The region of North Shanxi contains vast deposits of coal south of the capital
Datong. These deposits of resources would help form an economic foundation for North Shanxi under Japanese control despite the smaller size of the North Shanxi Autonomous Government compared to other states, such as Mengjiang. Due to the Japanese oversight of the state, as well as its economics, much of North Shanxi's coal was diverted to Japanese war efforts during this time. According to a Japanese correspondent of the
Oriental Economist (via the
Far Eastern Survey),All lines of political and economic enterprise have been placed in the hands of officials who were transferred from the civil and other services in
Manchoukuo Supporting this remark, systems of organization from Manchukuo began to be implemented in North Shanxi, as well as the rest of Mengjiang, along with the movement of experienced individuals from Manchukuo. Chief among these new organizations was the Labor Control Committee of North Shanxi (), founded on May 29, 1939. In Manchukuo previously, Japanese organizations had been placed in charge of labor and manpower to support Japan's war interests, even outside Japan proper. These projects in Manchukuo would be quite successful, creating an example of how war prisoners, as well as native Chinese and other ethnicities' populations could be forced into labor while simultaneously allowing more ethnically Japanese manpower for the
Imperial Japanese Army itself. Citing acute labor shortages and lackluster profits from coal production, Most of the larger banks of North Shanxi produced their own banknotes, which were used in official settings. Due to the circulation of so many currencies even in official uses, the government stamps of North Shanxi are often seen on government paperwork, such as tax documents. Even on some government tax documents however, payment is conducted in other states' currencies, such as that of the South Chahar Autonomous Government.
National Banks The largest bank of North Shanxi was Shansi Provincial Bank, established in 1919. The bank had a capital of 12,000,000 Chinese yuan in 1940, five times the national earnings from the entire coal industry the year before. Other major banks in North Shanxi at this time included the Bank of Local Railways of
Shansi and
Suiyuan (10,000,000 Yuan capital), the Sui-Hsi Farmer's Bank (600,000 yuan capital), and the Shansi Provincial Salt Bank (2,000,000 yuan capital). == Merger into Mengjiang ==