The Song Dynasty’s Fiscal and Economic Policy and Its Social Economy

AbstractThe fact that industrial and commercial taxation in the Song dynasty greatly exceeded agricultural taxation was unprecedented in previous dynasties. This is mainly explained by the Song government’s financial and economic policy which was dominated by industrial and commercial taxation, made good use of the laws and characteristics of market relations and the commodity economy in business operations, actively stimulated consumption and was clearly utilitarian. Under this policy, the rulers, in pursuit of huge profits, used state power and mobilized various resources to implement a monopolies system and a commercial tax system, which, in turn, helped develop the commodity money economy, expanded the scale of market exchange and promoted the high degree of development of the commodity economy of the time. The financial and economic policy of the Song dynasty showed the unique advantages of the imperial state’s intervention in the economy. It was this that distinguished the Song dynasty from other dynasties in terms of the prosperity of the commodity and monetary economy.Keywords: Song dynastyfinancial and economic policiesindustrial and commercial taxationstimulation of consumptionutilitarian thinking Notes1 “Financial and Economic Affairs II (1): Accounting,” p. 4347.2 Han-Sheng Chuan, “The Relationship between Annual Government Revenue and the Monetary Economy in the Tang and Song Dynasties,” pp. 209-263.3 Zhao Yifeng, “Power and Wealth: A Side View of the Changes in the Social Structure of the Ming and Qing Dynasties.” For further details, see Chen Zhiping and Lin Feng, “The Commercial Tax System and Tax Amounts in the Early Wanli Period of the Ming Dynasty,” pp. 396-413; Xu Tan and Jing Junjian, “Commercial Taxes in the Early Qing Dynasty.” See also He Benfang, “The Commercial Tax System for Merchants in the Qing Dynasty.”4 “Fiscal and economic” (caijing) generally refers to fiscal, financial and economic matters, but the discussion in this paper focuses on the fiscal policy. To a certain extent, however it cannot help but involve financial and economic issues, we applied the relatively broader notion of fiscal and economic.5 Song Qi et al., “Financial and Economic History I,” A New History of the Tang Dynasty, vol. 51, p. 1342.6 Zeng Gong, “Policies of the Song Dynasty: Government Monopoly of Commodities,” p. 536.7 Tian Xi, “Memorial to the Emperor Taizong,” p. 265.8 Ma Duanlin, ed., “Military Studies IV,” Wenxian Tongkao (History of Rules and Regulations across Dynasties), vol. 152, p. 4551.9 Chao Yuezhi, “Sealed Memorials Submitted in Response to Imperial Edicts in the Third Year of the Yuanfu Period of Emperor Zhezong,” p. 16.10 Ma Duanlin, ed., “Military Studies IV,” pp. 4555-4556.11 Ibid., p. 4558.12 “Financial and Economic Affairs II (1): Accounting,” p. 4349.13 Yuan Yueyou, “Emperors Explain Poetry, Literature and History,” p. 356.14 Li Tao, quoted in Section “The Yimao Day of the Fourth Lunar Month,” p. 4333. See also Ma Duanlin, “Military Studies IV,” p. 4558.15 Chen Fuliang, “The Song Military System,” Military Systems across the Dynasties, vol. 8, p. 479.16 Gao Congming, Studies of Currency and Currency Circulation in the Song Dynasty, pp. 99-103.17 Bao Weimin, Studies on the Local Financial History of the Song Dynasty, p. 318.18 Chen Fuliang, “Proposed Memorial on Guiyang Prefecture (II),” p. 268.19 Ye Shi, “Essays: Financial Affairs (2),” p. 773.20 Qi Xia, “Economic History of the Song Dynasty I,” pp. 431-432.21 Zhao Yi, “The High Salaries of the Song Dynasty’s Officials,” p. 560.22 Li Jingde, ed., “Zhu Xi 7: On the Military,” p. 2708.23 See Wang Zengyu, “The Agricultural Tax Collected in Summer and Autumn in the Song Dynasty,” pp. 117-144. The article was later included in the author’s My Knowledge of History, pp. 335-380.24 For more details, see Qi Xia, “Economic History of the Song Dynasty II,” p. 980.25 See Liu Yufeng, “The Development and Changes of the Monopoly System in the Tang Dynasty.”26 Zhao Lisheng, “Several Mainstream Phenomena in the Land-Based Economy of the Northern and Southern Song.”27 Li Tao, quoted in Section “The Yisi Day of the 12th Lunar Month,” p. 3070.28 Wang Anshi, “A Letter Replying to Han Qiuren,” p. 1292.29 Li Xinchuan, quoted in Section “The Yimou Day of the Seventh Lunar Month of the Sixth Year of the Shaoxing Period,” p. 1944.30 “Financial and Economic Affairs I (1): Farmland,” p. 4156.31 “Financial and Economic Affairs II (4): Salt (2),” p. 4452.32 Qi Xia, “Economic History of the Song Dynasty II,” pp. 901-902.33 “Financial and Economic Affairs II (7): Mining,” p. 4531.34 Qi Xia, “Economic History of the Song Dynasty II,” p. 746.35 Jiang Xidong, “The Licensed Salt Merchants of the Song Dynasty.”36 For details, see Qi Xia, Wang Anshi’s Reforms, pp. 158-161.37 Bao Weimin, “More Discussion of the Urban Tax System of the Song Dynasty.”38 Li Xiao, “The Government Purchase System in the Song Dynasty.”39 Song Minqiu, “Cinandong Market,” and “Cinanxi Market”; See Jiang Boqin, “An Judgment-Based Review of the End of the Tang Merchant Household Registration System.”40 Wang Pu, Tang Huiyao (Statutes of the Tang Dynasty), vol. 86, p. 1583.41 This was the Tang system implemented at the beginning of the Song dynasty. Dou Yi et al., eds., “Miscellaneous Law: Curfew Violation,” p. 418.42 “Military Laws I: Guards of the Imperial Court,” and “Military Laws II: Military Affairs,” pp. 104, 115. See also “Military Laws: The Military,” p. 326.43 Li Tao, quoted in Section “The Renzi Day of the Fourth Lunar Month,” in “The Third Year of the Qiande Period of the Song Emperor Taizu,” p. 153.44 Song Minqiu, Court Events in the Capital, vol. 1, p. 264.45 Meng Yuanlao, “Decorations of Maxing Street,” pp. 312-313.46 Nai Deweng, “A Record of the Capital: Markets,” p. 6.47 Li Huarui, “Why Ancient Night Markets Were Most Prosperous in the Song Dynasty.”48 Lü Zuqian, “Wine Prohibition,” Detailed Commentary on the Systems of Dynasties, vol. 6, p. 947.49 Li Huarui, Wine Production and Monopoly in the Song Dynasty, pp. 142-146.50 Meng Yuanlao, “Preface,” Annotations to The Eastern Capital Kaifeng: A Dream of Splendor, p. 1.51 Author unknown, “Daoshan Qinghua,” p. 116.52 Li Yuanbi, “A Handbook for Government Officials,” p. 21.53 Hoyt Cleveland Tillman, “Preface to Utilitarian Confucianism: Ch’en Liang’s Challenge to Chu Hsi,” p. 1.54 Li Tao, quoted in Section “The Renchen Day of the First Lunar Month,” in “The Fourth Year of the Xining Period of the Song Emperor Shenzong,” p. 5321.55 Deng Guangming believed that Zhu Xi misunderstood Chen Liang when he advised Chen to abandon “your theory of attaching equal importance to morality and interests and using both rule by virtue and rule by force.” This misunderstanding was repeated in Song and Yuan Schools of Thought and in present-day research. See Deng Guangming, “Preface to the Selected Academic Works of Deng Guangming,” p. 7.56 “Daoist Studies I,” p. 12710.57 Zheng Xie, “Edict to the Secretariat-Chancellery,” p. 69.58 Xu Song, “Government Officials 59 (2, 4),” pp. 6123, 6123.59 Li Tao, quoted in Section “The Wuchen Day of the Second Lunar Month,” p. 3984.60 Xu Song, “Treatise on Financial and Economic Affairs, 30 (3),” p. 5320.61 Li Tao, quoted in Section “The Xinhai Day of the Seventh Lunar Month,” p. 1842.62 Xu Song, “Treatise on Financial and Economic Affairs, 64 (48, 49),” pp. 6123-6124.63 Lei Chia-sheng, “The State Monopoly Agents of the Song Dynasty and Their Impact on the Economy.”64 Li Huarui, Wine Production and Monopoly in the Song Dynasty, pp. 325-341.65 Xu Song, “Treatise on Financial and Economic Affairs, 15, 16, 17 (1),” pp. 5063-5088.66 See Guo Zhengzhong, Economic History of the Salt Industry in the Song Dynasty, pp. 103-105.67 Hua Zhen, “Letter to Li Longtu, Transport Agent of the Western Capital,” p. 304.68 Cai Xiang, “Five Precepts of Fuzhou,” p. 193.69 Li Tao, quoted in Section “The Xinsi Day of the First Lunar Month,” p. 9612.70 Yue Ke, “Two Old Gentlemen Looking at the River,” p. 22.71 Li Bozhong, “‘Selecting the Essentials,’ ‘Bringing Them Together,’ and the ‘Agricultural Revolution in Jiangnan in the Song’: A Review of Traditional Economic History Research Methods.”72 See Jin Baoxiang, “The Characteristics of the Feudal Economy of the Tang Dynasty after the An-Shi Rebellion.” This paper was included in his Collected Papers on the History of the Tang Dynasty, pp. 250-311.73 Guo Zhengzhong, “From Pre-purchase with Feiqian/Bank Drafts to Tax Monopolies: How Tang and Song Monopolies Restrained the Capital of the Tea Merchants.”74 Wei Tian’an, “Preface to History of Government Enterprises in the Song Dynasty,” pp. 8-9.75 Zhou Xingji, “Proposals: Memorials to the Emperors,” p. 4.76 See Li Xiao, “The Government Purchase System in the Song Dynasty.”77 Quotation from Ye Shi, “Money Studies (2),” p. 256.78 Li Xin, “Letter to Judge Wang,” Selected Works of Kua’ao, vol. 20, p. 563.79 Song Zhufu, Economic History of Feudal Society in China, vol. 5, p. 2.