The Shensi-Kansu-Ninghsia Border Area Bank was the Communist Party's primary financial instrument in the Yan'an base area during the Second Sino-Japanese War. Notes like this one circulated in a deliberately isolated economy — the Nationalist blockade of the Border Region after 1939 forced the CCP to develop its own currency system to prevent Nationalist fabi from dominating local trade and extracting resources from the region.
The 1941 date places this note in the period of acute economic pressure following the New Fourth Army Incident, when KMT financial subsidies to the Border Region were cut entirely. The bank responded by expanding note issuance, which eventually produced inflationary stress by the mid-1940s.
The Shensi-Kansu-Ninghsia Border Area Bank was the Communist Party's primary financial instrument in the Yan'an base area during the Second Sino-Japanese War. Notes like this one circulated in a deliberately isolated economy — the Nationalist blockade of the Border Region after 1939 forced the CCP to develop its own currency system to prevent Nationalist fabi from dominating local trade and extracting resources from the region.
The 1941 date places this note in the period of acute economic pressure following the New Fourth Army Incident, when KMT financial subsidies to the Border Region were cut entirely. The bank responded by expanding note issuance, which eventually produced inflationary stress by the mid-1940s.