Token Currency issued by Muhammad-bin-Tughlaq

Token currency was a form of currency issued by Muhammad-bin-Tughlaq during his rule in the 14th century. It was a unique form of currency that had no intrinsic value and was made of base metals.

Metal Used for Token Currency

The metal used by Muhammad-bin-Tughlaq for issuing token currency was copper. Copper was a common and easily available metal during that time, making it an ideal choice for issuing token currency. The copper coins were issued in large numbers and were used to pay salaries to the army and officials.

Reasons for Issuing Token Currency

There were several reasons why Muhammad-bin-Tughlaq introduced token currency. Some of them are:

1. Shortage of Precious Metals: During Muhammad-bin-Tughlaq's reign, there was a shortage of precious metals like gold and silver. Token currency was introduced as an alternative to these metals.

2. Administrative Convenience: The use of token currency made it easier for the government to collect taxes and pay salaries to the army and officials.

3. Control over the Economy: By issuing token currency, Muhammad-bin-Tughlaq aimed to have greater control over the economy. The government could control the supply of money and regulate prices.

Impact of Token Currency

The introduction of token currency had both positive and negative effects. Some of the positive impacts were:

1. Increase in Trade: The use of token currency made it easier for traders to conduct business. It led to an increase in trade and commerce.

2. Revenue Collection: The government could collect taxes more efficiently with the use of token currency.

However, there were also negative effects of token currency, such as:

1. Inflation: The over-issuance of token currency led to inflation as the value of the currency decreased.

2. Loss of Confidence: The use of token currency led to a loss of confidence in the government and the currency. People preferred to use other forms of currency like gold and silver.

Conclusion

In conclusion, Muhammad-bin-Tughlaq's issuance of token currency was a unique and interesting approach to currency during his rule. The use of copper for issuing token currency was an ideal choice given the availability of the metal during the time. While there were both positive and negative effects of token currency, it remains an important part of Indian history.