Research On Northwest Bank(1925-1931)

Northwest Bank was established during the period when Feng Yuxiang was appointed as the Northwest Border Supervision Office,with the purpose of raising military salaries and injecting funds for Feng Yuxiang’s army.It was an influential Military Bank at that time.In January 1925,Feng Yuxiang was appointed by Duan Qirui’s government as the Northwest Border Supervision Office.In order to solve the inconvenience of depositing and allocating funds among military and political organs in the northwest and the difficulty of raising military salaries for the Northwest Army,it was decided to establish the Northwest Bank.On April 6,1925,the head office of Northwest Bank officially opened in Zhangjiakou.From the first half of 1925 to the first half of 1926,Northwest Bank established branches across the northwest,gradually expanding its business scale.In August 1926,influenced by the defeat of the Northwest Army in the Battle of Nankou,the head office and branches of the Northwest Bank ended one after another.Only Gansu Branch was able to continue,and the Northwest Bank fell into a low ebb.On September 17,1926,Feng Yuxiang held a vow conference in Wuyuan,announcing his participation in the National Revolution.Soon after,he captured Shaanxi,and Northwest Bank was also revitalized,setting up branches throughout Shaanxi.On August 11,1927,the General Management Office of Northwest Bank was established in Zhengzhou,and Northwest Bank entered its heyday.In 1930,during the Central Plains War,Feng Yuxiang lost,and the Northwest Bank ran on paper money,leading to the closure of branches throughout the country.In 1931,the Gansu Provincial Government reorganized the Gansu Branch of Northwest Bank into Fulong Bank,completely ending Northwest Bank.The Northwest Bank was founded by Feng Yuxiang and attempted to raise military salaries and control local finance through the bank,which is a typical example of the establishment of banks by warlords.Looking at the development history of the bank,it can be seen that it has a distinct characteristic of being a Military Bank,that is,its development and expansion mainly rely on the expansion of the Northwest Army,rather than its own business activities.Studying the establishment of Northwest Bank,the development situation in various periods,and the issuance of paper currency and other activities is conducive to exploring the relationship between the development of Northwest Bank and Feng Yuxiang’s military actions,as well as the impact of Feng himself on the internal management of Northwest Bank,and on this basis,demonstrating the reasons for its failure.Through investigation and analysis,it can be concluded that Northwest Bank,as Feng Yuxiang’s accompanying bank,introduced a set of organizational forms and management methods of modern commercial banks,but due to the profound impact of Feng Yuxiang and the political and military environment at that time,it was difficult for Northwest Bank to focus solely on economic activities,and its ambition was not here.The value of its existence and the main purpose of its operation have always been to serve the military and war.Therefore,its positive effects are bound to be objective and limited,while its damage to local finance and adverse impact on the public are subjective and profound.The existence and development mode of Northwest Bank not only violates the objective economic laws,but also deviates from the popular sentiment,and is bound to fail.The development history of Northwest Bank is also the epitome of many warlords’ founding or controlling banks.