The Silver Age: Origins and Trade of Chinese Export Silver, the catalogue of the eponymous exhibition at the Hong Kong Maritime Museum, contains a fascinating paper by Akinobu Kuroda of the University of Tokyo entitled “Silvers [sic] Cut, Weighed, Booked: Silver Usage in Chinese Monetary History”. It is worth reading in full, but most immediately relevant is his explanation for the lack of Chinese silver coinage.
He discusses several sorts of Chinese “money”. Silver, as both metal and coinage, copper cash, paper money and, interestingly, silk.
There is a big difference between money that actually circulates among people to mediate daily exchanges and another kind of money that settles distant trade and/or works to store values [sic].
Copper cash, he says, suited the former, but that silver and silk were used for the latter function as well as for government revenue purposes. Thirteenth-century paper money could be denominated in silk.
It was not, the paper notes, that China never minted silver coins, only that they never took:
Chinese authorities had no thoughts of minting silver into coins as they did with copper, because silver functioned as a substitute for silk, which worked as money as late as the fourteenth century.
The influx of silver from the sixteenth century “rapidly transformed transactions into being mainly silver-based.”
A local gazetteer wrote that … every household possessed a pair of scissors for cutting silver plate and a scale for weighing pieces of silver.
People paid for vegetables with silver. However, by the second half of the eighteenth century, “copper cash replaced silver to dominate local usages [sic] of currency.” Copper cash was used for local transactions and silver by weight for trans-regional trade.
Another fascinating detail is the “imaginary tael” (xuyinliang) through which “merchants in the same town could save cash through a mutual clearance system among their account books.”
Akinobu Kuroda makes the argument that China did not development silver coinage because, on balance, the system of silver by weight and copper cash was better suited to the Chinese economy at that time.


These vessels come laden with merchandise, and bring wealthy merchants who own the ships, and servants and factors of other merchants who remain in China. They leave China with the permission and license of the Chinese viceroys and mandarins. The merchandise that they generally bring and sell to the Spaniards consists of raw silk in bundles, of the fineness of two strands [dos cabeças], and other silk of poorer quality; fine untwisted silk, white and of all colors, wound in small skeins; quantities of velvets, some plain, and some embroidered in all sorts of figures, colors, and fashions—others with body of gold, and embroidered with gold; woven stuffs and brocades, of gold and silver upon silk of various colors and patterns; quantities of gold and silver thread in skeins over thread and silk—but the glitter of all the gold and silver is false, and only on paper; damasks, satins, taffetans, gorvaranes, picotes, and other cloths of all colors, some finer and better than others; a quantity of linen made from grass, called lençesuelo [handkerchief]; and white cotton cloth of different kinds and qualities, for all uses. They also bring musk, benzoin, and ivory; many bed ornaments, hangings, coverlets, and tapestries of embroidered velvet; damask and gorvaran of different shades; tablecloths, cushions, and carpets; horse-trappings of the same stuff, and embroidered with glass beads and seed-pearls; also some pearls and rubies, sapphires and crystal-stones; metal basins, copper kettles, and other copper and cast-iron pots; quantities of all sorts of nails, sheet-iron, tin and lead; saltpetre and gunpowder. They supply the Spaniards with wheat flour; preserves made of orange, peach, scorzonera, pear, nutmeg, and ginger, and other fruits of China; salt pork and other salt meats; live fowls of good breed, and very fine capons; quantities of green fruit, oranges of all kinds; excellent chestnuts, walnuts, pears, and chicueyes (both green and dried, a delicious fruit); quantities of fine thread of all kinds, needles, and knick-knacks; little boxes and writing-cases; beds, tables, chairs, and gilded benches, painted in many figures and patterns. They bring domestic buffaloes; geese that resemble swans; horses, some mules and asses; even caged birds, some of which talk, while others sing, and they make them play innumerable tricks. The Chinese furnish numberless other gewgaws and ornaments of little value and worth, which are esteemed among the Spaniards; besides a quantity of fine crockery of all kinds; canganes, sines, and black and blue robes; tacley, which are beads of all kinds; strings of cornelians, and other beads and precious stones of all colors; pepper and other spices; and rarities—which, did I refer to them all, I would never finish, nor have sufficient paper for it.
From Giovanni Francesco Gemelli Careri, Giro del Mondo (1699)