The Establishment Of County Agencies Of New Style Finance In The Early 20^th Century

Because of the lack of modern factors, the county financial sector of China was in a very poor level ever since it appeared. This caused the broad ignorance both between the contemporary urban financial sector and the afterwards researchers. As the time went on to the Republic of China, this condition could have a new look. The new style finance institutions started to appear in the counties. This article is mainly focused on inspection to the county bank to show us the constructing process of the new style finance institutions under the county economic environment, and promulgate the exterior and internal challenges faced during the transplantation of the exterior system of county finance and the final achievements.Till 1937, the county banks appeared in the early period of the Beijing Government hadn't formed a nationwide system, the various supporting systems also need to be further improved. For the financial future of the county, the county banks provided a reference for the further development, and had laid the foundation. The county banks that the national government began planning to set up in 1940 occupied a significant position in banks of county. The 1940s also was a climax stage of the new county financial system building.In that special age of war and inflation, the county banks were established under government's impetus rapidly and largely, but fund and human resource were still the big problems that need to be solved. County bank operated quite difficultly from the very beginning, with the worsening inflation, and it had no choice but to confront the thorny problems that the government had taken a number of measures to solve. However, because of combined effects of various factors, county banks certainly promoted county industrial development and provided convenience for the local economy, however, it still could not properly follow the principle of "adjusting local finance, supporting economic development, developing cooperative enterprise", and exhausted at last. Compared with most other new county style financial organizations, county banks had been always confronted with the malpractice that the extensively established sole system bank institute couldn't overcome, thus it was uncompetitive. In the contrast of the new style finance and the traditional loan, the former could not achieve an effective replacement while the latter was already the main subject of county finance systems. The county banks couldn't act a good role in this contrast. The national government had not obtained an ideal effect to the county finance's system transplant, this should put the blame on the special background and the concrete operating mode in great part. It needed an unceasing exploration process that the new style finance took root in the county economy.