The Kuomintang government's currency depreciated at an alarming rate
On the one hand, the Kuomintang government oppressed the people by collecting grain and taxes, and on the other hand, it printed a large amount of banknotes, resulting in soaring prices and serious currency depreciation.
Fiat currency issued by the Kuomintang government
On February 22, 1946, the Xiangtan Minbao published an editorial entitled "Stabilizing the Value of the Currency to Secure the Society", in which the ratio of the silver dollar to the fiat currency (the legal tender issued by the Kuomintang government) was quoted:
Time silver dollar fiat currency
1938 1 Yuan 1 Yuan
1939 $2
1940 $5
1941 $10
1942 $20
1943 $50
100 yuan for the first half of 1944
In the second half of 1944, 150 yuan
In the first half of 1945, 600 yuan
In the second half of 1945, 700 yuan
Paychecks should be packed in sacks
According to the journal of the Xuxing Store of Xiangtan City, the ratio of silver dollars to legal tender is: (one silver dollar)
Spring, Summer, Autumn, Winter 1946 (changes every quarter)
800 yuan, 1300 yuan, 1530 yuan, 3600 yuan
1947 16.2 thousand 25 thousand 47.5 thousand 130 thousand yuan
In 1948 537 thousand yuan 1820 thousand yuan 386 thousand yuan 6000 thousand yuan
The Kuomintang government's legal tender is gold dollar bills
On the 25th day of the seventh lunar month in 1948, the Kuomintang government changed the legal tender to gold yuan in order to save the seriously depreciated fiat currency. From the end of August, the exchange price of the Silver Dollar to Gold Dollar is as follows:
It was 2.7 yuan at the end of August, 4 yuan at the end of September, 19.2 yuan at the end of October, 68 yuan at the end of November, and 400 yuan at the end of December.
The ratio in 1949 was:
1460 yuan in January; $10.6 thousand in February, $1,000 in March, and not in circulation in April.
On July 1, 1949, the Kuomintang government stipulated that 500 million yuan of gold yuan coupons should be exchanged for one silver dollar. The 500 million yuan gold dollar coupon has to be packed in a sack. It is no wonder that on the eve of liberation, the common people said that gold yuan coupons can only be used as hand paper.