After the rise of the Han Dynasty, it inherited the devastated state left by the Qin Dynasty. Young men were conscripted into the military, while the elderly and weak were tasked with transporting grain and supplies. The state faced overwhelming administrative burdens and was financially strained. From the emperor down to the lowest officials, there were not enough resources, and even high-ranking generals and ministers sometimes traveled in ox carts, while ordinary citizens had barely enough to eat. As a result, the Qin currency, being too heavy and cumbersome for circulation, was replaced with a new currency. The new standard was a coin weighing one jin of gold, and the laws were simplified to reduce unnecessary restrictions.
However, some unscrupulous merchants, driven by greed, hoarded goods and manipulated prices, causing rampant inflation. The price of grain soared to ten thousand copper coins per shi (a traditional Chinese measure of weight), and a single horse could cost as much as a hundred gold pieces.
Once the empire was stabilized, Emperor Gaozu issued an edict forbidding merchants from wearing silk or using carts to travel, and he increased taxes on them to put their wealth under strain and humiliate them. During the reigns of Emperor Hui and Empress Dowager Lü, as the empire had become more stable, some laws were relaxed for merchants, but their descendants were still prohibited from holding official positions. The government calculated officials’ salaries and expenses, imposing taxes on the people based on necessity. Revenue from the taxation of mountains, rivers, gardens, ponds, and markets, as well as income from the emperor’s estates and those of nobles, was used to cover the private expenses of officials, rather than state funds. As a result, the grain transported to the capital from Shandong for the officials’ supply amounted to only a few hundred thousand shi annually.
By the time Emperor Xian (Emperor Wu of Han) ascended to the throne, the weight of coins had become lighter, and a new form of currency was minted—the “four-penny coin,” each inscribed with “half a tael” of weight. The people were allowed to mint their own coins. Meanwhile, the state of Wu, though a vassal state, became extremely wealthy through copper mining and coin production, rivaling even the emperor’s treasury. Eventually, this wealth led to their rebellion. A man named Deng Tong, a high-ranking official, became immensely rich through his private minting of coins, surpassing even the wealth of many nobles. Thus, the widespread circulation of Wu and Deng coins led to the imperial decree forbidding private coinage.
Meanwhile, the Xiongnu frequently invaded the northern frontier, stationing numerous troops to defend the border. Due to insufficient supplies, the state began to recruit civilians who could provide food to the military or transport supplies to the border regions. In return, they were granted official titles, with the highest rank being that of a grand chancellor.
During the reign of Emperor Jing, a drought occurred in the western regions, and an edict was issued to reduce the price of titles to attract more commoners to serve in the official ranks. Criminals who had committed severe offenses could pay in grain to avoid punishment. Meanwhile, the emperor expanded imperial parks and stables, significantly increasing expenditures, and major infrastructure projects, such as roads and royal buildings, were initiated.
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During the early years of Emperor Wu’s reign, following the establishment of the Han Dynasty over seventy years earlier, the empire had seen little conflict except for occasional natural disasters like floods and droughts. The people were well-fed, and grain reserves were abundant, with storage warehouses full of goods like cloth and silk. The capital’s wealth was so immense that the ropes used to bind coins rotted from overuse, and the grain storage silos were packed like military formations, some even overflowing and decaying. Ordinary citizens in the streets owned horses, and the fields were filled with horses as well. In fact, young mares were considered so valuable that their riders were excluded from public gatherings. Even ordinary folk enjoyed rich, fatty foods, while government officials retained their positions until their deaths. The population understood the importance of self-respect, taking the law seriously and rejecting acts of shame.
At this time, the legal system was relatively lenient, and the people were prosperous, but this also led to excessive indulgence. Wealthy families and landowners began to consolidate power, using their strength and influence to dominate local areas. Even nobles and high-ranking officials flaunted their wealth, exceeding their rank in terms of housing, clothing, and chariots. This unchecked display of luxury led to the inevitable decline of the state, as the wealth imbalance set the stage for eventual turmoil.
Subsequently, individuals like Yan Zhui and Zhu Maichen began to recruit people from the Eastern Ou region, leading to military conflicts with the Yue tribes. The costs of warfare between the Yangtze and Huai River regions grew immensely, creating widespread unrest. Figures like Tang Meng and Sima Xiangru opened up roads to the southwest to strengthen ties with the region, cutting through mountains and constructing over a thousand miles of road to connect Sichuan with the outside world. However, this expansion drained the energy of the local populace. Similarly, Peng Wu facilitated the opening of routes to foreign lands like the Miao and Korea, establishing the Canghai Commandery. The unrest between Yan and Qi spread like wildfire.
As Emperor Wu prepared for military action against the Xiongnu at Mayi, the relationship between the Xiongnu and the Han Empire deteriorated. Their aggressive incursions into the northern frontier continued, leading to endless military conflict. The people, exhausted by the constant warfare, lamented their plight, yet the violence only intensified. Soldiers were tasked with transporting supplies for the war, while civilians were preoccupied with sending off departing troops. The entire country was embroiled in the chaos of war. At the same time, legal loopholes were exploited, leading to rampant corruption and depletion of the state’s resources. Officials who could profit from state funds rose in power, and the system of selecting officials was tainted, with those with military power gaining undue influence. The legal system became harsh, and the bureaucracy grew increasingly convoluted. This period marked the rise of officials who manipulated state resources for personal gain.
