On Song Zi-wen’s Reform Thought Of Financial And Practice Activities

Song Ziwen (1894-1971) of the Republic of China is an important figure in history, the last century1920’s to1940’s, he played a decisive role in financial fields. From1927to1937, he planed and presided a series of the important financial reform plan, through formulating the financial regulations, finishing bonds, reorganizating the bank system and monetary reform. Song Ziwen discussed the financial reform and practice activities, to finish and reconstructe the Chinese modern financial markets, to create China’s first modern monetary system and financial institutions to promote the orderly operation and China’s modern finance development.This paper tries to make his financial reform policies, measures and discusses to analyzes the actively and limitation of his thought. This paper consists of six parts. The first part is the introduction, mainly discusses Song Ziwen’s life experience, elaborated his financial thought on the latest academic development and practical significance. The second part discusses his financial reform thought formation origin and course. The third part discusses the financial reform thought content and features, including financial management concept, the implementation of the reasons and characteristics of the financial institutions reform, the necessity, the main part of financial reform focused on the establishment of central banks, strengthen the function and position of central bank and the Ministry of Finance and the relationship between the three point. He constructed the financial monopoly system, centralized currency distribution right, carrying out waste element change two pilot areas, to reform to reduce resistance, but also for the currency reform of1935lay the necessary foundation. The fourth part discusses Song Ziwen’s Thought on financial reform implementation of specific measures. In Song Ziwen’s guidance, construction of central bank to form a government, banking system, constructing the financial monopoly system, enacted a series of financial laws and regulations, to solve the long-standing national government funding, the national government both in the international financial business is in the domestic financial business, no longer subject to their financial strength, promoted the process of the modernization of Chinese financial institutions. He pursued a currency reform, including the collection and centralized right to issue currency, as a centralized government to issue banknotes in removing obstacles; give up silver standard system, put forward “the Gold-Exchange Standard” and so on, for providing a good financial environment at next monetary reform. The1935’s currency policy, establish a sound financial basis, the regulation of financial relaxation, assure economic and reasonable development. The fifth part from the special historical background, shallow ground to reform effect, function and limitation of the evaluation. The sixth part is the conclusion of this paper briefly summarizes, due to various reasons the limit, finally Song Ziwen’s financial reform is only a limited reforms.