Individual freedom did not show itself only in greater social mobility.

The restrictions which, for instance, had made the craftsmen and artisans almost into serfs, were gradually lifted. From the early sixteenth century on, craftsmen were free and no more subject to forced labour services for the state. Most craftsmen in this epoch still had their shops in one lane or street and lived above their shops, as they had done in the earlier period. But from now on, they began to organize in guilds of an essentially religious character, as similar guilds in other parts of Asia at the same time also did. They provided welfare services for their members, made some attempts towards standardization of products and prices, imposed taxes upon their members, kept their streets clean and tried to regulate salaries. Apprentices were initiated in a kind of semi-religious ceremony, and often meetings took place in temples. No guild, however, connected people of the same craft living in different cities. Thus, they did not achieve political power.

Furthermore, each trade had its own guild; in Peking in the nineteenth century there existed over 420 different guilds. Thus, guilds failed to achieve political influence even within individual cities.

Probably at the same time, regional a.s.sociations, the so-called "_hui-kuan"_ originated. Such a.s.sociations united people from one city or one area who lived in another city. People of different trades, but mainly businessmen, came together under elected chiefs and councillors.

Sometimes, such regional a.s.sociations could function as pressure groups, especially as they were usually financially stronger than the guilds.

They often owned city property or farm land. Not all merchants, however, were so organized. Although merchants remained under humiliating restrictions as to the colour and material of their dress and the prohibition to ride a horse, they could more often circ.u.mvent such restrictions and in general had much more freedom in this epoch.

Trade, including overseas trade, developed greatly from now on. Soon we find in the coastal ports a special office which handled custom and registration affairs, supplied interpreters for foreigners, received them officially and gave good-bye dinners when they left. Down to the thirteenth century, most of this overseas trade was still in the hands of foreigners, mainly Indians. Entrepreneurs hired ships, if they were not ship-owners, hired trained merchants who in turn hired sailors mainly from the South-East Asian countries, and sold their own merchandise as well as took goods on commission. Wealthy Chinese gentry families invested money in such foreign enterprises and in some cases even gave their daughters in marriage to foreigners in order to profit from this business.

We also see an emergence of industry from the eleventh century on. We find men who were running almost monopolistic enterprises, such as preparing charcoal for iron production and producing iron and steel at the same time; some of these men had several factories, operating under hired and qualified managers with more than 500 labourers. We find beginnings of a labour legislation and the first strikes (A.D. 782 the first strike of merchants in the capital; 1601 first strike of textile workers).

Some of these labourers were so-called "vagrants", farmers who had secretly left their land or their landlord's land for various reasons, and had shifted to other regions where they did not register and thus did not pay taxes. Entrepreneurs liked to hire them for industries outside the towns where supervision by the government was not so strong; naturally, these "vagrants" were completely at the mercy of their employers.

Since _c_. 780 the economy can again be called a money economy; more and more taxes were imposed in form of money instead of in kind. This pressure forced farmers out of the land and into the cities in order to earn there the cash they needed for their tax payments. These men provided the labour force for industries, and this in turn led to the strong growth of the cities, especially in Central China where trade and industries developed most.

Wealthy people not only invested in industrial enterprises, but also began to make heavy investments in agriculture in the vicinity of cities in order to increase production and thus income. We find men who drained lakes in order to create fields below the water level for easy irrigation; others made floating fields on lakes and avoided land tax payments; still others combined pig and fish breeding in one operation.

The introduction of money economy and money taxes led to a need for more coinage. As metal was scarce and minting very expensive, iron coins were introduced, silver became more and more common as means of exchange, and paper money was issued. As the relative value of these moneys changed with supply and demand, speculation became a flourishing business which led to further enrichment of people in business. Even the government became more money-minded: costs of operations and even of wars were carefully calculated in order to achieve savings; financial specialists were appointed by the government, just as clans appointed such men for the efficient administration of their clan properties.

Yet no real capitalism or industrialism developed until towards the end of this epoch, although at the end of the twelfth century almost all conditions for such a development seemed to be given.

