Private Lending And Rural Economy In Sichuan:1920s-1930s

Private lending in China has a long history as a common economic phenomenon. Itis also known to lend freely, and it is a kind of lending no official financial institutionsto participate in, including personal lending and personal lending to thenon-governmental financial institutions. Private lending in Chinese rural society existsfor a long time, because the characteristics of extensiveness, flexibility, without creditobject, purpose, scope, interest rates and time limits. In the1920s and1930s, the socialunrest in Sichuan, natural and man-made disasters constantly coupled with thegovernment’s exactions, rural productivity in Sichuan was extremely weak, farmersneed funds but unable to borrow money, because of the lack of modern financialinstitutions. In this context, the private lending has played an important role in the dailylife of farmers. At that time, the Sichuan region rural financial activities were mainlyprivate lending. It has not only universality, but also with the local rural social economicoperation and development is indispensable, and have great influence on the rural dailylife and the whole Sichuan rural society and economy.Study on the private lending during the period of the Republic of China. Mainlyfrom the following aspects to interpret, general situation of private lending, the reasonsfor the prevalence of private lending, the form and operation of the lendingorganizations, regulation of private lending, and private lending impact on thesocio-economic development in rural areas of Sichuan. Reveals the link between theprivate lending and rural socio-economic, and it is impact on rural economy in theperiod of the Republic of China.