July 11, 1923

The occurrence of this coup d’état has startled even those merchants who had long been indifferent to politics into suddenly taking a keen interest in it—a most welcome development. On June 14, the Shanghai General Federation of Street Merchants’ Associations issued a declaration advocating the convocation of a National Assembly to resolve national affairs; and on June 23, the Shanghai Chamber of Commerce, following a resolution passed at its general members’ meeting, published a manifesto addressed to all citizens of the country. The manifesto stated:


“It is with sincere intent that we hereby announce to both home and foreign audiences: from the fourteenth day of this month onward, all acts—domestic and international—committed by Cao Kun, Gao Lingwei, and others in their usurpation of state power shall not be recognized by any Chinese citizen as having the authority to represent the nation. In addition to dispatching telegrams to military and civilian governors of all provinces, urging them to maintain public order within their respective jurisdictions so as to preserve the status quo, we respectfully propose to work together with all citizens of the country to devise a plan for post-crisis reconstruction.”


At the same time, the Chamber resolved to disavow the “parliament which does not represent public opinion” and to establish a Committee for Democratic Governance as an active body charged with addressing national issues. This joint action by the Shanghai General Federation of Street Merchants’ Associations and the Shanghai Chamber of Commerce marks, in essence, the first instance of merchants intervening in politics—an astonishing awakening after three years of silence!

The crux of China’s current political predicament lies not in any other problem but in the simple question of a national revolution: to overthrow the warlords and the foreign imperialists who collude with them, using the power of the people themselves—such is the historic mission of the Chinese nation. This revolution is the collective responsibility of all citizens; merchants, workers, farmers, students, and educators alike must step forward and assume their share of the revolutionary task. However, owing to historical inevitability and the dictates of present circumstances, the role that merchants are called upon to play in the national revolution is particularly urgent and vital compared with that of other social groups. We understand that in semi-colonial China, politics is characterized by a dual system of oppression, in which warlords and foreign powers conspire to strangle the entire population. Under such a regime, all citizens naturally suffer deeply; yet among them, it is precisely the merchant class that feels this pain most acutely and most urgently. Everyone knows that the licai tax and customs duties constitute the two life-and-death stakes for merchants. Their fervent demand for the abolition of the licai tax and an increase in tariffs is a direct expression of their profound self-interest. Nevertheless, achieving these reforms is no easy feat: for abolishing the licai would undermine the interests of the warlords, while raising tariffs would harm those of foreign imperialism. If the licai were entirely eliminated, the warlords would gradually weaken, while merchants would grow stronger day by day. At that point, a mere “cry” from the merchants could topple the warlords—clearly, no shrewd warlord would ever commit such folly. Similarly, if tariffs on imported goods were substantially increased or if the existing treaty-based tariff system were abolished altogether in favor of protective tariffs set independently by China, thereby removing the shackles that bind Chinese merchants, domestic industry and commerce would experience an immediate and accelerated boom, leaving foreign products with no foothold in the Chinese market. No cunning foreign imperialist would willingly embark on such a course. Thus, the abolition of the licai tax and the increase of tariffs are matters of life and death for both foreign imperialists and domestic warlords—not something that can be accomplished by Li Yuanhong’s flimsy, evasive order to resume official duties. Consider further the recent case in Shanghai, where textile merchants petitioned the government to issue bonds for the cotton industry, only to see their efforts sabotaged by Cao Rui and Jin Yunpeng; and where another attempt to ban cotton exports was likewise thwarted by the foreign diplomatic corps. These incidents amply demonstrate that foreign powers, warlords, and merchants stand in irreconcilable opposition to one another. Such bitter experiences were personally endured by the dignified merchants gathered at the Shanghai Chamber of Commerce’s general meeting on the twenty-third of last month, including Mr. Mu Ou-zhai and his colleagues!

