India abolished the silver standard in 1927. As she exported gold to the UK and imported long- and short-term capital from there, India was viewed as a "stabilizer" that balanced the international economy between Great Britain and the sterling area. However, around the time of the WWI, the US was seen as a "destabilizing factor" in the international financial sector. China and India were in similar positions in the international division of labor, and were both silver holders, but played significantly different roles in the international financial market. In the early 1930s, China had already become the only country that maintained the silver standard. The silver, which acted as the means of exchange, was most vulnerable to speculation on the international market. After the US's adoption of the silver policy in 1933, the international financial world fell into disorder due to the rapid outflow of Chinese silver and the wild fluctuation of its value. This made China the same kind of "destabilizing factor" in international finance as the US. This paper focuses on the two different roles China and India played in international finance in the early 1930s and studies the short-term capital flow of gold and silver. The paper supports the aforementioned argument by examining the moving scale and functions of international capital, exploring the types and integration of the international financial markets, and comparing the developments of currency and credit in different countries.