A Discussion On The Financial Crisis In 1910

In 1910, the outbreak of Shanghai "Rubber Stock Storm" hit hard on the Shanghai financial markets. This storm quickly spread across the country, which brought great loss to commercial and industrial enterprises. It gradually developed into a national-wide "Financial Crisis ".The issue of this paper is to discuss the causes of the Financial Crisis in 1910. According to the economic theory, it proposed that "long-term supply and demand imbalance in the money market "is the reason of the Financial Crisis in 1910. It analyzes the economic and financial factors which had influenced the money supply and demand such as foreign trade, external debt, the development of industrial capital investment. The Qing Dynasty Reform of fiscal balance and the currency had not changed the extremely awful situation of Money supply but worsen it. Compared with other Financial Affairs, it is a serious national-wide Financial Crisis.