On February 16(superscript th) 1947, National Regime, pressured by vicious inflation, proclaimed Urgent Act for Economy, and enforced the Policy of Price-limited. Having broken the Law of Value obviously and tried to solve the problem of economy depending on severe way of politics, as a result, it destroyed seriously daily system of foodstuff from supply to consumption in Shanghai, caused one fact that this city had been short of rice, intensified further contradictions among Government, Rice Merchants and Citizens, initiated rice riot. During that period, various organs of central government and Shanghai local government, etc negotiated each other, carried rice from inland and overseas, dealt with difficulties in various ways, in the end, decided to adopt new policy, that is to say, the allocation of rice for everyone according to certain number and price.