The Research On The Financing Of Chongqing Industry During The Period Of Total War Of Resistance Against Japanese Aggression

Before the outbreak of the Anti-Japanese War,the national industry developed slowly.New types of banks actively tried to invest in industrial enterprises,but the abnormal situation that the industrial capital was still lacking and highly concentrated in Shanghai and other eastern coastal areas always existed.After the outbreak of the Anti-Japanese War,in order to preserve the industrial strength of the Anti-Japanese War,the government of the People’s Republic of Nanjing mobilized and organized industrial relocation to the west.Due to its advantages in resources and location,Chongqing became the first choice for industrial relocation,and it gradually developed into the industrial,economic,financial,political and military center in the rear area of the Anti-Japanese War.In order to continuously strengthen the economic,industrial and military strength to ensure the financing during the wartime,the nationalist government timely adjusted the economic,financial and industrial management system,also vigorously implemented the dirigiste economy,and actively guided investment into production.Gradually,it shifted to the wartime economy system,whose main performance was as follows: first of all,the Ministry of Economic Affairs was reorganized and empowered to centralize and unify management of industrial construction,plan and supervision throughout the whole country.The adjusted Resources Committee was placed under the jurisdiction of the Ministry of Economic Affairs and entrusted with the important responsibility of developing state industries,especially heavy industry and basic industries and mining.Furthermore,the headquarter of Four-Joint-Banks shall be established to clarify the professional development of the four state capital banks,the central bank,the China Bank,the Communications Bank and the Farmers Bank of China.It shall be in charge of maintaining financial stability,improving financial networks in the southwest and northwest regions,assisting production undertakings in the inland regions,and invigorating the provincial economy.Last but not least,the government aimed at strengthening the centralized management,unifying layout of the military industry,completing the internal relocation,reconstruction,new construction and resumption of important ordnance factories,implementing ordnance accounting,strengthening the budget and final accounts and implementing the cost accounting of ordnance products and other systems.The arsenal basically guaranteed the normal production of ordnance under the condition of continuous state investment,and provided an endless supply of weapons and equipment for the anti-Japanese front.What’s more,on the premise of giving military priority,the government actively assisted private industry and paid attention to the loan of funds to private industrial enterprises.Finally,in order to develop the provincial industry,according to the special joint stock limited company operation mode,the government established the rear province enterprises.Through the above measures,the nationalist government finally established a highly centralized wartime military and political management system under the slogan of "Anti-Japanese and national instruction".The state capital grew rapidly and became a dominant force,and eventually formed a monopolistic position.Among them,the State Capital Bank,the State industry under the Resources Committee and the Arsenal under the Armaments Bureau were typical representatives.Through the overall investigation and case analysis on the wartime-Chongqing industry and the typical financing situations of the industrial enterprises,this paper holds that: first,the arsenals in Chongqing were appropriated by the state budget for ordnance manufacturing,and its funds were mainly divided into manufacturing and construction funds,which were allocated by the Ordnance Bureau according to the amount of military products surrendered by the Ordnance Bureau,and the funds were fully guaranteed no matter the amount of production or even temporary production.On the whole,all the arsenal in Chongqing had sufficient funds and basically had a surplus,which provided an endless supply of weapons and ammunition for the front line of the Anti-Japanese War.Secondly,the state-owned industries under the Resources Committee were the pillar of the war-time rearguard industry.The funds for the state-owned industries of the Committee were allocated by the state budget as the start-up fund,and the working capital needed was generally borrowed from the state bank on more favorable terms.At the same time,all the enterprises affiliated to the Resources Committee should be strictly accounted for and be responsible for their own profits and losses.The surplus should be turned over and the deficit units should be uniformly allocated by the committee.With flexible use of state funds,the Association had successfully established and operated a large number of state-owned heavy and chemical industries by means of investment,joint ventures or sole proprietorship.The Relocation and Construction Committee of Iron and Steel Works located in Chongqing was the largest wartime state-owned steel works jointly established by the Resources Committee and the Ordnance Industry Administration.Its start-up capital was half borne by the two joint venture parties respectively,and subsequent manufacturing and construction expenses were allocated by the Ordnance Industry Administration according to the system of Ordnance Industry according to the products paid by the joint venture.The surplus over the years was retained as cumulative fund for the expansion and reproduction of the plant.Third,provincial enterprises are emerging economic organizations during the war,and their role can not be ignored.Chuankang Xingye Company was established under the guidance of central and local government shares and special commercial shares of the state bank.It had the characteristics of both industrial group and financial institution,and adopts the mode of "supporting industry by business" to accumulate funds.Fourthly,the private industry in Chongqing was an important supplement to the state industry during the war,and the financing difficulty was the main factor restricting the development of private industry in Chongqing Minsheng Machinery Plant and the Jianghe Coal Mine were typical private industries.Their financing mainly relied on venture capital,bank loans,internal accumulation and mutual help among peers.The difficulties in debt management were typical characteristics of private industries.Fifth,Chongqing Water Supply Company,as a typical wartime mixed capital enterprise,its venture capital came from government shares,the business form was commercial.Its financing mainly included loans from the state and commercial banks,financial subsidies and business income,because of the nature of both public welfare undertakings,can not take profit as the only purpose,so its performance can only be maintained.During the Anti-Japanese War,state-owned enterprises(including Arsenal),provincial enterprises and mixed capital industries in Chongqing were dominated by the national government,supported by national capital and guaranteed source of funds,and eventually developed and eventually formed a monopoly position.At the same time,the private industry,which was closely related to people’s livelihood and made great contribution to the war of Resistance,experienced a brief "prosperity",and gradually shrank under the shadow of the increasingly narrow financing channels and the "halo" of the state industry,and finally went extinct.