Later, every year, the Han generals launched campaigns with tens of thousands of cavalry against the Hu people. Eventually, General Wei Qing of the Han Dynasty conquered the lands south of the Xiongnu’s Hetao region and established the city of Shuofang. At that time, the Han Dynasty was working to open up the southwestern routes, deploying tens of thousands of people to carry grain over a distance of a thousand miles. For every ten or so days of transport, only one bushel of grain was delivered. To attract the local populations in the Qiong and Bo regions, the government scattered coins there. For several consecutive years, the roads remained closed, and the barbarian tribes took advantage of the situation to launch repeated attacks, leading to military action and their eventual slaughter by the officials. The taxes from the Bashu region alone were insufficient to maintain such a situation, so the government began recruiting wealthy individuals to cultivate the lands in the southern Yi region. The harvested grain was then sold to the local officials, with funds drawn from the capital to pay for it. At the same time, a road was dug to the Canghai commandery in the east, with labor costs similar to those of the southern Yi region. Moreover, over 100,000 people were mobilized to construct and defend Shuofang, a project involving both land and water transport over vast distances. The costs amounted to hundreds of thousands, even millions of coins, leaving the imperial treasury further drained. As a result, the government began recruiting citizens who could pay taxes in the form of slaves or servants, granting them exemption from rent and corvée labor for life. Those who had previously served as minor officials were promoted, and those who paid with sheep were granted official status—this system began at this time.
Four years later, the Han sent a great general, accompanied by six commanders and an army of over 100,000 soldiers, to attack the Xiongnu’s Rightwise King. They killed or captured a total of 15,000 people. The following year, the general again led six commanders in a campaign against the Hu, killing or capturing 19,000 enemies. The rewards for the soldiers who killed or captured the enemy amounted to over 200,000 pounds of gold, and the surrendered barbarians received generous rewards, including clothing and food provided by the local officials. However, the Han army suffered heavy losses, with over 100,000 soldiers and horses dead, and the cost of weapons and supplies for transport was not even calculated. The Minister of Agriculture then reported that, even after depleting the imperial treasury, there were still insufficient funds to cover the soldiers’ expenses. The responsible officials reported, “The emperor has heard that the teachings of the Five Emperors were consistent in their principles, and although the laws of Yu and Tang differed, they were both great rulers. Their paths may have differed, but the results of their deeds were the same. The northern border remains unsettled, and this weighs heavily on the emperor’s mind. In recent days, the great general has led campaigns against the Xiongnu, killing and capturing 19,000 people, but the wealthy hoard their wealth while the poor starve. You are to deliberate on this matter and have the people pay money to purchase ranks, and thereby pay ransom to reduce their punishments.”
Following this, it was proposed to establish a “Military Achievement Rank” system, where each level of the rank was worth 170,000 coins, totaling over 300,000 gold. Those who reached the first official rank could be tested and promoted to administrative positions, with priority for appointments. The rank of “Thousand-man Leader” was equivalent to that of the “Great Official.” Those who were convicted could be demoted by two levels. The highest rank in the Military Achievement system could go as far as “Leqing,” a prestigious title. Many military officers received honors that far exceeded this rank, with the highest being granted noble titles, while others were appointed as minor officials. The bureaucratic system became chaotic, with titles losing their significance and duties being neglected.
Since Gongsun Hong had used the teachings of the “Spring and Autumn Annals” to strictly govern both officials and the people, he attained the position of Chancellor of the Han Dynasty, while Zhang Tang, through harsh laws and severe judgments, became the Chief Justice. As a result, the practice of punishing those who “failed to report what they knew,” “disobeyed the emperor’s orders,” or “spread rumors or defamed others” became widespread. This led to many people being imprisoned for trivial offenses. The following year, a rebellion was discovered involving the kings of Huainan, Hengshan, and Jiangdu. The court officials investigated thoroughly, captured their followers, and executed tens of thousands of conspirators, further tightening the rule of law and increasing the severity of punishments.
At that time, the court was actively recruiting and promoting upright, virtuous, and scholarly individuals. Some were promoted to high-ranking officials and ministers. Gongsun Hong, in his capacity as Chancellor, lived simply, using a plain cloth to cover himself and having modest meals, hoping to set an example for the people. However, this had little impact on society, and over time, the focus shifted to practical and material concerns.
The following year, General Biao Qi again led an army against the Hu, killing 40,000 of the enemy. In the fall, Xiongnu’s Hunye Wang, leading tens of thousands, surrendered to the Han. The court immediately dispatched 20,000 carts to welcome the surrendering forces. Upon their arrival in the capital, they were rewarded, and the military officers who had performed well were also generously compensated. The total cost for this campaign amounted to more than 100 million coins.
