Chapter 17 Section 6 Money Saving Prohibition and Deflation

In the process of solving inflation in the previous stage, the money contraction was too tight; and because the situation gradually stabilized and the economy recovered, the demand for money increased, the gap between money supply and demand widened, money was in short supply, and money tightened.In Kaiyuan, there were more than 70 coin-making furnaces across the country, with a total of more than one million coins minted each year, which was reduced to 327,000 coins in Tianbao's 11th year.During the reign of Emperor Xianzong, 135,000 coins were minted.In Wenzong's time, it was less than 100,000 yuan.At the same time, the demand for coins in the market continues to increase. First of all, more and more money is used for taxation.After the implementation of the two-tax law in the first year of Jianzhong (780 A.D.) of Dezong, all taxes were collected in money.In the same year, the commercial tax was thirty and one, and in the fourth year of the founding of the People's Republic of China, the "intermediary tax" (property tax) and the "removal tax" (transaction tax) were levied.At the beginning of the ninth year of Zhenyuan (793 A.D.), tea was taxed at one tenth, and the price of salt was increased by one hundred dollars per bucket.These measures increase the demand for coins.Secondly, the copper coins collected by the government from various channels are stored in the treasury, and they are only collected and not released.Third, the area where money is used is expanded. "Before the Dali, Ziqing, Taiyuan, Weibo trade miscellaneously used lead and iron, Lingnan miscellaneously used gold, silver, cinnabar, and elephant teeth, and now they use money." ("Tongjian" Volume 242) Fourth, foreign trade Developed, with frequent exchanges of foreign businessmen, a large outflow of copper coins.

In response to the shortage of coins mentioned above, the Tang Dynasty solved it from three aspects.First, increase the circulation of copper coins.Continue to reward copper mining, prohibit the casting of copper ware, the government purchases copper materials, mines more than 200 ancient copper pits, adds furnaces to cast money, and releases the money from the internal treasury to the market.Emperor Wuzong confiscated the artifacts of Taoist statues and artifacts in temples to cast Huichang Kaiyuan coins.Allow new and old money to circulate at the same time.Take the above measures to continuously increase the circulation of copper coins in the market.Second, limit the storage of copper coins and speed up the circulation of copper coins, that is, expand the supply of copper coins from another perspective. This is what it means to "prohibit saving money".In the twelfth year of Emperor Xianzong Yuanhe (817 A.D.), it was strictly forbidden to save money, regardless of the officials and the people, and private storage of cash money should not exceed 5,000 guan.The excess can only be used up within two months.However, the feudal towns, officials, and wealthy businessmen colluded with each other and stored them in disguise.In the fourth year of Changqing (824 A.D.), Mu Zong relaxed the time limit, stipulating that if the savings exceed 10,000 to 100,000 guan, it should be used within one year; if it exceeds 100,000 to 200,000 guan, it should be processed within two years.These methods are all to limit the amount and storage time of copper coins, promote the market as soon as possible, speed up the flow and increase the circulation of copper coins.Third, use various credit institutions and credit circulation tools to regulate the circulation of copper coins, increase the circulation of coins and speed up the circulation from the other side.