The Mongols had a strong history of supporting merchants and trade. Genghis Khan had encouraged foreign merchants early in his career, even before uniting the Mongols. Merchants provided him with information about neighboring cultures, served as diplomats and official traders for the Mongols, and were essential for many needed goods since the Mongols produced little of their own. Mongols sometimes provided capital for merchants, and sent them far afield, in an
auto (merchant partner) arrangement. As the Empire grew, any merchants or ambassadors with proper documentation and authorization, received protection and sanctuary as they traveled through Mongol realms. Well-traveled and relatively well-maintained roads linked lands from the Mediterranean basin to China, greatly increasing overland trade, resulting in some dramatic stories of those who traveled what became known as the Silk Road. One of the best-known travelers from West to East was
Marco Polo, and a comparable journey from East to West was that of the Chinese Mongol monk
Rabban Bar Sauma, who traveled from his home of
Khanbaliq (Beijing) as far as Europe. Missionaries such as
William of Rubruck also traveled to the Mongol court, on missions of conversion, or as papal envoys, carrying correspondence between the Pope and the Mongols as attempts were made to form a
Franco-Mongol alliance. It was rare though for anyone to travel the entire length of the Silk Road. Instead, traders moved products much like a bucket brigade, with luxury goods being traded from one middleman to another, from China to the West, resulting in extravagant prices for the trade goods. After Genghis, the merchant partner business continued to flourish under his successors Ögedei and Güyük. Merchants brought clothing, food, and other provisions to the imperial palaces, and in return, the Great Khans gave the merchant's tax exemptions and allowed them to use the official relay stations of the Mongol Empire. Merchants also served as tax farmers in China, Russia, and Iran. If the merchants were attacked by bandits, losses were made up from the imperial treasury. Policies changed under the Great Khan Möngke. Because of money laundering and overtaxing, he attempted to limit abuses and sent imperial investigators to supervise the auto businesses. He decreed all merchants must pay commercial and property taxes, and he paid off all drafts drawn by high-ranking Mongol elites from the merchants. This policy continued in the
Yuan dynasty. Möngke-Temür granted the
Genoese and the
Venetians exclusive rights to hold Caffa and Azov in 1267. The Golden Horde permitted German merchants to trade in all of its territories including
Russian principalities in the 1270s. The Mongols developed the concepts of liability in relation to investments and loans in Mongol–ortoq partnerships, promoting trade and investment to facilitate the commercial integration of the Mongol Empire. In Mongol times, the contractual features of a Mongol-
ortoq partnership closely resembled that of
qirad and
commenda arrangements. The introduction of
gunpowder contributed to the fall of the Mongols, as previously conquered tribes used it to reassert their independence. Gunpowder had differing effects depending on the region. In Europe, gunpowder and early
modernity lent to the integration of territorial states and increasing
mercantilism. Along the Silk Road, it was quite the opposite: failure to maintain the level of integration of the Mongol Empire, and a resulting decline in trade, partially exacerbated by the increase in European maritime trade. By 1400, the Silk Road no longer served as a shipping route for silk.
Marco Polo's observations , an indication of the thriving exchanges with the Mongol Empire during the reign of
Kublai Khan (1260–1294) One of the most impressive discoveries that Marco Polo made on his visit to Mongolia is how the empire's monetary system worked. He was not impressed by the silver Akçe that the empire used for a unified currency, or that some realms of the empire still used local currency, but he was most surprised by the fact that in some parts of the empire the people used paper currency. Marco Polo considered the use of paper currency in the Mongol Empire one of the marvels of the world. Paper currency was not used in the entire empire. The Chinese silver ingot was accepted universally as currency throughout the empire, while local coins were also used in some western areas, such as the modern day Iran. Paper currency was used in China, continuing the practice established by the Chinese several hundred years before. The Chinese had mastered the technology of printmaking and therefore it was relatively simple for them to print bills. Paper currency was used in China since 960 A.D., when the Song dynasty started replacing their copper coinage with paper currency. When the Mongols invaded
Song China they started issuing their own Mongolian bills in 1227. This first attempt by the Mongols did not last long because the notes issued expired after several years and were inconsistent throughout the parts of the Mongol Empire that issued them. In 1260,
Kublai Khan created the Yuan Mongol's first unified paper currency with notes that did not have any expiration date. To validate the currency, it was made fully exchangeable to silver and gold and was accepted as tax payments. Currency distribution was small at first, but the war against the southern Song dramatically increased circulation. With the defeat of the Song, their currency was taken out of circulation and could be exchanged with Mongol currency at a relatively high exchange rate. Regardless of persistent inflation after 1272, paper currency backed by limited releases of coins remained as the standard means of currency until 1345. Around 1345, rebellions, economic crisis, and financial mismanagement of paper currency destroyed the public's confidence in the bills. To initiate the transition from other forms of compensation to paper currency the government made refusing to accept the bill punishable by death. To avoid devaluation, the penalty for forging or counterfeiting was also death.
