Chinese customs gold unit
Encyclopedia
The customs gold unit was a currency issued by the Central Bank of China
between 1930 and 1948. In Chinese
, the name of the currency was 關金圓, literally "customs gold yuan" but the English
name given on the back of the notes was "customs gold unit". It was divided into 100 cents (關金分). As the name suggests, this currency was initially used for customs payments, but in 1942 it was put into general circulation for use by the public at 20 times its face value in terms of the first Chinese yuan
.
(海關両) as the standard for customs payments. It was defined as equal to 601.866 mg fine gold or US$0.40. CGU notes were fully backed by silver and were legal tender for paying import duties. The CGU replaced the Haikwan tael at CGU150 = HkT100.
The CGU's value, fixed against the US dollar, fluctuated against the Chinese yuan
, based on the current yuan–dollar and yuan–sterling market exchange rates. After the UK abandoned gold in September 1931, only the yuan–dollar rate was used until 1933, when the sterling price of gold in the London market determined the value of the CGU. Central Bank of China sold CGU notes at the prevailing quotation so that businessmen could minimize exchange risks resulting from changes in the yuan–dollar and yuan–sterling exchange rates. Use of this currency was very limited, with only about CGU375,000–475,000 outstanding at the time of the 1935 currency reform.
The Chinese currency reform of 3 November 1935, which created the Chinese national yuan or dollar (CNC$), commonly known as the Chinese legal tender dollar or fapi in English (Chinese 法幣; Pinyin: fǎbì), also fixed a crossrate of CGU100 = CNC$226.
The CGU's role in paying custom duties disappeared in 1941 when the government set ad valorem customs rates. On 1 April 1942 the custom gold unit's theoretical gold content was raised to 888.671 mg fine gold, equal to one US dollar. In practice, the customs gold unit lost all its special features and simply became equivalent to 20 Chinese legal tender dollars (CGU1 = CNC$20).
When Nationalist troops and officials arrived in Shanghai in 1945, they brought with them newly printed notes of 20 and 50 customs gold units. These notes proved more popular locally than Chinese legal tender notes and, due to a mistaken belief in the existence of a gold-redemption clause, they commanded a premium when exchanged for Central Reserve Bank notes of the Nanjing National Government
. CGU notes circulated alongside ordinary legal tender notes until 1948, when both were replaced by the gold yuan at the rate of 1 gold yuan = 3,000,000 Chinese legal tender dollars = 150,000 customs gold units.
and dated 1930.
On 1 April 1942, Central Bank of China began to put into circulation its unissued stock of about CGU100 million in 1930-dated notes, including 20 and 50 denominations, not circulated previously.
In January 1947, Central Bank of China released notes of 250 and 500 customs gold units. Although dated 1930, these notes had been printed by American Bank Note Company in 1946. Inflation led to yet higher denominations: 1000, 2000, 5000 in December 1947, and 10,000, 25,000, 50,000, and 250,000 in July 1948, shortly before the currency reform of that year.
Several note types were produced by nine different printers, with slight differences in guilloche
and size, but maintaining the same general design, with Dr. Sun Yat-sen
on the face and the Shanghai Customs House
on the back. The back of the notes bore the following English text preceding the denomination: "The Central Bank of China promises to pay the bearer on demand at its office here." Printers included the American Bank Note Company, Waterlow and Sons
, the Security Banknote Company, the Chung Hua Book Company, Thomas De La Rue
and the China Engraving and Printing Works
.
, an American Volunteer Group
of pilots and ground crew that operated within the Chinese Air Force
in 1941 and 1942 during World War II
, was also paid in this currency .
Central Bank of China
The Central Bank of the Republic of China , known in English from 1924 to 2007 as the Central Bank of China, is the central bank of the Republic of China . Its legal and common name in Chinese is literally translated as the "Central Bank"...
between 1930 and 1948. In Chinese
Chinese language
The Chinese language is a language or language family consisting of varieties which are mutually intelligible to varying degrees. Originally the indigenous languages spoken by the Han Chinese in China, it forms one of the branches of Sino-Tibetan family of languages...
