The focus of Taiwanese literature debates had been gradually shifting from ”New and Old Literature” to Hsiang-tu Literature since the beginning of 1930s. The concept of Hsiang-tu literature gained its literary resource mostly from ”the common people”. Accordingly as the concept of Hsiang-tu literature arose, the folk-literature was widely caught attention as well. This article tries to trace the folk-literature movement in the 1930s: by examining literati's discourses, it points out that there were different ways to look at the folk-literature. Some believed that folk-literature reflected the shortcomings of national Taiwanese characters while others saw it as a national treasure which needed to be preserved. But in both cases, Taiwanese people were considered a whole, with their own unified cultural identity. By going among people, Taiwanese elites obtained the best material to discuss and construct what Taiwanese people and culture ”really are”.