Way back when, before the Xia and Shang dynasties, nobody kept good records about gold, money, or cloth. Jiang Ziya helped set up nine different tax systems in the Zhou dynasty, stipulating that gold was supposed to be a cube, one inch to a side and weighing a jin; coins were round with a square hole, weighed in zhu; and cloth was two feet two inches wide and four zhang long. So, they measured fancy stuff in gold, sharp tools in knife money, cash in copper coins, cloth in cloth, and silk in silk.
Jiang Ziya later implemented this system in the state of Qi. When Guan Zhong was advising Duke Huan of Qi, he was a whiz with weights and measures, saying, "Harvests are up and down, so food prices go up and down; and depending on what the government's doing, the value of things changes too. If the ruler doesn't keep an eye on things, greedy merchants will jack up prices, especially when people are hurting for cash. So, a strong country has super-rich people; a moderately strong country has rich people—it's all about a few people controlling all the wealth. Even if you figure out the costs and have enough, people still go hungry because a few guys are hoarding all the food. When people are doing well, things seem cheaper, so the ruler should hold back a bit; when they're struggling, things seem expensive, so the ruler should share the wealth. Basically, the ruler needs to keep a close eye on prices, and know when to spend and when to save. Maintaining price stability allows large cities to have tons of food, with medium-sized cities also having plenty of reserves. In spring, they support cultivation; in summer, they support weeding, with sufficient tools, seeds, and food. That way, the big guys can't rip off the people." Duke Huan of Qi adopted his advice, and with little ol' Qi, he united the other states and became a total powerhouse.
More than a hundred years later, during the reign of King Jing of Zhou, because the coins were too light, there was a desire to reissue larger coins. Duke Mu of Shan said: "No! In ancient times, when Heaven sent down calamities, people would measure the weight of coins to help the people. If the common people feel that the coins are too light, they will cast heavier coins for circulation, resulting in both larger and smaller denominations circulating at the same time, benefiting the people. If they feel the coins are too heavy, they will cast lighter coins for circulation without abolishing the heavier coins, achieving a balance between the two. The king's decision to replace light coins with heavy ones will impoverish the people. Won't this ruin the people? If the people are poor, the king will lack money, leading to heavy taxation on them, which they cannot afford. This will lead to thoughts of leaving their homeland, resulting in the loss of the people's hearts. Moreover, trying to fill the royal treasury through exploiting the people is like trying to fill a bottomless pit; it will only lead to ruin. Your Majesty, you should consider this carefully!" King Jing of Zhou did not listen and eventually minted the larger coins inscribed with the word "Treasure." These were thick coins, handsomely decorated around the edges, used to encourage agricultural production and make up for deficiencies, benefiting the people as a result. After the unification of the Qin Dynasty, there were two types of currency in circulation: gold ingots, called "Yi," which was a high-value currency; the copper coins were much the same as those used in the Zhou Dynasty, inscribed with "Half Liang," indicating their weight (approximately 31.25 grams). As for precious objects such as pearls, jade, and shells, they were merely decorative and collectible items, not considered currency, but their value fluctuated over time without a fixed standard.
After the establishment of the Han Dynasty, the Han government deemed the currency of the Qin Dynasty too heavy and inconvenient to use, so they allowed the common people to mint their own lightweight coins. However, those who did not follow the rules and only wanted to make money hoarded wealth, driving up prices and causing them to soar, with a stone of rice selling for tens of thousands of cash and a horse selling for hundreds of gold pieces. After the world was pacified, Emperor Gaozu of Han, in order to crack down on merchants, also ordered that merchants could not wear silk clothes, could not ride in carriages, and imposed heavy taxes on them, subjecting them to numerous hardships. During the reigns of Emperor Huidi and Empress Gaohou of Han, because the world had just stabilized, restrictions on merchants were relaxed, but commoners remained ineligible for official positions. In the fifth year of Emperor Wendi of Han, due to the excessive number of coins and their light weight, new four zhu coins, inscribed "half liang," were minted. At the same time, private minting was legalized.
Jia Yi then expressed opposition to this, saying: According to the law, copper and tin coins can be openly minted nationwide. If anyone dares to mix inferior materials such as lead and iron into the coins, they should be punished with branding. However, in coin minting, you can't make a profit unless you add other metals; even just a little mixed in can yield very high profits. This is just another example of how good intentions can pave the road to hell; many laws, well-intentioned or not, end up breeding more crime. Now, letting the common people have the power to mint coins will lead them to secretly mint coins. You can't stop them from profiteering, even with daily brandings. Currently, there are hundreds of people in a county being punished for minting inferior coins, and those suspected by the government are whipped, chased, and running around everywhere. The county laws are setting a trap for the common people, leading to an increasing number of criminals! In the past, private minting of coins was prohibited, resulting in many death row inmates; now that public minting of coins is allowed, there are many more branded convicts. If laws are made like this, how can the country achieve long-term stability?
Furthermore, the coins used by the common people vary from place to place: some places use light coins, where several light coins are needed to match the standard coin; others use heavy coins, but they don't measure up to the standard weight. Because there's no unified currency, officials try to enforce this forcefully to achieve uniformity, which is incredibly cumbersome and ineffective; if left unchecked, different coins will be used in different markets, leading to a very chaotic situation. Without decisive action, the situation will only worsen.
Now, more and more people are abandoning farming to mine copper. They put down their hoes and plows and spend their days busy smelting and burning charcoal. They earn more ill-gotten gains, but food becomes scarcer. Good people are influenced to do bad things, and commoners are committing crimes and being executed. This is a terrible situation; something must be done. If the state knows about this, officials will definitely say it should be prohibited. But if the method of prohibition is not correct, the losses will be even greater. If an order to prohibit coinage is issued, currency will become very valuable. With money scarce, profits soar, and more people will counterfeit coins; the threat of execution will not deter them! One transgression breeds another, laws are repeatedly flouted—all because of copper! So when copper circulates throughout the country, the resulting disasters are too great.
