Wang, seeking to control fluctuations in the prices of food and textiles by purchasing excess goods and then selling them when prices rise, establishes a state economic adjustment agency in 10.

The same agency also becomes responsible for loaning money to entrepreneurs, at the rate of three percent per month.

Six offices are set up: in Luoyang, …

Emperor Gengshi temporarily moves his capital from Wacheng to Luoyang after Wang Mang's death.

He then issues edicts to the entire empire, promising to allow Xin local officials who submit to him to keep their posts, and sends diplomats to try to persuade Chimei generals to submit as well.

For a brief period, nearly the entire empire shows at least nominal submission to Emperor Gengshi as the legitimately restored Han emperor—even including the powerful Chimei general Fan Chong, who, indeed, goes to stay in Luoyang under promises of titles and honors.

However, this policy is applied inconsistently, and local governors soon become apprehensive about giving up their power.

Some twenty-odd Chimei generals have gone to Luoyang and been created marquesses but have not been given any actual marches, and, seeing that their men are about to disband, they flee Luoyang for their base at Puyang.

Fan, in particular, leaves the capital and returns to his troops.

In response, Emperor Gengshi sends various generals out to try to calm the local governors and populace; these include Liu Xiu, who is sent to pacify the region north of the Yellow River.

The strategist Liu Lin suggests to Liu Xiu to break the Yellow River levee and destroy the Chimei by this manner, but Liu Xiu refuses.

The people begin to see that the powerful officials around Emperor Gengshi are in fact uneducated men lacking ability to govern; this further makes them lose confidence in his governance.

Liu Xiu sets up two forces at Xin'an in modern Luoyang, Henan) and Yiyang (also in modern Luoyang) to block their progress, as his forces under Deng and Feng Yi, whom he had sent to relieve Deng, continue to battle the Chimei.

The Chimei generals and their families are settled in the Eastern Han capital of Luoyang and given regular stipends and land, but not official positions.

Eventually, Fan and Pang prepare to rebel again, and they are discovered and executed.

Yang and Xu return to their home lands, where they will die of old age.

Xie is assassinated by Liu Gong to avenge Emperor Gengshi, and Liu Xiu, sympathetic to Liu Gong, pardons him.

Liu Xiu makes the former Emperor Penzi an assistant to his uncle Liu Liang, the Prince of Zhao.

Liu Penzi will later suffer an illness that will leave him blind, and Liu Xiu will give him a large swarth of farmland, allowing him to survive on the rent from the farms.

Chimei was the largest of the enemy force that Emperor Guangwu had had to face in his campaign to reunify the empire under the rule of his Eastern Han Dynasty, but there are a number of regional powers which which he still must deal.

All of eastern China is under Emperor Guangwu's rule by 30.

Geng Yan, the son of Geng Kuang, who was the governor of Shanggu prefecture (roughly modern Zhangjiakou, Hebei), initially served Emperor Guangwu of Han as clerk; later, he became one of the Emperor's most important generals, contributing greatly to the restoration of the later Han Dynasty.

According to the Hou Han Shu by Fan Ye, vol.

19 (Biography of Emperor Guangwu), during the several years of the wars for reunification, Geng Yan had massacred three hundred cities.

Although Emperor Guangwu has already created many of his generals and officials marquesses, in 37, after the conquest of the empire is largely complete, he readjusts their marches in accordance with their accomplishments.

He also considers what will be the best way to preserve the relationships between him and his generals and to protect their title and position.

He therefore resolves to give the generals large marches but not give them official positions in his government.

He rewards them with great wealth and often listens to their advice, but rarely puts them in positions of authority.

He thereby reduces friction between him and his generals, thus allowing for their relationships to be preserved.

In this, he is matched perhaps only by Emperor Taizu of Song (Zhao Kuangyin).

The reign of Emperor Guangwu over the unified empire is marked by thriftiness, efficiency, and laxity of laws.

For example, in 38, his official Liang Tong submits a petition to restore the criminal laws of late Western Han Dynasty—which were far more severe.

After discussion with other officials, Emperor Guangwu tables Liang's suggestion; however, it is he who begins to order that servants in the inner palace must be eunuchs.

Emperor Guangwu, while still under Emperor Gengshi, had married his childhood sweetheart Yin Lihua.

Later, in 24, while he was on his expedition north of the Yellow River, he had entered into a political marriage with Guo Shengtong, the niece of a regional warlord, Liu Yang, the Prince of Zhending.

In 25, Guo had borne him a son, Liu Jiang.

The following year, Emperor Guangwu had been prepared to create an empress, and he favored his first love, Yin.

However, as Yin had not yet had a son by that point, she declined the empress position and endorsed Guo.

Emperor Guangwu therefore created Guo empress and her son Prince Jiang crown prince.

By 41, however, Empress Guo had long lost the emperor's favor.

She continuously complaind about that fact, and this angers Emperor Guangwu.

In 41, he deposes her and creates Yin empress instead.

Rather than imprisoning Guo (as is often the fate of deposed empresses), however, he creates her son Liu Fu the Prince of Zhongshan and creates her the Princess Dowager of Zhongshan.

He makes her brother Guo Kuang an important official and, perhaps as a form of alimony, rewards him with great wealth.

In 41, Emperor Guangwu sends his faithful general Ma Yuan against the Trưng sisters, who have declared an independent kingdom in the region of present northern Vietnam.

Emperor Guangwu, not having the heart to depose both mother and son, had initially left Guo's son, Crown Prince Jiang, as crown prince.

Crown Prince Jiang, however, realizing that his position is precarious, has repeatedly offered to step down.

In 43, Emperor Guangwu agrees and created Liu Yang, the oldest son of Empress Yin, crown prince instead.

Former Crown Prince Jiang is created the Prince of Donghai.

He also changes Prince Yang's name to Zhuang.