cash coins in circulation was scarce and when Chinese merchants would travel to the capital city, the merchants would entrust their money to the representative offices of their local governments, to the various armies of the Tang dynasty, government commissioners, and local rich families. The merchants did this to lighten their traveling burdens as they would hurry away in all directions. When the tallies were matched at a local office, they could withdraw their money. Use Flying cash was never originally meant to be used as legal tender and, therefore, their circulation was limited. However, since they could be exchanged for hard currency at the capital with an exchange fee of 100 wén per 1000 wén, they were traded amongst merchants as if they were currency. Flying cash continued to be used in the Five Dynasties era into the beginning of the Song Dynasty in 960. It was not until the Song dynasty and subsequent Jin occupation that paper money was officially established as a legal tender. Eventually, the Song Dynasty began to issue more notes to pay its bills- a practice that ultimately contributed to runaway inflation. See also Hawala Fiat currency Economic history of China (Pre-1911) Economic history of China (1912–1949) Economy of China References Sources Kang Guohong (康國宏) (1997). "Feiqian (飛錢)", in Men Kui (門巋), Zhang Yanqin (張燕瑾), ed. Zhonghua guocui da cidian (中華國粹大辭典) (Xianggang: Guoji wenhua chuban gongsi), 104. (in Chinese) Yao Enquan (姚恩權) (1993). "Feiqian (飛錢)", in Shi Quanchang 石泉長, ed. Zhonghua baike yaolan (中華百科要覽) (Shenyang: Liaoning renmin chubanshe), 85. (in Chinese) Zhou Fazeng (周發增), Chen Longtao (陳隆濤), Qi Jixiang (齊吉祥), ed. (1998). Zhongguo gudai zhengzhi zhidu shi cidian (中國古代政治制度史辭典) (Beijing: Shoudu shifan daxue chubanshe), 362. (in Chinese) Currencies of China Tang dynasty Banknotes Medieval currencies Economy of the Tang dynasty