This great disaster can be eliminated now, and there are seven benefits to be gained! What are these seven benefits? First, the government collects copper and does not allow it to flow into the hands of the people, so private coinage will decrease, and the number of those branded criminals will fall; second, with less counterfeit money, people will not suspect each other; third, those who mine copper and mint coins will return to farming; fourth, with all copper belonging to the state, the government can control the weight of the currency, adjusting as needed to stabilize commodity prices; fifth, copper can be used to make weapons, reward heroes, and maintain control over quantities, establishing a hierarchy of value; sixth, using copper to manage various commodities, regulate supply and demand, and collect additional taxes will make the country prosperous without overburdening the populace; seventh, using surplus funds to recruit Xiongnu subjects will instill fear in the enemy. Therefore, those skilled in governing the world will turn disasters into blessings and turn failures into successes. Yet now, these seven benefits are being ignored for a long time, allowing the great disaster to spread. This worries me greatly!
The emperor did not listen to my advice. At that time, the Wu state leveraged local lords to mint coins, and their wealth was comparable to that of the emperor, eventually leading to rebellion. Deng Tong, a high-ranking official, made a fortune by minting coins and was even wealthier than the emperor. Therefore, Wu and Deng Tong's coins flooded the market.
Emperor Wu of Han inherited the wealth accumulated during the reigns of Emperors Wen and Jing, and he was itching to sort out the mess with the Xiongnu and Nanyue. After a few years as emperor, he sent Yan Zhu and Zhu Maichen to pacify Dong'ou and handle the affairs of Nanyue. The Yangtze and Huai River regions were in a constant state of upheaval, causing great labor and financial burden to the people.
Tang Meng and Sima Xiangru began to develop the southwestern barbarians, blazing trails and building thousands of miles of roads through the mountains to expand influence in Sichuan. As a result, the people of Sichuan were worn out. Peng Wu launched campaigns against the Huimo and Joseon, disrupting life in Yan and Qi. Later, Wang Hui set a plan in Mayi, resulting in the Xiongnu cutting off relations and starting to raid the northern border. War raged on, with the entire nation paying the price. With wars becoming more frequent, soldiers and civilians alike were burdened with supplying provisions, causing chaos throughout the country. Heavy taxes crippled the people, and the treasury was hemorrhaging money. Success depended on sucking up to the powerful, and wealth bought immunity from punishment. Meritocracy crumbled, corruption reigned, force was rampant, and laws grew harsher. Only then did officials truly dedicated to the state emerge.
General Wei Qing led a vast army of cavalry to attack the Xiongnu every year, eventually recapturing the Hexi Corridor and building Shuofang City there. Meanwhile, he also constructed roads in the southwest, mobilizing tens of thousands of people to transport grain over long distances. The exchange rate was incredibly unfavorable, with over ten dou of grain needed to get a single stone, and a large amount of money was distributed to the minority ethnic groups in Qiong and Bo to win their loyalty. Several years later, the roads were damaged again, and rebellions flared up repeatedly, forcing the court to send troops to suppress them. The taxes collected from the Ba and Shu regions were insufficient to repair the roads, so the court recruited the well-to-do to develop the southern regions, requiring them to hand over grain to local officials and receive money in Chang'an. In the east, a Canghai Commandery was established, and the cost of relocating personnel was almost the same as the cost of developing the southern regions. Additionally, over ten thousand people were mobilized to build Wei Shuofang, and the distance for transporting grain was extensive, affecting even the Shandong region, costing billions and emptying the imperial coffers. As a result, the court began to recruit talented individuals and slaves, granting them freedom, and promoting officials and nobility to those who served the court. This marked the beginning of a policy of rewarding loyal service with promotions and even granting official positions to those who contributed sheep to the court.
For four years running, General Wei Qing led massive armies—over 100,000 strong—against the Xiongnu, slaughtering and capturing enemies by the thousands, thus receiving over 200,000 catties of gold in rewards. However, the casualties of the Han army exceeded 100,000, not including the enormous cost of transporting weapons and armor. As a result, Grand Minister of Agriculture Chen Zang's treasury was completely depleted, leaving the army critically underfunded. The government proposed letting people buy their way into office or buy their way out of trouble; they also suggested establishing a "Military Merit System" with a total of 170,000 ranks, requiring an expenditure of over 300,000 gold. Those who paid to obtain a rank could serve in various official positions, ranging from minor clerkships to high ministerial positions, offering varying privileges, including reduced sentences for crimes. The highest rank could reach "Minister of Music." This way, the importance of military achievements was highlighted. Those with outstanding military accomplishments could be enfeoffed as Marquis or Ministers; those with lesser merits could also become officials. However, this complex system led to widespread government corruption and many meaningless positions.
From the time when Gongsun Hong used the principles of the "Spring and Autumn Annals" to restrain his subordinates as the Prime Minister of the Han Dynasty, to when Zhang Tang began using strict laws to judge cases as the Minister of Justice, a real focus on the law emerged. Fuzzy laws and criticisms got replaced by a hardline legal system. The following year, signs of rebellion by the Princes of Huainan, Hengshan, and Jiangdu were exposed, leading the court officials to seize the opportunity for a huge crackdown, with tens of thousands executed. The laws got tougher, and the whole system tightened up. At that time, the court recruited good, honest scholars, some of whom even reached high positions as court officials. Gongsun Hong, the Prime Minister, was all about simple living—rough clothes, plain food, always looking out for his staff. But it didn't really help things, and he ended up more focused on what he could get out of it.
