The United States Purchased The Silver Policy, Natural Disasters And Economic Crisis

In this paper, through perspective of financial sector-the Chinese-funded banks to research the U.S. silver purchase policy's impact on the Chinese economic, because the sector will be the first to be affected, and will further affect the real economy. According to Chinese-funded banks' balance sheets of the year 1934-1936, We analyzed banking business conditions during the period of the "Silver Crisis". Banks in practice were still profitable, but different categories of banks'ROA and ROE varied. In 1935 the year with more bank failures, The Central and Special Charted Banks (CSCB) faced the worst business conditions, whose ROA&ROE data compared to the previous year declined by nearly half, mainly because of their role of market relief as state-owned banks Total assets of private banks downturned and also the amount of their loans. However, due to government funding, CSCB's asset strength increased substantially and increased the credit to total loans. The scale of Chinese-funded banks' loans did not fall but get a more than 20% increase. Business credit can be relaxed and the actual situation, as described the large-scale industrial and commercial bankruptcy, mainly due to agriculture's substantially production cut in 1934, which caused farmers' income reduced and then product demand plummeted. This article tries to relate historical records of natural disasters and overview the reduction of agricultural production.