1136: Kaifeng Jews helped design new currency
Jurchens were weak at governing the country
After the Humiliation of Jingkang (靖康之恥), the Jurchens controlled Kaifeng and northern China. However, as semi-nomadic people, their strengths lay more in combat than in governance.
Promissory Notes became popular during Northern Song
Up until this point, currency took the form of precious metals such as gold and silver. However, by the 11th century, paper money in the form of promissory notes (交子) first appeared in Sichuan Province (四川省). By 1136, this new invention spread to the central plains of China and was adopted by the Jin administration.
Fake money caused inflation and economic collapse
Jin coin. [Jean-Michel Moullec from Vern sur Seiche, France]
However, people began to create counterfeit currency because paper money was so easily replicated — in contrast to traditional gold and silver. This sudden increase in illegitimate liquidity prompted hyperinflation and the collapse of the nation's economy.
The Jin Court was overwhelmed as this issue fell way beyond their field of expertise; therefore, they sought to find financially educated people to whom they could delegate this task.
Jews helped to bring inflation under control
The Kaifeng Jewish community was a wise choice because they, as former merchants, were knowledgeable about the market and the economy. They were not resentful of the Jin people in the same way the conquered Han Chinese may have been. The details of how exactly the Kaifeng Jews approached this predicament are unavailable, but, at the time, stamping promissory notes with multiple bank seals was one way of combating counterfeit currency.
The actions of the Kaifeng Jews contributed directly to economic recovery.
Jin court rewarded Jews, permission to build synagogue
The Jin Court was very grateful. It allocated money to support the Kaifeng Jewish community and granted them permission to build a synagogue. The synagogue was completed in 1163.