I have endeavoured to describe the origin as also the principle of native orders. But the whole business has gone through various modifications, so much so that a native order in the modern days has altogether a different significance to the native order of 1840 or 1850. For one thing, there is no native order which covers twenty days and the principle of giving due time for the goods to go into the interior, and money to come back to the ports, has been completely lost sight of. With the progress of time the foreigners endeavoured to obtain the value of the goods as quickly as possible from the men who bought from them at the ports; on the other hand the Chinese were endeavouring to postpone paying for the goods which they took delivery of as late as possible. In this tussle it so happened that the advantage has been with the foreigner in respect of the reduction of the number of days of available credit, while the advantage to the Chinese has been the reduction in price as an inducement to make them pay as quickly as possible. There is also another reason for the change. In course of time, especially after the nineties of the last century, the native banks not only acted as banks but did business in merchandise themselves. The so-called dealers, who gave native orders to the foreign merchant, were merely tools of the native banks, who were entirely responsible for the losses or gains in all such business. The entrance of the native banks into the domain of actual business has been fraught with great consequences to both trade and banking; in order to understand the progress of events in this direction, I must first explain the conditions and functions of native banking.