Soong Dynasty: China (1912-1945) Financial History

I found THE SOONG DYNASTY by Sterling Seagrave at a library book sale.
It is a riveting account of heroic individuals who tried to create a
modern economy in a huge old nation torn by wars, internal and
external. (The author's view is different than that.) The Central
Bank of China, the Communications Bank of China, and other banks were
of their making or under their influence.

T. V. Soong created the Central Bank of China (Canton). Again, the
author is not especially sympathetic. Yet, these are his words:

"Many Chinese banks had no more than 5 percent of their notes secured
by silver reserves, but the Central Bank boasted 25 percent. Its
reputation was so good that the Central Bank's freshly printed
banknotes were accepted even in parts of China not under Kuomintang
control. T. V. Soong scrupulously honored the bank's pledges and
built up its credit. Private savings deposited in the bank increased
sixfold in 1926. Before long, even ordinary Chinese began to see
positive results from T. V.'s efforts."

On the other side of the ledger, as the KMT finance minister, T. V.
Soong established his own, personal police force that over-rode the
local habits of repetitive taxation against the future. T. V. Soong
also removed the power of the KMT army to tax directly the people
under its control.

Unfortunately, there was still Chiang kai-Shek. Chiang looted the
silver from the Central Bank. Power or Market: you cannot have them
both.

To close with a nod to collecting, I will have to finish the book and
then get deeper into the histories of the Banks before I can go
hunting for notes.

Michael

To close with a nod to collecting, I will have to finish the book and
then get deeper into the histories of the Banks before I can go
hunting for notes.

Michael


Many Chinese notes from that
period are inexpensive and quite
colorful and interesting to look at.

I have a few myself but I don't know
much about them.