This thesis aims at investigating the process of how Japanese govermment introduced the “modern school”system to Taiwan, and Taiwan local socity how attented this process. Through the study of school finance, we know when schools were established, the government imitated the old habit of the exercise of public affair since the late period of Ch’ing that is, ask local society to raise money itself. In the meanwhile, in order to launch the jib of collecting money smoothly, it kept the gentry domininon of old society. The richness and people of Taiwan society and the cooperation of the men in power are also essential factors in the establishment of new schools.