The Research On The Farmers’ Bank Of Guangxi

In the modern history, with the disintegration of the natural economy, China’s agricultural production has been involved in commodity markets gradually. The role of rural finance in agricultural development becomes increasingly prominent, and rural finance becomes a lever and hub of economic development in rural areas. To around the1930s, China’s rural economy has experience an unprecedented economic crisis, and that has seriously affected agricultural production and the development of the rural economy. Just under this background, the governments of all levels supply funds to rural areas through financial institutions, alleviate the lack of rural finance, bring about an advance in rural economy focusing on solving the problem of rural finance, and achieve the aim of economic prosperity. To consolidate its power in Guangxi, increase its strength and be able to fight for hegemony again, the new Warlord governing Guangxi which returns to power in1931starts to construct Guangxi, pays attention to rural economic construction, develops the rural economy by means of adjusting rural finance, and wants to achieve the purpose of farm prosperity and a substantial increase in agricultural production. The Farmers’ Bank of Guangxi is the bank that the new Warlord governing Guangxi establishes to solve the problem of rural finance in Guangxi.The subject of the paper is the Farmers’ Bank of Guangxi, and the period when the paper discusses is from the establishment of the bank in1937to the close of the bank in1940. The Farmers’ Bank of Guangxi is not only a state-owned bank the provincial government of Guangxi establishes before the anti-Japanese war breaks out, but also the only bank specializing in agriculture in modern Guangxi. In1937, the provincial government of Guangxi decides to have Agricultural Economic Department of the Bank of Guangxi split up into the Farmers’ Bank of Guangxi. The Farmers’ Bank of Guangxi is the bank specializing in agriculture which the provincial government of Guangxi establishes to supply funds to farmers, boost agricultural production and develop the rural economy. Though there have been many important research results about Chinese modern finance history and the problem of rural finance, the academic circles have not paid much attention to the Farmers’ Bank of Guangxi. The paper is in the context of the development of politics, economy, rural economy and rural finance in Guangxi during the new Warlord governing Guangxi, and discusses the reasons and the course of the establishment of the Farmers’ Bank of Guangxi and the changing process of the Farmers’ Bank of Guangxi. By way of combing the development of the bank and studying the main business operations of the bank, we can light the characteristics of its business operations. And by way of discussing the development of the bank business and the relation between the Farmers’ Bank of Guangxi and the agricultural loan in Guangxi, we can examine and evaluate the positive role the Farmers’ Bank of Guangxi plays in the development of rural economy and agricultural production in Guangxi and the limitation of the Farmers’ Bank of Guangxi. The establishment and the development of the Farmers’ Bank of Guangxi have reflected the policies of the new Warlord governing Guangxi toward the settlement of the problem of rural finance and the development of rural economy in Guangxi at that time. The establishment of the Farmers’ Bank of Guangxi has affected the development of agricultural production and rural economy in Guangxi to a considerable degree.The paper consists of five parts, including the background of the establishment of the Farmers’ Bank of Guangxi, the establishment of the Farmers’ Bank of Guangxi, the business operations of the Farmers’ Bank of Guangxi, the relation between the Farmers’ Bank of Guangxi and the agricultural loan in Guangxi, and the evaluation of the Farmers’Bank of Guangxi.The first part discusses the background of the establishment of the Farmers’ Bank of Guangxi by means of analyzing the rural economic breakdown, the lack of rural finance, the decline in traditional rural financial organizations, the flourish of usury in rural areas and the problem of the farmers deeply in debt. The second part interprets the establishment of the Farmers’ Bank of Guangxi and the change of internal structure of the bank and the development of the branches of the bank. The third part discusses the business operations of the Farmers’ Bank of Guangxi. The business operations include money-lending business, depositing, agricultural warehouse operations, investment, postal remittance service and the Farmers’ Bank of Guangxi and the Farmers’ Borrowing-Money Association. The forth part studies the issue of the Farmers’ Bank of Guangxi and the agricultural loan in Guangxi in two phases. The first one is the developed situations and the shortage of the agricultural loan in Guangxi before the establishment of the Farmers’ Bank of Guangxi. The second one is the development of the agricultural loan in Guangxi during the operating of the Farmers’ Bank of Guangxi. The fifth part evaluates dialcctically the historical influence of the Farmers’ Bank of Guangxi, analyzes the positive influence the Farmers’ Bank of Guangxi has produced and points out the limitations of the bank.