page_title: Warlord Era
section_title: Finances
hierarchical_section_title: Warlord Era / Warlord armies / Finances
caption_attribution_description: 日本語: 張作霖と五男学森、六男学俊。
context_page_description: The Warlord Era was a period in the history of the Republic of China when control of the country was divided among former military cliques of the Beiyang Army and other regional factions from 1916 to 1928.
  In historiography, the Warlord Era began in 1916 upon the death of Yuan Shikai, the de facto dictator of China after the Xinhai Revolution overthrew the Qing dynasty and established the Republic of China in 1912. Yuan's death created a power vacuum that spread across the Mainland China regions of Sichuan, Shanxi, Qinghai, Ningxia, Guangdong, Guangxi, Gansu, Yunnan and Xinjiang. The Nationalist Kuomintang government of Sun Yat-sen based in Guangzhou began to contest Yuan's Beiyang Government based in Beijing as the legitimate government of China. The Warlord Era was characterized by constant civil war between different factions, the largest of which was the Central Plains War which involved more than one million soldiers. The Warlord Era ended in 1928 when the Kuomintang under Chiang Kai-shek officially unified China through the Northern Expedition, marking the beginning of the Nanjing decade.
context_section_description: In 1916 there were about a half-million soldiers in China. By 1922 the numbers had tripled, then tripled again by 1924; more than the warlords could support. For example, Marshal Zhang, the ruler of industrialized Manchuria, took in $23 million in tax revenues in 1925 while spending some $51 million. Warlords in other provinces were even more hard-pressed. One way of raising funds were taxes called lijin that were often confiscatory and inflicted much economic harm.  For example, in Sichuan province there were 27 different taxes on salt, and one shipload of paper that was sent down the Yangtze River to Shanghai was taxed 11 different times by various warlords to the sum total of 160% of its value.  One warlord imposed a tax of 100% on railroad freight, including food, even though there was a famine in his province. Taxes owed to the central government in Beijing on stamp and salt were usually taken by regional authorities. Despite all of the wealth of Manchuria and the support of the Japanese army, Marshal Zhang had to raise land taxes by 12% between 1922 and 1928 to pay for his wars.
  The warlords demanded loans from the banks. The other major revenue source besides taxes, loans and looting was the selling of opium, with the warlords selling the rights to grow and sell opium within their provinces to consortia of gangsters.  Despite his ostensible anti-opium stance, Gen. Feng Yuxiang, "the Christian General", took in some $20 million per annum from opium sales.  Inflation was another means of paying for their soldiers. Some warlords simply ran the money printing presses, and some resorted to duplicating machines to issue new Chinese dollars. The warlord who ruled Hunan province printed 22 million Chinese dollars on a silver reserve worth only one million Chinese dollars in the course of a single year, while Zhang in Shandong province printed 55 million Chinese dollars on a silver reserve of 1.5 million Chinese dollars during the same year.  The illiterate Marshal Zhang Zuolin, who engaged in reckless printing of Chinese dollars, did not understand it was him who was causing the inflation in Manchuria, and his remedy was simply to summon the leading merchants of Mukden, accuse them of greed because they were always raising their prices, had five of them selected at random publicly shot and told the rest to behave better.
  Despite their constant need for money, the warlords lived in luxury. Marshal Zhang owned the world's biggest pearl, while Gen. Wu owned the world's biggest diamond. Marshal Zhang, the "Old Marshal", lived in a lavish palace in Mukden with his five wives, old Confucian texts and a cellar full of fine French wines, and needed 70 cooks in his kitchen to make enough food for him, his wives and his guests. Gen. Zhang, the "Dogmeat General", ate his meals off a 40-piece Belgian dinner service, and an American journalist described dinner with him: "He gave a dinner for me where sinful quantities of costly foods were served in a starving country. There was French champagne and sound brandy".
caption: Zhang Zuolin with two of his sons, both wearing expensive miniature uniforms
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