1, which stabilized the financial market.
2. It promoted the price recovery and stimulated the recovery of production.
3. Bureaucratic capital took the opportunity to amass wealth.
The reform of the national government's monetary system began with 1935 1 1.3. The Ministry of Finance promulgated the Law on the Implementation of Legal Monetary Policy and the Measures for the Exchange of Legal Currency, which stipulated that the currencies issued by the Central Bank, Bank of China and Bank of Communications were legal tender, in an attempt to change the chaotic situation in which banks were allowed to issue currencies in the past and unify the comprehensive monetary system. The monetary reform was carried out with the assistance of Liz Ross, a British economic adviser.
1936 In May, the Nanjing National Government was forced to conclude the Sino-US Silver Agreement with the United States, and the exchange rate between the legal tender and the US dollar was fixed. The fiat 1 yuan is equal to 0.2975 USD, making it a vassal of the British pound and the US dollar. The implementation of legal tender policy unified the monetary system, which was the progress of China's monetary system and played a positive role in the initial social and economic development.
However, the national government took advantage of the concentration of currency issuance rights to strengthen financial monopoly; In addition, legal tender was used as cashless paper money with legal compensation qualification, and the fiscal deficit was filled by inflation issuance, which led to hyperinflation and became the fundamental reason for the collapse of the national economy.
Extended data:
The main contents of the monetary system reform of the national government;
1, unify the right to issue currency and implement legal monetary policy. Banknotes issued by the Central Bank, Bank of China and Bank of Communications (later the Farmers Bank of China) are legal tender; Other banks may not continue to issue new banknotes; All taxes paid on grain and the income and expenditure of all public and private funds are limited to legal tender, and cash is not allowed; Other bank notes originally approved by the Ministry of Finance are allowed to be used as usual, and the Ministry of Finance will exchange them in legal tender on a regular basis.
2, the implementation of silver state-owned. Prohibit the circulation of silver and transfer the silver nationalized to foreign countries as foreign exchange reserves; All silver shops, other public or private institutions or individuals holding silver functional currency or raw silver and other silver coins will turn them into legal tender from165438+1October 4th.
3. Abandon the silver standard and adopt the foreign exchange standard. In order to stabilize the exchange rate of legal tender against foreign exchange, it is stipulated that the central government, China and communications are not restricted in buying and selling foreign exchange. The value of legal tender is expressed by foreign exchange rate; At that time, it was stipulated that legal tender 1 pound 1 shilling was 2.5p.
To this end, the United States is fighting for it. In February of the same year, the United States changed the way of buying silver, which forced the world silver price to plummet and affected the stability of China's exchange fund.
Baidu Encyclopedia-Currency Reform of the National Government