A History of China

by Wolfram Eberhard

This Sung dynasty, as Chao K'uang-yin named it, no longer turned against the northern peoples, particularly the Kitan, but against the south. This was not exactly an heroic policy: the north of China remained in the hands of the Kitan. There were frequent clashes, but no real effort was made to destroy the Kitan, whose dynasty was now called "Liao". The second emperor of the Sung was actually heavily defeated several times by the Kitan. But they, for their part, made no attempt to conquer the whole of China, especially since the task would have become more and more burdensome the farther south the Sung expanded. And very soon there were other reasons why the Kitan should refrain from turning their whole strength against the Chinese.

[Illustration: 10 Ladies of the Court: clay models which accompanied the dead person to the grave. T'ang period. In the collection of the Museum für Völkerkunde, Berlin.]

[Illustration: 11 Distinguished founder: a temple banner found at Khotcho, Turkestan. Museum für Völkerkunde, Berlin, No. 1B 4524, illustration B 408.]

As we said, the Sung turned at once against the states in the south. Some of the many small southern states had made substantial economic and cultural advance, but militarily they were not strong. Chao K'uang-yin (named as emperor T'ai Tsu) attacked them in succession. Most of them fell very quickly and without any heavy fighting, especially since the Sung dealt mildly with the defeated rulers and their following. The gentry and the merchants in these small states could not but realize the advantages of a widened and well-ordered economic field, and they were therefore entirely in favour of the annexation of their country so soon as it proved to be tolerable. And the Sung empire could only endure and gain strength if it had control of the regions along the Yangtze and around Canton, with their great economic resources. The process of absorbing the small states in the south continued until 980. Before it was ended, the Sung tried to extend their influence in the south beyond the Chinese border, and secured a sort of protectorate over parts of Annam (973). This sphere of influence was politically insignificant and not directly of any economic importance; but it fulfilled for the Sung the same functions which colonial territories fulfilled for Europeans, serving as a field of operation for the commercial class, who imported raw materials from it—mainly, it is true, luxury articles such as special sorts of wood, perfumes, ivory, and so on—and exported Chinese manufactures. As the power of the empire grew, this zone of influence extended as far as Indonesia: the process had begun in the T'ang period. The trade with the south had not the deleterious effects of the trade with Central Asia. There was no sale of refined metals, and none of fabrics, as the natives produced their own textiles which sufficed for their needs. And the export of porcelain brought no economic injury to China, but the reverse.

This Sung policy was entirely in the interest of the gentry and of the trading community which was now closely connected with them. Undoubtedly it strengthened China. The policy of nonintervention in the north was endurable even when peace with the Kitan had to be bought by the payment of an annual tribute. From 1004 onwards, 100,000 ounces of silver and 200,000 bales of silk were paid annually to the Kitan, amounting in value to about 270,000 strings of cash, each of 1,000 coins. The state budget amounted to some 20,000,000 strings of cash. In 1038 the payments amounted to 500,000 strings, but the budget was by then much larger. One is liable to get a false impression when reading of these big payments if one does not take into account what percentage they formed of the total revenues of the state. The tribute to the Kitan amounted to less than 2 per cent of the revenue, while the expenditure on the army accounted for 25 per cent of the budget. It cost much less to pay tribute than to maintain large armies and go to war. Financial considerations played a great part during the Sung epoch. The taxation revenue of the empire rose rapidly after the pacification of the south; soon after the beginning of the dynasty the state budget was double that of the T'ang. If the state expenditure in the eleventh century had not continually grown through the increase in military expenditure—in spite of everything!—there would have come a period of great prosperity in the empire.

2 Administration and army. Inflation

The Sung emperor, like the rulers of the transition period, had gained the throne by his personal abilities as military leader; in fact, he had been made emperor by his soldiers as had happened to so many emperors in later Imperial Rome. For the next 300 years we observe a change in the position of the emperor. On the one hand, if he was active and intelligent enough, he exercised much more personal influence than the rulers of the Middle Ages. On the other hand, at the same time, the emperors were much closer to their ministers as before. We hear of ministers who patted the ruler on the shoulders when they retired from an audience; another one fell asleep on the emperor's knee and was not punished for this familiarity. The emperor was called "kuan-chia" (Administrator) and even called himself so. And in the early twelfth century an emperor stated "I do not regard the empire as my personal property; my job is to guide the people". Financially-minded as the Sung dynasty was, the cost of the operation of the palace was calculated, so that the emperor had a budget: in 1068 the salaries of all officials in the capital amounted to 40,000 strings of money per month, the armies 100,000, and the emperor's ordinary monthly budget was 70,000 strings. For festivals, imperial birthdays, weddings and burials extra allowances were made. Thus, the Sung rulers may be called "moderate absolutists" and not despots.

One of the first acts of the new Sung emperor, in 963, was a fundamental reorganization of the administration of the country. The old system of a civil administration and a military administration independent of it was brought to an end and the whole administration of the country placed in the hands of civil officials. The gentry welcomed this measure and gave it full support, because it enabled the influence of the gentry to grow and removed the fear of competition from the military, some of whom did not belong by birth to the gentry. The generals by whose aid the empire had been created were put on pension, or transferred to civil employment, as quickly as possible. The army was demobilized, and this measure was bound up with the settlement of peasants in the regions which war had depopulated, or on new land. Soon after this the revenue noticeably increased. Above all, the army was placed directly under the central administration, and the system of military governors was thus brought to an end. The soldiers became mercenaries of the state, whereas in the past there had been conscription. In 975 the army had numbered only 378,000, and its cost had not been insupportable. Although the numbers increased greatly, reaching 912,000 in 1017 and 1,259,000 in 1045, this implied no increase in military strength; for men who had once been soldiers remained with the army even when they were too old for service. Moreover, the soldiers grew more and more exacting; when detachments were transferred to another region, for instance, the soldiers would not carry their baggage; an army of porters had to be assembled. The soldiers also refused to go to regions remote from their homes until they were given extra pay. Such allowances gradually became customary, and so the military expenditure grew by leaps and bounds without any corresponding increase in the striking power of the army.

The government was unable to meet the whole cost of the army out of taxation revenue. The attempt was made to cover the expenditure by coining fresh money. In connection with the increase in commercial capital described above, and the consequent beginning of an industry, China's metal production had greatly increased. In 1050 thirteen times as much silver, eight times as much copper, and fourteen times as much iron was produced as in 800. Thus the circulation of the copper currency was increased. The cost of minting, however, amounted in China to about 75 per cent and often over 100 per cent of the value of the money coined. In addition to this, the metal was produced in the south, while the capital was in the north. The coin had therefore to be carried a long distance to reach the capital and to be sent on to the soldiers in the north.

To meet the increasing expenditure, an unexampled quantity of new money was put into circulation. The state budget increased from 22,200,000 in A.D. 1000 to 150,800,000 in 1021. The Kitan state coined a great deal of silver, and some of the tribute was paid to it in silver. The greatly increased production of silver led to its being put into circulation in China itself. And this provided a new field of speculation, through the variations in the rates for silver and for copper. Speculation was also possible with the deposit certificates, which were issued in quantities by the state from the beginning of the eleventh century, and to which the first true paper money was soon added. The paper money and the certificates were redeemable at a definite date, but at a reduction of at least 3 per cent of their value; this, too, yielded a certain revenue to the state.