Years earlier, after the Yellow River had breached its banks near Guan County, the Liang and Chu regions had been repeatedly flooded. The affected commanderies along the river had constructed dikes to block the floodwaters, but these were often destroyed and required rebuilding, a process that was both costly and time-consuming. To save costs, the officials of Fanxi had proposed diverting the Fen and Yellow Rivers to create irrigation canals and reclaimed fields. The project involved tens of thousands of laborers, but it took two to three years and still failed to meet expectations, costing tens of millions of coins. Similarly, Zheng, overseeing the Wei River transport, had proposed digging a straight canal from Chang’an to Huayin, with thousands of workers involved. The Shuofang commandery also undertook similar projects, but the canals were incomplete, and the financial costs had soared to tens of millions of coins.
To quell the Hu tribes, the emperor had to maintain a large number of horses. Upon arriving in Chang’an, there were as many as tens of thousands of horses being fed. However, there were not enough horse attendants in the Guanzhong region, so horses were requisitioned from surrounding counties. The surrendered Hu tribes relied on the county officials for food and clothing. When the local officials ran out of resources, the emperor reduced the cost of his meals, released horses from his own royal carriage, and took money and provisions from the imperial warehouse to support them.
In the second year, the eastern regions were struck by severe floods, and the common people were mostly left to suffer from hunger and exhaustion. In response, the emperor dispatched envoys to distribute supplies from the regional granaries to aid the suffering citizens. When these resources were still insufficient, the emperor resorted to enlisting the wealthy families to lend funds to the impoverished, but this still failed to alleviate the crisis. Therefore, he relocated around 700,000 people to the western regions, or southward to the New Qin areas near Shuofang, where they were provided with food and clothing by the local authorities. Over the course of several years, lands were granted to them, and imperial envoys were sent to ensure their protection. The emperor’s emissaries were constantly traveling, and the expenditures ran into the billions, an amount too vast to quantify. Eventually, the local officials’ finances were exhausted.
Meanwhile, the wealthy merchants accumulated great fortunes, many of them enslaving the poor, and their entourages of hundreds of carriages and servants overshadowed the officials. These merchants hoarded goods, and even the local lords had to bow their heads in submission, relying on them for supplies. Some of these merchants amassed wealth from salt production and metal smelting, accumulating fortunes in the tens of thousands of gold pieces, yet they did nothing to help the state in times of crisis, while the common people suffered greatly.
Thus, the emperor, in consultation with the high-ranking ministers, decided to mint a new currency to meet the needs of the state. The emperor also took measures to suppress the corrupt and debauched merchants who monopolized resources. At this time, the emperor’s royal gardens housed a white deer, and the imperial treasury held large quantities of silver and tin. Since Emperor Wen’s creation of the four-zhu coin over forty years ago, the currency had become increasingly insufficient, and officials often resorted to smelting copper from mines to mint more coins, while the people, seeing an opportunity, began to mint coins illegally. As a result, the supply of coins grew while their value diminished, causing a rise in commodity prices. Officials reported, “In ancient times, there were leather coins, used by lords for their military campaigns. Gold had three grades: yellow gold was the highest, white gold was medium, and red gold was the lowest. Now, the half-liang coin, which should weigh four zhu, is being illegally tampered with, resulting in a lighter coin and higher prices, making the use of money increasingly inconvenient.”
Thus, the emperor ordered that leather coins be made from white deer hide, one foot square, embroidered with patterns, and worth forty thousand coins. It was decreed that when princes and nobles came to court or for ceremonial events, jade discs must be placed on these leather coins as a cushion for offerings, ensuring proper rituals could be performed.
Moreover, silver and tin were used to mint white gold coins, symbolizing the most important elements of heaven, earth, and humanity. The white gold was divided into three grades: the first, shaped in a circle with a dragon pattern, weighed eight liang and was worth three thousand coins; the second, shaped as a square with a horse pattern, weighed less and was worth five hundred coins; the third, shaped as a smaller circle with a turtle pattern, was worth three hundred coins. The emperor then commanded that the half-liang coins be destroyed and replaced with three-zhu coins, which would weigh the same as their inscriptions. Anyone caught minting counterfeit coins would face the death penalty, though the number of offenders who minted white gold coins was still uncountable.
The emperor then appointed Xianyang and Kong Jin as Grand Ministers of Agriculture, overseeing salt and iron matters, and appointed Sang Hongyang, a skilled mental calculator from Luoyang, as the Imperial Advisor. Xianyang, a major salt merchant from Qi, and Kong Jin, the head of the smelting industry in Nanyang, had both amassed fortunes exceeding a thousand gold pieces. Therefore, Zheng recommended them to the court. Sang Hongyang, the son of a merchant from Luoyang, had become Imperial Advisor by the age of thirteen due to his exceptional talent for mental arithmetic. These three men were exceptionally skilled in the art of wealth accumulation and business strategy.
