From 65438 to 70' s, silk tea fell into crisis and Chinese businessmen closed down at a loss due to foreign investors' underpricing. Banks in Suzhou and Hankou have transferred hundreds of thousands of accounts, which means losses or deficits. Once there is a run, it will inevitably go bankrupt because the loan cannot be recovered. Hu Xueyan's "Fukang" bank closed down because it was cheated by foreign businessmen. The nationwide credit crisis has affected the whole financial industry. At the beginning of the 20th century, the fifth commercial bank "Dongshenghe" in Yingkou, which mainly engaged in the production and export of soybean oil, closed down, owing foreign banks, households and banks more than 5 million yuan, including 2 million yuan. Foreign banks and family banks lend by mortgage, each with its own privileges, and almost all the money lent out is recovered; The draft bank is a credit bank. Although he is a member of the creditor group, he has not even recovered half of it. Following the "Dongsheng Harmony", there is another rubber fever in Shanghai. In this agitation, the banks of "Yuanfengrun" and "Yishanyuan" closed down one after another, owing millions of public and private funds, which once again triggered a credit crisis in the banking industry. Before the end of the Qing Dynasty, the fatal weakness of the bank's operation mode was that it only made credit loans, not mortgage loans. A large number of loans are not guaranteed by any materials. In times of economic crisis and political turmoil, the risk of not receiving loans is great.

Many companies go bankrupt because of poor management, which usually drags down the banks that lend them money. Every time the economic crisis comes, many banks fail because of bank runs and failure to receive funds.

Met a strong competitor

Before the end of Qing Dynasty, although more than a dozen commercial banks, such as China Commercial Bank, Zhejiang Xingye Bank and Siming Bank, were established, they all posed a competitive threat to Shanxi banks, but the main competitors for banks were household banks jointly run by government and businessmen, Bank of Communications and some provincial banks. Because Hubu Bank (later changed to Daqing Bank) has the functions of acting as an agent for the state treasury, collecting official funds and abundant capital, it can control the market. In the past, the official business of collecting foreign exchange by bank number and collecting foreign exchange was almost taken over by the bank of the household department; Because the bank has monopoly and control functions in the financial industry, it has a great influence on the operation of the bank. In the market competition, the household banks have to raise the deposit interest rate or lower the loan interest rate, and the bank number has to follow suit, which directly threatens the survival of the bank number. Nevertheless, before the late Qing Dynasty, banks still had considerable power. With the passage of time, the backwardness of bank operation mode is becoming more and more prominent. Banks are banks that handle deposits, loans and remittances. As a banking industry, besides its own capital, the scale of its development depends on the development of deposits. More deposits, more loans; More loans, more interest on income, and more profits besides paying interest on deposits. This is one aspect. On the other hand, if a depositor runs a bank and cannot pay for the deposit because the loan cannot be recovered, then the more loans, the faster it will close down. In addition, most of the financial profits are attributed to the banks of the Ministry of Finance, and the profits earned by banks are decreasing day by day. The ship leaked against the wind. Shanxi draft banks finally suffered a fatal blow in the Revolution of 1911.

During the Revolution of 1911, many commercial cities, such as Hankou, Chengdu, Xi, Taiyuan, Beijing and Tianjin, experienced wars. Industry and commerce, as well as the number of money and banks, inevitably suffered losses. Beijing is the city where banks absorb the most funds, accounting for 30% of its total deposits. As a result, Shanxi Bank ran aground and closed down, starting with Beijing Branch. The economic crisis caused by war and revolution led to the closure of many banks. In the midst of bankruptcy, in addition to four banks, such as Dadetong, Dadeheng, Sanjinyuan and Dashengchuan, 22 banks in Shanxi took out a large amount of cash to cope with the bank run in 1911 and continued to operate. Unable to cope with the run, dozens of banks such as Rishengchang closed down one after another. Four banks, Dadetong, Dadeheng, Sanjinyuan and Dashengchuan, continued for another twenty or thirty years, and finally they could not escape the fate of bankruptcy.

From "rich in the world" to ruin, Jin Gang finally completed this tragicomedy of life on the historical stage.