Government note

Lore & Background

The earliest documented government notes date from the Song dynasty in 11th-century China, with the Jiaozi first issued by the government in 1024, followed by Huizi from 1160. Chinese imperial governments issued paper money intermittently thereafter, including episodes of inflation such as during the later Yuan dynasty. The Great Ming Treasure Notes were issued from 1375, and the Qing dynasty issued several series including Hubu Guanpiao in the 17th century and Great Qing Treasure Notes in the 19th century. In Vietnam, government notes were issued at the beginning of the Hồ dynasty in 1396, and in Korea, jeohwa was issued during the early Joseon period (15th–16th centuries). Japanese feudal domains issued hansatsu from around 1600 to the 1860s.

Reader's Guide

Government notes represent an early and historically significant form of paper currency, predating banknotes and often arising in periods of monetary scarcity or political transition. In Europe, government notes were issued massively during the French Revolution as assignats, which led to hyperinflation. In the United States, Continental currency was issued during the Revolutionary War, and later United States Notes became the main paper currency from the 1860s until replaced by Federal Reserve Notes in 1971. In Canada, Dominion notes were issued from 1866 and coexisted with commercial banknotes until 1935, when they were replaced by Bank of Canada notes. Elsewhere, government notes appeared in the Ottoman Empire in the 1840s–1850s, Austria in 1866, Japan in the early Meiji era, Poland in the late 1930s, India in 1940, and Indonesia from independence until 1968. Local governments also issued notes, such as New Orleans after the panic of 1837. The legacy of government notes is that they paved the way for modern central bank currency, but their susceptibility to inflation and loss of confidence led to their gradual replacement.

Did You Know?

• The earliest documented government notes were the Jiaozi, issued by the Song dynasty in 1024.
• Assignats issued during the French Revolution soon led to hyperinflation.
• United States Notes were fully replaced by Federal Reserve Notes in 1971.
• In the Saar Basin, the French government used a state-owned mining enterprise to issue local notes known as Grubengeld until 1930.