contributor
27,126
edits
Changes
From SamuraiWiki
Jump to navigationJump to search→Economics
==Economics==
==Economics==
The Song court's revenues far exceeded those of any other major government in the world, at that time. More than half of the state's revenues were obtained through monopolies imposed on the production of rice wine, and key mineral resources such as salt, copper, and alum. Private commerce was quite active in a great variety of fields, ranging from iron mining and metallurgy to sericulture, textiles, tea, porcelain, paper, and sugar. Government involvement in private enterprise consisted chiefly of actions taken to ensure the free flow of goods, and the prevention of monopolistic or cartel behaviors. Certain goods, such as iron, books, and bronze coin, believed to be of particular strategic importance, were forbidden from being exported (but flowed out of the country, including into Japan, nevertheless).
The Song court's revenues far exceeded those of any other major government in the world, at that time. More than half of the state's revenues were obtained through monopolies imposed on the production of rice wine, and key mineral resources such as salt, copper, and alum. Private commerce was quite active in a great variety of fields, ranging from iron mining and metallurgy to sericulture, textiles, tea, porcelain, paper, and sugar. Government involvement in private enterprise consisted chiefly of actions taken to ensure the free flow of goods, and the prevention of monopolistic or cartel behaviors. Certain goods, such as iron, books, and bronze coin, believed to be of particular strategic importance, were forbidden from being exported (but flowed out of the country, including into Japan, nevertheless).
During the 11th century, China produced perhaps as much as 125,000 tons of iron a year, more than twice the total output of Europe, using coke (refined coal) as fuel for piston-driven blast furnaces (blast furnaces driven by water-driven bellows would not be invented in Europe until after 1300). This iron production dropped off dramatically after the Jurchen invasion of 1127, however.<ref>Bonnie Smith, et al. ''Crossroads and Cultures'', vol. B, Bedford St. Martins (2012), 382.</ref>
In the late 10th century, private merchants in western China began to issue their own private forms of bills of exchange, which customers could then exchange at agents in other regions for actual coinage, or for goods and services. These were replaced in [[1024]] by the government's establishment of an official system of paper money, the first paper money in the world.
In the late 10th century, private merchants in western China began to issue their own private forms of bills of exchange, which customers could then exchange at agents in other regions for actual coinage, or for goods and services. These were replaced in [[1024]] by the government's establishment of an official system of paper money, the first paper money in the world.
By the 1020s, the Song government was minting far more coinage than any previous dynasty. In the 1070s, it was producing nearly 6 billion coins per year, a process which required 9600 tons of copper each year. But even this volume of coinage could not fulfill the needs of the economy, and so paper money continued to play a large role.<ref>Bonnie Smith, et al. ''Crossroads and Cultures'', vol. B, Bedford St. Martins (2012), 385.</ref>
By the 1020s, the Song government was minting far more coinage than any previous dynasty. In the 1070s, it was producing nearly 6 billion coins per year, a process which required 9600 tons of copper each year. But even this volume of coinage could not fulfill the needs of the economy, and so paper money continued to play a large role.<ref>''Crossroads and Cultures'', 385.</ref>
{{stub}}
{{stub}}
