Great Wall Bank (or Bank of Chang Chung, as it was rendered in
the transliteration system used at the time) was established as the
central bank in the Communist-controlled Hebei-Rehe-Liaoning
Liberated Area in the north, and it began printing currency with an
image of the Great Wall on the back of each bill. The bank’s appeal
to the symbol of the Wall, however, provided scant defense against
the waves of inflation that continued to rock the economy, and by
September 1948 the value of the yuan had fallen by yet another or-
der of magnitude, to around 20 million yuan to the dollar. Less than
a year later the Communists finally prevailed in their civil conflict
with the Nationalists, and—in an echo of the First Emperor’s stan-
dardization of the nation’s currency two thousand years earlier—
one of Chairman Mao’s first actions after founding the PRC was to
phase out all of the wartime banks and replace them with the new
state-run People’s Bank of China. The obsolete wartime notes could
be exchanged for new yuan bills at rates ranging from virtual parity
up to 5,000 to 1 (the Great Wall Bank’s own former currency, for
instance, was valued at a rate of 2,000 to 1).
In minting its new currency, the PRC was attempting to wipe
clean the preceding period of economic chaos, and over the next
couple of decades it would go to considerable effort to reinvent
China’s overall economic policy. Under the PRC’s planned econ-
omy, many staples and other commodities could be acquired only
with ration coupons, just as state enterprises were managed based
on government directives rather than strict market considerations.
Despite the government’s attempts to maintain almost absolute
control over economic matters, however, the nation’s currency con-
tinued to suffer from extraordinary inflationary pressures, to the
point that the central bank was ultimately forced, on January 1,
1970, to remove the radically devalued renminpiao (literally, “peo-
ple’s bills,” as the yuan notes were technically called) from circula-
tion and replace them—at a virtual cash-brick rate of 10,000 to 1—
with “people’s currency,” the renminbi (RMB) that are still in use
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A VERY QUEER THING