The next year, the cavalry smashed the Xiongnu. King Hunxie and tens of thousands of his men surrendered—the Han sent over 30,000 carts to greet them. They got rewarded, as did the soldiers who'd done the job. The whole thing cost over 100 million.
For ten years before, the Yellow River flooded Liang and Chu, leaving people in misery. Counties along the Yellow River kept building dams, but the river kept washing them away. The cost was astronomical. Later, the court tried to ease transport by digging canals for irrigation—the Fen and Yellow Rivers got their own. Zheng thought the Wei River route was too long, so he dug a new one from Chang'an to Huayin. Shuofang did the same. Tens of thousands of workers toiled for two or three years on each project, costing millions each time.
The emperor raised many horses in order to go to war, with thousands of horses in Chang'an city making a mess. There were so many horses that the officials responsible for them in the Guanzhong region were overwhelmed and had to bring in extra help from nearby counties. Tens of thousands of surrendered Hu people received generous rewards, relying on the county for food and supplies. When the county couldn't keep up, the emperor tightened his belt, sold his own vehicles and horses, and even used treasures from the palace to subsidize.
The following year, a huge flood hit the area east of the Yellow River, causing people to go hungry. The emperor ordered all granaries to be opened to provide relief. When this was still not enough, he encouraged the rich to lend to each other for relief efforts. Still not enough, the emperor relocated more than 700,000 poor people to the area west of Guanzhong and south of the new Qin land, with the county responsible for feeding and clothing them. Years later, the emperor distributed land and industries to these poor people, sending officials to protect them. There was a constant stream of officials' carts and horses, costing a fortune and emptying the county's treasury. However, the wealthy merchants hoarded goods and drove prices down to make huge profits, causing many people to go bankrupt, even forcing nobles to rely on government aid. They made money through metal smelting and salt production, amassing mountains of wealth, but they were unwilling to contribute to help the country and its people, plunging the common people into deeper poverty.
The emperor and his ministers decided to mint new currency to alleviate financial pressure and crack down on speculators. At that time, there were white deer in the palace, and the imperial treasury had a lot of silver and tin. Since Emperor Xiaowen began minting coins weighing four zhu more than forty years ago, the amount of currency in circulation has been low. Various local officials often directly minted coins from copper mines, and common people also privately minted coins in large quantities. The more coins there were, the less they were worth, and goods became scarcer and more expensive. Officials said, "In ancient times, leather coins were used for ceremonies and sacrifices between states. Gold was divided into three types, with yellow gold being the best, white gold second, and red gold the worst. The standard weight of a half-liang coin is four zhu, but some people secretly shaved coins to profit from them, resulting in lighter coins and more expensive goods. It became more costly to use coins for transactions." So, they cut one-foot squares of white deer hide, embroidered the edges with silk thread, creating new leather coins worth forty thousand coins each. The royals and nobility had to present leather coins and jade bi together when paying respects to the emperor or conducting ceremonies to be accepted.
When Emperor Hanwu was in power, silver, tin, and white gold coins were minted again. He believed that dragons in the sky, horses on the ground, and tortoises on earth were the best symbols, so white gold was divided into three types:
- One weighing eight liang, round with dragon patterns, called "Bai Zhuan," worth three thousand;
- One lighter in weight, square with horse patterns, worth five hundred;
- One even lighter, oval with tortoise patterns, worth three hundred.
At the same time, he ordered county officials to melt down half-liang coins and mint three-zhu coins with corresponding weights and patterns. Anyone caught privately minting coins faced the death penalty, and countless officials and commoners ignored the law and minted coins anyway.
Then, Emperor Wu of Han appointed Dongguo Xianyang and Kong Jin as officials in charge of salt and iron affairs, and at the same time, Sang Hongyang also gained power. Xianyang was a major salt merchant in the Qi state, while Kong Jin was a leading iron smith in Nanyang. Both had accumulated huge wealth, so Zheng recommended them to the emperor at that time. As for Sang Hongyang, he was the son of a businessman in Luoyang and was a sharp kid who became a court attendant at thirteen. These three individuals were all masters of the numbers game and very formidable.
The laws became increasingly strict, and many officials were dismissed. With continuous wars, many common people bought their way out of military service with Wudafu and Qianfu titles, resulting in fewer and fewer people joining the army. Therefore, Emperor Wu of Han abolished the titles of Wudafu and Qianfu, making those who didn't want to fight buy horses instead. The dismissed officials were sent to cut wood to build the Shanglin Garden and construct the Kunming Pool.
In the following year, the Grand General and the Cavalry General led troops to fight against the Xiongnu, rewarding them with 500,000 gold coins. However, the number of soldiers and horses killed in battle exceeded 100,000, and the costs of transportation, weapons, and other expenses had not been calculated yet. At that time, the national treasury was empty, and many soldiers did not receive their rewards.
Some people reported to the court that those three-zhu coins were too light, easy to fake, so they asked for five-zhu coins with a rim to stop them from being worn down or shaved.
Kong Jinhe, the Da Nong Cheng from Xianyang, wrote to the Emperor, saying: "The wealth of the mountains and seas is a treasure between heaven and earth and should be under the jurisdiction of the Imperial Workshops. However, Your Majesty should not monopolize it. Instead, it should be handed over to the Ministry of Agriculture to assist in tax collection. We suggest encouraging private investment from commoners, using government-provided tools (pots and pans) to produce salt. Those greedy merchants, monopolizing mountain and sea resources and exploiting the people, are riddled with schemes. Anyone caught illegally casting iron or producing salt will lose their left big toe and their equipment. Counties without iron production will establish small government-run ironworks under county authority." Emperor Wu then dispatched Kong Jinhe on a postal carriage to tour the empire, inspect salt and iron production, establish government offices, and appointed wealthy salt and iron merchants to official positions. This resulted in a significant increase in the number of merchant-turned-officials.
