Out Of The Woods:Crisis And Response Of Chinese Merchants' Cotton Spinning Industry In Shanghai During The Great Depression,1932-1936

The World Great Depression severely shocked the global economy around the 1930.China,who had been integrated into the global market economy system,was no exception.From 1929 to 1931,because of its silver standard,Chinese cotton spinning industry gained huge profits,which used to be flourishing.However,until the fall of 1931,under the impact of the Great Depression,the market crisis,expensive-cotton and cheap-yarn,the domestic natural and man-made calamities,the Japanese imperialist aggression and so on,Chinese cotton spinning industry in Shanghai fell into extremely difficult situation.The Great Depression not only accelerated its overall decline,but also exposed many malpractices existed in Chinese businessmen's cotton spinning enterprises,which led to the people of the cotton spinning industry and many others from all walks of life reconsidering and response.Faced with doom and gloom situations,the first initiative of the Chinese cotton industry in Shanghai was "self-help",of which the most direct approach is to reduce working hours and salaries.For the various shortcomings of their own production and management,some cotton spinning enterprises in Shanghai tried to achieve the purpose of industrial rationalization by improving the production,operation and management,introducing advanced technology and equipment,developing the efficiency of labor textile,attaching great importance to the technology and training qualified personnel,etc.What's more,in order to alleviate the crisis,some cotton mills also tried hard to expand markets and the financing channel,and develop to the mainland.Especially,as the cotton spinning industry's association,the Union of Chinese Cotton Mill played an important role in which it should have.In addition to the efforts of "self-help",cotton entrepreneurs also appealed government's relief,requiring for interventional measures,including financial support,economic control,reducing the tax burden of cotton yarn,providing low-interest loans and so on,which behaved as taking every opportunity to petition the government through comments,and taking practical action to influence the government's decisions.Confronted with pressure from different parties,the National Government and the Shanghai Municipal Government had given a certain response.They not only formulated some macroeconomic policies,such as the implementation of economic control,monetary and financial reform,tax and tariff reform and so on,but also carried out some specific measures in favor of the Chinese cotton spinning industry,including the improvement and control of the cotton industry,reducing the freight cost of cotton and cotton yarn,signed with the United States on the "Cotton and Wheat Loan",limiting foreign investors to set up factories in China,advocating domestic products movement,the adjustment of labor relations,promotion of textile education,etc.These symbolic aid played a positive role on alleviating the crisis,reflecting the interaction between government and society.However,owing to the government's own limitations as well as the gambling of their respective interests,which influenced the exertion of its function.As a result,the role of government's relief was extremely limited,with little achievement.During the Great Depression,the Chinese cotton spinning industry in Shanghai existed great dependence and expectations for the banking industry,hoping that the bank could carry on the low-interest loans and investments to it.However,the bank's reaction was extremely indifferent about this matter.The cotton mills' financing plan through bank loans eventually fell into bankruptcy.The phenomenon that the Chinese cotton spinning industry in Shanghai got into trouble on all sides in terms of bank loans,which manifested the relationship between industrial enterprises and the banking industry as well as the gambling of their interests.In addition,various merchants association,industrial organizations,social elites and some others in Shanghai also stretched out hand of the aid to the Chinese cotton spinning industry in Shanghai,and paid the distinguished service in coping with the crisis.Of course,China Textile Institute,other domestic products associations,public opinion of the media and so on also had also displayed a certain positive impact.All in all,in the process of coping with the crisis of Chinese cotton industry,in addition to the macro-dominant role of the government,social interaction and support from all walks of life also could not be ignored.It was the good interaction between the state and society in response to the crisis that effectively alleviated the economic crisis.However,it should also be noted that,the foundation of Chinese economy in this period was still the traditional agriculture and industry,the response measures discussed above to reverse the plight of the cotton spinning industry was fairly limited.The recovery of industrial and agricultural economy in 1936,as well as the improvement in economic and social conditions at home and abroad at that time was the direct cause that Chinese cotton industry finally got out of the woods in the short term.