Guanzi replied，“Please send Bin Nuwu to ride to the south, Xi Peng to ride to the north，Ning Qi to ride to the east and Bao Shuya to ride to the west．Aher the decisions on the journeys of these four people are made，please allow me to transmit orders to them as follows：‘Please go to investigate the situation of usury in all the four directions for our sovereign and make clear how many families are indebted and owe interests to the usurers．Then report it to me．’” Bao Shuya rode to the west and then he came back to report (to Guanzi)，“Areas around the Ji River and along the banks of the Yellow River are normally swamplands and people living there are dependent upon fishing，hunting or chopping firewood for survival．The wealthier usurers there normally hoard about one thousand zhong of grain and the less wealthy ones normally hoard about six hundred to seven hundred zhong．When they lend grain to others，they demand an interest rate of one hundred percent，and there are more than nine hundred families living on debit．”

Bin Xuwu rode to the south and then he came back to report (to Guanzi)，“The common people in the south live in mountainous areas and need to climb mountains and traverse valleys all the time．They chop down big trees growing on high places for wood，collect acorns developed in the low-lying places for food and normally also depend on hunting for survival．The wealthier usurers there normally lend tens of millions of qian and the less wealthy ones normally lend about six to seven million qian．When they lend money to others，they normally demand an interest of fifty percent，and there are more than nine hundred families living on debit. ”

Ning Qi rode to the east，and then he came back to report (to Guanzi)，“The common people in the east live in coastal areas surrounded by mountains，and the living conditions for these people are very hard．They normally chop down trees for wood on mountains and go fishing and hunting to make a living．They also support themselves by weaving hemp clothing．Regarding usurers such as the Dings，Huis，Gaos and Guos，the wealthier ones among them hoard about five thousand zhong of grain and the less wealthy ones hoard about three thousand zhong．When they lend grain to others，they demand an interest rate of one hundred percent，and there are about eight hundred to nine hundred families living on debit．”

Xi Peng rode to the north and then he came back to report (to Guanzi)，“The people of the north live in the low-lying coastal areas．Their normal undertaking is steaming salt or catching fish along the Ji River．They also depend on chopping firewood to support themselves．The wealthier usurers there normally lend tens of millions of qian and the less wealthy ones normally lend about six to seven million qian．When they lend money to others，they normally demand an interest of about twenty percent，and there are more than nine hundred families living on debit．”

In conclusion，the total sum of money lent out by the usurers was about thirty million qian；the total amount of grain lent out was about thirty million zhong，and there were about three thousand families living on debit．After all four persons had reported the information they collected，Guanzi said．“I thought that people all ovor the state were under control of our sovereign，however，there are unexpectedly five sovereigns within our state．How is it that the state is not poor and the military strength is not weak?” Duke Huan asked．“Is there any way to rectify this situation?”

Guanzi replied，“The only thing you can do is to take right policy and issue right orders．Please issue an order to ask all the people who are going to present some gifts to you to present them only in terms of silk fabric with beautiful patterns，and then the price of these things will go up ten times easily．Accordingly，the price of those you kept at Zhan Tai will go up ten times as well．After that，please order all usurers to participate in the banquet sponsored by you and ask the prime minister to urge them to drink．Then you can raise your clothes and ask them：‘I have a lot of affairs to handle．Therefore，I have to issue orders to levy taxes and collect money from the people of our state constantly．I have heard that you people have all lent some grain and money to the poor people，so that they can manage to carry out the orders issued by the state．I have some silks with beautiful patterns and the price of each chun is worth at least ten thousand qian．I want to pay all the debts for my poor people at the cost of these silks I kept to make sure that they are not indentured with all kinds of bills any more．’Then the usurers will bend down to bow to you and say all with one voice：‘Your Maj esty is worrying about the people so much， please allow us to bow to you twice and then bring the bills and put them in front of the court hall．’Then you can say：‘No．With your help，the common people of my state can manage to finish ploughing in the spring and weeding in the summer．I am so grateful to you but do not have anything to express my thanks．If you do not accept the silks，1 will not feel easy in the heart．’So，the usurers will bow twice and accept that．Thus，you can offer no more than three thousand chun of silk kept at Zhan Tai and pay all the bills of the common people on all the four sides and release them from the indenture of the debts thev owe．And when the common people of all the four sides hear that，fathers will edify their sons，older brothers will edify their younger brothers as follows：‘Reclaiming wastelands and weeding are urged by the sovereign so sincerely，how should we not pay any attention to that? Our sovereign is worrying about our well-being so much．’That is the so-called ‘Fan Zhun (it refers to the policy taken by the government to drive up the prices of some properties to pay the bills of the common people)’．”

Guanzi said，“In ancient times when Gui Du was visiting a state，he would always make investigations to find out prices of things in the neighbouring states on all the four sides．When the prices of things were higher in other states，he would drive up those of the state he stayed in as well．When the prices of things were higher all over the world but those of one’s own state were lower，the state will be ruined by other states all over the world．” Duke Huan asked，“What do you mean?”

