Research On The Currency Issuing Function Of The Central Bank Of Nanjing National Government

The Central Bank was established in 1928 immediately after the National Government established the capital of Nanjing.This was the result of the interaction between the trend of the establishment of central banking systems in various countries around the world and the domestic social and economic development.It was also the Nanjing National Government’s attempt to strengthen and unify the country’s fiscal economy need.From its establishment in 1928 to its demise in 1949,the central bank has almost always been in line with the rule of the Kuomintang regime on the mainland.With the support of the National Government,various functions of the central bank have achieved varying degrees of development.Among them,as the "issuing bank",the Central Bank participated in every currency reform during the reign of the Nanjing Nationalist Government,and played an important role in it.Before the Anti-Japanese War,through the abolition of the two yuan reform and the two major currency reforms of the legal currency policy,the central bank’s privileges in currency issuance were further consolidated and improved,and significant progress was also made in unified issuance.However,the currency issuance power is not only exclusive to the central bank.At that time,the three banks of China,Communications and Farmers Bank of China still enjoyed the power to issue currency and were not subject to the control of the national government.The central bank’s exclusive issuance power remained the same until the outbreak of the Anti-Japanese War.After entering the state of wartime,the National Government first introduced a series of management measures for the special circumstances of wartime,and made major changes and adjustments to the legal currency policy to control the economy and support the war.Second,the establishment of the Joint General Office of the Fourth Bank of China Communications and Agriculture,making it the highest financial leading institution in wartime,The central bank thus uses the power of the Silian Headquarters to control the four banks,strengthen its position in the four banks,and make its strengths continuously enriched and its functions increasingly complete.In 1942,Chiang Kai-shek ordered the Silian Headquarters to re-divide the business of the four banks,centralize the issuance of fiat currency in the central bank,exclusively handle currency issuance matters,enable the central bank to complete the unified issuance in the final sense.However,after the victory of the Anti-Japanese War,the National Government was eager to launch a civil war,ignoring the economic and financial expansion and issuing currency indiscriminately,and the National Government did not formulate a reasonable and effective currency withdrawal mechanism,make the currency reform that had modern significance go astray.The central bank’s issuance system should be matched with a reasonable fiscal system,monetary and financial system,in order to give full play to its substantive effects.However,the Nanjing National Government did not establish a reasonable and effective fiscal and monetary system,but blindly let the central bank serve as a tool for its fiscal policy.This mode of over-involvement in government finances makes it difficult for the central bank to escape government manipulation,Easy to be interfered by military and political forces to change currency system and issue banknotes indiscriminately,easy to be interfered by military and political forces to change currency system and issue banknotes indiscriminately.