As Genghis began building his empire, he realized the Mongol army would need many things: bows and arrows, swords and spears for war, tack for the horses, leather for armor and, once it was discovered that silk worn under leather could prevent an arrow from penetrating the body, silk clothing. Genghis Khan also needed people who could read and write to administrate the lands coming under his sway. The Mongols needed trade as never before.
To facilitate trade, Genghis offered protection for merchants who began to come from east and west. He also offered a higher status for merchants than that allowed by the Chinese or Persians who despised trade and traders. .During the Mongol Empire, merchants found protection, status, tax exemption, loans and consistent aid from the Khans. For the 100 years of the height of the Empire, the East-West Mongol trade routes became the fabled Silk Road which for the first time linked Europe to Asia, allowing the free flow of ideas, technologies and goods.
The Mongols not only offered the use of the Yam system to merchants, but set up protective associations for them called Ortogh. Instead of extortionist tax rates, the Mongols gave traders tax exemption. Genghis offered a form of passport to merchants that gave allowed them to safely travel along the Silk Road. The Mongols even loaned money at low interest to merchants. If paper money was used as currency, it was backed with silk and precious metals.
