The Refund Of Boxer Indemnity Funds And Domestic Loans In The Period Of The Northern Warlords

Chinese domestic loans overflowed in the period of the northern warlords. Northern Warlords issued twenty-seven kinds of domestic loans, of which twelve claimed back to the Boxer indemnity funds to guarantee. Whether take the refund of Boxer indemnity funds to"the remaining customs duties"。raised a controversy in the beginning, which Northern Warlords Government argued strongly on. Finally, the refund of Boxer indemnity funds became domestic funds, not controlled by foreigners. After the Northern Warlords Government rearranged national debts in 1921, the Boxer indemnity funds were the mainstay of domestic loans.Looking from the historical process, the refund of Boxer indemnity funds ushered in a new era of the issue of domestic loans from 1914 to 1916. Under the stimulus of the refund of Boxer indemnity funds, the issuance of domestic loans went up continuously from 1917 to 1921. Northern Warlords Government struggled along on the refund of Boxer indemnity funds from 1922 to 1926. The issuance of domestic loans abated and in disguised form.To be backed by the refund of Boxer indemnity funds guarantee, domestic loans has following characteristics: 1.The money has guarantee to repay smoothly; 2. External debts convert to domestic loans; 3. domestic loans has a high market acceptance and a high price; 4.The domestic loans interest rates is high, with high returning of investment.With above favorable conditions, the domestic loans had a significant impact on politics, finance, finances, economy and other areas during the period of the northern warlords.First,Consolidate the credit of the debt and stabilize the market.Secondly,the domestic loans supported the warlords from financial resources, resulting in political chaos. Thirdly,the domestic loans stimulated speculation and disrupted the financial. Fourthly, the domestic loans induced financial disorder and lead to inflation. Fifthly, the domestic loans caused social gap between rich and poor.The sixth, the domestic loans caused the appointment of foreigners, and the damage of the good of the country. It is not just a matter of loans.