Appanage system Members of the Golden Kin (or Golden Family -
Altan urag) were entitled to a
share (khubi - хувь) of the benefits of each part of the Mongol Empire just as each Mongol noble and their family, as well as each warrior, was entitled to an appropriate measure of all the goods seized in war. In 1206, Genghis Khan gave large lands with people as share to his family and loyal companions, of whom most were people of common origin. Shares of booty were distributed much more widely. Empresses, princesses and meritorious servants, as well as children of concubines, all received full shares including war prisoners. For example, Kublai called 2 siege engineers from the
Ilkhanate in Middle East, then under the rule of his nephew Abaqa. After the Mongol conquest in 1238, the port cities in
Crimea paid
the Jochids custom duties and the revenues were divided among all Chingisid princes in Mongol Empire accordance with the appanage system. As loyal allies, the Kublaids in East Asia and the Ilkahnids in Persia sent clerics, doctors, artisans, scholars, engineers and administrators to and received revenues from the appanages in each other's khanates. After Genghis Khan (1206–1227) distributed nomadic grounds and cities in
Mongolia and
North China to his mother
Hoelun, youngest brother
Temüge and other members and Chinese districts in
Manchuria to his other brothers,
Ögedei distributed shares in North China,
Khorazm,
Transoxiana to the Golden Family, imperial sons in law (khurgen-хүргэн) and notable generals in 1232–1236. Great Khan
Möngke divided up shares or appanages in
Persia and made redistribution in Central Asia in 1251–1256. Although
Chagatai Khanate was the smallest in its size, Chagatai Khans owned Kat and
Khiva towns in Khorazm, few cities and villages in
Shanxi and
Iran in spite of their nomadic grounds in Central Asia. Mongol and non-Mongol appanage holders demanded excessive revenues and freed themselves from taxes. Ögedei decreed that nobles could appoint
darughachi and
judges in the appanages instead direct distribution without the permission of Great Khan thanks to genius Khitan minister
Yelu Chucai. Kublai Khan continued Ögedei's regulations somehow, however, both
Güyük and Möngke restricted the autonomy of the appanages before. Ghazan also prohibited any misfeasance of appanage holders in
Ilkhanate and Yuan councillor Temuder restricted Mongol nobles' excessive rights on the appanages in China and Mongolia. Kublai's successor and Khagan Temür abolished imperial son-in-law
Goryeo King
Chungnyeol's 358 departments which caused financial pressures to the Korean people, whose country was under the control of the Mongols. The appanage system was severely affected beginning with the civil strife in the Mongol Empire in 1260–1304. After a peace treaty declared among Mongol Khans: Temür,
Duwa, Chapar,
Tokhta, and
Oljeitu in 1304, the system began to see a recovery. During the reign of
Tugh Temür, Yuan court received a third of revenues of the cities of
Transoxiana under Chagatai Khans while Chagatai elites such as
Eljigidey,
Duwa Temür,
Tarmashirin were given lavish presents and sharing in the Yuan dynasty's patronage of
Buddhist temples. Tugh Temür was also given some Russian captives by Chagatai prince
Changshi as well as Kublai's future khatun
Chabi had servant
Ahmad Fanakati from
Fergana Valley before her marriage. In 1326,
Golden Horde started sending tributes to Great Khans of Yuan dynasty again. By 1339,
Ozbeg and his successors had received annually 24 thousand
ding in
paper currency from their Chinese appanages in Shanxi,
Cheli, and
Hunan. H. H. Howorth noted that Ozbeg's envoy required his master's shares from the Yuan court, the headquarters of the Mongol world, for the establishment of new post stations in 1336. This communication ceased only with the breakup, succession struggles and rebellions of Mongol Khanates. ==Domestic animals in the Mongol Empire==