Historically, merchants have professed a “deep love of peace,” never imagining that political transformation requires revolution rather than a few telegrams calling for demobilization, constitutional reform, and sound financial management. Even less did they realize that revolution demands their own active participation—the mobilization of the entire nation and the creation of a broad mass movement—in order to wield genuine revolutionary force. Some even went so far as to believe that establishing a political party was unnecessary, dismissing the Kuomintang’s revolutionary endeavors as excessive meddling. How absurd such naive and timid notions now seem when contrasted with the current reality! There once existed a segment of merchants who harbored illusions about the United States, regarding it as a benevolent friend aiding China, unaware that America is, in fact, one of the most ruthless executioners. A review of recent examples—such as how the U.S. schemed to assist Cao Kun, whom both merchants and the broader populace opposed, in seizing power, and how it vigorously obstructed merchants’ efforts to secure a ban on cotton exports—suffices to expose the fallacy of this American delusion. From the recent stance taken by Shanghai’s merchants in response to the coup, we can see that they have already abandoned their former pacifist stance, embraced revolutionary methods, and mustered the courage to take charge of national affairs, advancing with remarkable rapidity. As for their indignation over U.S. plots to invade China, the communiqués issued by the Shanghai Chamber of Commerce and the Banking Association, condemning the American Chamber of Commerce and the American Expat Association for “taking advantage of the nation’s struggle during the democratic movement, promoting insidious arguments about joint administration of China under the false pretense that the Chinese Chamber of Commerce and banking circles have already agreed,” serve at least to dispel some of the stigma of “Chinese merchants being subservient to foreign powers.”

The merchants of Shanghai have risen up and taken action; we hope that their counterparts elsewhere will join them in concerted, unified action. The present moment is fraught with urgency, akin to a burning ember at the tip of one’s eyelashes—there is no longer any room for laziness or complacency. What is needed now is the unity of the entire nation to launch a revolutionary movement, and there can be no more divisions among merchants themselves. It must be understood that foreign powers and warlords are the common enemies of all merchants—and indeed, of all citizens—and that the benefits reaped from a successful revolution will accrue to everyone collectively. Therefore, uniting and struggling together to overthrow this shared enemy and secure those shared benefits is absolutely essential. We urge the merchants of Tianjin and Beijing not to be misled by Cao Rui and that clique of “bureaucratic capitalists,” and the merchants of Hankou not to fall under Wu Peifu’s sway. Let them rise up alongside their Shanghai counterparts and adopt a unified revolutionary course. The wider the coalition of merchants, the greater its momentum and the stronger its capacity to lead the nation—leading inevitably to swifter success in the revolution!

Finally, we feel obliged to issue a warning to merchants nationwide: First, the great undertaking of revolution is by no means an easy task—especially within the context of China, where the dual yoke of foreign and warlord oppression has long weighed heavily upon the people. Only by rallying merchants, workers, farmers, students, educators, and indeed every segment of society subjected to this oppression into a tight, united front can this revolution succeed. To fulfill the Chamber of Commerce’s pledge to “resolve national affairs together with all citizens,” we must avoid repeating the mistake of the former Merchant-Educator Joint Association, which refused to admit workers into its ranks. Second, now that merchants have bravely taken the first step toward revolution, they must swiftly proceed to the next: steadfastly pursuing the path of resolving national affairs through a National Assembly, maintaining disciplined progress, pressing forward without pause until their goal is achieved. Under no circumstances should they halt their advance at the slightest obstacle, nor should they stray onto the dangerous path of compromise with foreign powers and warlords. Let us all recognize that only a national revolution offers the sole means of saving ourselves and our nation. The many revolutionary movements throughout history can serve as valuable references and guides for us. Our circumstances have already set us upon the path of writing history; let us not afford ourselves the luxury of slackening our efforts! Through revolutionary means, we must inaugurate a new era and create a new nation—this is the historic mission of the Chinese people, a truth we must never forget!


○ The Guide Weekly, Combined Issues 31–32   The Guide Weekly Publishing House   July 11, 1923