Genghis Khan and the Making of the Modern World

by Jack Weatherford

The Mongols allowed each nation under its control to continue minting coins in the denominations and weight they had traditionally used, but they established a universal measure based on the sukhe, a silver ingot divided into five hundred parts, to which each of the local currencies was tied. This standardization of varied currencies relative to the sukhe eased problems in accounting and currency exchange for both merchants and government administrators. Thus, standardization of currency allowed Mongke Khan to monetize taxes, rather then accepting payment in local goods. In turn, the monetization allowed for standardized budgeting procedures for his imperial administration, since instead of accepting taxes in goods, the Mongols increasingly accepted them in money. Rather than relying on government officials to collect and reallocate tribute of grain, arrows, silk, fur, oil, and other commodities, the government increasingly moved money rather than goods. For the first time, a standardized unit of account could be used from China to Persia. So long as the Mongols maintained control of money, they could let merchants assume responsibility for the movement of goods without any loss of government power.