University of Virginia Library

CHAPTER IV

DISCORDANT CURRENCIES[1]

a. The Lord Grand Secretary: That the exchange of money and
the circulation of commodities still does not advantage the people[2]
is because goods have been monopolized. Even when taking thought
for the fundamental and weighing the non-essential, that the people
still starve, is because grain is hoarded.[3] The clever are able to
utilize the labor of a hundred men, the simple cannot even repay[4]
themselves for their own labor. Should the rulers not adjust wealth
evenly, there will be among the people property interests mutually
detrimental. Thus it is that some accumulate a sufficiency for a
hundred years while others are obliged to rest content with husks
and chaff. When people are too wealthy they cannot be controlled
through salaries; authority will be insufficient to impose penalties
upon them. These inequalities cannot be removed except by relieving
congestion and evening profit. Therefore the Ruler must first accumulate
the people's food, conserve their consumption, regulate their

surplus,[5] ease their lack, prohibit undue gains and check the source
of profit making. Only then will the common people be able to
provide for their homes and the needs of every individual be supplied.

b. The Literati: The Ancients honored virtue and scorned profit;
they esteemed justice and held riches lightly. At the time of the
Three Kings[6] prosperity and decline followed each other in cycles,
but they were able to arrest decline and steady the unstable. Thus
it was that the Hsia dynasty relied upon loyalty, the Yin upon
reverence, the Chou upon culture, so that the lustre of the instruction
in their schools and the deference and self-abnegation of their
etiquette was eminently worthy of contemplation.[7] But in later
times etiquette and justice have collapsed, and good customs are
extinguished. Since the gentlemen in office turn their back on honor
and scramble for wealth, the big and little devour and overthrow
one another by turns. This is the reason that some have a sufficiency
for a hundred years and others nothing to fill their emptiness or
cover their forms. Those who held office in ancient times did not
farm; those who tilled did not fish; the gatemen and the watchmen
had each their permanent stations and did not attempt to double
their income or corner goods. In this manner the simple and the
clever labored without undermining each other. Thus the Book of
Poetry says:

That is to say, there was no monopoly of goods.

c. The Lord Grand Secretary: T'ang and Wên[9] came after a

period of decline, and Han[10] rose upon an era of decay. Primitive
nature alternates with culture, and this is not a casual change of
custom. When social habits decay they must be met by new laws,[11]
nor is this an intentional departure from the Ancients, but in order
to correct mistakes and arrest decline. Administration[12] must adjust
itself to society, and currency[13] changes with the generation. The
emperors of the Hsia dynasty used black cowries, those of the Chou
purple stones, while later generations at times circulated metal
currency and knife money.[14] Anything overripe tends to decay, as
end and beginning alternate in cycles. Now, if the hills and marshes
are not state-controlled, they will yield profit to both Prince and
Minister. If there be no interdiction on coinage, the counterfeit
will circulate with the genuine.[15] If the officials and the rich vie
with one another in extravagance, the lower classes will devote
themselves to gain, and thus the two will undermine one another.

d. The Literati: The Ancients had markets but no coinage; each
exchanged that which he had for that which he lacked, packed his
cloth and peddled his silk. Later generations have used tortoise
shells and metal currencies, [knife coins and cloth][16] as a medium
of exchange. But as currency has frequently changed, the people

have become increasingly dishonest. Now to correct dishonesty one
must resort to simplicity,[17] and to prevent mistakes one must fall
back upon propriety.[18] T'ang and Wên, following upon a period of
decline, altered the laws and changed education, and in the time
of Yin and Chou culture flourished.[19] But for the Han dynasty, which
has succeeded to a period of decay, not to make necessary reforms
but, with a view to profit, to keep on changing the currency, and
yet wishing to return to the fundamental, is like extinguishing flame
with frying fat, and stopping boiling with a burning brand. If the
upper classes love propriety, the common people will shun gaudy
ornamentation;[20] but if they love material things, the common people
will risk their lives for gain.

e. The Lord Grand Secretary: In the time of the Emperor Wên[21]
the people were permitted to cast money, smelt iron, and evaporate
salt. But the Prince of Wu[22] monopolized the sea and marshes, and
the family of Têng T'ung[23] monopolized the Western Mountain,
whereupon all the rogues from east of the mountains congregated
in the dukedom, and Ch'in, Yung, Han and Shu[24] were brought to
depend upon the Têng clan. The coins of Wu and Têng overspread
the Empire. For this reason the laws against coinage were promulgated.[25]
With these, dishonesty will cease, and with the occasion for
dishonesty removed, the people will no longer hope for wrongful
gain. Each will devote himself to his proper task. If this is not a

return to fundamental principles, what is it? Therefore unify the
coinage, and the people will not resort to double dealing. If coinage
proceeds from the Crown, the people will not be in doubt.

f. The Literati: In former times there were many currencies,
wealth circulated and the people were happy. But afterwards, as
the old currency was gradually replaced by the white metal of the
tortoise and the dragon issue,[26] they became wary of the new. As
coinage changed frequently, the questionings of the people increased.
Then all the coinage in the empire was demonetised, and the
authority to re-issue new was lodged with the three officers of the
Shui-hêng.[27] Recently, it seems, a profit has been made and the
coins are not up to standard; they are thin or thick, light or heavy.
The farmers are not experienced in comparing the relative trustworthiness
of such tokens. Thus they suspect the new issue, not
knowing the false from the true. The deálers and shopkeepers for
the bad barter the good; and with a half, exchange for double.
Thus in case he buys, the farmer loses value; if he sells, he violates
his conscience. Suspicion spreads widely. If there were proper laws
about coining bad money, the presence of privately made coins
with official issues would neither aid nor harm the government
But if money is discriminated against, goods will stagnate. Moreover
the employment of officers will lay up much grief. The Ch'un Ch'iu
says, A budget which does not take into account the Man and the
I[28] barbarians is not sufficient. Therefore let the Prince on the one
hand, for the sake of the people's needs, not restrict the use of
the seas and the marshes, and on the other, for the sake of their
benefit, not shut down on the privately made coinage.