The Agricultural Credit Research About Chinese Bank In The1930’s In Shaanxi

In the late1920s, the northwest part of China drought seriously in Shaanxi.People lived in the hot water with many natural and man-made disasters,such as years of wars, long exist of exorbitant taxes and miscellaneous levies as well as the popularity of the usury. At the beginning of1930s, a new form of agricultural credit institution,with Chinese banks as its focus, began to become active in Shaanxi’s credit marketCompated with the traditional borrowing organizations, Not only in the system construction,but also in the ways of borrowing,this new form was more in the line with the market. It initiated the change and improvement on the view about rural credit system and production concept, and played the positive role in the recovering and development of rural economy in the1930’s.The first chapter of this article introduces the construction of agricultural credit system, based on the reason of launching the credit activities and system’s focus.At that time, Shaanxi was afflicted with opium,the militarism and natural disasters,which nearly caused the bankrupt of the rural economy.So,with the hope of relief from famine, the government encouraged the bank in the west part to invest agriculture in Shannxi. The institutions launching credit activities includebanks,government agencies as well as cooperatives,all of which promotes the improvement of system construction.The second chapter introduces the specific conditions about credit businesses of Chinese banks in Shaanxi, in terms of the invest amount,the invest area and invest ways.When dealing business, Chinese banks could handle individually or jointly.The new form of credit has become the major component of the market, not only with its size, but also with its number of businessesThe third chapter gives comments on the credit activities In the process.the new form of credit institution does have some problems,but its effect should not be ingored:firstly, it promotes the recovering of Shannxi’s rural economy.Secondly, it brings the financial competition in credit market.Finally, it changes the social concept of Shannxi’s citizens.