End Of The Qing Dynasty Copper Crisis And The Failure Of The Copper System,

Late Qing Dynasty is the transitional period from traditional monetary system to modern monetary system. Along with the collapse of the copper cash system, copper coin, as a new kind of fractional currency, replaced the position of copper cash quickly. Copper coin came into being under such a social condition in which silver dollar as a standard currency system had not been perfected, therefore, although copper coin was very progressive, but it also had some congenital flaws. Casting copper coin could obtain huge profits. The surplus profits produced by casting copper coin became the main source of the expenditure for the new deal in Late Qing Dynasty. In order to obtain the huge profits of copper coin, local governments pressed on with casting, which made copper coin overaboundance in some places and a flooded situation in some big cities caused by it was formed. The copper coin's price fell down suddenly and rapidly. Both the central authority and local authorities adopted some measures to govern the crisis of the copper coin. The central authority issued a series of policies to recover the right of casting copper coin but rejected by local authorities. Local governments strived hard to disperse their overstocked copper coins in the fight of dumping and antidumping. The measures adopted by both the Central authority and local authorities were not made for a long term money program but to scramble for profits, therefore, their measures had little effect finally. The price of copper coin fell continually and the copper coin system tended to fail. Many people thought that the reason for the failure of the copper coin system was private casting and excessive casting. However, there were more profound reasons behind them. The central authority's Act could not be implemented at region level due to the competition for the copper coin's profits. Dividing lines between the provinces made the circulation of the copper coin even more confusable. The misunderstanding of both the government and the public in Late Qing Dynasty is the reason why crises of the copper coin could not be solved thoroughly. However, in the final analysis, the fundamental reason is the confusion and unsound of the currency system in Late Qing Dynasty.