Merchants were hoarding goods and making a killing, so the ministers in the court said, "There are frequent disasters in various counties and many poor people have no property. Let's recruit them to move to the Guangrao area. Your Majesty, we need to tighten our belts, use the palace funds, and cut taxes to help the people. However, folks still weren't farming properly, but the number of merchants was increasing. The poor had nothing and depended on the government for handouts. From now on, we'll assess officials' and merchants' wealth using the old system. Any merchant, whether they were lending money, trading goods, hoarding, or just plain making money, even unregistered, should be calculated based on the quantity of goods they own, with every 2,000 coins counted as one unit. Those engaged in tax collection and coinage should be counted as one unit for every 4,000 coins. Except for officials, village elders, and border patrol, officials' vehicles count as one unit; merchants count as two units; ships over five zhang count as one unit. Anyone who hid their wealth or underreported it would get a year on the border and lose everything. The snitch gets half the loot. Registered merchants and their families couldn't own farmland, to make sure there was enough for everyone else. Anyone breaking the law loses their land and goods."
Back then, the rich were all hiding their money, but Bu Shi repeatedly gave the court money. The Emperor was so happy, he made Bu Shi a Zhonglang, gave him the title of Left Shuchang, ten hectares of land, and announced it to the whole country to inspire everyone else. Bu Shi didn't want to be an official at first, but the Emperor made him, and he eventually became Qixiang. The details are recorded in his biography.
Kong ran the national mint and was promoted to Dasi Nong within three years, becoming one of the nine top ministers. Sang Hongyang was his deputy, managing finances and gradually rolling out a system of equal distribution to balance things out. The government let officials pay their dues with grain, up to six hundred shi.
Since the casting of gold and five-grain-weight coins five years ago, the court has pardoned a vast number of people who were sentenced to death for counterfeiting coins. Countless others, undetected, perished in internecine conflict. Over a million people voluntarily surrendered. However, less than half of those who surrendered; almost everyone in the world participated in counterfeiting coins. There were too many criminals for the government to catch, so they sent officials like Chu Da and Xu Yan to various places to investigate those who were corrupt, took bribes, and acted in their own self-interest. At that time, the Chief Censor Zhang Tang was in power, and he promoted officials such as Xuan and Du Zhou to serve as ministers, while appointing strict officials like Yi Zong, Yin Qi, and Wang Wenshu as the Nine Ministers. Talented individuals like Xia Lan began to emerge. However, the great farmer Yan Yi was executed.
Initially, this person was called Yi, and he was a local magistrate in Jinan. Because of his integrity and honesty, he gradually rose through the ranks to become a high-ranking official. The emperor and Prime Minister Tang Heng created a currency out of white deer skin and asked Yi for his opinion. Yi said, "Now the nobles who pay tribute to the emperor bring treasures like jade bi, worth thousands, but those white deer skins can be exchanged for forty thousand coins; the cost and profit are way out of whack!" The emperor was very unhappy after hearing this. Tang Heng already had conflicts with Yi, and later someone reported Yi for discussing politics outside official channels, so Tang Heng handled the matter. Yi was chatting with a guest, who mentioned that the new laws were somewhat inconvenient. Yi ignored him and even contradicted the guest a few times. Tang Heng reported that as a high-ranking official, Yi should have spoken up if he saw inconvenient laws instead of secretly complaining, and he should be executed. Since then, there has been a crime of "secret dissent," and all the ministers in the court began to brown-nose the emperor.
The emperor issued the "Reporting Hidden Property Order" (a decree for reporting concealed assets) and also reused Bu Shi, but the common people refused to hand over their money to the government. In the end, the Reporting Hidden Property Order fizzled out. Various counties minted their own coins, and people started churning out fake coins. The coins became ever lighter, so the court officials requested the establishment of an official mint in the capital to produce "Red Flat Coins," with one Red Flat Coin worth five regular coins. It was said that taxes had to be paid with Red Flat Coins. Once platinum prices dipped a bit, the common people no longer valued it. The government banned it, but it didn't work, and over a year later, this ban was ultimately abolished.
That year, Tang Heng died, but the common people did not miss him at all. Two years later, Red Flat Coins lost their value, and the common people found them a pain to use, so Red Flat Coins were also abolished. After that, the court ordered a ban on coin minting in various counties, allowing only the three officials running the Shanglin Mint to mint coins. Once there were tons of coins around, the court ordered that only the coins minted by the Shanglin Mint could be used nationwide. The coins previously minted by various counties were melted down and the copper sent back to the Shanglin Mint. As a result, even fewer common people minted their own coins because it wasn't worth it. Only real gutsy crooks would dare to secretly mint coins.
Yang Ke suggested implementing a "wealth-reporting order" nationwide, resulting in almost all medium and above families being reported. Du Zhou was responsible for handling these cases, and few were sentenced to death. The court also sent imperial censors and court officials to various places to investigate cases of hidden money, confiscating vast sums of private wealth; millions of slaves; hundreds of acres of land in large counties, and over a hundred acres in small counties; as well as houses. As a result, merchants and medium and above families almost all went bankrupt, and the common people lived the high life, no longer engaging in industries to accumulate wealth, while the government's income increased due to salt, iron, and denunciation. They also jacked up the tariffs and established left and right assistant officials.
