Chapter 18 Circulation Reform: Equal Loss and Leveling

If there are precedents to follow in industrial reform, then the reforms carried out by Emperor Wu in the field of circulation are completely groundbreaking.There are two main policies: one is "equal loss", which means unified purchase and marketing; the other is "equalization", which means price control. According to the law of the Han Dynasty, all counties and states must pay the local specialties to the imperial court. At that time, this was the most valuable transaction item.Due to inconvenient transportation, the transportation cost of these tributes is very high, and the purchase and storage are very complicated, and there are even cases where merchants from all over the country take the opportunity to drive up prices.Sang Hongyang proposed the method of equal loss, stipulating that all tribute products should be purchased by the government at the local market price, and then transported by government-run transportation agencies to other regions that do not produce such products and sold at high prices.The imperial court set up Junshu orders under Da Nong Cheng, and Junshu officials were set up in various places, establishing a state-owned commercial network under the unified management of the central government.

While vigorously promoting the equalization method, Sang Hongyang also adopted a new price management measure, which is the equalization method.It means that the state controls the country's materials and sales to balance prices. It complements the equalization and becomes an important tool for the central government to control the market and obtain benefits from the circulation field.Equalization and leveling, one is to manage the retail market, the other is to control the wholesale link. The two cooperate with each other to form a unified system of state-owned commerce. Its functions are equivalent to the Ministry of Materials and the Price Committee. It is a very typical mode of operation of the planned economy. , After 1949, the state-run circulation model constructed by Chen Yun and others in China was very similar to this.

The establishment of this state-owned commercial system enabled the central government to control the circulation of important materials across the country, and its effects were quickly shown in a short period of time.According to historical records, within one year, the two central grain depots—Taicang and Ganquan depots—were filled with grain, and even the granaries in the border areas had surplus grain, and the surplus obtained through equalization was five million pieces of silk (silk) In the Han Dynasty, it could be used as currency circulation).Even Sima Qian had to make a famous comment, "The people don't benefit from taxes, but the world uses them"-the common people did not pay more taxes, but the finances became extremely abundant.Ironically, the increase in government revenue is not due to the increase in production efficiency, but rather the redistribution of existing social wealth between the government and the private sector.