2 _Political situation in the tenth century_

The Chinese call the period from 906 to 960 the "period of the Five Dynasties" (_Wu Tai_). This is not quite accurate. It is true that there were five dynasties in rapid succession in North China; but at the same time there were ten other dynasties in South China. The ten southern dynasties, however, are regarded as not legitimate. The south was much better off with its illegitimate dynasties than the north with the legitimate ones. The dynasties in the south (we may dispense with giving their names) were the realms of some of the military governors so often mentioned above. These governors had already become independent at the end of the T'ang epoch; they declared themselves kings or emperors and ruled particular provinces in the south, the chief of which covered the territory of the present provinces of Szechwan, Kw.a.n.gtung and Chekiang.

In these territories there was comparative peace and economic prosperity, since they were able to control their own affairs and were no longer dependent on a corrupt central government. They also made great cultural progress, and they did not lose their importance later when they were annexed in the period of the Sung dynasty.

As an example of these states one may mention the small state of Ch'u in the present province of Hunan. Here, Ma Yin, a former carpenter (died 931), had made himself a king. He controlled some of the main trade routes, set up a clean administration, bought up all merchandise which the merchants brought, but allowed them to export only local products, mainly tea, iron and lead. This regulation gave him a personal income of several millions every year, and in addition fostered the exploitation of the natural resources of this. .h.i.therto r.e.t.a.r.ded area.

3 _Monopolistic trade in South China. Printing and paper money in the north_

The prosperity of the small states of South China was largely due to the growth of trade, especially the tea trade. The habit of drinking tea seems to have been an ancient Tibetan custom, which spread to south-eastern China in the third century A.D. Since then there had been two main centres of production, Szechwan and south-eastern China. Until the eleventh century Szechwan had remained the leading producer, and tea had been drunk in the Tibetan fashion, mixed with flour, salt, and ginger. It then began to be drunk without admixture. In the T'ang epoch tea drinking spread all over China, and there sprang up a cla.s.s of wholesalers who bought the tea from the peasants, acc.u.mulated stocks, and distributed them. From 783 date the first attempts of the state to monopolize the tea trade and to make it a source of revenue; but it failed in an attempt to make the cultivation a state monopoly. A tea commissariat was accordingly set up to buy the tea from the producers and supply it to traders in possession of a state licence. There naturally developed then a pernicious collaboration between state officials and the wholesalers. The latter soon eliminated the small traders, so that they themselves secured all the profit; official support was secured by bribery. The state and the wholesalers alike were keenly interested in the prevention of tea smuggling, which was strictly prohibited.

The position was much the same with regard to salt. We have here for the first time the a.s.sociation of officials with wholesalers or even with a monopoly trade. This was of the utmost importance in all later times.

Monopoly progressed most rapidly in Szechwan, where there had always been a numerous commercial community. In the period of political fragmentation Szechwan, as the princ.i.p.al tea-producing region and at the same time an important producer of salt, was much better off than any other part of China. Salt in Szechwan was largely produced by, technically, very interesting salt wells which existed there since _c_.

the first century B.C. The importance of salt will be understood if we remember that a grown-up person in China uses an average of twelve pounds of salt per year. The salt tax was the top budget item around A.D. 900.

South-eastern China was also the chief centre of porcelain production, although china clay is found also in North China. The use of porcelain spread more and more widely. The first translucent porcelain made its appearance, and porcelain became an important article of commerce both within the country and for export. Already the Muslim rulers of Baghdad around 800 used imported Chinese porcelain, and by the end of the fourteenth century porcelain was known in Eastern Africa. Exports to South-East Asia and Indonesia, and also to j.a.pan gained more and more importance in later centuries. Manufacture of high quality porcelain calls for considerable amounts of capital investment and working capital; small manufacturers produce too many second-rate pieces; thus we have here the first beginnings of an industry that developed industrial towns such as Ching-te, in which the majority of the population were workers and merchants, with some 10,000 families alone producing porcelain. Yet, for many centuries to come, the state controlled the production and even the design of porcelain and appropriated most of the production for use at court or as gifts.