Guanzi replied．“People of the state of Lai used to be good at dyeing fabrics．The price of one chun of thin silk dyed in purple was one zi of gold in Lai，and the price of one chun of silk braids dyed in purple was one zi of gold, too．However，these things were costing ten jin of gold in the state of Zhou．When the merchants of Lai heard that, they purchased all these products，and then the state of Zhou bought them from the merchants of Lai and paid them in terms of bonds．Thus，the state of Lai became the owner of these bonds．As a result，Lai lost all its dyed fabrics and only controlled these bonds． So，when there are some advantages，just take them，and when there are some opportunities，just grasp them．That is the right way to control other states all over the world by opportunities provided by these states．That is the so-called ‘Guo Zhun (it refers to right policies taken by a state to keep financial balance and gain profits)’．”

Duke Huan said，“The western part of our state often suffers from floods．And therefore the common people living there are hungry (while food supply there is inadequate)．And fields of the eastern part of the state of Qi are fertile and therefore grain is sold at a very low price there．I am thinking of adjusting the difference between the high price in the east and the low price in the west．Do you think there is a way to do that?”

Guanzi replied，“Nowadays，in the western part of Qi，the price of one fu of grain is one hundred qian，and that of one shu (“shu” is a unit of ancient  Chinese dry measure) should be twenty qian．However，in the eastern part of Qi，the price of one fu is ten qian，and that of one shu should be two qian．Please issue an order to collect thirty qian from each person of the state and make certain that people all pay this amount of money in terms of grain．Thus，each person in the western part can extinguish the head money with three dou of grain, and people of the eastern part of Qi should pay three fu for it．As a result，grain produced in the eastern part of Qi will all be stored at the national granary．Hence，people living in the west who are suffering from hunger will obtain food，those who are suffering from cold will obtain clothes，those who are short of means will be granted with the store of grain of the state，and those who are short of seeds will be granted with newly produced grain (as seeds)．Thus，the eastern part and the western part can help each other and prices of things produced both in the remote areas and in the nearby ones can be regulated．”

    Duke Huan said,“Now that I have heard the measures for regulating the demand and supply，please tell me something about keeping the economic balance of the state．” Guanzi replied，“When the first month of the spring season comes，the conduits might be silted and thus，waters of streams and valleys can be blocked and cause floods．As a result，the residential buildings will be destroyed，the walls will be demolished，and fields and crops will be damaged．Hence，the common people will dump their belongings to raise money for the taxes on water conservancy collected by the state．You should take advantage of this to purchase these things．When the midsummer comes，the state is short of canopies，veils and clothing．Then the common people will dump their belongings to trade for clothing collected by the state and you can take advantage of it to purchase these things．When the mid-autumn comes，all weapons and corselets of the state need to be repaired and strings should be collected for the bows．Therefore，the common people will dump their belongings to trade for silk and hemp collected by the state and you can take advantage of it to purchase these things．When the midwinter comes，the state will hire people to make weapons and corselets，the food supply will be used up and the amount of gold used for rewarding people will be inadequate．Then the common people will dump their belongings to trade for grain and gold collected by the state and you can take advantage of this to purchase these things．If all the things dumped by the common people are purchased by the state，the wealthy merchants can no longer take advantage of them and hoard them as they did previously．That is the so-called keeping the economic balance of the state．”

    There were dragons fighting between the northern side of Ma Du and the southern side of Mountain Niu．Guanzi went to the palace to report to Duke Huan about it，and he said，“Now Heaven is sending messengers to the suburbs of the capital of our state；please ask the high-ranking officials and people around you to all dress up in black to welcome the messengers of Heaven!” When people all over the world heard that，they said，“How holy Duke Huan of the state of Qi is! Heaven has sent messengers to the suburbs of the capital of his state．” And then sovereigns of eight states were submitted to his authority even though no military action was taken．That was the tactic of taking the opportunity provided by Heaven to move people all over the world．Hence，wise people can use deities and ghosts as their servants and the fatuous ones will believe in it．

