[I N T R O D U C T I O N:  CHAPTER II:  Shang Yang as Social Reformer]

1. Shang Yang’ s Economics

p.41 One of the great reforms for which Shang Yang has been made responsible is that which gave China individual land-tenure. In ancient China only the nobles could hold land, either in large or small fief, or as a domain, usually connected with some office, of which they had the usufruct, and which was often, though not always, transmitted by heredity. The farmers did not possess the land which they cultivated. All the land was divided up into squares, which were subdivided into nine smaller squares, cultivated in common by a group of eight families. Eight of these fields were called “private”, that is, although the work was done together, each family was entitled to the produce of one division; the ninth, which was in the centre, called the “public field”, was cultivated entirely for the benefit of the overlord. This system is usually called the ching system, as the character ching, “well”, written in a square, represents very clearly the division.

It seems that the area of the ching varied in different parts of the Empire. In the royal domain of Chou, viz. in the valley of the Lo River, they were 1,000 mu, each family having 100 mu for cultivation and 5 mu for house and garden. In some other parts there seem to have been 200 mu for each family lot, in others again only 70 mu p.42 for each. In the state of Chin the ching seems originally to have comprised only 400 mu, but gradually this system was replaced by the simpler method of allotting 50 mu to each head of a family who had to cultivate 5 mu as tithe (232). In practice this whole system amounted, indeed, as Mencius says (233), to the paying of a tithe. Mencius (234) draws an idyllic picture of the life of the farmer as it should be under the rule of a good king, where this system prevailed:

« Around the homestead, with its five mu, the space beneath the walls was planted with mulberry trees, with which the women nourished silkworms, and thus the old were able to have silk to wear. Each family had five brood hens and two brood sows, which were kept to their breeding seasons, and thus the old were able to have flesh to eat. The husbandmen cultivated their farms of 100 mu, and thus their families of eight mouths were secured against want.

But the actual condition of the farmers seems to have been far from idyllic and, in fact, to have constituted a grave problem. This is seen from an interesting calculation, which has been preserved in the chapter on Economics in p.43 the Books of the Han Dynasty (235). It is said to have been drawn up by Li K’ uei (236), a minister of Marquis Wen, of the state of Wei, Ch’ in’ s neighbour, but it may have been composed somewhat later (237). The author reckons that one man has to feed five mouths, and that by cultivating 100 mu of land, the average return would be 150 piculs (238); after deducting 10 per cent for land-tax, 135 piculs remain. Allowing 12 piculs per person per month, i.e. 90 piculs per year for a family of five, there is a surplus of 45 piculs. By reckoning the value of a picul as 30 coppers (239), this gives 1,350 coppers. For social obligations in the village (240), for the ceremony of the “tasting of the first grain”, and for the sacrifices of spri ng and autumn, 300 coppers are required, leaving 1,050 coppers. Then allowing 300 coppers each for clothes, 1,500 would be needed for five persons, giving a deficit on the budget of 450 coppers, without reckoning anything for misfortunes, illness, or death. In order to ameliorate the condition of the farmers, the p.44 same author advised that the price of grain should be controlled, and that the government should buy up the excess supply in good years, so as to be able to meet the demand in bad years, at normal prices (241).

It may be supposed that the ching system, with the changing economic conditions of the people, had gradually lost its hold. As Maspero points out (242), it was well fitted for a time when the cultivation of the land was predatory, by burning the brushwood and moving to other fields as soon as, after a, few years, the land was exhausted. In such a system the formation of individual property was not possible, and the peasants moved in groups from one place to another; later, in the historical period, the imperfect agricultural methods made frequent displacements necessary, in order to let the land lie fallow for some years. But as soon as the families became more settled on more or less definitely allotted land, the tendency to individual property began, and where the ching system changed its original character into the mere paying of a tithe, it may be assumed that there had been private transfer of land in such forms as the sale of the right of cultivation, long before the old system had been theoretically abolished.

Now the great reform which is ascribed to Shang Yang is the complete abolishment of the ching system and its replacement by that of individual property. However, neither in the Ch’ in Annals, nor in his Life, is this clearly stated. The text merely says in a very cryptic manner that, “in order to make arable lands the paths and furrows between the fields were p.45 opened up” (243). Yet in the history of the early Han dynasty it is said definitely (244) that « Duke Hsiao, on the advice of the Lord of Shang, destroyed the ching system and opened up the paths and furrows between the fields.

