Home Categories political economy Currency Wars 3: The Financial High Frontier

Chapter 28 The financial power group behind the "April 12" coup

On March 26, 1927, the Northern Expedition led by Chiang Kai-shek finally entered Shanghai.As soon as Chiang Kai-shek arrived in Shanghai, he immediately contacted Yu Qiaqing and others to implement the previous deal.Yu Qiaqing immediately took the lead in organizing the Shanghai Federation of Commerce, including all important banks, money houses, silver houses, commercial and industrial groups in Shanghai, and prepared to raise funds for Chiang Kai-shek. A very important organization in this federation is the Shanghai Silver House Association, and the representative is Xi Yunsheng.The Xi family of the Dongting Mountain Gang is the pillar of the chaebol system in Jiangsu and Zhejiang. They all have a pivotal influence in Shanghai's foreign banks, government-run banks, commercial banks, money bank banks, and the industrial and commercial circles, and weave a pattern. Huge network of contacts.

The Xi family of the Dongting Mountain Gang in Suzhou, since Xi Zhengfu became the comprador of HSBC Bank in 1874, three generations of grandparents have held the comprador position of HSBC Bank for more than half a century. Business, political loans to the Chinese government, railway loans, and advances to the opium trade are all operated by the "comprador room" of HSBC controlled by the Xi family.The high-ranking officials of the Westernization School in the Qing Dynasty, from Zuo Zongtang, Li Hongzhang to Sheng Xuanhuai, whenever they needed financing, would inevitably ask the Xi family for help, and without exception became the Xi family's iron buddies.The Shanghai bank, which needs frequent financing in its daily business, is even more obedient to the Xi family's words.

The other three of Xi Zhengfu's four brothers of the same generation are also not simple. The eldest, Xi Guqing, became a comprador in the second year of the establishment of the Standard Chartered Bank Shanghai Branch, and is the elder of the bank.The third child, Xi Jinhua, used to be the comprador of Defeng Bank of the United Kingdom and Daosheng Bank of China and Russia.The fourth child was adopted to Shen Eryuan, a relative of the Xi family, the first comprador of the new Sassoon company, and succeeded him as the comprador of the new Sassoon company. He was called "the fourth child of Sassoon".

In addition to serving as compradors for international bankers, the Xi family also took advantage of their business monopoly on foreign banks and their connections with government officials, and relied on their strong financial resources to enable the Xi family to participate in the establishment of China's government-run banking system, such as the Bank of the Ministry of Households, the Qing Dynasty Bank, Bank of China, etc., and become major shareholders. It can be said that the entire financial industry in Shanghai, from foreign-funded banks to government-run banks, to private banks and ticket offices, is all within the sphere of influence of the Xi family.Back then, the Xi family was just trying to kill Hu Xueyan, who was known as the richest man in China.

Xi's children entered the family's comprador network one after another and became compradors of 13 foreign banks. More in-laws, fellow villagers, and classmates also gradually entered this system, forming a powerful financial and social network.For example, Xi Zhengfu's grandson, Xi Debing, was Song Ziwen's classmate in the United States, and Xi Debing's eldest brother, Xi Demao, married his daughter to Song Ziliang, Song Ziwen's younger brother.Xi Debin later served as the director of the Central Mint of the Nationalist Government, and Xi Demao served as the general manager of the Bank of China.

The Xi family chose to support Chiang Kai-shek, which means that international bankers have cast a vote of confidence in Chiang Kai-shek.In China, the era of Chiang Kai-shek has come. On March 29, 1927, a delegation from the Shanghai Chamber of Commerce visited Chiang Kai-shek, claiming to offer financial aid as long as he broke with the Communist Party.According to the "Zi Lin Xi Bao" report at the time, the delegation emphasized the importance of "immediate restoration of peace and order in Shanghai," and Chiang Kai-shek made a promise to "immediately adjust labor-capital relations." On March 31, Yu Qiaqing and the Shanghai Chamber of Commerce took the lead in formally establishing the "Jiangsu and Shanghai Finance Committee". The committee members included: Chen Guangfu, general manager of Shanghai Commercial Savings Bank, Qian Yongming, deputy director of the joint reserve bank of "Northern Four Banks", etc. Big bankers, as well as representatives of the two largest Chinese-funded banks, Bank of China and Bank of Communications, brought together almost all the top figures and representatives of large institutions in China's financial industry at that time.

Banks and money houses in Shanghai provided Chiang Kai-shek with financial assistance of 3 million silver dollars from April 1st to 4th. [18] On April 8, the US Consul General in Shanghai, Gao Si, learned that the Jiangsu-Zhejiang chaebol had provided Chiang Kai-shek with 3 million silver dollars, but the condition was, "Insist that unless the Communist Party members are purged from the Kuomintang, they will no longer support him. "【19】.After all, bankers are the highest state among businessmen. Although they have drawn a big pie of 60 million yuan for Chiang Kai-shek, they can only get the down payment before the matter is completed.

Only one week after Chiang Kai-shek received the money, he launched the "April 12" coup that shocked the world!A large number of communists, workers, farmers and leftists were massacred. Chiang Kai-shek put forward the bloody slogan to the Communists, "I would rather kill three thousand by mistake than let one go." The banker felt that it was "powerful", and immediately provided Chiang Kai-shek with another 7 million silver dollars [20].All of a sudden, people from all over the world were killed head to head and blood flowed like a river!Chiang Kai-shek used the heads of a large number of communists to pay a bloody "voting certificate" for himself to join the international banker power group!

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