Chapter 41 Section 1 Overview of the Currency System in the Late Qing Dynasty and the Republic of China

At the end of the Qing Dynasty, several fiascos of losing power and humiliating the country triggered reforms, reforms, and self-salvation.Although the reform was strangled by Empress Dowager Cixi, the Qing court was also forced to express its "strengthening practical policies" and allowing "set up factories to save itself".Subsequently, some economic policies were formulated, objectively conducive to the slow and tortuous development of national industry. After 1912, the imperialist powers intensified their aggression.One of the main manifestations in the economic aspect is to set up a large number of banks and foreign firms, manipulate the lifeline of the Chinese economy, control the market, control import and export trade, dump commodities, plunder raw materials, monopolize loans, extort money, and use the concession as a base to develop power in China.

The first half of the 20th century was also a period of great political and economic changes in China.This change also affected the currency.Currencies of this period displayed the following characteristics: (1) Chinese and foreign currencies circulate in parallel.In the early stage, foreign currency dominated and monopolized the financial market, while Chinese currency was in a vassal status.It was only changed in the later period, the combination of China and foreign countries, the old and the new, the coexistence of public and private, and each going its own way. A complicated situation has emerged in which Chinese and foreign currencies use each other and fight openly and secretly.

(2) Currency issuance has changed from absolute dispersion to relative concentration.In the late Qing Dynasty, the issuance of currency was laissez-faire.The Qing court never asked foreign countries to issue currency in China without authorization.Although the Beiyang government has promulgated national currency regulations and currency management measures, they are only used internally.After the Northern Expedition, the national government gradually canceled the currency issuance of commercial banks and local banks, and rectified the financial markets in various places. First, it was concentrated in the four major banks of the Central Bank, China Bank, Communications Bank, and Farmers Bank. In 1942, it was further centralized and issued by the Central Bank.At the same time, there is also the currency issued by the revolutionary base.U.S. dollars and Hong Kong dollars are still used in cities.There are many kinds of counterfeit banknotes in Japan.

(3) Currency forms and currency materials are diversified.During this period, there were many types of currencies, and their credibility was not good.There were five major types of currency during this period: first, banknotes issued by Chinese public and private banks, silver dollars, and copper-nickel coins.The second is foreign bank notes, silver dollars, various coins and credit currencies.The third is silver and gold and silver coins and various currencies dedicated to ethnic minority areas.The fourth is official bank money bureau numbers, banks, ticket numbers, pawns, and coupons and currency substitutes freely issued by various local public and private institutions or individuals.Fifth, various physical currencies vary with time and place.From the perspective of currency materials, there are silver taels, silver dollars, copper dollars, coinage and ancient coins, miscellaneous coins, banknotes, credit circulation certificates, currency substitutes and physical currencies, as well as commemorative coins.Each of these currencies has a very complex content.There is no guarantee of any value, let alone credit at all.

(4) The price ratio relationship of various currencies changes a lot.For example, the price comparison between silver dollar and silver tael has foreign currency per cent and silver price, which changes with the market.There are also frequent price changes between various banknotes or copper coins.Other miscellaneous coins have no rules at all.The purchasing power of the currency, which is usually issued by the government, is acceptable, but it fluctuates greatly when the situation changes greatly, and others are even less guaranteed.