The Rise and Fall of the Fengtien Dollar, 1917—1928: Currency Reform in Warlord China

Abstract

Financial chaos was the rule during China's warlord period from 1916 to 1928. The Central Government in Peking was often short of funds because the warlords who controlled the provinces refused to forward tax receipts to the capital. The effectiveness of the financial administrative machinery in each province varied greatly, and if careful accounts were kept by the provincial governments, they have not been made public. Most confusing of all was the assortment of currencies circulating in the provinces. A bewildering variety of coins and paper notes, generally issued by local banks and money-changing shops, were used in each province, though they would probably not be accepted at face value in the neighbouring province. In some areas foreign currency, such as Mexican silver dollars or Japanese gold yen notes, could also be found in the key market towns. So many currencies were in use that local chambers of commerce met daily to calculate the relative values of the currencies traded in their immediate area.