China 's 1935 Currency Reform Essay

1010 Words Oct 7th, 2015 null Page
I would like to study China’s 1935 Currency Reform to investigate the central-provincial relations. After graduating from Stony Brook University, I worked at a business firm where I found that the current European debt crisis shares some similarities with Chinese economy of the 1930s. One of the most crucial issues of the euro crisis is the legitimacy of the European Central Bank. Some members, like Greece, argue that the monetary policy of euro only considers Germany’s interests, but neglects the interests of other member states. The early Republic of China experienced similar problems. At the beginning of the Nanjing decade, China was military unified, but was economical fragmented. Some KMT officers such as T.V Soong believed that in order to develop a modern economy, China need to build up a central financial authority, so the central government could be able to support the nation. Nevertheless, since the mid-19th century, local and provincial governments enjoyed a significant degree of financial independence which included coining money and collecting taxes for local use. Regionalism, an ideology that suggested that local governments should have more authority, was strong in the 1920s. Hence, one of the KMT’s economic reforms was to revoke economic power from local governments. In 1935, when the KMT decided to use legal tender as the national currency and to abolish local currencies, it did not have any mandates from local governments. Some provinces such as Guangdong…

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