, the name of the currency was 關金圓, literally "customs gold yuan" but the English
English language
English is a West Germanic language that arose in the Anglo-Saxon kingdoms of England and spread into what was to become south-east Scotland under the influence of the Anglian medieval kingdom of Northumbria...
name given on the back of the notes was "customs gold unit". It was divided into 100 cents (關金分). As the name suggests, this currency was initially used for customs payments, but in 1942 it was put into general circulation for use by the public at 20 times its face value in terms of the first Chinese yuan
Chinese yuan
The yuan is the base unit of a number of modern Chinese currencies. The yuan is the primary unit of account of the Renminbi.A yuán is also known colloquially as a kuài . One yuán is divided into 10 jiǎo or colloquially máo...
.
History
The customs gold unit was adopted 1 February 1930 to replace the Haikwan (Hǎiguān) or Customs taelTael
Tael can refer to any one of several weight measures of the Far East. Most commonly, it refers to the Chinese tael, a part of the Chinese system of weights and currency....
(海關両) as the standard for customs payments. It was defined as equal to 601.866 mg fine gold or US$0.40. CGU notes were fully backed by silver and were legal tender for paying import duties. The CGU replaced the Haikwan tael at CGU150 = HkT100.
The CGU's value, fixed against the US dollar, fluctuated against the Chinese yuan
Chinese yuan
The yuan is the base unit of a number of modern Chinese currencies. The yuan is the primary unit of account of the Renminbi.A yuán is also known colloquially as a kuài . One yuán is divided into 10 jiǎo or colloquially máo...
, based on the current yuan–dollar and yuan–sterling market exchange rates. After the UK abandoned gold in September 1931, only the yuan–dollar rate was used until 1933, when the sterling price of gold in the London market determined the value of the CGU. Central Bank of China sold CGU notes at the prevailing quotation so that businessmen could minimize exchange risks resulting from changes in the yuan–dollar and yuan–sterling exchange rates. Use of this currency was very limited, with only about CGU375,000–475,000 outstanding at the time of the 1935 currency reform.
The Chinese currency reform of 3 November 1935, which created the Chinese national yuan or dollar (CNC$), commonly known as the Chinese legal tender dollar or fapi in English (Chinese 法幣; Pinyin: fǎbì), also fixed a crossrate of CGU100 = CNC$226.
The CGU's role in paying custom duties disappeared in 1941 when the government set ad valorem customs rates. On 1 April 1942 the custom gold unit's theoretical gold content was raised to 888.671 mg fine gold, equal to one US dollar. In practice, the customs gold unit lost all its special features and simply became equivalent to 20 Chinese legal tender dollars (CGU1 = CNC$20).
When Nationalist troops and officials arrived in Shanghai in 1945, they brought with them newly printed notes of 20 and 50 customs gold units. These notes proved more popular locally than Chinese legal tender notes and, due to a mistaken belief in the existence of a gold-redemption clause, they commanded a premium when exchanged for Central Reserve Bank notes of the Nanjing National Government
Wang Jingwei Government
In March 1940 a puppet government led by Wang Jingwei was established in the Republic of China under the protection of the Empire of Japan. The regime officially called itself the Republic of China and its government the Reorganized National Government of China...
. CGU notes circulated alongside ordinary legal tender notes until 1948, when both were replaced by the gold yuan at the rate of 1 gold yuan = 3,000,000 Chinese legal tender dollars = 150,000 customs gold units.
Banknotes
On 1 May 1930, the Central Bank of China put into circulation notes in denominations of 0.10, 0.20, 1, 5, and 10 customs gold units. These notes were printed by American Bank Note CompanyAmerican Bank Note Company
The American Bank Note Company was a major worldwide engraver of national currency and postage stamps. Currently it engraves and prints stock and bond certificates.-History:Robert Scot, the first official engraver of the young U.S...
and dated 1930.
On 1 April 1942, Central Bank of China began to put into circulation its unissued stock of about CGU100 million in 1930-dated notes, including 20 and 50 denominations, not circulated previously.
