Token Currency and Taxation in Doab

The token currency was introduced by Muhammad Bin Tughlaq. This was done to overcome the shortage of silver currency.

Do you know, who introduced the token currency?

In 1330, Muhammad Bin Tughlaq issued the coins of brass and copper whose value was equal to that of gold and silver coins. This was done to overcome the shortage of silver. He introduced a bronze coin having the same as the silver �tanka�. Due to this action, The sultan�s treasury had been exhausted of giving rewards and gifts in gold.

Do you know, why the introduction of token currency caused a great loss of wealth to the royal treasury?

During that time, most of the Hindu citizens were goldsmiths and they knew how to make coins. So, the house of every Hindu became a mint. Do you know, what is a mint?

Mint is an industrial facility where the manufacturing of coins takes place. As a result, gold and silver coins disappeared from the markets and their place was taken by the bronze coins. People also began to pay the revenue in brass and copper coins and also used the same coins to purchase horses.

As a result, the values of coins decreased, and the coins became �as worthless as stones�. Finally, he decided to withdraw the token currency and started the exchange of bronze coins for silver.

Taxation in Doab

What do you think a Doab is?

Doab is a fertile alluvial land lying between the rivers Ganga and the Yamuna. Muhammad binTughlaq increased the taxes in the Doab region because he wanted a large amount of money for the upkeep of the army in order to conquer the territories not only in India but also in Central Asia.

Many people refused to pay extra taxes and rose in rebellion but the tax collectors do not show any mercy. Due to this, many peasants abandoned their lands and moved to jungles.

Thereafter, Muhammad binTughlaq ordered free distribution of grains, advanced loans to the peasants, and better irrigation facilities to save the situation.

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Muhammad Bin Tughlaq: Transfer Of Capital From Delhi To Devagiri