The third important new development to be mentioned was that of printing, which since _c_. 770 was known in the form of wood-block printing. The first reference to a printed book dated from 835, and the most important event in this field was the first printing of the Cla.s.sics by the orders of Feng Tao (882-954) around 940. The first attempts to use movable type in China occurred around 1045, although this invention did not get general acceptance in China. It was more commonly used in Korea from the thirteenth century on and revolutionized Europe from 1538 on. It seems to me that from the middle of the twentieth century on, the West, too, shows a tendency to come back to the printing of whole pages, but replacing the wood blocks by photographic plates or other means. In the Far East, just as in Europe, the invention of printing had far-reaching consequences. Books, which until then had been very dear, because they had to be produced by copyists, could now be produced cheaply and in quant.i.ty. It became possible for a scholar to acc.u.mulate a library of his own and to work in a wide field, where earlier he had been confined to a few books or even a single text. The results were the spread of education, beginning with reading and writing, among wider groups, and the broadening of education: a large number of texts were read and compared, and no longer only a few. Private libraries came into existence, so that the imperial libraries were no longer the only ones. Publishing soon grew in extent, and in private enterprise works were printed that were not so serious and politically important as the cla.s.sic books of the past. Thus a new type of literature, the literature of entertainment, could come into existence. Not all these consequences showed themselves at once; some made their first appearance later, in the Sung period.

A fourth important innovation, this time in North China, was the introduction of prototypes of paper money. The Chinese copper "cash" was difficult or expensive to transport, simply because of its weight. It thus presented great obstacles to trade. Occasionally a region with an adverse balance of trade would lose all its copper money, with the result of a local deflation. From time to time, iron money was introduced in such deficit areas; it had for the first time been used in Szechwan in the first century B.C., and was there extensively used in the tenth century when after the conquest of the local state all copper was taken to the east by the conquerors. So long as there was an orderly administration, the government could send it money, though at considerable cost; but if the administration was not functioning well, the deflation continued. For this reason some provinces prohibited the export of copper money from their territory at the end of the eighth century. As the provinces were in the hands of military governors, the central government could do next to nothing to prevent this. On the other hand, the prohibition automatically made an end of all external trade. The merchants accordingly began to prepare deposit certificates, and in this way to set up a sort of transfer system. Soon these deposit certificates entered into circulation as a sort of medium of payment at first again in Szechwan, and gradually this led to a banking system and the linking of wholesale trade with it. This made possible a much greater volume of trade. Towards the end of the T'ang period the government began to issue deposit certificates of its own: the merchant deposited his copper money with a government agency, receiving in exchange a certificate which he could put into circulation like money.

Meanwhile the government could put out the deposited money at interest, or throw it into general circulation. The government's deposit certificates were now printed. They were the predecessors of the paper money used from the time of the Sung.

4 _Political history of the Five Dynasties_

The southern states were a factor not to be ignored in the calculations of the northern dynasties. Although the southern kingdoms were involved in a confusion of mutual hostilities, any one of them might come to the fore as the ally of Turks or other northern powers. The capital of the first of the five northern dynasties (once more a Liang dynasty, but not to be confused with the Liang dynasty of the south in the sixth century) was, moreover, quite close to the territories of the southern dynasties, close to the site of the present K'ai-feng, in the fertile plain of eastern China with its good means of transport. Militarily the town could not be held, for its one and only defence was the Yellow River.

The founder of this Later Liang dynasty, Chu Ch'uan-chung (906), was himself an eastern Chinese and, as will be remembered, a past supporter of the revolutionary Huang Ch'ao, but he had then gone over to the T'ang and had gained high military rank.

His northern frontier remained still more insecure than the southern, for Chu Ch'uan-chung did not succeed in destroying the Turkish general Li K'o-yung; on the contrary, the latter continually widened the range of his power. Fortunately he, too, had an enemy at his back--the Kitan (or Khitan), whose ruler had made himself emperor in 916, and so staked a claim to reign over all China. The first Kitan emperor held a middle course between Chu and Li, and so was able to establish and expand his empire in peace. The striking power of his empire, which from 937 onward was officially called the Liao empire, grew steadily, because the old tribal league of the Kitan was transformed into a centrally commanded military organization.

To these dangers from abroad threatening the Later Liang state internal troubles were added. Chu Ch'uan-chung's dynasty was one of the three Chinese dynasties that have ever come to power through a popular rising.

He himself was of peasant origin, and so were a large part of his subordinates and helpers. Many of them had originally been independent peasant leaders; others had been under Huang Ch'ao. All of them were opposed to the gentry, and the great slaughter of the gentry of the capital, shortly before the beginning of Chu's rule, had been welcomed by Chu and his followers. The gentry therefore would not co-operate with Chu and preferred to join the Turk Li K'o-yung. But Chu could not confidently rely on his old comrades. They were jealous of his success in gaining the place they all coveted, and were ready to join in any independent enterprise as opportunity offered. All of them, moreover, as soon as they were given any administrative post, busied themselves with the acquisition of money and wealth as quickly as possible. These abuses not only ate into the revenues of the state but actually produced a common front between the peasantry and the remnants of the gentry against the upstarts.

