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

Chapter 37 Holding the gun in one hand and the money bag in the other

The revolution cannot be separated from money, without money, the revolution cannot move forward.Later, the Communist Party of China also experienced the extreme importance of money to the revolution, especially to the independent revolution. Most of the early Chinese communists were young people, and generally had no fixed occupations and sources of income. To establish a nationally influential political party in a short period of time, lack of funds is absolutely impossible.In the early days of the founding of the party, the main source of funding was maintained only by the manuscript fees earned by a small number of intellectuals such as Chen Duxiu and Li Dazhao from teaching and writing articles, and donations from other people. Obviously, this was by no means a long-term solution.Therefore, the problem of funds became a big problem in the establishment of the party. In the end, it could only rely on the assistance of the Communist International to complete the various tasks of the establishment of the Communist Party of China.

At first, Chen Duxiu, a scholar, was full of spirit and insisted that the CCP should be independent and not controlled by others. He was unwilling to accept the assistance of the Communist International and obey others.He repeatedly rejected the Communist International's offer of funding, so that after the "College of Congress", the Central Committee of the Communist Party of China had difficulty raising funds of two to three hundred yuan a month. In October 1921, Chen Duxiu was arrested in the Shanghai Concession and faced seven or eight years in prison.Marin, the representative of the Communist International, spent a lot of money and went through all kinds of troubles to get through all the joints of the trial court, and invited a famous French lawyer to defend in court, and then successfully rescued Chen Duxiu from prison.Recalling how he could not even get the money to save himself from the prison, and how he was independent from others, Chen Duxiu said with emotion: "Since the current rulers oppress us so ruthlessly, we can only establish a closer relationship with the Communist International, instead of I have doubts." Even so, Chen Duxiu did not fully agree with the CCP becoming a vassal of the Comintern, he only agreed that various departments of the party could apply for funding from the Comintern in their own name.In this way, the work of the party can be carried out quickly.

After Chen Duxiu, Li Lisan was another who wanted to be independent and do a lot of work. During the war between Jiang Feng and Yan in 1930, Li Lisan believed that the rule of the Kuomintang was collapsing, and the Chinese revolution would surely develop into the final class decisive battle in the world, so he demanded that "the Soviet Union must actively prepare for war."In this riot blueprint, the Chinese revolution was the center of the world revolution, the Soviet Union fully cooperated with the Chinese revolution, and the Communist International was only a supporting role in implementing this plan.

The starting point and destination of the Communist International guiding the Chinese revolution has always been the interests of the Soviet Union, the "center of the world revolution". They want to find a force in China that can ally with the Soviet Union to disperse the pressure of imperialism and protect the world's first socialism national security. In April 1920, Weijingski came to China to help establish the Communist Party of China. The Communist International and the Politburo of the Central Committee of the Communist Party of China gave him the first instruction, that is, "Our general policy in the Far East is based on the conflict of interests between Japan, the United States and China. , we must take all means to intensify this conflict”; the second is to support the Chinese revolution.That is to say, providing great help to the Chinese Kuomintang and the Chinese Communist Party, which promoted the vigorous development of the Northern Expedition Revolution, also came out of the needs of the Soviet Union's national interests.Now, Li Lisan suddenly jumped out, "riot" one by one, "pointing fingers" and demanding that "the Soviet Union must actively prepare for war", "come out of Mongolia, aid China, and attack the enemy", demanding that the Soviet Union put its own safety at risk , fully cooperating with the Chinese revolution, really surprised the Comintern and the CPSU dumbfounded.

"The international intervened with the fastest speed and the most fundamental means: to suspend the activity funds of the Central Committee of the Communist Party of China. This is the most severe sanction the CCP has received since the founding of the party. Li Lisan, whose funding was suspended, had only one way left. "[6] Finally, Mao Zedong, who had a deep understanding of the social conditions in China at the time, found an independent method to solve the financial resources, which fundamentally laid the independent economic foundation of the Chinese Communist Party. Mao Zedong's idea was to establish a "red separatist regime". In 1928, he raised the question of "Why China's Red regime can exist".He pointed out: "In a country, surrounded by the white regime, there is a small or several small areas of the red regime that have existed for a long time. This is something that has never happened in any country in the world. The occurrence of such a miracle has its own uniqueness. There must be considerable conditions for its existence and development. It cannot happen in any imperialist country, nor in any colony directly ruled by imperialism. It must be in the economically backward semi Colonial China. Because this strange phenomenon must be accompanied by another strange phenomenon, that is, the war between the white regimes... Because of the long-term division and war between the white regimes, a condition is given that makes the A small or several small red areas under the leadership of the Communist Party can take place and persist in the middle surrounded by the white regime." [7] Later, the practice of the Chinese revolution was successful along this line of thinking.

Relying on the red base areas, the Communist Party implemented the policy of "cracking down local tyrants and dividing the land", which won the support and support of the majority of farmers for the red regime, and agricultural production flourished, laying the foundation for the economic independence of the base areas. The lessons of the Paris Commune and the successful experience of the Russian Soviets made Mao Zedong and the founders of other bases clearly realize that if the revolution is to succeed, it must grasp the gun with one hand and the money bag with the other.At the very beginning of the birth of the Chinese Soviet Republic, the new red regime decided to create its own independent financial system and create the Soviet Republic's own central bank - the Chinese Soviet State Bank.

There are three most important tasks of the State Bank: first, to unify the currency; second, to unify finance and taxation; third, to support the production and trade in the Soviet area. Without a unified currency, it is impossible to establish reliable fiscal revenue; without fiscal revenue, it is impossible to stabilize the regime in the Soviet area, and it is impossible to win the long-term war.Similarly, a unified currency will effectively promote production and trade, improve people's living standards, activate the Soviet area economy, increase the government's fiscal revenue, and consolidate the nascent Soviet area regime.

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