    After Duke Huan finished holding the ceremony in worship of the deities and ghosts，Guanzi went to the palace to report to him, and he said．“An earthquake is a sign of plague，and there must be something sad taking place in the state．Storms are also signs of plague．When the Tian Qiang (it refers to the ancient Chinese name of a star) appears in the demarcation of a state，the sovereign will definitely be humiliated．When a comet appears in the demarcation of a state，there will definitely be bloodshed．During the combat at Fu Qiu，a comet appeared in the sky，and as a result，we must fight enemies all over the world．Nowadays，a comet has been appearing in the demarcation of the state of Qi；please issue an order to convene all officials with outstanding achievements and the influential powerful families，and order people all over the state as follows：‘Now the comet is appearing in the sky of our demarcation and I am afraid that we will have to engage enemies all over the world．I beg that those who have grain，beans，clothes，fabric and beautiful silks stored privately do not dare to deal with these things themselves．0ur state will face very severe events，please allow me to purchase these things from you at the average prices．’As a result，officials with outstanding achievements，powerful influential families and the common people will all contribute their grain，beans，money，gold and other properties to the state to help the sovereign take important actions．That is the so-called right method for taking advantages of catastrophes to collect wealth and properties from the people．”

Duke Huan said，“Most of the high-ranking officials have hoarded property but will not give them out willingly；nor will they disperse their store of grain even though it is rotten．”Guanzi replied，“Please issue an order to summon the Cheng Yang Da Fu (the high-ranking court official who has been appointed to take charge of Cheng Yang) to the palace to be condemned．”Duke Huan asked，“How can I condemn him then?”

Guanzi replied，“(Scold him as follows：)‘Cheng Yang Da Fu，all your concubines wear beautiful expensive silk clothes，geese and dukes raised by your family have more than enough fodder and many instruments such as the bells，drums，sheng and shun are played at the same time for entertainment. However，people of the same surname with you are not allowed to enter your home，relatives such as your uncles，parents or cousins do not have enough clothes to keep themselves warm，nor do they have enough food to prevent themselves from starving．You promise to serve me loyally；Could it be possible? So，I do not want to see you any more．’Then you can demote his position，block his residence and forbid him to go out．”(After that advice was taken,) families with outstanding contributions to the state all vied with each other to distribute grain，wealth and property to their cousins，whether they were close or distant．However，they still regarded that as not having done enough，so they went on to help the poor，the sick，orphans and old people without offspring all over the state to make sure that these people were all supported．So，Duke Huan was popularizing the principles of benevolence and righteousness，and as a result，brothers and all relatives of families of outstanding achievements were very close with one another，and no one was starving anywhere in the state．That is the so-called“Miu Shu”(it refers to wise schemes)．

Duke Huan said，“During the war at Zheng Qiu，most of the common people borrowed usury to help me deal with the emergency and the money collected by the state was paid to meet my needs．I am thinking of reimbursing their properties．What do you think I should do to fulfill this goal?”Guanzi replied．“It can only be fulfilled by using‘Miu Shu’．”Duke Huan said，“All right．” He then told all zhou around the capital，“Honour all the usurers by whitewashing their doors and heightening the memorial archways of their lanes．” The official in charge of each zhou should notify the leader of each xiang to bring the list of the usurers and inform them as follows．“The sovereign will send messengers here to give regards to you．”

Then Duke Huan sent eight messengers to present them with Bi and some gifts of money to buy salt and vegetables．The usurers all bent down，bowed twice and asked，“Why are we being conferred with such generous gifts?”The messengers said．“The sovereign has issued an edict as follows：‘As far as I know，it is said in one poem：the amiable and sensible people should be considered as parents of the common people．I have participated in the war at Zheng Qiu，and I heard that you have lent money and other things to the poor people so that they could manage to help me deal with the emergency and pay the money collected by the state to meet my needs．Moreover，because of your help，the poor people can finish ploughing in the spring and weeding in the summer，and they can supply all things needed by the state．These are all your contributions．I have presented you with Bi and some gifts of money for you to buy salt and vegetables，since you people are parents of the common people．”’Then all the usurers tore their bonds，destroyed the contracts signed with the obligors，and dispersed their store of grain and properties to help the poor and the unhealthy people．Since their savings were dispersed，people all over the state became wealthy because of the scheme of Zheng Qiu．That is the so-called“Miu Shu”．

Duke Huan said，“People on all the four sides in the suburban areas are poor，but the merchants are rich．I am thinking of reducing the profits of the merchants and benefiting people living in the suburban areas on all the four sides．What do you think I shall do then?”

