Abstract: After the pacification of Xinjiang during the Qianlong Period, the change to the new Pu’er cash in southern Xinjiang, resulted in a currency circulation crisis and an unreasonable taxation structure while the movement of the soldiers northward led to a backlog of the remaining foods in the garrison cities. In northern Xinjiang, there was an urgent need for a large supply of cheap cloth to trade with Kazakh in exchange for horses. In order to solve their respective problems, the northern and southern Xinjiang garrisons arduously explored solutions for two years. Finally, they decided to use cash and grain to exchange for cloth, which they then transported to Yili for trade with Kazakh. This not only solved the problems of the circulation of coins and the backlog of grain in southern Xinjiang, but also enriched the types and levels of cloth in the silk-horse trade, facilitating commerce and also establishing a benign interaction between the northern and the southern garrisons that benefited both sides. These were precisely the reasons for the rise of the Hui Cloth trade.