From its inception in the Han dynasty (206 B.C.-220 A.D.), the salt monopoly was a key component in the Chinese government's financial toolkit. Salt, with its highly localized and large-scale production, was an ideal target for bureaucratic management.
In the Song dynasty (960-1279), fiscal pressures on the government had intensified with increased centralization and bureaucratization. A bloated administration and an enormous standing army maintained against incursions by aggressive steppe neighbors placed tremendous strain on Song finances. Developing the salt monopoly seemed a...