Guanzi replied．“Please issue an order to dredge water accumulated at the low-lying places and lead it to flow between the two main streets of these areas．”Duke Huan said，“All right．”Within one year after this order had been executed，people living in the suburbs were wealthy，but the merchants became poorer and poorer．Duke Huan summoned Guanzi to the palace and asked him，“What is the reason for this change?”

Guanzi replied，“When water accumulated at the low-lying places is dredged and led to flow through the main streets of these areas，the greasy water of the butchers and taverns will all pour into the water．Thus，nighthawks will become big and robust，and the red-feather finches will be drawn there．Hence，it is suitable for people to have a drink at twilight and that should be an aquatic pleasure．Normally，merchants are engaged in selling and purchasing goods，however，they will leave their stands even before the markets are closed for the day to catch these big and robust nighthawks．And the young adults will carry catapults and bullets and play in the water to shoot the red-feather finches till it is dark．So，they will sell commodities at low prices but purchase at high ones．Thus，people living in the suburbs of all the four sides can buy things at low prices，how could they not become wealthy? And how could the merchants not become poor?” Duke Huan said，“Fine．”

Duke Huan said，“Most of the people living in all the five areas (it refers to people living in the east，west，south，north and the central part of the state) are wearing shabby clothes and worn-out shoes．I am thinking of depreciating silks and other fabrics．Do you think there is a way to do that?”

Guanzi replied，“Please issue an order to cut off all the branches of the trees planted along all the paths to make sure that there will be no shadow of even one curl on all roads．”Duke Huan said，“All right．” Within one year after this order had been executed，most of the people living in all the five parts wore clothes and shoes which were in good condition．Duke Huan summoned Guanzi to the palace and asked him，“What is the reason for this change?”

Guanzi replied．“Before the branches of the trees along the sides of all the roads were cut off，when people living in all the five areas met on their way after the market was over，acquaintances，males or females being friendly with one another would talk under the trees for the rest of the day and would not go back home. When robust males or females pulling the man-drawn carriages or pushing carts by hand saw acquaintances under the trees，they would dance and play with each other for the rest of the day and would not go back home．When fathers or elder sons met each other under the trees，they would talk idly for the rest of the day and would not go back home．And as a result，the fields were not cultivated，all kinds of crops were not sown，silkworm thorns and hemp plants were not planted，nor were cocoons processed or silk woven．Observed from this point of view，each family used to have three reasons for not going back home．How could silks and other fabrics not be expensive?”Duke Huan said，“Fine．”

Duke Huan said，“The price of grain is low in our state．I am afraid that our grain will outflow to other states，so I want to let tens of thousands of people store grain for themselves．Do you think there is a way to do that?’’

Guanzi said，“Today I passed through the market and saw that two families have built up huge granaries recently．Please present Bi to honour them．”Duke Huan said，“All right．”Half a year after this advice had been taken，the common people had heard about this story and more than half of them gave up what they had been doing to build huge granaries to store grain． Duke Huan asked Guanzi，“What is the reason for that?”’

Guanzi said，“You presented Bi to the (first) two families who built huge granaries，and they have become famous all over the state．And people of our state have all heard about that．In this case，their fame among all the common people was not gained because of outstanding achievements．However，they have made a contribution and gained a good reputation (by setting up huge granaries) and as a result，they can fill in the granaries with grain and use their store of grain to support the sovereign．Thus，both good reputation and material benefit can be obtained．Why wouldn’t the common people go ahead with it?”

Duke Huan asked Guanzi，“Would you please tell me something about the opportunities for economic policies of a sovereign?” Guanzi said．“During the first ten days of the first month of the year，germination of millet should be started．One hundred days after the Winter Solstice，the germination of broomcorn should be started．Crops are harvested during the ninth month of the year and then，the germination of wheat should be started．”

Guanzi asked Duke Huan，“Would you please tell me the size of the territory of the state of Qi?”Duke Huan said，“It is five hundred square li．”Guanzi said，“The dyke of Ping Yin and the Great Wall of Qi take up one third of the territory and therefore，crops cannot grow there．Hai Zhuang and Long Xia take up one fourth of the territory．Also，one fifth of it is surrounded or inundated by seawater．All these areas are not suitable to grow crops．Thus，aren’t you a sovereign whose throne is in suspension?” Duke Huan stood up suddenly and said，“What shall I do to deal with the situation then?”