In 917, after Li K'o-yung's death, the Sha-t'o Turks beat off an attack from the Kitan, and so were safe for a time from the northern menace.

They then marched against the Liang state, where a crisis had been produced in 912 after the murder of Chu Ch'uan-chung by one of his sons.

The Liang generals saw no reason why they should fight for the dynasty, and all of them went over to the enemy. Thus the "Later T'ang dynasty"

(923-936) came into power in North China, under the son of Li K'o-yung.

The dominant element at this time was quite clearly the Chinese gentry, especially in western and central China. The Sha-t'o themselves must have been extraordinarily few in number, probably little more than 100,000 men. Most of them, moreover, were politically pa.s.sive, being simple soldiers. Only the ruling family and its following played any active part, together with a few families related to it by marriage. The whole state was regarded by the Sha-t'o rulers as a sort of family enterprise, members of the family being placed in the most important positions. As there were not enough of them, they adopted into the family large numbers of aliens of all nationalities. Military posts were given to faithful members of Li K'o-yung's or his successor's bodyguard, and also to domestic servants and other clients of the family. Thus, while in the Later Liang state elements from the peasantry had risen in the world, some of these neo-gentry reaching the top of the social pyramid in the centuries that followed, in the Sha-t'o state some of its warriors, drawn from the most various peoples, entered the gentry cla.s.s through their personal relations with the ruler. But in spite of all this the bulk of the officials came once more from the Chinese. These educated Chinese not only succeeded in winning over the rulers themselves to the Chinese cultural ideal, but persuaded them to adopt laws that substantially restricted the privileges of the Sha-t'o and brought advantages only to the Chinese gentry. Consequently all the Chinese historians are enthusiastic about the "Later T'ang", and especially about the emperor Ming Ti, who reigned from 927 onward, after the a.s.sa.s.sination of his predecessor. They also abused the Liang because they were against the gentry.

In 936 the Later T'ang dynasty gave place to the Later Chin dynasty (936-946), but this involved no change in the structure of the empire.

The change of dynasty meant no more than that instead of the son following the father the son-in-law had ascended the throne. It was of more importance that the son-in-law, the Sha-t'o Turk Shih Ching-t'ang, succeeded in doing this by allying himself with the Kitan and ceding to them some of the northern provinces. The youthful successor, however, of the first ruler of this dynasty was soon made to realize that the Kitan regarded the founding of his dynasty as no more than a transition stage on the way to their annexation of the whole of North China. The old Sha-t'o n.o.bles, who had not been sinified in the slightest, suggested a preventive war; the actual court group, strongly sinified, hesitated, but ultimately were unable to avoid war. The war was very quickly decided by several governors in eastern China going over to the Kitan, who had promised them the imperial t.i.tle. In the course of 946-7 the Kitan occupied the capital and almost the whole of the country. In 947 the Kitan ruler proclaimed himself emperor of the Kitan and the Chinese.

[Ill.u.s.tration: Map 6: The State of the later T'ang dynasty]

The Chinese gentry seem to have accepted this situation because a Kitan emperor was just as acceptable to them as a Sha-t'o emperor; but the Sha-t'o were not prepared to submit to the Kitan regime, because under it they would have lost their position of privilege. At the head of this opposition group stood the Sha-t'o general Liu Chih-yuan, who founded the "Later Han dynasty" (947-950). He was able to hold out against the Kitan only because in 947 the Kitan emperor died and his son had to leave China and retreat to the north; fighting had broken out between the empress dowager, who had some Chinese support, and the young heir to the throne. The new Turkish dynasty, however, was unable to withstand the internal Chinese resistance. Its founder died in 948, and his son, owing to his youth, was entirely in the hands of a court clique. In his effort to free himself from the tutelage of this group he made a miscalculation, for the men on whom he thought he could depend were largely supporters of the clique. So he lost his throne and his life, and a Chinese general, Kuo Wei, took his place, founding the "Later Chou dynasty" (951-959).

