The Changes Of Trade In Qing Dynasty And The Prosperity Of Shanghai Old-style Bank

Interaction between trade reform and Shanghai old-style bank is the object of study in this paper. The author selects the trade condition in the Qing Dynasty as a macro-economic background and chooses the Opium War as a critical point of trade reform to make long-time study on the evolution about shanghai old-style bank and its functions around the trade reform. At last, the author reveals the reasons for shanghai old-style bank' evolution and analyzes its role in history from an economic point of view.In general, the trend of trade was from conservative to opening up in the Qing Dynasty. In the early Qing Dynasty, government had been careful to uphold the traditional trade patterns by the outbreak of the Opium War which showed great changes unprecedented in millennium. The tributary trading system has collapsed and the treaty port trading system was established, which brought China into the beginning of modernization. Shanghai became the one of the earliest five ports open because of its unique geographical advantage. A large number of foreign businessmen and foreign companies rapidly promoted Shanghai's trading, which provided an opportunity of development for Shanghai old-style bank. Compradors,foreign companies,foreign banks allied because of their similar commercial interest. They built a distribution channels for funds. Banknotes that shanghai old-style bank issued were the core of the channel.The establishment of this channel has become the driving force in the rise of Shanghai. After Shanghai has replaced Guangzhou rapidly and become Chinese Trade Center, Shanghai began to extend the funds channel to its economic hinterland. The wide Yangtze River basin supplied continuous power for the development of Shanghai. Shanghai old-style bank has developed rapidly in the extending process from ports to hinterlands. It became so outstanding that it enjoyed the equal popularity of Shanxi old-style bank in Chinese traditional financial institutions and promoted Shanghai to be the financial center in China as well as the Far East. Different from Shanxi old-style bank that supported by political forces, the development of Shanghai old-style bank has always been based on foreign trade, hence which was associated with foreign banks,foreign companies,foreign businessmen,Chinese businessmen closely. Some owners of Shanghai old-style bank also serve as foreign banks' comprador. Shanghai old-style bank played great role in history because it mediated between foreign businessmen and Chinese businessmen as well as communicated domestic trade with foreign trade.Before the Opium War, Shanghai was just an ordinary county in Jiangnan (江南), whose economic scale can't compare with Suzhou. Shanghai old-style bank was only the old financial institution that its main function was exchange and small-scale lending. After the Opium War, the rise of Shanghai was benefited from the ports opening and the changes of trade environment. The prosperity of Shanghai old-style bank has also benefited from the development of trade. Meanwhile, Shanghai old-style bank was promoted prosperities of Shanghai trade. Both promoted each other and ultimately led to the rise of Shanghai.