5 Jiao – Fengtien Province

In 1897, Fengtien Province (modern Liaoning) was at the epicenter of a complex and chaotic monetary situation, characteristic of late Qing China's struggle with imperialist encroachment and financial modernization. The province, and its key city of Mukden (Shenyang), operated within a "multi-currency system" where various forms of money circulated simultaneously without fixed exchange rates. This included imperial Qing silver sycee (measured in taels), copper-alloy cash coins (strung in guan), and a growing volume of foreign silver dollars, particularly Mexican Eagle Dollars and later Japanese Yen, which entered via thriving trade and foreign concessions.

This monetary fragmentation was exacerbated by the region's strategic importance. Following the First Sino-Japanese War (1894-95), Japanese influence expanded rapidly, and the Russian Empire was deepening its economic penetration, having secured railway and concession rights in Manchuria. Both powers sought to advance their currencies as dominant mediums of exchange to solidify economic control. Concurrently, local Chinese financial institutions, such as piaohao (draft banks) and qianzhuang (native banks), issued their own private banknotes (zhuangpiao), convertible to silver or copper. These notes were essential for commerce but their value depended entirely on the issuing house's reputation, leading to frequent instability and localized inflation.

The Qing government's attempts to impose a unified currency system were largely ineffective in Fengtien at this time. Provincial authorities and military units sometimes issued their own scrip to meet local needs, adding another layer of complexity. Thus, by 1897, the monetary landscape was one of competitive vulnerability, where everyday transactions required constant negotiation between metal content, coin origin, and paper creditworthiness. This instability reflected the weakening sovereignty of the Qing state and set the stage for the more radical currency interventions that would follow, especially after the Russo-Japanese War (1904-05).