61On November 4, 1935, in order to take control of the banking business nationwide, the Kuomintang government implemented the paper currency policy, which banned the circulation of silver dollars. It decided that the paper notes issued by the Central Bank, the Bank of China, the Bank of Communications and, later, the Farmers' Bank of China should be the legal unified currency throughout the country, which was called legal currency for short. During the War of Resistance Against Japan and the War of Liberation, galloping inflation in the Kuomintang areas caused a sharp devaluation of the legal currency, which was replaced by gold yuan notes as of August 19, 1948.