation.' This indicated a pragmatic decision to acknowledge the shortage of seisen and permitted the circulation of inferior bitasen to facilitate smooth economic activities. Nobunaga prioritized securing the volume of currency in markets and revitalizing economic activity over coin quality. This policy promoted the development of commerce and industry in Nobunaga's dominion, supporting his national unification efforts economically.

After Nobunaga's death, during Toyotomi Hideyoshi's era, monetary policy underwent further changes. Hideyoshi established a unified currency system based on Tensho Ōban and Yongle Tongbao, promoting nationwide circulation. As a result, the chaotic circulation of bitasen gradually diminished, leading Japan's monetary economy towards stability. Nevertheless, bitasen did not completely disappear. Even into the Edo period, poor-quality coins were still found in circulation in regions, with effects lasting until the era when Details of Keicho Koban were minted. Bitasen serves as a valuable historical testimony to the hardships faced by the medieval Japanese monetary economy and the ingenuity and wisdom of people overcoming those challenges.