The government of the Awa-han issued the paper money in 1681 for the first time. Examining the ordinances concerned issuing, the provisions mentioned below are remarkable, (1) Exclusive currency of the paper money within the territory. (2) The exchange of the paper money into the metalic currency, or the reverse, by the official rate. (3) authorization of taxpaying, except feudal landrent, by the paper money. Paper money, however, was generally issued in order to suck up metalic currencies circulating in the territory as a remedy for the financial embarrassments, or to increase the current money to correspond with the economic progress in the territory. So it is unthinkable that the convertible reserve was fully provided. Accordingly the paper money was destined to be inconvertible notes. In the finance of the Awa-han, the debt had increased cumulatively from around 1660. Daimyo's feudal obligation to the Shogunate is the cause of the financial difficulties. The Shogunate had debased the metalic currency, and then placed a ban on issuing paper money in Daimyo's territory in 1707, professing to promote the circulation of the debased coins. It caused an excessive economic confusion and financial stringency for the Awa-han as well as other Hans (feudal clans). The debt consequently increased hastily. And what is worse, the Shogunate turned over and decided on a policy of deflation by remitting coins. As it lowered the price of rice Daimyo collected and broke down his finance which depends on the sales of his rice, the Shogunate removed the ban on the paper money as a remedy for it in 1730. The issuing paper money also means to seize the fruits of increasing productive power. From around 1700, the export of indigo-balls produced in Awa had hastily increased, which the Han government intended to control it and to profit process of circulation of them. The Han succeeded to monopolize the nation-wide market in the early years of the 19 th C. after strenuous efforts and to make much profit every year. Thus the paper money of Awa-han, making it a basis of credit, circulated smoothly and played an important part in the economic stabilization and development. When the Hans were dissolved as a result of Meiji Restoration, Awa-han was one of the richest.