In the ideology in pre-modern Chinese history, li, with ethics as its central part, had long been regarded as a regulative and cohesive force of society. The present study argues that the vernacular short story, “Censor Chen Ingeniously Solves the Case of the Gold Hairpins and Brooches”, conveys such a pessimistic view that the li, as an institution, had been undergoing a gradational degradation through dynasties. The study reaches this conclusion through a careful comparison conducted firstly between the plots of the prologue story and the main story of the story and secondly among the portrayed main characters as well as the cited historical and legendary figures in the story. A chronological examination of the plots, characters, and figures uncovers such a historical view insinuated in the story that the later an era was, the more morally corrupted the society would become. A tentative discussion on the personal names of some main characters also supports this finding.