The Implementation of Shi-yi System and Distribution Structure in the Second Half of the 11th Century

The Shi-yi system was introduced in March 1072. Lu Jia-wen were appointed as the responsible bureaucrats. The Shi-yi system when it was mentioned as one of Wang An-shi's reform policies, commonly referred to as 'protection of small and medium-sized merchants' and measures aimed at 'low-interest loans to small and medium-sized merchants', refer to this. However, before the full-scale introduction of the Shi-yi system, an institution with similar characteristics was established in the border area. Its establishment was in February 1070 (nearly March 3rd), after Wang An-shi was selected as Deputy Prime Minister and began to implement various reform measures. This institution, organized by Wang Shao, is closely related to Wang An-shi's reform, that is, the New policy. It was Wei Ji-jong's proposal that served as the direct trigger for the implementation of the Shi-yi system. He asserted that there is a desperate need for an institution to lower prices. Through this institution, they insisted that merchants be not harmed by purchasing at a slightly higher price when prices are low. In addition, they insisted that when the price is high, it should be sold at a slightly lower price so that the people are not harmed. Through this, he said that the state would be able to obtain profits, control prices and facilitate commerce, and that the people would be able to obtain necessary supplies without inconvenience. The Shi-yi system aimed to reform the distribution system and secure the government's financial resources at the same time. In the Shi-yi system, products that were not sold in the market were purchased in large quantities. Then, after storing these products, when a merchant who wanted to purchase them appeared, they were sold at a low price. Through the Shi-yi system, Wang An-shi tried to secure finances by correcting the distribution order in the city. However, the actual operating situation of the Shi-yi system showed a pattern that was very different from the purpose of the legislation. Large cities were not the only regions in which the Shi-yi system was implemented. It was implemented more in border areas than in large urban areas where commerce developed. As Wang An-shi revealed, the Shi-yi system had an aspect other than the social policy purpose of protecting small and medium-sized merchants.