A Research Into The Usury Of Shandong Rural During The Period Of The Republic Of China

Loan is a social and economic phenomenon, which has a very long historical standing. Fork loan, acting as a mode of traditional social financial operation, is the core of traditional Chinese social economy. Usury, which is the main part of fork loan, is the dominant force and enjoys a long-term monopoly position in rural finance. In Shandong province of the period of Republic of China, especially after the20s, structures of traditional fork loan experienced significant changes, with the establishment and development of the cooperative and the permeation of financial institutions, such as modern banks in the country. In the30s, the traditional loan along with the modern loan forms together the foundation of the network system of rural loan in Shandong, and even the whole country. Although forms of usury capital, such as pawn shop and exchange shop, gradually declined, usurious forces as a form of traditional loan, consisting of landowners, rich peasants and businessmen, continued to occupy the dominant position in rural finance. Banks and cooperatives can hardly match with them, and they are in absolutely weak position. Despite high interest rates, short loan period and tough conditions, usury was yet able to stand still in the financial change, which is a social and economic phenomenon worthy of detailed investigation and study. This paper is presented from the aspects of the reasons for the prevalence of usury, both sides of debtor and creditor, interest rate, loan period, social and economic impacts, etc, with the expectance to reflect the basic features of usury in Shandong province of the period of Republic of China, and also to provide reference for further studies.