As the laws grew stricter, many officials lost their positions due to crime. At the same time, the ongoing wars caused the common people to purchase titles in order to avoid taxes and corvée labor, with most buying up to the rank of the Fifth Gentleman. As a result, the number of people who could be recruited by the government dwindled. Therefore, those with titles such as “Thousand-man” or “Fifth Gentleman” were appointed as officials, while others who did not want to serve were allowed to surrender their horses in exchange for exemption. Those who were previously officials were stripped of their positions and sent to the royal park to clear underbrush or to dig the Kunming Pool.
In the second year, the Great General and the Cavalry Commander launched a large-scale military campaign against the Hu tribes, capturing and killing up to 80,000 to 90,000 enemies. They rewarded the soldiers with fifty million gold pieces. However, the number of horses lost by the Han army on the battlefield amounted to over one hundred thousand, not including the costs of transporting and manufacturing chariots and armor. At that time, the treasury was nearly depleted, and many soldiers were unable to receive their pay.
Officials reported that the three-zhu coins were too light and prone to fraud, so they requested permission to mint five-zhu coins in various counties. The new coins would have a thicker rim to prevent copper shavings from being scraped off.
The Grand Minister of Agriculture, Kong Jin, and Dong Guo Xianyang remarked, “The mountains and seas are vast repositories of resources, the great storehouses of the heavens and earth. These should be under the control of the Imperial Household, and not for private ownership. However, it has been decreed that they fall under the authority of the Ministry of Agriculture as part of the state’s tax system. We recommend recruiting the common people to provide their own funds for the production of salt, using state-provided tools and furnaces. Those who seek to monopolize the profits of these resources, enslaving the poor for personal gain, should be punished harshly. Anyone found privately producing salt or iron, or involved in illegal trade, should have their left foot severed and their tools confiscated. For regions where iron is not produced, small iron offices will be set up, directly under the jurisdiction of the local counties.”
Following this, Kong Jin and Dong Guo Xianyang were tasked with overseeing the implementation of government-managed salt and iron production, traveling by official transport to supervise various regions and establish new government operations, particularly taking charge of the wealthy families previously involved in salt and iron production, now appointed as officials. This system caused further bureaucratic confusion, as elections were no longer held, and many officials were merchants themselves.
Due to the fluctuating value of money, merchants began hoarding goods to chase profits. The court ministers, seeing the instability, advised: “Many counties and states are suffering from disasters, and the poor have no land or means of livelihood. We should encourage the migration of the destitute to more fertile and prosperous regions. To facilitate this, the Emperor should lower the quality of food rations, reduce costs, and use the imperial treasury to relieve the suffering of the people. The interest on loans and tax rates should also be relaxed. However, even with these measures, the common people still cannot all engage in farming, and the number of merchants continues to rise. The poor, without savings, depend entirely on local officials for food and clothing.”
The merchants’ coins and other commercial goods were taxed at various rates, with the calculations based on the value of their goods or wealth. Merchants without a registered business in the market, as well as those engaging in hoarding, speculation, and profiteering, were taxed on their goods, even if they were not officially part of the market. Those who hid their wealth or underreported it were punished with exile to the frontier for a year, with their assets seized. Anyone who informed on such criminals would receive half of the seized wealth. Merchants with market registration, along with their families, were prohibited from owning land in order to protect the interests of farmers. Any violation of this decree resulted in the confiscation of land and property, which would be turned over to the state.
At this point, the Emperor recalled the words of Bu Shi, appointing him as a Zhonglang and conferring on him the title of Left Senior Minister. He was granted ten acres of farmland and a public proclamation was made so that the people would know of his reward.
Bu Shi, originally from Henan, was a farmer and shepherd. After his parents passed away, he was left with a young brother. When his brother came of age, Bu Shi divided the family estate with him, keeping only a hundred or so sheep, while leaving the rest of the land and property to his brother. Bu Shi then moved to the mountains to tend to his flock. Over the course of ten years, his herd grew to over a thousand sheep, and he bought additional land and houses. In contrast, his brother’s fortune dwindled, and Bu Shi often provided him with help. At this time, the Han Empire had been engaged in multiple military campaigns against the Xiongnu. Bu Shi sent a petition to the court, offering to donate half of his wealth to the government to fund the frontier war.
The Emperor sent emissaries to inquire if Bu Shi wished to become an official. Bu Shi replied, “I have spent my life raising sheep and am unfamiliar with the ways of the court. I do not wish to hold an official position.” The emissaries then asked if Bu Shi had any grievances or messages for the Emperor. Bu Shi responded, “I have never sought conflict with others. When my neighbors suffer, I lend them money, and when they lack kindness, I teach them. Everyone in my village listens to my advice, so how could I have any complaints? I have nothing to say to the Emperor.”
The emissaries then asked, “Why donate such a large portion of your wealth?” Bu Shi answered, “The Emperor is waging war against the Xiongnu. I believe those with strength should contribute their strength, and those with wealth should contribute their wealth, so that we may destroy the Xiongnu.” The emissaries reported his words to the Emperor, who then relayed them to Chancellor Gongsun Hong. Gongsun Hong responded, “This is against common decency. Those who violate the law should not become models for the empire, for such actions would disrupt the order of the state. The Emperor should disregard him.”