In January 1947, Central Bank of China released notes of 250 and 500 customs gold units. Although dated 1930, these notes had been printed by American Bank Note Company in 1946. Inflation led to yet higher denominations: 1000, 2000, 5000 in December 1947, and 10,000, 25,000, 50,000, and 250,000 in July 1948, shortly before the currency reform of that year.
Several note types were produced by nine different printers, with slight differences in guilloche
Guilloché
Guilloché is a decorative engraving technique in which a very precise intricate repetitive pattern or design is mechanically engraved into an underlying material with fine detail...
and size, but maintaining the same general design, with Dr. Sun Yat-sen
Sun Yat-sen
Sun Yat-sen was a Chinese doctor, revolutionary and political leader. As the foremost pioneer of Nationalist China, Sun is frequently referred to as the "Father of the Nation" , a view agreed upon by both the People's Republic of China and the Republic of China...
on the face and the Shanghai Customs House
Customs House, Shanghai
The Customs House is an eight storey building on the Bund, Shanghai. Built in 1927, the building remains a customs house today. Together with the neighbouring HSBC Building, the Customs House is seen as one of the symbols of the Bund and Shanghai.-History:The Shanghai Customs House was first set...
on the back. The back of the notes bore the following English text preceding the denomination: "The Central Bank of China promises to pay the bearer on demand at its office here." Printers included the American Bank Note Company, Waterlow and Sons
Waterlow and Sons
The Waterlow and Sons Limited was a major worldwide engraver of currency, postage stamps, stocks and bond certificates established in 1897, in England.-Portuguese Bank Note Crisis:...
, the Security Banknote Company, the Chung Hua Book Company, Thomas De La Rue
De La Rue
De La Rue plc is a British security printing, papermaking and cash handling systems company headquartered in Basingstoke, Hampshire. It also has a factory on the Team Valley Trading Estate, Gateshead, and other facilities at Loughton, Essex and Bathford, Somerset...
and the China Engraving and Printing Works
China Engraving and Printing Works
The China Engraving and Printing Works is a subsidiary of the Central Bank of China in the Republic of China . It is responsible for printing the paper bank notes of Taiwan in its currency, the New Taiwan Dollar....
.
Other uses
The Flying TigersFlying Tigers
The 1st American Volunteer Group of the Chinese Air Force in 1941–1942, famously nicknamed the Flying Tigers, was composed of pilots from the United States Army , Navy , and Marine Corps , recruited under presidential sanction and commanded by Claire Lee Chennault. The ground crew and headquarters...
, an American Volunteer Group
American Volunteer Group
The American Volunteer Groups were volunteer air units organized by the United States government to aid the Nationalist government of China against Japan in the Second Sino-Japanese War...
of pilots and ground crew that operated within the Chinese Air Force
Republic of China Air Force
The Republic of China Air Force is the aviation branch of the Republic of China Armed Forces. The ROCAF's primary mission is the defense of the airspace over and around Taiwan...
in 1941 and 1942 during World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
, was also paid in this currency .
See also
- Chinese currencyChinese currencyThe Renminbi is the official currency of the People's Republic of China . It is the legal tender in mainland China, but not in Hong Kong and Macau. It is abbreviated as RMB, and the units for the Renminbi are the Yuan , Jiao , and Fen : 1 Yuan = 10 Jiao = 100 Fen. Fen have almost disappeared, so...
- Chinese yuanChinese yuanThe yuan is the base unit of a number of modern Chinese currencies. The yuan is the primary unit of account of the Renminbi.A yuán is also known colloquially as a kuài . One yuán is divided into 10 jiǎo or colloquially máo...
- Economy of the People's Republic of ChinaEconomy of the People's Republic of ChinaThe People's Republic of China ranks since 2010 as the world's second largest economy after the United States. It has been the world's fastest-growing major economy, with consistent growth rates of around 10% over the past 30 years. China is also the largest exporter and second largest importer of...
- Economic history of China (Pre-1911)
- Economic history of ChinaEconomic history of ChinaChina's economic system before the late-1990s, with state ownership of certain industries and central control over planning and the financial system, has enabled the government to mobilize whatever surplus was available and greatly increase the proportion of the national economic output devoted to...