Interest Generating System In Qing Dynasty And The Analysis Of Its Influence

Interest generating institute generated by the government to allocate certain special payments as the foundation to government officials or merchant to operate, the government charged only ten to twenty percent of the principal every year to used to pay for government spending specified. It had very important influence on the finance and played a very important role in the political rule the Qing Dynasty.According to Interest generating institute's operation methods and uses, it can be roughly divided into three periods. Interest generating institute in Kangxi period is mainly special care for certain merchant or officials who are also businessmen, lending Treasury silver for operation, or establishing Treasury, and then direct lending to the eight banners to resolve the public debt and living problems; In Yongzheng and Qianlong thirty-five years, the generating institute was institutionalized. Offering interest-bearing principal to designated officials or certain merchant, it received interest income to enhance soldiers welfare or benefits for other public expenditure. However, with relaxation of management to the interest generating institute, large interest principal was used for direct lending officers,"Getting interest from the banners and then giving to the banners, no good thing came out ", coupled with the political feud, eventually led interest generating institute to haunt. After Qianlong35th, interest generating institute was no longer "officer operation" and it became completely interest-bearing capital. Interest principal source gradually came from the local government instead of central administration and the uses turned from Rewarding soldiers to all types of financial expenditure of government finance subsidy, becoming an important source of income. To the late Qing Dynasty, no allocation of funds from the government, no undertaking businessmen from the fatigue merchants, no manager because of the official corruption, interest generating institute ended with the collapse of the Qing Dynasty. As the Qing Dynasty important fiscal policy and monetary policy, the implementation of interest generating institute had a great effect on government finance and macro financial environment especially in the inflation and money exchange rate. The government also often consciously or not perceived used interest generating institute to regulate financial market or to promote of the development of financial markets to some extent in the Qing Dynasty.