As a result, the Emperor did not respond to Bu Shi for many years. After a few years, Bu Shi was dismissed from the capital and returned to his farm. However, after more than a year, the Han army launched multiple campaigns, and the region was in distress. The county officials were overwhelmed by the costs of migration and had insufficient resources to support the relocated people. Bu Shi contributed 200,000 copper coins to the governor of Henan to assist with the expenses of the displaced citizens. When the records of the wealthy aiding the poor were submitted to the Emperor, Bu Shi’s name appeared, and the Emperor remembered him. The Emperor remarked, “This is the man who offered to donate half of his wealth for the frontier defense.” The Emperor then granted Bu Shi the privilege of exempting 400 people from the frontier military service.
Bu Shi, however, handed over this privilege to the county officials. At that time, the wealthy were hiding their assets to avoid taxes, but Bu Shi was the only one enthusiastically contributing resources to assist the government. The Emperor, recognizing Bu Shi’s virtue, rewarded him with an official post and a position of honor, in hopes of encouraging others to follow his example.
At first, Bu Shi was unwilling to serve as a minor official. The emperor said, “I have a flock of sheep in the Shanglin Garden and would like you to tend them for me.” Bu Shi then accepted the position of a minor official, but he was no more than a humble shepherd dressed in plain cloth and straw sandals. More than a year later, the sheep had grown fat and multiplied significantly. When the emperor passed by and saw the healthy flock, he praised him. Bu Shi replied, “It is not just the sheep; governing the people is the same principle: you must ensure they rise and retire at the proper times, continually remove the wicked, and prevent them from ruining the flock.” The emperor was astonished by this and appointed Bu Shi as the magistrate of Goushi to test his abilities. As expected, the people of Goushi responded very positively. He was later promoted to magistrate of Chenggao, where his administration of grain transport earned him further praise as the best in the empire. The emperor believed Bu Shi to be honest and virtuous and appointed him as the Grand Tutor of the King of Qi.
At the same time, Kong Jin, who had been sent to various regions to supervise the casting of iron, was promoted to Grand Minister of Agriculture after just three years, earning a place among the Nine Ministers. Meanwhile, Sang Hongyang became the Deputy Minister of Agriculture, managing accounting affairs and gradually establishing the Equal Distribution System to regulate the flow of goods.
During this period, officials were allowed to pay grain to purchase official ranks, with the amount required for a minor official’s position reaching as much as 600 bushels of grain.
Five years after the creation of white gold and the Wu Zhu coin, the government pardoned hundreds of thousands of people who had been sentenced to death for the crime of counterfeiting coins. Many others were executed by local authorities without the emperor’s knowledge. Over a million people were pardoned through the payment of ransom. However, those who were able to pay the ransom represented less than half of the offenders, and across the empire, nearly everyone began to counterfeiting coins without fear of punishment. With so many criminals, the officials could not execute them all, so they sent scholars like Zhu Da and Xu Yan to inspect the various regions, expose the corrupt officials, and investigate those in positions of power, such as governors and prime ministers, who used their authority for personal gain.
At this time, the Grand Minister of Justice, Zhang Tang, held significant power and influence. His subordinates, including Xuan Xuan, Du Zhou, and others, were appointed to high offices, and officials like Yi Zong, Yin Qi, and Wang Wen Shu, known for their harsh enforcement of the law, were promoted to the Nine Ministers. Under these circumstances, people like Xia Lan, who were known for their extreme obedience to the laws, began to rise. Eventually, the Grand Minister of Agriculture, Yan Yi, was executed.
Initially, Yan Yi was a simple town official from Jinan, who gradually rose through the ranks due to his integrity and straightforwardness. When the emperor and Zhang Tang had established the white deer-hide coin system, they asked Yan Yi for his opinion. Yan Yi replied, “At present, the lords of various regions have jade discs of value only a few thousand coins, while the leather coins, used as their backing, are worth 400,000 coins. This disparity between the primary and secondary currencies is unbalanced.” The emperor was displeased by his response. Zhang Tang, who had personal grievances with Yan Yi, took advantage of the situation when an unrelated matter was reported about him. Yan Yi was accused of criticizing a recent decree during a casual conversation with a guest, and, though he did not voice his concerns publicly, the guest mistook his silence for disagreement and mocked him. Zhang Tang presented this to the emperor, stating that Yan Yi, as a high-ranking official, should have voiced his objections to the decree to the court, rather than merely whispering complaints in private. The emperor believed this behavior was treasonous, and as a result, Yan Yi was executed. This marked the beginning of the crime of “secret slander” (i.e., “belly criticism”), where many officials began to flatter and ingratiate themselves with those in power to avoid punishment.
The emperor had issued a decree on the regulation of coinage and had honored Bu Shi as a model for the people. However, the people refused to provide money to assist the county officials, and so the practice of encouraging the denunciation of counterfeit coiners spread.
