Government in Republican ChinaLinebarger, Paul Myron Anthony
History
Government in Republican China
Linebarger, Paul Myron Anthony
China -- Politics and government -- 1912-1949
After the schism, the Nationalists devoted themselves to the
national-economic and industrial revolutions, while the Communists
stressed the social revolution, particularly the land problem. The
Nationalists were able to secure tariff autonomy for China, and
thereupon entered upon a policy of protective tariffs and other
mechanisms designed to make China a reasonably self-sufficient nation.
At the same time they pushed hard toward the industrial revolution, in
developing highways, railroads, airways, and radio, and in creating the
economic controls required for modern government--standard weights,
measures, currency, civil law, and fiscal uniformity.
T. V. Soong (Sung Tz[)u]-wên), a veteran minister of finance, stands out
as the organizer of the modern Chinese economy. Veritable miracles were
performed in the development of national credit; after 1928 the National
Government adopted the policy--as remote as a mirage to its
predecessors--of floating all government loans within the country and
making the Chinese government independent of Japanese and Western
financiers. The only loans of any importance contracted abroad were
taken up with other governments. Financial independence was a great step
toward the realization of the Nationalist ideals, but it may be
questioned whether the loss of financial allies was a price to be paid
without hesitation in a capitalist world. Had the Chinese had more bonds
in the Western capital markets, or larger debts to the American or
British governments, they might have elicited greater international
support in repelling the Japanese invasion in 1931.
The crowning point in the economic achievements of the National
Government at Nanking was the successful institution of a managed
currency. China had dealt with currency merely as a convenient form for
specie, and the Chinese were accustomed to regard a dollar as worth only
the amount of metal in it. When the National Government placed the
currency on a national basis, it drew together the whole financial
structure of China by one gigantic move, and placed finance in a
position of greater unity and dependence upon government than ever
before. Together with the financial reforms, the Nationalists organized
a legal system providing a minimum foundation of law and order. The
codification of laws, the revamping of the judiciary, the clarification
of policies by legal formulation--all these contributed to China's
emergent nationhood.
Public-domain text, read in full here on John Shaqi.
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