And in a speech of the well-known Confucian scholar, Tung Chung-shu, in the time of Emperor Wu (140-87) it is said: « In Antiquity the people were only taxed one tithe. It was easy to supply what was required and if the people were employed for not more than three days, their work was easily sufficient. The people’ s resources were, on the one hand, sufficient to nourish the old and fulfil the duties of filial piety and, on the other, they were enough to serve the superiors and to provide payment of the land tax, while they were also sufficient to keep wife and children, and to fulfil the duties of love. Therefore the people were glad to obey their superiors. But, when the Ch’i n dynasty came, this was altered. Applying the law of Shang Yang, the institutions of the ancient emperors and kings were changed, the ching system was abolished, and the people acquired the right to sell and buy (the land).

It is possible that these statements are based on parts of the original text of Shang-tzu which are now lost: In the present text of the Book no reference is made to this important reform. In paragraph 2, dealing with the cultivation of waste p.46 land, not a word is said about property; nor is anything said in paragraph 15, which deals with immigration. On the other hand, it is tacitly admitted at the end of paragraph 1, that some sort of land-reform was indeed Shang Yang’ s great innovation, for there it is said that, after the decision to reform the laws had been taken, Duke Hsiao “issued the order to bring waste land under cultivation”. The Life spea ks of “opening up the border -country”, which also points to the cultivation of new, wild land. How far all this may have included, for the interior, the abolishment of the ching system, remains uncertain. We should remember that the existence of this system in Ch’ in, which came comparatively late within the Chinese sphere, is not at all well-established (245). Shang Yang may, however, have clearly regulated individual freehold of land, and may thus have attracted colonists. In that case it was another prerogative which he took away from the noble classes, who alone, as we have already seen, had so far held that right.

A new taxation system is supposed to have been connected with the reform. The Annals say that in 348 for the first time taxes, fu, were established, and in the Life it is said that the fu and shui taxes were equalized (246). The accepted explanation of this phrase is that a tax was established proportional to the surface of the land, as distinct from the p.47 hitherto prevailing tax on the produce (247), so that the income of the state would be independent of the fluctuating returns of the harvest. It may, however, be questioned whether this interpretation is right. Granting that very unwise measures have often been taken, it does not seem to have been the most logical thing, from the point of view of promoting agriculture, to establish taxes; which would lay a definite burden on the farmers, irrespective of the quality of the harvest. This would have led them rather to cultivate small lots of fertile land than to bring large stretches of new land into cultivation, which, for some years at least, were bound to give but a meager return.

Yet, if paragraphs 2 and 15 of the Book may be at all supposed to contain a certain tradition of Shang Yang’ s measures, cultivation of fallow land was his avowed policy. It is true, on the one hand, that, in paragraph 15 a special freedom from taxes is promised to colonists, but on the other hand in paragraph 2 (p. 7) it is expressly stated that “taxes should be levied according to the measure of grain”. This last system would certainly seem to have been most favourable to the farmers. If, however, it is true that a fixed tag was laid on the surface; the possibility remains that the tag was sunk in the land and that the capitalized amount of the tax was subtracted from the value of the land (248). In this way it would not necessarily have been a heavy burden on the farmers. Personally I believe that the mention made of the taxes is connected with the preceding entry, relating to the new administrative unity of the land. p.48 Before this the farmers taxes had probably gone to the feudal lords; from now on they were levied by officials and went straight to the granaries of the capital.

It is interesting to see what the Book has to say about the promotion of agriculture. Generally it admits no other occupations for the people than agriculture and warfare, and it proscribes all merchants, artisans, and scholars. « If there are a thousand people engaged in agriculture and war, and only one in the Odes and History, and clever sophistry, then those thousand will all be remiss in agriculture and war; if there are a hundred people engaged in agriculture and war and only one in the arts and crafts, then those hundred will all be remiss in agriculture and war (249). (The people) « will be of no use, if they see that glib-tongued, itinerant scholars succeed in being honoured in serving the prince, that merchants succeed in enriching their families and artisans have plenty to live upon. If the people see both the comfort and advantage of these three walks of life, then they will indubitably shun agriculture; shunning agriculture, they will care little for their homes; caring little for their homes, they will certainly not fight and defend these for the ruler’s sake (250).

