1941-1944the Research Of Shaanxi-Gansu-Ningxia Border Region Bank Currency

Shaanxi-Gansu-Ningxia Bank currency was issued by the Shaanxi-Gansu-Ningxiaborder region from1941to1944under the most difficult conditions. With the KMT’spolitical and economic blockade, the economy and people’s normal life of border regionwere seriously affected. Especially, after the "Southern Anhui incident", the border regionwas subjected to the strictest blockade so that its economy endured great distress.In order to make border region economy and the basic forces life of masses and armyoperate normally, the region government decided firmly to issue their currency from theShaanxi-Gansu-Ningxia bank instead of the legal tender which issued by KMT. In thisway, the government could ensure adequate funds which affected the resistance for thewar against Japan, at the same time, the revolution launched by the communist could tobe continued. Because of the Mutations in the situation of the war and the changingpolitical situation, the Bank issued currency hastily and difficultly which lacked ofexperience. At the beginning, the Bank currency ran into problems in the promotionphase. As follows, the occupation of market and substitution of legal tender, as well asthe inflation and the war against enemy made the bank currency suffered a series ofproblems.Actually, the bank currency experienced lots of problems in the running process.Take the issuing amount for example; the bank couldn’t control it accurately. As a result,the large amount of money caused severe inflation in the market, often accompanied byrising price. In the research of its shortcoming, we must take the actual conditions at thattime into account. At that moment the war was on, the existence and fight were the keypoints. With this into consideration, the problems of bank currency couldn’t be avoided.However, we must admit the contribution of the bank currency. It played an importantrole in that condition. On the one hand, it supported the financial and economy of theShaanxi-Gansu-Ningxia border region under the KMT’s blockade and guaranteed the waragainst Japan. On the other hand, it accumulated positive experiences for the issue ofcurrency and other economic work in the new China.This paper does research in bank currency, which has an extensive collection ofhistorical materials and information of the Shaanxi-Gansu-Ningxia. The researchmethods focus on document analysis. With the use of comprehensive historical data andthe writings of later scholars, this paper analyzes the bank currencyShaanxi-Gansu-Ningxia through historical and institutional way. It pays more attention tothe meaning, purpose, distribution, existing problems and the experience of bank issuedcurrency and analyzes them. Research on the process of issuing bank currency not onlyhelps us better understand the importance about currency in a war economy andcurrency’s struggle, further, also has a very good inspirations in the construction ofsocialist modernization.