17~18세기 銅錢 발행과 作錢制의 시행

Abstract

This study is about the background of coin issuance and the value of currency. In the 17th century, The financial situation of Joseon, which suffered two major wars and several bad harvests, was very difficult. So the Joseon government discussed coin issuance to overcome the financial crisis. However, several coin issuance failed. This is because people did not buy or use coins. The government implemented a policy of collecting administrative fees only in coins to force the use of coins, but did not see much success. People didn't trust coins. For them, coins were just metal that they could neither eat nor wear. After King Hyojong declared the abolition of coins in 1656, there was no discussion of coin issuance for some time. However, from 1670 until the following year, Joseon was hit by a great famine. There were one million people who starved to death, and many livestock died from the plague. Joseon was close to bankruptcy, because it had low revenue and it had to provide a lot of relief fund to people. During the weak economy, Joseon government decided to issue coins in large-scale in 1678. the government’s coin policy failed twice already, Joseon revised the law to pay various poll taxes only in coins. Naturally, many people had to buy coins to pay taxes. Nevertheless, coin sales have been low. This is because the government issued too many coins. So the government forced to have people pay land taxes in coin as well. In Joseon, the system was called 'jakjeon(作錢)'. The land tax was the largest and most important revenue. But not all land taxes were collected in coins. The policy applied only to areas where taxes were collected in cotton, except for areas where rice was collected. This is because the most important commodity in Joseon was rice. When land taxes were paid in coins, farmers were forced to purchase coins. In the process, coins were given a stable value. This is finally a successful attempt and the government was able to sell all the coins that had been in stock and succeed in expanding its finances.