Delhi Sultanate

Token Currency

In 1329-30 Muhammad bin Tughlaq introduced a token currency. There was a shortage of silver through out the world in the fourteenth century. Kublai Khan issued paper money in China. In the same manner, Muhammad bin Tughlaq issued copper coins at par with the value of the silver tanka coins. But he was not able to prevent forging the new coins. The goldsmiths began to forge the token coins on a large scale. Soon the new coins were not accepted in the markets. Finally, Muhammad bin Tughlaq stopped the circulation of token currency and promised to exchange silver coins for the copper coins. Many people exchanged the new coins but the treasury became empty. According the Barani, the heap of copper coins remained lying on roadside in Tughlaqabad. Taxation in Doab

The failure of these two experiments affected the prestige of the Sultan and enormous money was wasted. In order to overcome financial difficulties, Muhammad bin Tughlaq increased the land revenue on the farmers of Doab (land between Ganges and Yamuna rivers). It was an excessive and arbitrary step on the farmers. A severe famine was also ravaging that region at that time. It had resulted in a serious peasant revolts. They fled from the villages but Muhammad bin Tughlaq took harsh measures to capture and punish them. The revolts were crushed.

Agricultural Reforms

However, the Sultan realized later that adequate relief measures and the promotion of agriculture were the real solution to the problem. He launched a scheme by which takkavi loans (loans for cultivation) were given to the farmers to buy seed and to extend cultivation. A separate department for agriculture, Diwan- i- Kohi was established. Model farm under the state was created in an area of 64 square miles for which the government spent seventy lakh tankas. This experiment was further continued by Firoz Tughlaq.

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