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be taken away by confiscation as in the theory of Henry George. Throughout the whole history of China, Wang Mang was the only one who nationalized the land by a policy of confiscation. However, even he did not touch those who owned no more than one tsing. If a family had only one hundred acres, it was saved from confiscation. Moreover, after three years, he abolished the law of land confiscation. As Wang Mang was condemned by the Confucians, no one thought thas his confiscation policy was right. Therefore, the land of China will probably remain in the hands of private owners forever, unless there shall be a new form of socialism.

CHAPTER XXVII

MONOPOLY

I. CONDEMNATION OF MONOPOLY

CONFUCIUS hated monopoly; but monopoly was condemned before the time of Confucius. In 298 B. K. (849 B. C.), when Chou Li Wang loved gain and was going to employ Duke Yung, Jui Liang-fu gave him a warning as follows:

Profit is the product of all things, and the fruit of heaven and earth. If one monopolizes it, he will cause much hatred. Since all people are getting profit from heaven and earth and all things, why should it be monopolized? . . . Even when one of the common people makes monopoly, he should be called. a robber. If your Majesty practices it, there will be very few people who come to you.

Li Wang did not heed this admonition, and employed Duke Yung as minister. The result was that he was banished by the people.1

The theory of Jui Liang-fu is harmonious with that of Confucius. It will be convenient to treat Confucius' theory in accordance with modern categories, and we may classify monopoly first into two grand divisions, private and public. We may classify public monopoly as fiscal and social; private monopoly as personal, legal, natural, and business. Let us consider them in this order.

Narratives of Nations, bk. i.

II. PUBLIC MONOPOLIES.

By public monopoly, we mean monopoly by the public at large, not by the ruler of any government. The ruler himself not only should establish no monopoly, but should make no profit at all. According to the principles of Confucius, if public monopoly is called for, in order to regulate production, distribution, or consumption, it would be approved. For example, the nationalization of land and the control of natural resources are principles of his. Judging from his ideas, all natural monopolies, such as wagon-roads, streets, canals, docks, bridges, ferries, waterways, harbors, lighthouses, railways, telegraphs, telephones, the postoffice, electric lighting, waterworks, gasworks, etc., should be public monopolies, either municipal, or national, or even universal.

If the public monopolizes a thing simply for fiscal reasons, however, Confucius would not approve it. The government monopolies of salt and iron, originated by Kuan Tzů, would not conform to the ideal of Confucius, because prices are thereby raised. In short, public monopoly for social reasons is good, but public monopoly for fiscal reasons is not.

As to ordinary business, Confucius thinks that the state should control prices, but should not monopolize the whole market. So far as there is no natural monopoly, and competition is possible and desirable, Confucius will not let the state establish monopoly. Although the state should be the regulator of prices, such action is not monopoly, but simply helping to free competition and destroy private monopoly. These are the general principles of Confucius in regard to public monopoly.

III. PRIVATE MONOPOLIES

1. Personal Monopolies

Confucius opposes private monopoly, with few exceptions. Take personal monopoly first. Confucius is very glad, indeed, to give special honor and wealth to men who possess extraordinary virtue or ability. Therefore, honoring the virtuous and employing the able, and putting the distinguished men in high positions, is a principle of Confucius. But such a temporary personal monopoly is not for the sake of the individuals, but for that of society at large. Confucius says: "Employ the upright and put aside all the crooked; this way can make the crooked upright." Therefore, to grant rewards to the individuals who hold personal monopoly is not only doing them justice, but also giving all others inspiration. Even personal monopoly, however, Confucius does not let alone, but he makes the people acquire it by education. Hence the system of universal free education arises, and the power of personal monopoly is diminished by popular education.

2. Legal Monopolies

1

As to legal monopoly, Confucius would not approve it. When Chung-shu Yu-he, an officer of Wei, showed military ability (38 B. K.), Wei rewarded him with a city. He refused it, and asked for the right to use the suspended instruments of music disposed incompletely, and the saddle-girth and bridle-trappings. These things were legally used only by the prince of a state, but such a right was granted to him. When Confucius later heard of this, he said:

Alas! It would have been better to give him many cities. It is only peculiar articles of use, and names, which cannot be granted to others than those to whom they belong; to them a

1 Classics, vol. i, p. 261.

ruler has particularly to attend. By the right use of names he secures the confidence of the people. By that confidence he preserves the articles distinctive of ranks. In those articles the ceremonial distinctions of rank are hid. By those ceremonial distinctions justice is practised. By justice, socal profit is produced. By social profit the people are equalized. Attention to these things is the condition of good government. If they be conceded where they ought not to be conceded, it is giving away the government to the recipients. When the government thus perishes, the state will follow it; it is not possible to arrest that issue.1

If, according to the principles of Confucius, even the right to use certain articles should not be granted, there is no reason why the government should grant legal monopoly. The legal right of establishing monopoly is included in the word "names" used by Confucius. It is a part of sovereign power, and should not be given to any private person. This is for the profit of the whole society and for the equality of the people.

In Chinese history, no legal monopoly has been given to private persons by the government, except in one instance. In 1837 (1286 A. D.), Yüan Shih Tsu granted the seals of paper money to Chang Hsüan and Chu Ts'ing, and let them make paper money, on account of their service in seatransportation. When their wealth was equal to that of the state, the government killed them on some excuse, because it was afraid that they would be a danger to the state." Legal monopoly is generally not good for society at large.

A limited legal monopoly, such as copyrights and patents, however, Confucius would approve. Since his philosophy is based on a justice that is practised by a system of rewards,

1 Classics, vol. v, pt. i, p. 344.

2

Continuation of the General Research, ch. ix.

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