1In June, 934, the US government implemented the Silver Purchase Act, which raised the purchase price of silver, causing a large amount of silver to flow out of China, shaking the foundation of the silver standard system. In order to stabilize the currency and get rid of the financial and economic crisis, the National Government adopted the advice of Liziros, a British financial expert, and decided to abandon the silver standard and implement the legal monetary policy. 1935165438+13 October, the Ministry of Finance of the National Government issued an announcement on the implementation of legal tender. Its main contents are: unifying the right to issue currency and implementing legal monetary policy. Banknotes issued by the central bank, Bank of China and Bank of Communications (later Agricultural Bank of China) are legal tender; Other banks may not continue to issue new banknotes; The payment and collection of all taxes and all public and private funds are limited to legal tender; 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 regularly exchanges them in legal tender. Implement state ownership of silver. Prohibit the circulation of silver and transfer the silver nationalized to foreign countries as foreign exchange reserves; Banks, shops, other public and private institutions or individuals who hold silver functional coins or silver coins should hand them over to the Issuance Preparation Management Committee or its designated bank for legal tender exchange from June 5438+065438+ 10.
Adopt foreign exchange standards
Give up 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, Bank of China and Bank of Communications can buy and sell foreign exchange without restrictions; The value of legal tender is expressed by foreign exchange rate; The exchange rate between legal tender and British pound remained at a fixed level. At that time, it was stipulated that legal tender 1 pound 1 shilling was 2.5p, which was won by the United States. 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. 1936 In May, the 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; It also regarded legal tender as cashless paper money, and used inflation to fill the fiscal deficit, which led to hyperinflation and became an important reason for the collapse of the national economy.
Because in China, the system of silver standard and copper standard has been implemented for thousands of years, people and businessmen don't trust paper money. In addition, after the Anti-Japanese War, the national government used inflation to make up for the consumption of the war, and the paper money policy was only a tool. 1935 100 yuan can buy two cows, 1940 can buy a pig, 1943 can only buy a chicken, 1947 can only buy the third box of matches. In fact, whether it is the Kuomintang army, the Eighth Route Army or the New Fourth Army, the military pay is paid in silver. It lasted until Hainan Island and Tibet were liberated after 195 1 year. The status of silver dollar as a currency in circulation was terminated.