Research On The Zhang Ju During The Qing Dynasties To The Republic Of China

The Zhang Ju sprouted in the late Ming and matured in the Kangxi and Qianlong Periods.The evolution track of the rise and fall of the Zhang Ju could reveal the reality of the social,economic and financial development in ancient China.The rise and development of the Zhang Ju were closely related to the development of the national commodity economy.The rise of long-distance trafficking,the Han and Mongolian trade and the China-Russia trade had expanded the demand for capital by businesses.At the same time,other financial institutions such as official debt management agencies,yin ju,pawnshops and so on began to expand their business in order to meet the expanded business needs and lend money to industry and commerce.When lending money to industry and commerce occupied an important position in their income,the operation of the Zhang Ju would certainly become specialized and specialized.The Zhang Ju specialized in financial lending to assist business turnover,with the main purpose of obtaining interest and providing financial support for business operations.As an independent industry,the Zhang Ju shared part of the profits of the business.The system design of the Zhang Ju was tailored to the political,economic and cultural environment of the traditional Chinese society and did not adapt to the social and economic situation in China since modern times.Therefore,it was inevitable that the accounting office will be eliminated by the society.The organization system and management of the Zhang Ju had strong Chinese characteristics.The organization and management of the Zhang Ju adopted the partnership system.All the stock salaries in the Zhang Ju were composed of silver shares(money shares)and personal shares(human resources shares).The silver shares and personal shared the operating profit according to the stock salaries.The ownership and management right of the Zhang Ju were mainly separated completely,but it was not excluded that part of the ownership and management right of the Zhang Ju were not completely separated.In theoperation of the Zhang Ju,the silver shares bear unlimited liability,while the personal shares have no dividend to share when the business is in deficit,but they could draw salary every year,and bore limited liability.The original capital of the Zhang Ju mainly came from businessmen,firms and bureaucrats.Its operating capital mainly came from the the original capital invested by shareholders and the deposits absorbed by foreign.The profit source of the Zhang Ju was mainly the interest earned from loans.Dividends from foreign investment in other firms accounted for a certain proportion of the dividends payable,the income from the sale and purchase of money,the remittance fee and the income from other businesses.In the case of profit,the proportion of operating expenses in the expenditure structure were relatively large,while the proportion of operating expenses wer relatively small,otherwise losses will occur.The proportion of removing bad debt affects the profitability of the Zhang Ju.Under normal circumstances,the return on capital of Zhang Ju was roughly between 10% and 20%.The Zhang Ju taked deposits in a limited way,taking the amount of loans released as the standard and the amount of loans.they wer released as the input.When loans could not be released,even familiar customers woul urge them to withdraw their deposits.The main source of the deposit was the businessman or firm,who does business.The Zhang Ju had not developed to the extent that it borrows the idle funds of civil society to the industrial and commercial operation as financial capital after they were absorbed and organized in the form of deposits.From this point of view,in essence,the Zhang Ju were the early stage of Chinese banks.The lending of the Zhang Ju was based on the society of acquaintances.The organization of business firms were of unlimited responsibility system.The assets of shareholders of business firms could be used as the source of loan repayment.The Zhang Ju strict management of lending,understanding of the market situation,mastering the dynamic information of customers,businessmen or business names with real commodity transactions as the background as the main lending objects and other factors all determined the feasibilityand stability of the credit lending.Since establishment,the Zhang Ju had been specialized in financing for the operation of industry and commerce,and then carried out lending business,and expanded its business on the basis of it to provide debt and debt clearing services for the business names with which it had business contacts.The settlement method can be directly transferred through the account book,or the payment order can be issued through letters.The clearing of the Zhang Ju was mainly carried out between the businesses with which it has business contacts at the same time,which is quite different from the settlement system of the Shanghai native banks.The remittance system of Shanghai native banks were mainly carried out among the same industry,and a remittance association was set up to carry out centralized liquidation.The Zhang Ju were limited to one place and realizes the time transaction settlement and loan operation and they followed the borrowing habits of the financial markets everywhere.