The introduction of the New Taiwan dollar on 15 June 1949 stands as the primary technical accomplishment of Yen Chia-kan, a measure designed to curb hyperinflation. Serving across several decades of turmoil, Yen transitioned from a provincial finance administrator in mainland China to the second president of the Republic of China in 1975.
Early Career and Wartime Finance
Born in 1905 in Wu County, Yen Chia-kan graduated from St. John's University in 1926 with a degree in chemistry. He entered public service in 1931 as a manager for the Shanghai railway administration. During the Second World War, he transitioned into fiscal governance, serving as director of the finance department for both Fukien and Cantonese provincial governments. In Fukien, he streamlined tax collection by removing over 70 miscellaneous levies and successfully balanced the provincial budget. Later, as procurement director for the War Production Board, he coordinated logistics for American Lend-Lease supplies and British and Canadian loan programs, which involved multiple trips to India to secure shipments.
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After relocating to Taiwan in 1945, Yen held roles as transportation director and provincial finance director before assuming the chairmanship of the Bank of Taiwan. His decision to issue the New Taiwan dollar curtailed the extreme inflation caused by the Chinese Civil War. To further stabilize the regional economy, he managed the importation of 10,000 tons of rice. In 1950, he became Minister of Economic Affairs, eventually joining the 'Yin–Yen–Yang iron triangle' of fiscal planners alongside Yin Chung-jung and Yang Chi-tseng. This group focused on industrialization and export-oriented growth, initiatives that eventually led to the 1965 termination of American economic assistance to the Republic of China, confirming the success of his long-term economic strategies.
Political Leadership
Yen served as the Chairperson of the Taiwan Provincial Government from 1954 to 1957. In 1963, Chiang Kai-shek appointed him Premier of the Republic of China, a position he occupied until 1972. He concurrently served as Vice President from 1966 until 1975. Following the death of Chiang Kai-shek, Yen was sworn in as the second President of the Republic of China on 6 April 1975. During his presidency, he served as the first civilian head of state for the nation and oversaw the transition from Literary Chinese to written vernacular in government documentation. He did not seek reelection when his term expired in 1978 and was succeeded by Chiang Ching-kuo.
Fast facts
- Born: 1905, Wu County
- Died: 1993, Taipei
- Education: St. John's University
- President of the Republic of China: 1975-1978
- Premier of the Republic of China: 1963-1972
- Vice President of the Republic of China: 1966-1975
- Award: Grand Cross of the Order of Isabella the Catholic (1965)
- Burial place: New Taipei City
Questions readers ask
Why is Yen Chia-kan known as the father of the New Taiwan Dollar?
He oversaw the introduction of the currency on 15 June 1949 while serving as chairman of the Bank of Taiwan to replace the existing currency experiencing hyperinflation.
What major reforms did Yen implement as president?
He presided over the government shift from using Literary Chinese to the written vernacular for official documents and successfully managed the national response to the 1973 oil crisis.
Achievements
- Premier of the Republic of China (1963–1972)
- President of the Republic of China (1975–1978)
- Vice President of the Republic of China (1966–1975)
- Chairperson of Taiwan Provincial Government (1954–1957)
- Grand Cross of the Order of Isabella the Catholic — 1965
- Educated at St. John's University
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