Modern Text: Discourses on Salt and Iron

During the reign of Emperor Zhao of Han, the court held a debate on state affairs to examine whether the policies left behind by Emperor Wu of Han still needed to be carried out. Since the discussion focused mainly on the state monopoly on salt and iron, it came to be known in history as the Salt and Iron Conference. The conference was presided over by Huo Guang. One side consisted of old ministers from Emperor Wu's reign, including Chancellor Tian Qianqiu and Imperial Secretary Sang Hongyang, who naturally defended the state monopoly on salt and iron. The other side consisted of newly appointed officials who believed in Confucian teachings and called for the policy to be abolished in favor of a free-market economy. The state monopoly on salt and iron was introduced because Emperor Wu's constant military campaigns had strained the treasury, leading him to intervene in the economy and compete with merchants for profits. In fact, in his later years, Emperor Wu reflected on this in his “Edict of Repentance at Luntai,” stressing that the state should focus on farming in the future. By Emperor Zhao's reign, the court hoped to put this into practice and ease restrictions. After Huo Guang took power, his struggle for influence with veteran ministers such as Sang Hongyang grew increasingly intense. He therefore initiated the Salt and Iron Conference to sway public opinion and undermine the political standing of Sang Hongyang and others. At its heart, this was a clash between Confucianism, which valued righteousness, and Legalism, which valued profit. The debate gradually expanded to cover politics, economics, military affairs, diplomacy, and culture. During Emperor Xuan's reign, Huan Kuan compiled the work from records of both sides' statements. It has long been an important source for the study of the history of Chinese economic thought, particularly that of the Western Han dynasty.