In many regions, counterfeit coins were minted, though most lacked the proper weight. Therefore, the ministers requested that the capital mint new “red-edge coins,” where one red-edge coin was worth five of the ordinary coins. These red-edge coins were required for paying taxes and other official uses, and only these coins were accepted in the administration. As a result, the value of white gold decreased, and the common people stopped valuing it. The local officials banned the use of white gold, but it was in vain. Over a year later, white gold was finally phased out and no longer used.
In the same year, Zhang Tang passed away, but the people showed no sorrow or longing for him.
Two years later, the value of the copper cash coins further depreciated. The common people, desperate to spend them, caused significant disruption to the market, and as a result, these coins were once again discontinued. A decree was issued that no local government was allowed to mint coins anymore, and only the Imperial Mint, under the supervision of the Three Officials, was authorized to produce currency. With an abundance of coins already in circulation, the emperor ordered that any coins not minted by the Three Officials were illegal, and all coins previously minted in the regions were to be melted down. The copper retrieved from these coins was to be handed over to the Imperial Mint. This drastically reduced the number of privately minted coins, and the remaining profit from coinage was minimal. Only skilled craftsmen and unscrupulous merchants had the means to counterfeit the coins.
Bushi was appointed as the prime minister of the Qi State, and Yang Ke’s reports about hidden hoards of copper coins spread throughout the empire, implicating nearly every family of moderate wealth. Du Zhou was tasked with investigating these cases, and very few people managed to escape the consequences. Imperial officials such as the Censor, the Chief Justice, and the Grand Supervisors were dispatched to various regions to investigate and address these hidden hoards of coins. The confiscated wealth was calculated in the billions, with tens of millions of slaves, hundreds of acres of land in larger counties, and substantial real estate holdings. As a result, nearly all merchants of moderate or higher wealth lost their fortunes, and from then on, the common people were content with fine clothing and food, eating and drinking as they pleased. No one sought to engage in trade or hoarding anymore. Meanwhile, the local authorities, thanks to the government-run salt and iron industries and the crackdown on hidden coin hoards, found their finances considerably improved.
Next, the emperor expanded the region of Guanzhong by relocating over 300 miles of the Hangu Pass to the east and established the Left and Right Deputy Prefects of the Capital.
Initially, the Grand Minister of Agriculture oversaw the salt and iron industries, and a Water Commissioner was appointed to supervise them. After Yang Ke’s revelations about the hidden copper coins, the imperial estate, with its abundant wealth, was placed under the jurisdiction of the Water Commissioner. With the estate’s riches fully realized, the scale of the imperial estate was expanded. At this time, the Yue State was preparing for naval warfare against the Han Dynasty, prompting the large-scale construction of the Kunming Pool, surrounded by grand pavilions. Gigantic warships, over thirty feet tall, were built with flags flying above them, creating a magnificent spectacle. The emperor, inspired by the grandeur, built the Bai Liang Terrace, rising to over a hundred feet, and continued to build increasingly luxurious palaces.
The copper coins were then distributed to the various government offices, and the Water Commissioner, the Imperial Treasurer, the Grand Minister of Agriculture, and the Grand Equerry each set up farming offices to cultivate the confiscated lands. The confiscated slaves were distributed to the imperial gardens, where they tended to horses, dogs, and other animals, or to other government offices. More slaves were employed in various capacities, and the number of convicted criminals also grew. As a result, the annual grain shipments from the Yellow River to the capital rose to four million bushels, and the government had to purchase additional grain to meet its needs.
The official Zhong Zhong wrote a memorial to the emperor, stating, “The children of noble families and the wealthy are engaging in gambling, cockfighting, dog racing, and horse racing, disturbing the lives of the common people in Qi.” Punishments were swiftly meted out to the criminals, and the authorities began to connect them, resulting in thousands of individuals being implicated in the so-called “rooted exile.” Those who had profited from this scheme were appointed as low-ranking officials, marking the decline of the official selection process.
At this time, the eastern regions were struck by devastating floods from the Yellow River, and for several consecutive years, no crops were harvested. The people in an area spanning over one or two thousand miles resorted to exchanging children for food. Moved by the plight of the people, the emperor issued an edict: “The people in the southern regions, who practice fire plowing and water harvesting, may migrate to the Jiang-Huai region to find food. Those who wish to stay there may settle permanently.” Imperial envoys were dispatched, traveling back and forth along the roads, escorting the starving people, and grain was transported from Ba and Shu to feed them.
The following year, the emperor began to inspect the various provinces and regions. Upon crossing the Yellow River, the governor of the eastern region did not expect the emperor’s carriage to arrive, and due to insufficient preparation, he failed to observe proper protocol, leading him to commit suicide. As the emperor traveled west through the Long Mountains, the governor of the Longxi region was also unprepared and failed to provide the emperor with food, leading him to commit suicide as well. The emperor then headed north through the Xiao Pass, accompanied by tens of thousands of cavalry. In the New Qin region, the emperor went hunting, simultaneously stationing frontier troops. Upon seeing that some areas in the New Qin region had no soldiers stationed for over a thousand miles, the emperor ordered the execution of all officials below the rank of governor in the northern regions and commanded the common people to graze livestock in the border counties. The government provided breeding mares, with a three-year repayment term and ten percent interest. The ban on the hoarding of copper coins was lifted, and this was done to strengthen the New Qin region.
