ABSTRACT
T he continuous rise of the big merchant class is contributed to by large numbers of villagers. The large cotton merchants are supported by thousands of weavers. The sudden rise to wealth of the opium-traders was due to the fact that so many houses in the village had been ruined by opium-smoking. On the other hand, the money collected by the rich merchants in the form of loans is constantly being sent back to the villages to finance ceremonies and agricultural production. It also opens wider employment to the villagers in local industries, such as weaving. The gathering of nonagricultural people in the town creates a need for farm and garden produce. Therefore, the character of the agriculture carried on in the village has been gradually changing—to cash crops rather than to subsistence crops. It is evident that the development of commerce cannot be considered apart from rural economy. In conclusion, we may mention two essential consequences of the development of town commerce: first, making the villagers become real wage-earners and, second, making the villagers into tenant farmers. We shall discuss these two sides of the general process separately.
