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fore, Confucius says: "When a child is trained completely, his education is just as strong as his nature; and when he practices anything perpetually, he will do it naturally as a permanent habit." 1

This is Confucius' plan for changing human nature. If every generation of the world would put it in practice, human nature would soon be perfect. It is the same principle as that man should control nature in the economic world. Man must control nature not only without him, but also within him, so that progress will be complete and continuous.

1 Bk. xlviii.

CHAPTER X

ECONOMIC ORGANIZATION

I. THE WHOLE WORLD AS THE LARGEST ORGANIZATION

WHEN We come to the topic of economic organization, we must say that according to the view of Confucius, there are two organizations. The one is the largest-the world; the other, the smallest-the family. As Chinese philosophy is mostly synthetical, going from the whole to the part, and as world economy is a special theme of Confucius, we shall take up the largest organization first, in order to show the economic thought of Confucius prominently and clearly.

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How do we know that Confucius regards the world as an economic organization? It is found in the "Great Learning." The "Great Learning" may be called the catalogue of the teachings of Confucius. The objects of the principles of the "Great Learning are three: to brighten the brilliant virtue, to renovate the people, and to rest in the highest excellence. The first object is to care for the individual himself; the second for the other people as a whole; the third is the perfect state which forms the goal for the other two objects. Having understood these three objects, we now come to its eight subjects: (1) the investigation of things; (2) the extension of knowledge; (3) sincerity of thought; (4) composing the mind; (5) the cultivation of the personality; (6) the regulation of the family; (7) the governing of the state; (8) the equalization of the whole world. These eight subjects are taken step by step, one following another; yet the student must

have the whole world in view from the beginning. Among all the eight subjects, the cultivation of the personality is the root of everything. From this point, Confucius regards the individual as the unit. But sincerity of thought is, in turn, the root of cultivating the personality.

Having understood the whole outline of the "Great Learning," we come now to see how Confucius regards the whole world as an economic unit. We have already seen that Confucius ascribes very much importance to economic life. But, in the "Great Learning," he does not say a single word about economic life until the last chapter-namely, the equalization of the whole world. It is not for the cultivation of the personality, not for the regulation of the family, not for the governing of the state, but for the equalization of the whole world, that Confucius gives his economic principles. He feels that the whole world is the economic unit, and that the economic life can never be confined to any particular person, family or state. The student can never study economics completely unless he takes the world as a whole. And the world can never be equalized unless the economic life of the whole world is equal. This is a special concept of Confucius.

The economic principles given in the "Great Learning " are conspicuous above all the other economic principles given in other Confucian books. The reason is simply that the "Great Learning" simplifies the principles for equalizing the world into only two things-namely, employing the best men, and administering wealth. Hence, everyone knows that a part of the "Great Learning" is devoted to the principles of economics. What we wish to emphasize is, however, that Confucius has the world economy in his mind, and that he thinks about the world as an economic unit.

But we must understand that the economic principles of the “Great Learning" are very general. Although they

are given in the chapter on the equalization of the world, it does not mean that they are fitted only for world economy. Indeed, they can be applied to either a person, a family, or

a state.

All other economic principles given in the "Great Learning" are quoted in other places, and we shall quote here only one, the fundamental principle of world economy;namely, the principle of reciprocity. It is stated in a metaphorical sense as follows:

What you do not like above, do not place below; what you do not like below, do not place above; what you do not like in front, do not shift to the back; what you do not like in back, do not turn to the front; what you do not like on the right, do not bestow on the left; what you do not like on the left, do not bestow on the right;-this is what is called the principle with which we are, as with a measuring-square, to establish the law of justice.1

The principle of reciprocity, as stated in the second chapter, is one of the fundamental concepts of Confucius. But there it is discussed from the purely moral point of view. Here we must consider it from the economic and political point of view. The principle is the same, but its application is a little different. Taking this principle as the basis of world economy, it develops commercial policy and international law. It is the golden rule of the business world, and we cannot say that there is no moral standard for politics and diplomacy.

The economic system of Confucius is not nationalism, but cosmopolitanism. Before Confucius, economic theories were mostly like the doctrines of the mercantile school and took the nation as the unit. The chief representative was Kuan Tzu, who was the most successful minister for the

1 Classics, vol. i, pp. 373-4.

He was

realization of mercantilism and of state socialism. the first one to have a complete economic system which we can see to-day. But we have no room to deal with his economy, and the only reason we mention him is to contrast him with Confucius.

1. Doctrine of Peace

The most important principle for international relations. is the doctrine of peace. This doctrine is based not only on the principle of humanity, but also on that of utility. Confucius says: "Talking about sincere agreement and cultivating universal peace are what are called the advantages of men. Fighting, plundering, and killing each other are what are called the calamities of men.” 1 In the Spring and Autumn, Confucius records about four hundred wars within the period of two hundred and forty-two years, and condemns them all, for war is contrary to the principle of humanity. Therefore, Mencius says that in the Spring and Autumn there are no righteous wars. He holds that military force is used only as a punishment by the supreme authority to its subjects, but that the independent states have no right to engage in such punitive war against one another.2 For the condemnation of war, Mencius gives many passages in very strong language. He says:

When contentions about territory are the ground on which they fight, they slaughter men till the fields are filled with them. When some struggle for a city is the ground on which they fight, they slaughter men till the city is filled with them. This is what is called "leading on the land to devour human flesh". Death is not enough for such a crime. Therefore, those who are skilful in fighting, should suffer the highest punishment.3

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