After the acquisition of the precious tripod, the emperor established temples to the Earth and to Taiyi. The ministers convened to discuss the matters of the imperial sacrifices and rituals at Guanfeng, while all the counties and states throughout the empire diligently repaired roads, bridges, and royal palaces. Those counties situated along the imperial highways prepared their official stores, gathering supplies and equipping the necessary tools, eagerly awaiting the emperor’s arrival.
The following year, the southern kingdom of Nanyue rebelled, and the western Qiang tribes invaded the border in a display of violence. In response, the emperor, seeing that the harvests east of the mountains were poor, granted amnesty to all prisoners across the empire. He then mobilized over 200,000 soldiers from the southern fleets to attack Nanyue, and several thousand cavalry from the western regions of the Three Rivers were dispatched to confront the Qiang invaders. Additionally, tens of thousands of soldiers were sent across the Yellow River to fortify frontier cities. That same year, the new commanderies of Zhangye and Jiuquan were established, and land officers were appointed in the counties of Shangjun, Shuofang, Xihe, and Hexi. These regions were tasked with not only guarding the borders but also cultivating the land, with a total of 600,000 soldiers working both as guards and as farmers. Meanwhile, within the interior of China, roads were repaired to facilitate the transportation of grain and provisions, with some routes extending up to 3,000 miles and others as far as 1,000 miles, all relying on the Ministry of Agriculture for supplies. When weapons were insufficient at the border, arms from the imperial armories and workshops were sent to meet the demand. As there were shortages of war chariots and cavalry horses, a decree was issued: all officials from the rank of feudal lord to those with an annual stipend of over 300 bushels of grain were required to contribute mares, with different amounts depending on their rank. These mares were allocated to military posts across the empire, and their breeding and care were to be regularly assessed, with rewards and punishments based on the results.
The Prime Minister of Qi, Bu Shi, submitted a memorial stating, “I have heard it said that the Emperor’s concerns are a shame to his ministers. Now that Nanyue has rebelled, I, along with my son, would be willing to die in battle alongside the fleet sent by Qi.” The emperor issued a decree: “Although Bu Shi is a simple farmer and shepherd, and does not seek profit from his work, he has always assisted the local officials in alleviating their financial burdens. Now that the empire faces a grave crisis, Bu Shi’s valor and willingness to sacrifice himself and his son, even without participating in battle, demonstrate his loyalty and righteousness. As a reward, I confer upon him the title of Marquis of Guannei, 60 pounds of gold, and ten acres of farmland.” The decree was made public, but no one in the empire responded. Among the over a hundred feudal lords, none volunteered to join the army to fight the Qiang or the Yue. In September, when the lords came to court to present their tribute of gold, the emperor ordered the Ministry of Supplies to inspect the purity of the gold. As a result, over a hundred lords were stripped of their titles for failing to meet the required weight of their tribute. Bu Shi was then appointed as the Grand Justice of the Imperial Court.
Having obtained such an important official position, Bu Shi soon heard reports from several regions about the problems caused by the government’s management of salt and iron, such as the poor quality and high prices of iron goods, and the coercion of the people to engage in trade. Also, the tolls on ships carrying goods were burdensome, as there were few merchants using the waterways and the goods became exceedingly expensive. Bu Shi, through the Minister Kong Jin, submitted a memorial to address the issue of ship tolls. As a result, the emperor became displeased with Bu Shi’s actions.
The Han Dynasty fought for three consecutive years, defeating the Western Qiang and destroying the Nanyue kingdom. To the west of Panyu, as far as southern Shu, the Han established seventeen new commanderies, administering them according to the local customs, without imposing taxes. In the regions from Nanyang to Hanzhong, the original counties and commanderies were responsible for providing salaries, food, money, and transport for the officials and soldiers of the newly established commanderies, as well as for the maintenance of postal services. However, these new regions frequently experienced small-scale uprisings, during which officials were killed. The Han court responded by dispatching officials and soldiers from the south to suppress these rebellions, sending more than 10,000 people each year, with the costs borne by the Ministry of Agriculture.
The Ministry of Agriculture also implemented an equal distribution system, allocating the revenues from salt and iron to supplement the insufficient tax revenues. This enabled the government to manage its expenses. However, the soldiers stationed in the frontier towns were provided with the necessary supplies, but the implementation of the tax system itself had become lax and was no longer strictly adhered to.
