The National Government established at Nanking in 1927[16] gained actual effectiveness partly because the armies under its command were in need of essentials not obtainable by merely military measures. The modernized Nationalist armies under Chiang K'ai-shek were dependent upon a complementing state which would provide support behind the lines. Furthermore, the cry from the educated classes for civilian government was loud, and practical considerations prompted the acquiescence of the Nationalist generals in the development of civilian government. Although by 1938 a government primarily civilian was not yet in evidence, the auspices were favorable to the regularization and demilitarization of government.

Finally, the most significant role of the armies may be found in their destructive powers. Modern weapons coming into China pressed on her the mold of a modern state. By preventing any tranquil change from the Ch'ing dynasty to another form of government preserving the older controls of village and family, Western armament brought China into a condition of military anarchy in which a strong modern government became imperative. The armies and their irresponsible leaders goaded the masses into the revolution of 1926-1927, and the necessity of establishing military superiority for the sake of stability led the victorious Nationalists to create a modern defensive force, a working government, and the outline of operative statehood—to be partly Chinese, but modified by Western influences, according to the teachings of Sun Yat-sen. From 1931 on, the army and the government became more and more the integral parts of a single machine.

[War and the Agrarian Economy]

There is a close correlation between militarism and agricultural conditions in China. Distress among the Chinese farming masses is both a cause and an effect of war. Misery creates unrest, unrest brings war, war brings misery—until government stops the vicious circle. On the whole, the economic system of old China was probably more stable, and ensured greater distributive justice, than did the Western systems during the same centuries; but periods of famine, flood, and—worst of all—oppression were far from rare.[17]

At its best, the old economy rested on a vast body of farmers, associated in villages (hui) and families but tilling their own land in fairly small units. The farming class provided the nourishment for the bulk of society but did not hold a low status, since the compensations of interclass kinship and of free play in the hierarchy of politics and intellect made families (if not individuals) approximately equal. There were no families in old China to compare with the aristocracy which Europe inherited from the Middle Ages, nor castes to compare with those of India. When functioning well, the Chinese economic system resembled some Western ideals of freehold farming governed by a hierarchy of scholars.

But at its worst, when the government became sterile and unimaginative, or corrupt and demoralized, the taxes rose sharply, and usurers added to the burden. Lack of resources caused the loss of the land, and the peasant proprietor found himself a tenant farmer. When economic and political exploitation overreached itself, social upheaval followed, and peasant rebellions tore down the government and the economy together. Most Chinese dynasties met their end as a consequence of the land problem.[18]

Moreover, the Chinese farmer maintained very slight reserves of foodstuffs, so that flood or drought resulted in appalling famines, sometimes costing the lives of millions in one year. Governments established large granaries which, under good management, were filled in time of plenty and dispersed in time of need. R. H. Tawney says of drought and flood:

Those directly affected by them cannot meet the blow, for they have no reserves. The individual cannot be rescued by his neighbors, since whole districts together are in the same position. The district cannot be rescued by the nation, because means of communication do not permit of food being moved in sufficient quantities. Famine is, in short, the last stage of a disease which, though not always conspicuous, is always present.[19]

Whether or not natural calamities struck in conjunction with specific extortions sanctioned by social injustice, the Chinese farmer has been faced with threefold oppression whenever times were bad. The tax collector, the usurer, and the landlord were able to lay their hands on the harvest, reduce the peasant to subsistence level or beneath it, and place him under a system of exploitation which was as severe as Western feudalism. The check which provided a stop to any indefinite decline into greater and greater horror was the fighting power of the peasants. Peasant revolts periodically followed agrarian oppression, and swept the land free for the time. The Han dynasty, in some ways the greatest in all Chinese history, went down in an uproar of peasant rebellions. Peasant bandits have provided the ancestry of many imperial houses. Politics or war might ease the economy, until the government again became weak and exploitation common.

It is one of the tragic coincidences of history that the Europeans should have appeared in China at a time when the Chinese were entering upon one of their most acute periods of agrarian decline and class exploitation. Roughly, from the middle of the eighteenth century down to the present day the lot of the Chinese farmers has become worse and worse. At periods the country as a whole seemed fairly prosperous, but the broad agricultural recession remained constant. The nineteenth century was one long record of rebellions, and the twentieth amplified the disturbances.