ESP The 24th Young Scholars' Workshop (10/4)

* Please be noted that the date has been changed.

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ESP The 24th Young Scholars’ Workshop

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Date:                Wednesday, October 4, 2017

Time:                  12:30 – 14:00

Venue:                GRIPS 4th floor, 4B

Language:          English

Presenter:           Hiroaki Morota, Researcher

Affiliation:         Research Institute for Humanity and Nature (Chikyu-Ken)

Title:  Regional Credit Money and Banknote Issuance Agency System : Chinese Free Banking in the interwar period Reconsidered

Abstract:

The purpose of this presentation is to verify that the conventional regional credit money (promissory notes) which was outside the limit of law substantially contributed to the prevalence of banknotes in the interwar period, focusing on China’s unique banknote issuance agency system.

Most previous research emphasizes the role of modern financial institutions such as a bank regulation, unity of regional currencies to uniform national currency, and a central bank for the establishment of banknotes’ soundness and the prevalence of banknotes in this period. Although above mentioned institutions were surely important, the major researches nevertheless place too much emphasis on the legal system for the establishment of banknotes’ soundness and the prevalence of banknotes.

This presentation shows through banknote issuance agency system, major Chinese banks frequently received the reliable regional credit money which was outside the limit of law as the pledge of cash reserve against the backdrop of banknote issuance competition and several regional practices for saving the use of actual metal money. This presentation also will show that there were no crucial problems for the soundness of banknotes in the use of banknote issuance agency system and reliable credit money substantially contributed to the prevalence of banknotes in the interwar period.

EOM