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   The origin of Japanese coins is directly tied to the cash coins cast by their neighbor  China with the early usage of the Qin Dynasty's (221-207BC) Ban Liang and the Western Han's (206-25 AD) Wu Zhu. Throughout history Japan has either used coins from China or cast their own depending on the period in question. The first coins produced by the Japanese were cast during the reign of Empress Genmyo in the 1st year of Wado (AD 708). They were patterned after the Chinese Tang Dynasty's (AD 618-907) Kai Yuan Tong Bao in shape, size and design. The design of the Chinese characters were drawn by famous calligrapher Fugiwara Yogya. A variety of different Japanese were produced for the next 200 years until AD 923 when domestic production ceased for over 600 years. 

    With the absence of of officially recognized Japanese coinage, counterfeits and imported coins were used for circulation. In the 11th thru 17th centuries, the Chinese Northern Song and Ming Dynasty coins were imported for circulation which were called Torai-sen. From the 14th thru 16th century the Japanese Lords engaged in private castings for circulation, which were copies of castings of Chinese coins, called Chusha-sen. Usually these were of very low quality and together with the worn out imported coins became known as Bad Quality Coins (Bita-sen). The practice of Erizeni (selection of coins) became prevalent despite attempts by the government to prohibit such practices. The public simply didn't want to use the sloppily made or worn out coins.

     In the 17th century, in the early years of the Edo Period (1600-1867), the need for new coinage was great. In 1626, the popular Kanei Tsuho was first cast in the value of 1 Mon. This coin, with many variations, was produced for nearly 240 years until 1863. A 4 Mon version was 1st cast in 1760 with 21 Waves (Nami) on the reverse to avoid it being mistaken for the 1 Mon version. Then in 1769 an 11 Nami version was first cast and was used until the end of the Edo Period.

     The Edo Period's Tokugawa Shotgunate only allowed international trade through the port at Nagasaki. From 1659 to around 1685 large amounts of Nagasaki Trade Coins (Nagasaki Boeki-sen) were cast for international use. The most commonly seen are those cast in the pattern of the Chinese N. Song Dynasty's (960-1127 AD) Yuan Feng Tong Bao, Genho Tsuho in Japanese, although there are many others. The Nagasaki Trade Coins are great for the collector with many types and calligraphic styles.

     One of the most interesting Edo period coins is the Tenpo Tsuho. For those unfamiliar, this is that large oval copper coin with the square hole that was cast in a 100 Mon denomination. The Tenpo Tsuho was authorized on June 15, 1835 and cast until 1870. There were several different mints that produced them but only the Honza mint, in Edo, and Osaka Mint were authorized by the government. There were several illegal mints that made Tenpo Tsuhos, in secret, while making Ryukyu Tsuhos at the same time. About half a billion Tenpo Tsuhos were produced, officially, from the 2 authorized mints. However, estimates suggest around 1 billion were probably produced. Over 90 variations have been identified from 13 different mints. The weight of the Tenpo Tsuhos was equivalent to only 8-1 Mon coins even though it's value was of 100 Mon. With that kind of cost vs. return ratio it is no wonder that so many unauthorized mints produced them.

      The Edo period ended with the restoration of the Meiji Emperor Mutsuhito in 1868. Japan moved toward currency reform in 1872, opened up to the West, headed toward their Industrial Age and the 20th Century. With the countless tales of the Shogunate, the Daimyo & Samurai or those legendary battles like that of the mighty Shinsengumi vs. The Choshu rebels at the Ikedaya, it is easy to understand why this is the most romanticized Japanese period. With it's end ushered in the end of cast coinage and a birth of a modern Japan.

  Try these reference materials: 

   Japanese Coinage by Norman Jacobs Ph.D. & Cornelius C. Vermeule III Ph.D. 1972

   Catalog of Japanese Cash Coinage by Robert Michael Jones 1985

      I hope that this brief history of Japanese cash coins has been helpful to those who have an interest but don't know where to start collecting. I have mentioned, namely, the common coins out there, the ones that are actually attainable. There are many others however. Whether you are interested in a coin here and there, or wish to collect by Period or type, I hope your will checkout my growing inventory of Chinese, Japanese and Vietnamese cash currency. Wanna know what happened and when? Click on the Timeline below.

References:

Japanese Coinage by Norman Jacobs Ph.D. & Cornelius C. Vermeule III Ph.D.

Catalog of Japanese Cash Coinage by Robert Michael Jones

http://www.imes.boj.or.jp/cm/english_htmls/index.htm - Currency Museum, Bank of Japan

http://www.history.ucsb.edu/faculty/roberts/coins/Nagasakiexport.html - Luke Roberts Of U. of California S.B.