Initially, the court had a lot of financial income, establishing an official in charge of salt and iron revenue to manage the revenue from these resources. Later, Yang Ke exposed the drawbacks of the wealth-reporting system and found that there was a lot of wealth in Shanglin Garden, so the salt and iron revenue official was also put in charge of Shanglin Garden. The wealth in Shanglin Garden grew larger and larger. At that time, the southern region wanted to fight the Han Dynasty with ships, so Emperor Wu of Han built the Kunming Pool on a large scale, surrounded by many pavilions and towers, and constructed towering ships decorated with magnificent flags, which were very spectacular. The emperor was inspired by these scenes and built the Bailiang Terrace, which was also several dozen meters high. The construction of the palace became increasingly luxurious from then on.
Next, the court distributed wealth-reporting funds to various government departments, and departments such as salt and iron, steward, equerry, and agriculture all appointed officials specialized in managing agriculture, often confiscating land from the people of the counties. The confiscated slaves were partly allocated to feed dogs, horses, and birds in various imperial estates, and partly distributed to government offices. Despite the growing number of officials and slaves, annual grain shipments from the Yellow River totaled only four million stones, insufficient even when supplemented by government purchases.
Some people advised Emperor Han Wu that "the children of noble families and the rich often engage in cockfighting, gambling, hunting, and disturb the lives of the common people." So Emperor Han Wu ordered a crackdown on those who violated the laws, suddenly arresting thousands of offenders. Those who turned in their properties could obtain the position of a Lang official, leading to confusion in the selection system for Lang officials.
At that time, Shandong suffered from severe flooding for several years, resulting in poor harvests. People were driven to cannibalism, with the disaster area spanning a vast region of two to three thousand miles. The Emperor felt compassion and ordered the famine-stricken people to be relocated to the Jianghuai region in order to settle down there. A steady stream of imperial envoys escorted them, and food was transported from Bashu to help the disaster victims.
The following year, Emperor Han Wu began to inspect various regions. Crossing the Yellow River to the east, the Prefect of Hedong was unprepared for his arrival and, feeling ashamed, committed suicide. Heading west across the Long Mountains, the soldiers in the army had no food to eat, leading to the suicide of the Prefect of Longxi. Emperor Han Wu then headed north through Xiaoguan, leading tens of thousands of cavalry to hunt in the New Qin region to assert his authority over the border troops, before returning to Chang'an. In some parts of the New Qin region, there were no guard posts for miles around, so Emperor Han Wu executed officials below the Prefect of Beidi and allowed the people to graze in the border areas. The government even lent brood mares to the people, to be returned after three years with only one-tenth of the interest charged, in order to reduce tax collection and use the money to enrich the New Qin region.
After obtaining the Sacred Tripod, Emperor Han Wu built shrines for Houtu and Taiyi. The Emperor's officials hashed out the details of the Enthronement Ceremony, and various regions began to repair roads, old palaces, as well as the imperial highways and county towns along the way. The county towns were also prepared with palaces, warehouses, and various necessities, and everything was ready for the Emperor's visit.
Next year, Nanyue in the south is planning a rebellion, while the Qiang people from the west are also invading the border. The Emperor was worried sick, so he ordered a general amnesty for all prisoners, then sent over 200,000 southern navy troops to attack Nanyue, dispatched cavalry from west of the Three Rivers to confront the Qiang, and sent tens of thousands to build military bases across the Yellow River. The court had just established Zhangye County and Jiuquan County, along with government officials in charge of agriculture in Shang County, Shuofang, Xihe, and Hexi regions, and conscripted 600,000 border soldiers to cultivate new land. The whole country sped up road building and grain transport, with some areas needing to transport over 3,000 miles and others over 1,000 miles, all coordinated by the agricultural officials. With too few border troops, they raided the armories and engineering corps for weapons and equipment. They were desperately short of war chariots, horses, and supplies, and counties were broke and couldn't buy horses. So the court ordered every official, from princes on down to those with 300 shi or more, to give mares to the local officials, who were responsible to raise them and pay a yearly tax in horses.
Qi's Prime Minister, Bu Shi, wrote to the Emperor, expressing his willingness to take his son to Nanyue to fight for the country. The Emperor was so moved, he issued a decree praising him, making him Marquis of Guannei and giving him 40 pounds of gold and 10 hectares of land. The Emperor also publicized this event, hoping others would follow suit, but not a single one of the hundred-plus marquises volunteered. At the gold offering ceremony, the finance guys goofed, and over a hundred marquises lost their titles. The Emperor then made Bu Shi Grand Minister of Justice. After taking office, Bu Shi found that lots of counties complained about the salt and iron the local officials were making—poor quality, too expensive, and they forced people to buy it. And their ship measurements were all messed up, so fewer merchants meant higher prices. Bu Shi, following Kong Jin's advice, wanted to fix the ship measurements, but the Emperor said no.
The Han Dynasty continuously sent troops for three years, pacifying the Qiang tribe rebellion and eliminating the Nan Yue. From Panyu to the south of Shu, a total of seventeen new counties were established. They adopted a management method tailored to local conditions without imposing taxes. The areas east of Nanyang and Hanzhong provided food, money, vehicles, horses, and various equipment to the newly established counties based on their geographical locations. However, these newly established counties often experienced small-scale rebellions that resulted in the deaths of officials. The Han Dynasty continuously dispatched southern troops to suppress them, mobilizing a large number of soldiers each year, with the costs borne by the agricultural administrators. The agricultural administrators supplemented taxes through the equalization law and the allocation of salt and iron, barely maintaining the situation. However, the counties traversed by the army only focused on quickly preparing the necessary supplies for the troops and did not dare to mention lowering taxes.
