Banking in the early reigns of the Sung Dynasty has been more or less connected with taxation. There was always trouble on account of the merchants trying to collect taxes and the Government trying to do banking. Among the laws promulgated during the reign of Emperor Shen Tsung who reigned from 1068 to 1086 there was "a market law to regulate official loans and interests." In those times the Government helped the farmers very often, the Government paying more attention to agricultural prosperity than in subsequent periods. The Government was obliged to do some sort of banking business because they habitually distributed to farmers the money in the treasury and the grain in the granaries. The farmers paid interest at the rate of two candareens a month or 24 per cent, a year and the growing crop in the spring was security for the repayment in the autumn. The Government had also to do a little bit of trade in order to facilitate the arrival of sufficient goods for consumption in the capital, as well as the military centres distributed throughout the land. It was very-much concerned with adequate supply in the capital, and it paid out money for certain goods which were conveyed to the capital for use there. Wang An-shi proposed to lend money to insure the purchase of goods in the provinces when they were cheap; each province sent as tribute supplies of its best products to Nanking, which was then the capital; and his proposal was to equalize the prices paid for the articles sent as tribute. It thus happened that money lending became a principal part of the official routine. Another method by which banking by the administration was fostered was by lending money from the official treasury on the security of land, houses, gold or silk goods. The Government had a double object in instituting this business; the first was to regulate business in general and the second was to help the Government take a profit, which would otherwise be taken by individuals - especially as the interest on such loans was 20 per cent. Very soon, however, the profits were diverted; this banking and pawnbroker business was undertaken by magistrates and treasurers with the aid of the public funds of which they were in charge. In this connexion it may be interesting to note that even as late as 1910 the viceroys and taotais were lending Government money freely to the native banks, without even a shadow of security.