A feature of importance was that in the years of the short-lived "Later Han dynasty" a tendency showed itself among the Chinese military leaders to work with the states in the south. The increase in the political influence of the south was due to its economic advance while the north was reduced to economic chaos by the continual heavy fighting, and by the complete irresponsibility of the Sha-t'o ruler in financial matters: several times in this period the whole of the money in the state treasury was handed out to soldiers to prevent them from going over to some enemy or other. On the other hand, there was a tendency in the south for the many neighbouring states to amalgamate, and as this process took place close to the frontier of North China the northern states could not pa.s.sively look on. During the "Later Han" period there were wars and risings, which continued in the time of the "Later Chou".

On the whole, the few years of the rule of the second emperor of the "Later Chou" (954-958) form a bright spot in those dismal fifty-five years. Sociologically regarded, that dynasty formed merely a transition stage on the way to the Sung dynasty that now followed: the Chinese gentry ruled under the leadership of an upstart who had risen from the ranks, and they ruled in accordance with the old principles of gentry rule. The Sha-t'o, who had formed the three preceding dynasties, had been so reduced that they were now a tiny minority and no longer counted. This minority had only been able to maintain its position through the special social conditions created by the "Later Liang"

dynasty: the Liang, who had come from the lower cla.s.ses of the population, had driven the gentry into the arms of the Sha-t'o Turks. As soon as the upstarts, in so far as they had not fallen again or been exterminated, had more or less a.s.similated themselves to the old gentry, and on the other hand the leaders of the Sha-t'o had become numerically too weak, there was a possibility of resuming the old form of rule.

There had been certain changes in this period. The north-west of China, the region of the old capital Ch'ang-an, had been so ruined by the fighting that had gone on mainly there and farther north, that it was eliminated as a centre of power for a hundred years to come; it had been largely depopulated. The north was under the rule of the Kitan: its trade, which in the past had been with the Huang-ho basin, was now perforce diverted to Peking, which soon became the main centre of the power of the Kitan. The south, particularly the lower Yangtze region and the province of Szechwan, had made economic progress, at least in comparison with the north; consequently it had gained in political importance.

One other event of this time has to be mentioned: the great persecution of Buddhism in 955, but not only because 30,336 temples and monasteries were secularized and only some 2,700 with 61,200 monks were left.

Although the immediate reason for this action seems to have been that too many men entered the monasteries in order to avoid being taken as soldiers, the effect of the law of 955 was that from now on the Buddhists were put under regulations which clarified once and for ever their position within the framework of a society which had as its aim to define clearly the status of each individual within each social cla.s.s.

Private persons were no more allowed to erect temples and monasteries.

The number of temples per district was legally fixed. A person could become monk only if the head of the family gave its permission. He had to be over fifteen years of age and had to know by heart at least one hundred pages of texts. The state took over the control of the ordinations which could be performed only after a successful examination. Each year a list of all monks had to be submitted to the government in two copies. Monks had to carry six identification cards with them, one of which was the ordination diploma for which a fee had to be paid to the government (already since 755). The diploma was, in the eleventh century, issued by the Bureau of Sacrifices, but the money was collected by the Ministry of Agriculture. It can be regarded as a payment _in lieu_ of land tax. The price was in the eleventh century 130 strings, which represented the value of a small farm or the value of some 17,000 litres of grain. The price of the diploma went up to 220 strings in 1101, and the then government sold 30,000 diplomas per year in order to get still more cash. But as diplomas could be traded, a black market developed, on which they were sold for as little as twenty strings.

(B) Period of Moderate Absolutism

(1) The Northern Sung dynasty

1 _Southward expansion_

The founder of the Sung dynasty, Chao K'uang-yin, came of a Chinese military family living to the south of Peking. He advanced from general to emperor, and so differed in no way from the emperors who had preceded him. But his dynasty did not disappear as quickly as the others; for this there were several reasons. To begin with, there was the simple fact that he remained alive longer than the other founders of dynasties, and so was able to place his rule on a firmer foundation. But in addition to this he followed a new course, which in certain ways smoothed matters for him and for his successors, in foreign policy.

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.

[Ill.u.s.tration: 10 Ladies of the Court: clay models which accompanied the dead person to the grave. T'ang period. _In the collection of the Museum fur Volkerkunde, Berlin_.]

[Ill.u.s.tration: 11 Distinguished founder: a temple banner found at Khotcho, Turkestan. _Museum fur Volkerkunde, Berlin, No. 1B_ 4524, _ill.u.s.tration 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 cla.s.s, 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.