In the second year, known as Yuanfeng, Bu Shi was demoted to tutor to the crown prince. Meanwhile, Sang Hongyang became the Commissioner of Granaries and also managed agriculture, completely monopolizing the salt and iron business nationwide. Sang Hongyang believed that departments trading independently and competing with each other led to soaring prices, with the taxes paid by the common people insufficient to cover transportation costs. Therefore, he proposed establishing dozens of deputy agricultural commissioners to manage various counties, creating equalization, salt, and iron officials in different regions, allowing remote areas to trade their local specialties like merchants in the past to pay taxes. A market regulator was established in the capital to oversee the national distribution of goods. He also had craftsmen produce vehicles and utensils, all supplied by the agricultural office. The officials of the agricultural office controlled all the goods in the country, selling when prices were high and buying when they were low. This prevented large merchants from making huge profits, stabilizing prices and preventing further increases. This is known as "balance." The emperor approved of this idea. Afterwards, the emperor went on a northern tour to Shuofang, east to Mount Tai, and also inspected the seaside, returning via the northern border. Along the way, he bestowed rewards, using millions of bolts of the finest silk and vast quantities of gold and silver, all allocated from the agricultural office.
Sang Hongyang also suggested allowing the common people to atone for their crimes with grain, or to pay off their fines with grain. The amount of grain sent to Ganquan Palace could offset their lifelong taxes, and they would no longer need to pay property taxes. Other counties also transported urgently needed supplies to designated locations. Farmers from all over actively sent grain, and the grain transported from Shandong increased by six million stones in one year. By the end of the year, both the granaries in Taicang and the Ganquan Palace were full, there were surplus grains at the border, and the goods from the Junshu system included five million pieces of silk. Taxes for the common people did not increase, yet the country was abundant in resources. Therefore, Sang Hongyang was appointed as Minister of the Left and was rewarded with two hundred catties of gold.
A slight drought prompted the emperor to order the officials to pray for rain. Bu Shi said, "Officials should just collect their pay and wear their uniforms, but now Sang Hongyang is allowing officials to engage in business and exploit the national crisis for personal gain. If we kill Sang Hongyang, the heavens will send rain." After a long time, Emperor Wu fell ill and appointed Sang Hongyang as the Grand Master of Records.
In the sixth year of Emperor Zhao of Han's reign, he ordered recommendations of virtuous and knowledgeable talents from all over the country, inquired about the people's grievances, and sought advice on governance and education. They advocated for the abolition of the government's monopoly on salt, iron, and alcohol, as well as the even distribution system, believing that the country should not compete with the people for profit and should prioritize frugality in order to better educate the people. However, Hongyang opposed this suggestion, believing that control of salt and iron was vital to the state and an important means to manage minority nationalities, stabilize the borders, and ensure military needs, and should not be abolished. Therefore, he and Prime Minister Qianqiu jointly submitted a memorial, only abolishing the monopoly on alcohol. Hongyang believed he had made contributions to the country but did not receive corresponding rewards. He also sought advancement for his family, so he harbored resentment towards Grand General Huo Guang, ultimately conspiring with Shangguan Jie and others to rebel, and was executed.
Emperor Xuan, Emperor Yuan, Emperor Cheng, Emperor Ai, and Emperor Ping stuck with the salt and iron monopoly. During Emperor Yuan's reign, they briefly ditched the salt and iron officials, only to bring 'em back three years later. Gong Yu suggested, "Minting money and mining copper means ten thousand fewer farmers in the fields each year, leading to many people violating the law by privately minting coins. Rich folks had money piling up, but still wanted more. People were restless, ditching farming for other jobs. Less than half the people were farming, and corruption was running rampant. We gotta fix the problem, not just the symptoms. Get rid of the pearl, jade, gold, and silver mines and the mints. No more using those things as money. Scrap the cash rules and pay taxes, salaries, and bonuses in cloth and grain. That way, people will focus on farming." However, some argued that you can't do business without money, and you can't easily split up cloth and silk. Therefore, Gong Yu's suggestion was ultimately not adopted.
From Emperor Wu's fifth year of Yuanshou to Emperor Ping's Yuan Shi era, they minted over 28 billion Wu Zhu coins. After Wang Mang took over, he overhauled the Han system. The Zhou had two kinds of coins, so he re-minted large coins with a diameter of one inch and two fen, weighing twelve zhu, with "Fifty Large Coins" inscribed on them. He also made dagger coins and "wrong" coins. Dagger coins were like big coins but shaped like daggers. "Wrong" coins were gold-inlaid. All four coins were in circulation at the same time.
Once he was emperor, Wang Mang decided the character "Liu" looked like "gold" and "dagger." So he got rid of the old coins and made new ones – gold, silver, turtle shells, cowries, and even cloth – calling them "precious goods."
Let's talk about ancient money – it was crazy complex! The smallest coin was called "small coin," about half an inch long and weighing a fraction of an ounce, with "one small coin equals one wen" written on it. Then there was the "yao coin," seven-tenths of an inch long, weighing about three-fifths of an ounce, valued at ten wen; the "you coin," eight-tenths of an inch long, weighing one ounce, worth twenty wen; the "zhong coin," nine-tenths of an inch long, weighing about three-quarters of an ounce, valued at thirty wen; the "zhuang coin," one inch long, weighing about one ounce, worth forty wen. Finally, there was the "big coin," exchanged for fifty wen. These six coin types formed a tiered system, and their prices were engraved on the coins, easy to see.
Gold was super valuable – a pound would get you 10,000 wen. Zhu Ti silver, eight liang for one liu, was valued at one thousand five hundred and eighty wen; other silver was exchanged for one liu worth one thousand wen. Silver only had two levels.