Let the people be yoked to the land; scholars, braves, artisans, merchants, all “can carry their personal capital round to any house on earth”, for their capital lies in their ideas, their eloquence, their ability, etc. But “the people ’ s capital should be stored in the soil” and their life away from their home s should be made dangerous for them (251). p.49 They should not be allowed to migrate (252). Even the younger sons of the nobility should be made to farm and be kept from idleness (253). Trade should be hampered as much as possible by heavy tolls, merchants should be made to serve and to live simply, heavy prices and taxes should be fixed for such luxuries as wine and meat, and trade in grain should not be allowed (254).

The Biography (255) also speaks of tilling and weaving as the “fundamental occupations” and calls all other things “secondary”. Those who occupy themselves therewith should be sold as slaves. The ideal seems to have been to revert the entire economic life of the country from a money-basis back to a produce basis. « The appearance of gold means the disappearance of grain and the appearance of grain means the disappearance of gold… (256) For every ounce of gold appearing within the territory, twelve piculs of grain will disappear abroad; but for every twelve piculs of grain appearing within the territory one ounce of gold will disappear abroad (257). All export of produce is therefore pernicious. « Therefore a state that imports products is strong and one that exports products is weak (258).

In curious antithesis to our later Mercantilists, who desired to heap up as much gold-as possible, p.50 Shang-tzu (259) considers full granaries the greatest guarantee of prosperity, and “even though the granaries are filled”, one should “not be negligent in agriculture”. The ultimate aim of the hoarding of all this grain is political strength. Grain had apparently always to be ready for the army, which was the only other field where the people should concentrate their activity. It is curious to read in paragraph 15, which is certainly of much later date, how the difficulty is realized of combining both intensive agriculture and frequent warfare, as the same people had to be ready for both. Therefore it is there suggested that colonists should be attracted to the country by freedom from taxes and military service, so that the old population of Ch’ in should be free to devote themselves entirely to warfare without detriment to the economic condition (260).

The solution is also sought in a judicious use of the available land. It is calculated that four-tenths of all the land should be made into arable fields (261), and a territory of a 100 square li should support 10,000 soldiers for war (262). Then, « when the army marches out, and grain is given them, there is still a surplus of riches (263). p.51 In these statistical calculations there are echoes of the agricultural school of “Intensive Culture” which is currently ascribed to Li K ’ uei (264). His name may be a mere ornament, yet we are safe to say that these ideas lived in Wei, or the name of a minister of that country would not have been connected with them. Shang Yang himself, who came from Wei, may have known them, but in any case Shang-tzu (265) must have belonged to the circle where such theories of land economics were elaborated. We saw how a farmer’ s budget was calculated by Li K’ uei; it may be interesting to give some of his views on the agricultural policy which a state should follow (266).

« Within an area of one hundred square li there are nine million mu. Leaving out of account the mountains, marshes, and city residences, one-third of this amount, there are six million mu of arable land. If the people cultivate it intensely, each mu can yield three additional pecks (267), and a like amount is lost in case of slackness. Therefore, even within an area of 100 square li, the difference between an addition and a loss of grain will be 1,800,000 piculs. Li K’ uei then goes on to show that if the price of grain were too high, it would hurt the consumers, and that if it were too low, it would hurt the farmers. If the consumers were hurt, the people would emigrate, and if the farmers were hurt, the state would be poor. So a high price and a low price both have bad results. Therefore a p.52 good statesman should keep the people from injury and give more encouragement to the farmers.

Then, after describing the miserable condition of the peasants, he goes on to expound a law for equalizing the price of grain: « Those who want to equalize the price of grain must be careful to look at the crop. There are three degrees of good crops: the first, the second, and the lowest. In the first degree of good crops, the return is fourfold, so that there will be a surplus of 400 piculs (268); in the second degree of good crops the return is threefold, and there will be a surplus of 300 piculs (269); in the lowest degree of good crops, the return is twofold, and the surplus will be 100 piculs. « In the first degree of failure of the crops (270) the return of the harvest is 100 piculs; in the second degree of failure the return is 70 piculs; in the third degree of failure the return is 30 piculs. Therefore with a first degree of good crops the authorities should buy up 3 parts and leave the people 1 part (of the surplus); with a second degree of good crops they should buy up 2 parts and leave the people 1 part; with a third degree of good crops they should buy up 1 part (271). The purpose of this buying is to let the supply be just enough for the wants of the people, and it should be stopped when the price is normal. In a first degree of failure of the crops, p.53 the authorities should put on the market what they have stored during the third degree of good crops; in the second degree of failure they should put on the market what they have stored during the second degree of good crops; and in the third degree of failure they should put on the market what they have stored during the first degree of good crops. In this way, in spite of failure of the crops and famine, floods, and drought, the price of grain is not high and the people need not emigrate, because the government takes the surplus of good crops to fill the insufficiency of bad years.

