The Paper researches on the reasons for the capital decline and successional collapse of salt merchants in Lianghuai area during the periods of Chiaching (1796-1820) and Daoguang (1821-1850). Was the downfall of salt merchants resulted by the reform of salt affairs by Tao Shu, the viceroy of Lianjiang area? Or if the reform by Tao Shu had no immediate bearing on the decay, then what led to it actually? In the Ching Dynasty the salt trade was the licensing industry, which could not be managed by the general public. The salt merchants were especially protected, but also considerably interfered by the government. In order to be taken under the government's wing, they engaged themselves particularly in making good relationship with officials. Their ability to adjust to environmental changes were therefore especially weak. This paper investigates into the complicated question from three aspects, including the external environment, institutional defects and salt merchants.
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