In addition to gold and silver, turtle shells were also used as currency! The largest was called "yuan turtle," one foot two inches long, valued at two thousand one hundred and sixty wen, equivalent to ten large cowries; the "gong turtle," nine inches long, was valued at five hundred wen, equivalent to ten medium cowries; the "hou turtle," seven inches or more, was worth three hundred wen, equivalent to ten small cowries; and the "zi turtle," five inches or more, was worth one hundred wen, equivalent to ten tiny cowries. These four types of turtle shells formed the four levels of turtle coins.
The unit of calculation for turtle shells also included "peng." For large cowries measuring four inches eight tenths or more, two pieces made one peng, worth two hundred sixteen wen; for medium cowries measuring three inches six tenths or more, two pieces made one peng, worth fifty wen; for small cowries measuring two inches four tenths or more, two pieces made one peng, worth thirty wen; and for tiny cowries measuring one inch two tenths or more, two pieces made one peng, worth ten wen. Anything smaller than that was worth just three wen each. So, there were five levels of turtle shell currency in total.
Cloth was also a form of currency! There were ten levels of cloth coins, namely: da bu (large cloth), ci bu (second cloth), di bu (younger cloth), zhuang bu (sturdy cloth), zhong bu (medium cloth), cha bu (inferior cloth), hou bu (thick cloth), you bu (younger cloth), yao bu (small cloth), and xiao bu (tiny cloth). The smallest "xiao bu" was one inch five tenths long, weighing fifteen zhu, with "xiao bu one hundred" written on it, worth one hundred wen. From "xiao bu" upwards, each type of cloth was one tenth longer, one zhu heavier, and the price increased by one hundred wen. The largest "da bu" was two inches four tenths long, weighing one liang, worth one thousand wen. Thus, there were ten levels of cloth coins in total.
Basically, there were six categories and twenty-eight grades of these treasures: gold, silver, tortoise shell, and cloth. They made the coins and cloth money from copper mixed with tin, and they looked just like the old Han dynasty five-zhu coins. If the gold and silver were mixed with other stuff, the color wasn't right; tortoise shells under five inches and cowries under six fen weren't considered legal tender. A yuan turtle was a really valuable thing; regular folks couldn't own one. If you had one, you *had* to hand it over to the government to be assessed. People were totally screwed; they couldn't sell anything. Wang Mang blew his top and ordered, "Anyone who ignores the equal-field system and hides five-zhu coins is causing trouble, and they're all going to the border to fight demons!" Farmers and merchants were out of work, couldn't get food or drink, and the streets were full of crying. Loads of people – from big shots to regular folks – got punished for buying and selling land, houses, slaves, and coins. Seeing all this misery, Wang Mang ordered a new small coin – worth fifty of the old ones – and they'd use both. They stopped using tortoise shell and cloth money for a while.
Wang Mang was a bit of a hothead, always itching for a fight and always by the book. His advisor, Liu Xin, argued that the Zhou dynasty's unfair taxes violated the *Yi Jing*'s principle of fair finance and preventing wrongdoing. So Wang Mang declared, "Look, the *Zhou Li*, the *Yue Ji*, and other classics all talk about credit and the 'Five Equitable' system. We're doing the same thing – setting up a system to balance things out and stop the rich from gobbling up everything!" He then established "Five Equitable Commissioners" in Chang'an and five other major cities. The market officials in the east and west of Chang'an, as well as the mayors of Luoyang, Handan, Linzi, Wan, and Chengdu, were all renamed "Five-Way Market Masters." The eastern market in Chang'an was called "Jing," the western market was called "Ji," Luoyang was called "Zhong," and the other four cities were named using directions. Each "Five Equitable Commissioner" had five trading supervisors and one treasury supervisor. Those dealing in precious metals and shells had to register with the "Five Equitable Commissioner" and collect accordingly based on the season. According to the regulations of the "Zhou Officials," Wang Mang also imposed taxes on the common people: if you didn't farm your land, you paid a tax; no trees in your city lot? Tax. Lazybones? You guessed it, tax! From miners and artisans to merchants and fortune tellers, everyone had to register with the local county office, report their income, and then pay taxes at a rate of one-tenth. Skip registration or lie? Say goodbye to your stuff, and get ready for a year of free labor for the county.
Each department manages its market based on the middle month of each quarter. Prices are set according to the grade of the goods (high, medium, low), with each department responsible for stabilizing prices in its own market without reference to prices in other markets. If there's enough grain, cloth, silk, etc., and prices are fair, the government will check the quality and buy them at cost, preventing price gouging. If prices are more than a coin above the fair price, they must be sold at the fair price. If prices are below the fair price, free trade is allowed to prevent hoarding. People needing money for funerals or sacrifices can borrow from the government. Loans are granted based on tax revenue; ten days for sacrifices, three months for funerals. People needing loans to start businesses can get them; interest, after fees, is no more than 10% annually.
Xihe and Lu Kuang said: "The system of credit for the five commodities—salt, iron, coins, cloth—produced in mountainous and lake regions is managed by county officials, except for the sale of alcohol. Alcohol is a divine gift, a precious commodity, used by emperors to nurture the people, conduct sacrifices, pray for blessings, and aid the sick and infirm. All kinds of ceremonial activities cannot do without alcohol. Therefore, as the *Shijing* says, 'I yearn for wine,' and the *Analects* states, 'I don't eat without first having wine,' these two statements are not contradictory. You see, the *Shijing* depicts a prosperous age where state-controlled wine sales ensured fair prices, accessible to all. In contrast, the *Analects* describes the chaotic Zhou dynasty, where uncontrolled private sales led to poor quality and inflated prices, prompting Confucius's skepticism about the wine and his refusal to drink it.
