
THE DECLINE OF KMT RULE 745
industry - previously a major pillar of KMT support. Some three
thousand businessmen, including some of Shanghai's most prominent, had
been imprisoned at the start of the campaign. Later they denounced the
'quack doctors' who had used the four million people of Shanghai as
' specimens for an experiment' and demanded punishment for the officials
who had devised it. Foremost among them was Chiang Kai-shek's son,
Chiang Ching-kuo, who had been responsible for enforcing the reform
measures in Shanghai.
26
The assertion has nevertheless been made that the inflation also cost
the government the support of the urban salaried middle class. The main
groups making up this middle-income minority were the intellectuals, that
is,
college professors, school teachers, writers and journalists; and
government employees. While this is too simple an explanation for their
growing dissatisfaction with the KMT and the government it led, the
soaring prices and depreciating currency did create a major burden for
this sector of the population. Its impoverishment began during the
Anti-Japanese War when inflation reduced their real incomes to between
6 and 12 per cent of their pre-1937 salaries. By 1946, according to one
estimate made in Kunming, the real income of college teachers there had
been reduced by 98 per cent.
27
And while it could at least decree that the
wages of labour be pegged to the cost-of-living index, the government
was not able to do the same for its own employees. These included the
majority of college teachers whose pay scales as employees in state-financed
institutions were comparable to those of other civil servants. The salaries
of all public employees were revised upwards on the average of once
quarterly. But these adjustments were never proportional to the rise in
the cost of living. It was regularly claimed in the late 1940s that the real
incomes of teachers and civil servants were not sufficient to maintain their
basic livelihood in terms of food, clothing and shelter.
The new impoverishment of the intellectual community did, moreover,
help to inspire the students' anti-war movement. Indeed, the professors
themselves apparently precipitated the widespread Anti-Hunger Anti-Civil
War demonstrations during the spring of 1947, which demanded among
other things a reduction in military expenditures and an increase in the
budget for education. Clearly, the hardships created by the use of
printing-press money to finance the war effort provided one major issue
for those opposed to that effort and helped to undermine support for it.
16
Ta-ksmg-pao, Shanghai, and Cbmg-bua sbib-pao, Shanghai, 2 Nov. 1948 (both in CPR of same date);
Chang Kia-ngau, Inflationary spiral,
3
57-60; Lloyd E. Eastman, Seeds of
destruction,
172-202.
17
Ta-hmg-pao, Shanghai, 30 Aug. 1946 (CPR, 31 Aug.); also Chang Kia-ngau, Inflationary spiral,
63-5;
and Chou Shun-hsin, Tie
Chinese
inflation, 19)7-1949, 244.
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