Guanzi replied。“Issue and execute suitable orders，take right economic policy and thus，the foundation of the state can be safeguarded．Moreover，when you are concerned only with collecting money,then the merchants will monopolize the economy of the state,and when you are concerned only with collecting grain,then the landlords will monopolize the grain production.If you take right policies to manipulate the circulation of things，you will be the only one in control of the whole situation．Thus，when production of things is started，we have already realized it．When the production of things is finished，we have already realized it．And when things are sold at certain prices，we have already realized it．”

Guanzi said，“On the southern side of the Great Wall，it is the state of Lu．On the northern side of the Great Wall，it is the state of Qi． After Lu suffered three defeats and the sovereign was murdered，the state was controlled by the two powerful officials (These are all historical stories with uncertain provenance), we had ceded the protrudent areas along the border between our two states to Lu．Hence，the mountainous areas of our state are full of mountains and the aquatic areas are full of swamps and lakes．Grasses and firewood are thriving everywhere in these areas．” Duke Huan asked，“Is there any way to settle the problem of the suspension of the throne and improve the difficult situation of our lands?”

Guanzi replied，“Please stick to the three essentials．”Duke Huan asked，“What are the three essentials?” Guanzi replied,“If you want to take control over fabrics you should start with levying taxes upon hemp．If the price of hemp is driven up ten times，the price of fabric will go up fifty times．That is the right method for controlling the economy．If you want to collect money from silk fabrics, you should start with levying taxes upon raw silk．Take action even before the raw silk is produced and then you will manage to control the silk fabrics．Thus，the price of silk will go up twenty times．If this is the case，you can stop levying taxes upon the crops．Hence，when you want to collect money via fabrics，you should start with controlling the raw silk；when you want to 1evy taxes upon grain，you should start with controlling the mountains；when you want to levy taxes upon livestock，you should start with controlling the prairies；and when you want to obtain income via the circulation of all other things，you should start with taking the right economic policies．”Duke Huan said，“Fine．”

Guanzi said，“If you follow this advice to collect ten thousand pi of fabric (there could be some mistakes in the text here while the meaning at some poits are incomprehensible)，the price of the hemp you collected will go up forty times，and the prices of fabrics will go up fifty times．Then you can trade these fabrics of high prices for other goods with other states，and thus，the state of Qi will obtain a profit of at least twenty times compared with the costs of things (there might be some mistakes in the following sentence  while the meaning at some points are incomprehensible, so that it is not translated)．A sovereign who is clever at governing his state will take firm control over the properties by regulating the prices of things and issuing policies with greater or less urgency according to the actual situation，so that he can gain one hundred shares back with only one share of capital invested．Accordingly，the income of his state wiIl be inexhaustible like water of the Yellow River and the sea even though he does not levy any taxes on his people．That is the so-called taking control over the whole world by mastering the properties and manipulating them correctly．” Duke Huan asked,“And then can people of no possession become owners of some properties，and can a poor state be enriched?”

Guanzi replied．“A sovereign who is able to unify the whole world，or at least establish one of the most powerful states，will take action to control the products even before they are produced．Hence，when you collect head money from the common people，the attitude of the common people will become an important question．And when you collect certain quantities of things，the prices of them will become an important question．”Duke Huan asked，“What do you mean?”

Guanzi replied，“If the prices of all things are fixed all over the state，there will be no profit at all．If there are ten differences among the prices of similar things all over the state，the profit can reach one hundred times higher．Thus，we should make economic policies with greater or less urgency to manipulate the circulation of things and make that as easily as passing things from one hand to the other．Thus，the commodities will circulate smoothly both at home and abroad and you will not face any tribulation during your lifetime．A sovereign who is able to unify the whole world or at least establish one of the most powerful states will not resort to the common people to obtain expenses but depends on controlling and regulating the production and circulation of the commodities instead．And all he should do is nothing but make policies of greater or less urgency to regulate the prices of things at the right time all year round. Headsprings might be exhausted．Deities and ghosts might stop blessing you for a rest．And if all properties are mastered from the beginning of their producing processes，they can be produced ceaselessly，and therefore you can enjoy them during your lifetime．That is the so-called mastering the base of everything．”