After broadcasting the ancient times live, I handed the system over to the state.

The first priority is definitely to increase national fiscal revenue.

Here, salt sales are directly linked to currency, allowing the government to receive direct monetary revenue. This immediately alleviates the pressure of frontier military expenditures and reduces government costs, resulting in higher fiscal efficiency.

It was also one of the important financial pillars of the Northern Song Dynasty in the mid-to-late period.

Secondly, it promoted the development of the commodity economy. Here, Lu Rao explains in more detail and depth how the salt certificate system drove the salt industry and transportation, how it expanded the sales network, how it promoted regional commodity circulation, and how it stimulated the activity of private capital.

The economies of salt-producing and sales areas were closely linked by the salt currency system, gradually leading to a period of prosperity.

Moreover, the salt certificate system reduced the cost of salt circulation, curbed illegal salt trade, stabilized the market, and prevented drastic fluctuations in salt prices.

Unfortunately, during the reign of Emperor Shenzong, the salt certificate system was later linked to the sale of salt and the purchase of horses, which almost caused the salt certificate system to collapse.

The sharp devaluation of salt certificates displeased Emperor Shenzong, so he appointed Wang Anshi to take over. Wang Anshi established the Market and Trade Bureau and took over the salt laws, aiming to sell the salt to more distant places. He did succeed in doing so.

Lu Rao remained calm as he said, "Afterwards, the government sold large quantities of salt certificates, even at reduced prices, which caused the salt certificates to depreciate even faster. Emperor Shenzong directly sent Shen Kuo and others to take over."

Although Lu Rao did not say it explicitly, everyone knew that he did this during Wang Anshi's reforms, but no one blamed Wang Anshi because he had no choice but to do it.

Fortunately, Lu Rao's account of the Song-Xia War was quite detailed, allowing the Tang Dynasty people, the early Song Dynasty people, and the common people under the sky to know that it was during the Song-Xia War.

To alleviate financial pressure, this was a last resort. In order to quickly recover funds, they had to sell salt certificates as soon as possible, or even lower prices.

Many people could see the crisis at play. The government had shifted from profiting from salt to profiting from paper money. The amount of paper money sold far exceeded the salt ponds' production capacity. But what could the country do when it was going to war?

Shen Kuo and others worked hard to raise the price of salt certificates and try to bring it back to its original level. They expanded the area under the Trade Law, reduced the areas under government monopoly, and increased economic activity, which was indeed very effective.

However, the official trade system was later reinstated. During the reign of Emperor Cheoljong, the new law was rejected, and the trade law was expanded. Not long after, the system was restored to its original state.

And so it went, over and over again.

During Cai Jing's rule, he introduced sea salt into the salt currency system, causing salt prices to plummet. What followed was a constant struggle between sea salt and land salt. However, the government's revenue from salt had completely shifted from profiting from salt production to profiting from currency. The plummeting salt currency never returned to its previous price.

Those watching from below the canopy were exhausted, whether it was the repeated annual tributes from the Western Xia or the current repeated salt laws.

So the emperor was the most unstable factor in the operation of the country?

After all, even if the officials below wanted to express their political demands, they would follow the emperor's wishes.

They will meet an enlightened ruler, and ministers will also meet a good monarch. The emperor who allows them to implement their political ideas is the one they love.

The changes in salt laws were naturally influenced by the relationship between the Song and Xia dynasties. When the Song and Xia went to war or their relationship was tense, the Song dynasty would change salt to a state monopoly. When things returned to normal and economic vitality was needed, salt would be allowed to trade again.

However, the trade law actually resulted in losses for the country's salt industry. Han Qi, Song Xiang, and Wang Yaochen had done a detailed calculation and found that more than two million strings of cash were lost during the ten years that the trade law was in effect.

The annual tribute given to the Western Xia over the past thirty years amounted to more than two million strings of cash, while a war between the Song and the Western Xia cost more than twenty million strings of cash, which is one-tenth of the total.

Therefore, the government always thought of the government monopoly system in order to recover the profits from salt production. However, the government monopoly system was not very effective. As mentioned above, there are always countermeasures to policies.

In the end, it turned into a waste of manpower and resources.

……

Lu Rao created a simple animation that included the situation between the Song and Xia dynasties at the time, the changes in the salt laws due to the changing situation, and why the Song dynasty kept changing the salt laws.

Naturally, they did not gain any benefit from it.

This also reveals how the original trade law and official monopoly law gradually evolved into the salt certificate system.

How did Fan Zhongyan and the policies of the imperial court gradually change?

Another factor that prompted the salt law reform was also related to the relationship between the Song and Xia dynasties.

When relations between the Song and Western Xia dynasties eased somewhat, the Western Xia people proposed allowing their salt to be sold in the Song market, which aroused the vigilance of Fan Zhongyan and others.

As Lu Rao spoke these words, Fan Zhongyan, who was sitting below, was reminded of those events.

China has a long history, which has the advantage of providing answers to many questions in historical records.

They were also familiar with Guan Zhong's battles against Lu and Liang, and Lu against Chu.

The sheer quantity of salt produced by the Western Xia Dynasty was enough to impact the Song Dynasty's salt industry after it entered the Song Dynasty, thereby reducing the Song court's salt tax revenue and, in turn, providing the enemy with a stable source of revenue.

Since salt production was the main source of income for the Western Xia, introducing Western Xia's bluish-white salt would be tantamount to aiding the enemy.

If they were fattened up, would the Song Dynasty have the ability to reap the harvest?

Therefore, the new salt law must have the following advantages: firstly, it should be able to resist the entry of coarse salt and smuggled goods; secondly, it should be affordable and readily available to the people on the border, thus expanding the market; thirdly, it should address the losses of the old salt law, save on management costs, reduce salt taxes, and provide military funds for the soldiers on the border...

With both desired and desired, the meticulously designed salt certificate system was born.

The new salt law was relatively comprehensive and worked well for more than a decade. However, during the reign of Emperor Shenzong, it was slightly altered, changing the nature of the salt law and causing the salt paper money to depreciate.

However, one of the important conditions for the implementation of the salt certificate system was the easing of relations between the Song and Xia dynasties.

Otherwise, the pressure exerted by the Western Xia on the northwestern border would have also distorted the salt and paper money system.

Lu Rao had sorted out all the relationships from beginning to end, and everyone below, whether they knew the intricacies of it or not, felt thoroughly refreshed and comfortable.

Besides the salt law, we should also talk about the tea law, which was also a major source of national fiscal revenue.

There was no break in the afternoon, and Lu Rao began to talk about policies such as tea law and currency in one go.

In fact, the Song Dynasty was not entirely spineless. It was not that they were incapable of fighting, but rather that they could not easily wage war, for any action could have far-reaching consequences.