A Study On Ma Yinchu's Thoughts Of Fiscal And Finance Before 1945

Ma Yinchu is a famous economist in China. He wrote many books in his life and he had a profound understanding of many economist problems .The thoughts of fiscal and finance are the important parts in his ideological system of economy. Ma Yinchu's views and propositions on the fiscal and finance could be regarded as an authoritative comprehension on the national fiscal and finance system and the policy-decisions at that time. The paper studies systematically Ma Yinchu's thoughts of fiscal and finance selected from his works before 1945.It can be divided into two periods (the years before 1937 and the years from1937 to1945).The paper falls into five parts. The first part: Ma Yinchu's thought's of fiscal before 1937. The main thoughts include five respects—the rectification of fiscal the reform of tax system, the protection of tariffs, and the management of debts. As for the rectification of finance, Ma Yinchu thought if the fiscal of a nation had a sound operation, it must depend on the budget. In order to rectify the fiscal, the government must with the plan of budget. When the government planned the budget, it was necessary to let representatives of people to participate in the plan. The aim of making the budgetary items should be easy to understand and should be standardized. As for the confused situation of the tax system, he proposed that a new tax system should be established, the old exorbitant taxes abolished and the monopoly of selling salt carried out. As for the protection of tariffs, he maintained that the government should resist the foreign goods , protect the tariffs and take equal trade as the principle. He objected to the long-term "Three Struggles" and to the breaking off the economic ties with Britain and Japan. As for the public debts, Ma Yinchu put forward that the internal debts must be made better, the external debts must be dealt with and the borrowed money must be used in the construction and production. The second part: Ma Yinchu's thoughts of finance before 1937. In this period Ma Yinchu's thoughts of finance mainly include the change from Liang to Yuan ,the Central Bank's control over the finance. He proposed a bill of changing the Liang to Yuan so as to unify the national currency. He held that the standed silver dollar currency system must replace "the double silve"(silve Liang and silver dollar). He also advocated the unified control economy, strengthening the controlling of finance institutions and set up a strong Central Bank which could issue the cash and convoke the stock holders so that a real Central Bank system could be established and the nation could control the finance. The third part: Ma Yinchu's of fiscal during the period of the Anti-Japanese war. Ma Yinchu maintained that the unfair fiscal and tax system must be reformed ,the income tax must be opened quickly, and the excessive profit tax must be levied. He strongly criticized the bureaucratic capital for its monopoly of the national fiscal. He also strongly maintained that the national government should impose the temporary property tax on these who made a fotune from the national calamity so as to use the tax as the funds for rejuvenation of China after the war. He suggested that the cash should be recollected in order to stablize the franc. His thought of finance during the period of war focused on the reform of taxes and levies. The purpose of the reform was to collect the financial resource ,unite the minds of people to the continuation of the Anti-Japanese War. The fourth part: Ma Yinchu's thoughts of finance in the early phase of the Anti-Japanese War. The thoughts include the stabilization of the value of money and the control of the undesirable currency inflation. He put forward the theory of stabilizing the value of money emphasizing that the settlement of the economic problem after the Anti-Japanese War must start from managing the currency inflation, and that the stabilization of the exchange rate of franc and the stabilization of currency were veryimportant to the nation. The fifth part: the hi...