A few words may be in place here on the further agricultural development. After Ch’ in Shih-huang-ti had brought the whole Empire under his sway he issued an order in 216, announcing that people should themselves declare the amount of their land, in order to regulate the land-tax (272). Henceforth private ownership of land was the rule throughout the country. This fundamental change had consequences, which Shang Yang, if it is true that he initiated this policy, had certainly not foreseen. Instead of ameliorating the condition of the peasantry, it made it worse. The land was bought up by wealthy people and the mass of the people became poor tenants instead of free farmers. It had been thought that a low land-tag would be sufficient protection for the farmer, and now it turned out that the big landowners alone profited by it and the people groaned under heavy rents. The Ch’ in dynasty fixed the land-tag as a 1/15th of the produce, and this rate was maintained under the early Han dynasty, with even a decrease to 1/30th under Ching-ti (156-141) (273). But in p.54 spite of this the land question remained extremely grave throughout the Han dynasty.

In a famous piece of literature, written by the statesman Ch’ ao Ts’ o, an adherent of Shang Yang’ s school in the second century B.C. (274), the hardships of the peasants are described in eloquent words. « Now in every family of five there will be at least two, who perform public services; they will cultivate no more than 100 mu, the yield of which will be not more than 100 piculs. In spring they have to plough; in summer, to weed; in autumn, to reap; in winter, to store; besides cutting fuel, repairing official residences and other public services. Exposed, in spring, to wind and dust; in summer, to scorching heat; in autumn, to fog and rain; in winter, to cold and frost — from year’ s end to year’ s end they know not what leisure means. They have besides their own social obligations, visits of sympathy and condolence, the nourishment of orphans, and the education of the young. Then, when flood and drought come upon them, already encompassed round with toil and hardship, the government pressing harshly, collecting taxes at unsettled times, issuing orders in the morning to revoke them at night — those who have grain sell at half value, while those who have not borrow at exorbitant usury. Then paternal acres change hands; sons and grandsons are sold to pay debts; merchants make vast profits, and even petty p.55 tradesmen set up business and realize unheard-of gains. Every day they loiter on the market-places of the capital, and, taking advantage of the oppression of the superiors, have double profit on what they sell.

« That is why of the latter, the men do not plough nor weed, their women do not raise silkworms nor do they weave, and yet they all wear fine clothes and they live on the fat of the land. They share not the hardships of the husbandmen and yet they obtain the produce of the fields....

« There would be nothing more presently advantageous than to concentrate the energies of our people upon agriculture; and the way to do this is to enhance the value of grain by making it an instrument of reward and punishment. Let an order be now published throughout the Empire, that all district officials who bring in grain will receive titles and acquittal of punishment (275).

By these means, rich men will enjoy honours, husbandmen will make money, and the grain will have an outlet. Those who purchase rank in this way will purchase out of their surplus; and by handing this over to the Imperial exchequer, the burden of taxes of the indigent people may be lightened; this may be called to take from one man’ s superfluity to make up for the deficiency of another...

Tung Chung-shu, in the same speech from which we quoted before (276), finds the cause of all this misery in the abolition of the ching system. After having said how the people obtained the right to sell and buy their land, he goes on:

« The fields of the rich continued uninterruptedly their paths p.56 and furrows (277), but the poor had no place to stand up a needle. Also the profit from streams and morasses was monopolized and the fertility of hills and forests was controlled; licentiously all restrictions were exceeded and there was rivalry in wastefulness. In the cities there were people as much honoured as princes and in the hamlets there were people as rich as dukes and marquises; how then should the lower people not be in hard straits ? …. Therefore the poor people often wore the clothing of oxen and horses, and ate the food of dogs and swine.... At the rise of the Han dynasty all this continued without reform …. Although it is impossible to revert entirely to the old ching system of the fields, yet we should more or less approach antiquity, and limit the appropriation of land by private people so as to subvent those who are in want….

For Confucianists like Tung Chung-shu the ching system had become part of the hallowed institutions of a revered antiquity. More than once in the course of Chinese history efforts have been made for its partial re-establishment, such as, for example, the reforms of Wang Mang (9 A.D.), who aimed at land nationalization. It is, however, outside the scope of this introduction to follow up a development which is full of interest.