The Mongol Commercial Empire and Trade Innovations

Key Insight

The Mongol Empire transitioned from military conquest to peaceful commerce, establishing an extensive trade network across Eurasia during Khubilai Khan's reign. Trade routes were maintained throughout the 13th and early 14th centuries, featuring relay stations (ortoo or yam) every 20 to 30 miles, stocked with provisions and offering transport animals and guides. Marco Polo, who was at the Mongol court during Bar Sawma's mission, frequently utilized these stations, describing them as 'beautiful' and 'palatial,' equipped with 'silk sheets and every other luxury suitable for a king.'

To facilitate trade, Mongol authorities issued a 'paiza,' a combined passport and credit card. This tablet, made of gold, silver, or wood and larger than a man's hand, was worn on a chain or clothing. Its material and symbols, such as tigers or gyrfalcons, indicated the traveler's importance, ensuring appropriate services like protection, accommodation, transportation, and exemption from local taxes or duties throughout the empire.

The expansion of trade was driven by the deeply rooted 'khubi' system, or shares, formalized by Genghis Khan. High-ranking Mongol officials received shares in goods from different parts of the empire (e.g., Hulegu, ruler of the Ilkhanate, owned 25000 silk worker households in China), which they traded for money or commodities. This system created an internal economic exchange, with goods like spices, steel, porcelains, and medicines flowing between Mongol territories (e.g., Persia and China). Despite political disagreements, these mutual financial interests ensured the continuous operation of the commercial system, transforming old war routes into vibrant commercial arteries.