In the second year, or the first year of Yuanfeng, Bu Shi was demoted and appointed as the Grand Tutor to the Crown Prince. Meanwhile, Sang Hongyang was appointed as the Director of the Imperial Granaries and concurrently assumed the position of Grand Minister of Agriculture, fully replacing Kong Jin in managing the empire’s salt and iron industries. Due to officials engaging in private trade and competing with one another, prices fluctuated rapidly. Meanwhile, the taxes collected from across the empire were sometimes insufficient to cover the costs of transporting goods. To remedy this, Sang Hongyang proposed the establishment of several deputy officials in the Ministry of Agriculture, each overseeing the agricultural affairs in different provinces. In turn, the government appointed officials in major counties to oversee the Equal Distribution System and the salt and iron industries. When the prices of goods were high in distant regions, merchants were taxed on goods transported to other areas, and the government facilitated trade between regions. In the capital, a regulatory body was created to oversee the collection of all incoming goods. Laborers were recruited by the government to produce tools and carts, all funded by the Ministry of Agriculture.
This ministry then monopolized all the goods in the empire, selling them when prices were high and buying them when prices dropped. As a result, wealthy merchants were unable to make exorbitant profits and were instead encouraged to return to farming. This system prevented wild fluctuations in prices and became known as the “Equal Distribution System.” The emperor agreed with the plan, seeing its wisdom, and granted his approval. During this time, the emperor embarked on a northern tour to Shuofang, then to Mount Tai in the east, and also traveled across the seas to the northern frontier regions. He returned after distributing rewards along his journey, expending over a million rolls of silk, and vast amounts of gold and money, all financed by the Ministry of Agriculture.
Sang Hongyang also requested that officials be allowed to pay grain as a form of tax to buy official positions, and that criminals could use grain to atone for their crimes. The emperor issued a decree allowing people to pay varying amounts of grain to the Imperial Granaries at Ganquan Palace in exchange for exemption from lifetime taxes and relief from the currency-related decree. People in other provinces could pay grain to areas in need, and farmers in different regions were tasked with contributing their grain. The grain transported to the capital by the Shandong River Transport System increased by six million bushels annually. By the end of the year, the imperial granaries at Taicang and Ganquan Palace were filled to capacity. Surplus grain and other goods from the border regions were converted into 5 million rolls of silk according to the Equal Distribution System. No new taxes were levied on the common people, yet the state’s expenditure needs were fully met. In recognition of his achievements, Sang Hongyang was granted the title of Left Chancellor and awarded 200 pounds of gold.
In the same year, a slight drought occurred, and the emperor dispatched officials to pray for rain. Bu Shi commented, “County officials should rely on taxes for their livelihood. Now, Sang Hongyang has made officials sit in marketplaces to trade goods for profit. If Sang Hongyang were thrown into a cauldron, then the rain would surely come.”
The Grand Historian commented: “Once the paths of trade between agriculture, industry, and commerce are interconnected, currencies such as turtle shells, coins, gold, knives, and cloth emerge. This is ancient history, dating back to times before the era of the Gaoxin clan, which is too distant to be recorded. Thus, the earliest references in Shangshu (The Book of Documents) discuss events from the Tang and Yu periods, and the earliest mentions in Shijing (The Book of Songs) refer to the Shang and Zhou dynasties. Generally, when society is peaceful, hierarchy and respect are based on familial order, starting with the farmer and ending with the merchant, with ritual and ethics serving as the boundaries to restrain material gain. When the world is in turmoil, the opposite occurs. Prosperity eventually leads to decline; when things reach their peak, they change. This cyclical shift is like the shift from one thing to another: after the first comes the second, after the beginning comes the end. The Yu Gong (Tribute of Yu) lists the Nine Provinces, each contributing tribute based on the resources of the land and the population.
After the reigns of Shang Tang and Zhou Wu Wang, who reformed the flawed policies of their predecessors, the people were spared from exhaustion and could focus on their work. Compared to the era of Yu, this period already showed signs of gradual decline. Duke Huan of Qi, following the advice of Guan Zhong, unified the currency and sought wealth through commerce with the states of Shanhaiguan, gaining the prestige of a hegemon. In Wei, Li Ke made full use of the land’s resources, developing agriculture to make his state powerful.
From the Warring States period onward, various states competed for dominance, using cunning and military might as their guiding principles, while disregarding virtues like benevolence and righteousness. Wealth became the primary focus, with rituals and courtesy relegated to secondary importance. As a result, some people accumulated immense wealth while others struggled to meet their basic needs. The stronger states swallowed up weaker ones, forcing them into submission. In the end, the Qin state unified the entire empire.
During the time of the Yu and Xia dynasties, three types of gold were used as currency: yellow, white, and red. Additionally, currency could take the form of coins, cloth, knives, or turtle shells. By the time of the Qin dynasty, two main types of currency existed: gold, measured by the “li” unit, which was the superior currency, and copper coins, marked with the words “half liang,” which were of lower value. Other forms of currency, such as pearls, jade, turtle shells, and silver, were used as adornments or treasures, but not as money. However, their value fluctuated constantly, with no fixed standard.
Thus, with external battles against the frontier tribes and internal reforms aimed at benefiting the people and establishing a prosperous state, the common people struggled to produce enough grain to supply the army, and women lacked enough cloth to make clothing. In ancient times, vast amounts of wealth were collected from all over the empire to serve the emperor, yet he still felt it was insufficient. There was no other reason for this than the interdependent nature of all the affairs of the state, which affected each other and contributed to the overall situation. Why should this be so surprising?