Now, a nationwide ban on alcohol would make it impossible to hold various ceremonial activities and would eliminate its ritual and medicinal uses; if left unregulated, it would waste money and harm the interests of the people. Therefore, I suggest following the ancient system, allowing the government to brew alcohol, with 2500 units of stone as a measure, selling at a unit price, with 50 brews as the standard. Each brewing batch, using two bushels of coarse rice and one bushel of yeast, yields six dou of alcohol. At the beginning of each month, calculate the cost using three bushels of rice and yeast, then divide the cost into three parts, with one part representing the fair price of one dou of alcohol. Deduct the cost of rice and yeast, calculate the profit, and then divide the profit into ten parts: seven parts for the government and three parts to cover waste disposal, fuel, and artisan wages during the brewing process."
They say Wang Mang sent people to manage important resources such as salt, wine, iron, and major natural resources, along with institutions responsible for loans. However, many of the officials in charge were wealthy merchants, such as Xue Zizhong, Zhang Changshu, and Wei, among others. They took advantage of their positions, engaged in buying and selling across the country, colluded with local officials, falsified accounts, and stuffed their pockets, causing great suffering to the common people. Wang Mang knew that the people were suffering, so he issued an order saying, "Salt's essential for cooking, wine serves as medicine and is a fine product for banquets; iron is a tool for farmers; the resources from major natural areas are abundant; and those institutions responsible for resource allocation and loans exist to ensure the common people can obtain these resources fairly, with stable prices. The common people can't make ironware or copperware themselves; they can only buy them in the market, even if they are expensive. Those wealthy merchants always try to exploit the poor; that's why the ancients regulated these things. Strict rules and regulations must be established for managing these institutions, with death penalties for violators!" However, corrupt officials and greedy merchants continued to do as they pleased, and the lives of the common people became increasingly difficult.
After five years, in the first year of Tianfeng, Wang Mang adjusted the prices of gold, silver, and the shell currency, and also abolished large and small coins, replacing them with a new cloth currency. This cloth currency was 2.5 cm long, 1 cm wide, with a circular hole in the middle measuring 1.25 cm in diameter, featuring the characters "goods" and "cloth," weighing 25 zhu and worth 25 units of currency. The smaller currency had a diameter of 1 cm, weighed 5 zhu, and had the characters "goods" and "coin" written on it, worth 1 unit. Both types of currency circulated simultaneously. Because large coins had been used for a long time, Wang Mang abolished them but, fearing that the common people would resist giving them up, temporarily allowed large coins to circulate alongside the new currency, both valued at 1 unit, for six years, after which the old coins were outlawed. This currency reform wiped people out, sending many to jail.
Wang Mang's private coin minting killed many, and those who failed to pay their taxes or smuggled goods were also affected. He couldn't keep up with all the lawbreakers, so he reduced the severity of the punishments. If you privately minted coins, your whole family became slaves to the state; officials and anyone who helped them and didn't report it got the same punishment. Tax evaders did a year of hard labor; officials lost their jobs. But the problem just kept getting worse, and if five people were caught together, they lost everything and were sent to Chang'an for trial – many died on the way.
Six years ago, Wang Mang started taxing the cloth. In just a few years, the Xiongnu invaded and really messed things up. Wang Mang ordered a large-scale conscription of prisoners and slaves nationwide to serve as soldiers, giving them a frightening name for their army, literally meaning "pig-charging boar-brave" (猪突豨勇). He also taxed everyone's stuff, taking one coin out of every thirty. Furthermore, he ordered everyone from court ministers to local officials to keep their own horses, then passed the responsibility on to the common people. The common people suffered greatly, unable to farm or raise silkworms properly due to endless forced labor. On top of that, things just got worse and worse with droughts, locust plagues, and other disasters hitting one after another, leading to widespread suffering. His new rules were a mess; nobody got paid properly, and officials at all levels relied on private taxation to enrich themselves and their superiors. This led to a backlog of lawsuits that could not be resolved. In order to establish authority, officials really screwed over the common people, finding new ways to rip them off, all under the guise of Wang Mang's rules. Even rich folks couldn't hold onto their money, while the poor could barely survive. Folks started turning into bandits, hiding in remote mountains and forests, where they eluded capture and even deceived the authorities. The bandit gangs grew bigger and bigger, spreading like wildfire through Qingzhou, Xuzhou, and Jingzhou. Many people died in battles, border areas were invaded by foreign tribes, and many were captured or died from hunger and disease, even resorting to cannibalism. By the time they killed Wang Mang, half the country's people were gone.
After four years, the recklessly aggressive army was also defeated, and the Han army killed Wang Mang. Two years later, Emperor Guangwu Liu Xiu became emperor and immediately cleaned up the mess of harsh policies left by Wang Mang, restored the five-zhu currency, and brought stability back to the world.
The article concludes by saying: The Book of Changes states, "redistributing wealth to even things out," while The Book of Documents says, "prosperity flows where it's needed." The Zhou Dynasty established official positions specifically for managing money, and Mencius criticized the phenomenon where "the rich gorge themselves while the poor starve in the streets – and nobody cares." Therefore, Guan Zhong's system of light and heavy taxes, Li Kui's equalization of grain, Sang Hongyang's equal distribution, and the constant granary system during the reign of Emperor Wu of Han all have their reasons. In ancient times, as long as officials were honest and the government was efficient, the common people could benefit from these systems, and the world would be at peace. During the reign of Emperor Wu of Han, the treasury overflowed, and the people weren't burdened with extra taxes, which can be considered relatively good governance. However, Wang Mang's whole system was a disaster, and those crooked officials ran the place into the ground, resulting in everyone suffering, and ultimately the country perished.
