The Study On The Rural Finance Of Jiangnan In The Republic Of China

The rural finance is a general name of the accommodation of monetary fund and all kinds of correlative economic activities in rural area. It provides funds for agricultural production and peasant life. It features prominently in the development of the rural economy. The rural finance of JiangNan in the Republic of China, consisting mainly of traditional rural finance and modern rural finance, had typical characteristics of a binary financial structure. The traditional rural finance of JiangNan included the debtor-creditor relationship of the traditional usurious loan and the traditional financial organization, such as Pawn, Native Bank Shop, Hehui etc. The modern rural finance of JiangNan included the agricultural credit activity of the bank in JiangNan rural area and the agricultural credit activities’agent of the bank, such as Rural Credit Cooperative, Agricultural Warehouse and other the modern financial organization.Usury, the most basic level of the traditional debtor-creditor relationship in rural area, had been continued and developed in JiangNan rural area in the Republic of China. Usury in JiangNan rural area had mainly forms of Money Loan, Credit-in-kind and the ramification of both. It is the uppermost origin of loan for peasants in JiangNan rural area. The negative influence and effect of Usury was obvious very much. But it could exit and develop for a long-term. This pointed to the social and economic base of its subsistent existent.Pawn, Native Bank Shop and Hehui were delegates of JiangNan traditional rural financial organization and they had been developing on the wane. Pawn, Native Bank Shop and Hehui presented different characteristics in their nature, organization, operation and management. They had an important place in JiangNan rural debts and functioned economically and socially. It shouldn’t ignore and be fully aware of the function of traditional financial organization if JiangNan rural economy were undergone.Bank is the typical representative of the Modern financial organization and the inevitable outcome of the development of society and economy. BeiYang government and the Republic of China planed modern rural financial system, wanted to promote modern rural financial net actively in order to safeguard their domination. The modern rural financial system marked with rural loan of the bank had been established and developed. Activities of the bank of loan in JiangNan rural area had been slightly mitigated, but it couldn’t get to the root of problems.Rural Credit Cooperative and Agricultural Warehouse, intermediary agent for a loan of banks, were the modern financial organizations. Compared with the traditional financial organization, the modern financial organization is characterized by having a sound organizational structure, completing laws and regulations and a diverse business operation. It had a positive influence on JiangNan rural economy and peasant life, but it couldn’t change that present situation at its root and replace the traditional rural finance totally because of its own defects of system design and the execution.During the Republic of China, the development of rural finance is a transition which the traditional rural finance had changing to modern rural finance.There were many facts causing the transition both because of the stimulus of intrusion of the foreign bank, transmutation of the domestic economy, propagandists of the masses, together advancing of the leading factor of the government, etc. JiangNan rural financial had been characterized by a binary financial structure, mixed development model, forcible leading of government and passive accepting of peasants. Modern transition of JiangNan rural financial in Republic of China was an important component parts of the modernization of JiangNan rural economy in modern time. For a variety of reasons, this transition of JiangNan rural finance in the Republic of China was unsuccessful, but it gave us some important experience and enlightenment.