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PREFACE

IN presenting the economic teachings of Confucianism, Dr. Chen has adopted the same order of arrangement that has become usual in English treatises on political economy. The danger which this plan involved of creating the impression of a more systematic exposition of economic principles than is to be found in the sacred writings, is much more than outweighed by the large number of clear anticipations of the accepted economic teachings of to-day which it reveals. Incidentally it enables the author, with his wide acquaintance with the best English economic literature, to bring out many interesting contrasts between Chinese civilization and the civilization of the Occident. His discussions of such institutions as the family, marriage, private property and the position of woman have an interest and value quite apart from their relation to the main purpose of his study.

No one can read these pages without becoming convinced. that Confucianism is a great economic, as well as a great moral and religious, system and that it contains most, if not all, of the elements necessary to the solution of the serious problems that confront China to-day. That these problems may be speedily and happily solved and that Dr. Chen may take the prominent and distinguished part in the reformation of his country for which his high character and unusual attainments so well fit him is the earnest hope of his American friends.

HENRY R. SEAGER, Professor of Political Economy.

COLUMBIA UNIVERSITY, OCTOBER 15, 1911.

AUTHOR'S PREFACE

THE following treatise includes a discussion of the economic principles of the chief disciples of Confucius in successive dynasties, as well as of the teachings of the Master himself, and, briefly for purposes of comparison, of the leaders of other schools, e. g., those of Kuan Tzŭ, Lao Tzŭ, Mo Tzŭ, Shang Yang, and Hsü Hsing. It was deemed best to combine with the discussion of economic theory some consideration of economic history. Consequently the conditions out of which the theories arose and to which they were to be applied have usually been described. The canonical writings were taken as primary sources, and the historical writings as secondary. In connection with every theory and institution considered, the attempt has been made to throw light upon its origin and earliest development. Because of the wealth of material, only the most important or most interesting historical facts since the Han dynasty have received attention. Although some information in regard to conditions in China to-day is given, it was not thought desirable to go very much into detail, because these conditions are in process of revolutionary change and many questions are still unsettled.

The treatise is, therefore, essentially a study of the old régime in China. It is a survey of the Chinese thought and Chinese institutions which developed independently of the Occident. Although my arrangement of the material follows that which has become conventional among western writers and my understanding of the old texts was greatly helped by western thinkers, I have been very careful not to read into the writings of the ancient Chinese ideas drawn from modern western economists. All my statements are based upon the words or the spirit of the words of the

original texts, and are in harmony with the whole system of Confucius as revealed by a comparative study of the various sources. In support of my interpretation numerous quotations and references are given. The Confucian writings may be compared to a great mountain containing rich mineral resources. I am in the position of a miner, extracting a particular ore and contributing it to the world's production. As the miner does not create the ore itself, but through his labor in exploring, digging and refining makes it available for human use, so I have tried to add something to human knowledge. My task has been so great that I have doubtless made some mistakes, but I have earnestly tried to be accurate in all my statements. This is the first attempt to present the economic principles of Confucius and his school in a systematic form in any language. At some future time I intend to translate this book. into Chinese.

I am under heavy obligations to many persons. My greatest indebtedness is to Kang Yu-wei, my former teacher, from whom I obtained a general view of Confucianism. From my American friends, especially among the professors and students of Columbia University-e. Professors John Bates Clark, Edwin R. A. Seligman, Friedrich Hirth and Warren B. Catlin-I received many ideas and secured assistance in various ways. My greatest obligations, however, are to Dr. and Mrs. B. M. Anderson, Jr., who corrected the greater part of my manuscript; to Professor Henry Rogers Seager, who made numerous suggestions and corrections throughout the whole book; and to Professor Henry Raymond Mussey, who read all the proof sheets.

CHEN HUAN-CHANG.

COLUMBIA UNIVERSITY, NEW YORK, the seventh day of the seventh month, two thousand four hundred and sixty-two years after Confucius, (August 30, 1911 A. D.).

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