The Aftermath of Rebellion and the Quest for Stability
In 763 AD, just one year after ascending the throne, Emperor Daizong of Tang witnessed the end of the eight-year An-Shi Rebellion. The rebel leadership collapsed from within: Shi Siming was killed by his son Shi Chaoyi, who, lacking support and facing continuous defeats, eventually committed suicide.
Although the rebellion was quelled and generals like Guo Ziyi were rewarded, the empire lay in ruins. The capital, Chang’an, faced a critical shortage of food and funds to support its officials, soldiers, and populace. Emperor Daizong realized that without sufficient grain and revenue, stability was impossible. He urgently needed a capable administrator to manage finance and production. His choice fell on Liu Yan, a seasoned official known for his integrity and people-centric governance during the reigns of Xuanzong and Suzong. Despite having been demoted previously for offending powerful ministers, Liu Yan was recalled by Daizong to oversee transportation, disaster relief, taxation, salt, and coinage.
A Philosophy of Preventive Governance
Liu Yan outlined a clear strategy to his colleagues: “The nation is impoverished by war and disaster. We must practice thrift, relieve refugees, and prioritize the people’s welfare to prevent further displacement. Only when the people are settled can the state prosper.” He proposed three key measures: first, to conduct thorough surveys to predict disaster relief needs, allowing for immediate aid without bureaucratic delays; second, to encourage the production of local goods and handicrafts, which the state could purchase with grain, thus supplementing food supplies without increasing expenditure; and third, to establish “Ever-Normal Granaries” to stabilize grain prices and provide emergency reserves. This proactive approach, likened to a skilled physician preventing illness rather than just curing it, restored confidence among farmers and reduced flight from stricken areas. Even during local conflicts, such as the rebellion of Li Lingyao which blocked transport routes, Liu Yan refused to raise taxes, instead using surplus reserves to cover deficits, adhering to his principle of “not increasing the burden on the people.”
Revolutionizing the Salt Monopoly
Before Liu Yan, the salt monopoly under official Di Wuqi was rigid: the government controlled production, transport, and sales, setting high prices that burdened the poor and displaced private merchants. Remote areas often lacked salt entirely. Liu Yan reformed this system in the eastern regions by shifting to a model of “government purchase, merchant sales.” The state bought all salt produced by workers and sold it to licensed merchants, who were then free to transport and sell it without transit taxes. Prices in remote areas were mandated to be lower. This incentivized merchants, ensured affordable salt for the populace, and dramatically increased state revenue – salt profits grew tenfold, accounting for half of the empire’s total tax income. Impressed, Emperor Daizong tasked Liu Yan with another critical challenge: the Grand Canal transportation system.
Revitalizing the Grand Canal
The supply line from the Yangtze and Huai river regions to Chang’an was perilous, spanning over a thousand miles of treacherous waters and difficult land routes. During the rebellion, this route had been severed, leading to famine in the capital. Liu Yan personally inspected the entire route, traveling from Chang’an through Henan to the Huai River. He surveyed terrain, water currents, and local conditions, engaging with villagers to understand their plight. Based on his findings, he proposed utilizing the Yangtze, Yellow, Bian, and Wei rivers as the main artery. He mobilized workers and soldiers to dredge channels, reinforce banks, and build ships. When wealthy landlords in Danyang illegally reclaimed parts of Lian Lake (a crucial water source) for farming, reducing water flow, Liu Yan swiftly ordered the land returned to the lake, restoring the water level and earning the gratitude of local farmers.
Innovation in Transport and Logistics
To address challenges like labor shortages, banditry, and military interference, Liu Yan nationalized the transport system. Costs were covered by salt taxes, and workers were hired rather than conscripted, reducing local burdens. He established specialized training for boatmen familiar with specific river sections and built ten shipyards in Yangzi County to construct vessels tailored to different water conditions. For the dangerous Sanmen Gorge, he designed sturdy ships and organized them into convoys of ten, using poles and tow ropes to navigate safely. His meticulous planning yielded remarkable results: for several years, not a single grain of rice was lost in transit. When the first grain convoy arrived in Chang’an, the citizens celebrated as if it were a festival. Emperor Daizong praised Liu Yan, comparing him to Xiao He, the famous Han Dynasty chancellor.
Court Intrigues and Lingering Threats
Emperor Daizong’s reign also saw efforts to maintain harmony among the nobility. In a famous incident known as “Beating the Golden Branch,” his daughter, Princess Shengping, quarreled with her husband, Guo Ai (son of General Guo Ziyi). Guo Ai struck the princess after she insulted his father’s loyalty. When the princess complained to the Emperor, Daizong laughed it off, acknowledging Guo Ziyi’s immense contribution and refusal to seize the throne. He mediated the dispute, advising Guo Ziyi to ignore the young couple’s spat. However, while Daizong managed family disputes well, he struggled to curb the power of eunuchs and regional warlords. Although he eliminated powerful eunuchs like Li Fuguo, Cheng Yuanzhen, and Yu Chao’en, the institution of eunuch power persisted and grew. Similarly, he failed to effectively restrain the Jiedushi (regional military governors), leaving seeds of future instability. After seventeen years on the throne, Daizong died, succeeded by his son Li Kuo (Emperor Dezong), soon to face new turmoil.
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