The reform of banking would thus he considerably simplified by the adoption of the proposals made in the previous chapters. By the adoption of the Shanghai tael and the minting of the unit and subsidiary coins, besides the issue of paper money with adequate reserves, a good deal of the uncertainties of business would gradually become things of the past. Just as the native banks in a district would co-operate for the success of the district banks, the latter would in the same manner co-operate with the native banks for the success of trade in general. The new arrangement would work in such a manner that, while the native bank would invest all its surplus with the district bank, the latter would supply capital to the former. Before the crisis of 1911, the native banks obtained working capital from the foreign banks, apart, of course, from their deposits; as the latter had no means of knowing or controlling the business of the native banks, they took a certain amount of risk in lending the money, and hence the "chop" loans were restricted in amount. If the district banks, who have every means of knowing the business and standing of the native banks, take upon themselves the function of supplying capital to the latter, they could not only regulate the supply better, but also give more freely than the foreign banks to responsible parties. The district banks in their turn could have recourse to short loans from the foreign banks, apart from their deposits and capital; the foreign banks would also more readily give to a district bank, partly because there would be some Government control in it, and they could rest assured that capital would be supplied to the market in a suitable manner. The risk of the foreign banks would be infinitesimal because the credit of the Government would depend upon the return of the money thus lent out. I am speaking, of course, of the supply of capital to the market, which has nothing whatever to do with the ordinary business of the foreign, district, or native banks. As the district bank, and indirectly the Government, become responsible for all loans to the trade, it. is to their interest to see that the native banks are properly organized. As the best of the native banks would be shareholders, along with the Government, in the district banks, it would be a matter of pride with them to organize their business properly, and to keep watch over each other; moreover, it would restrict the number of newcomers in the field, unless they were sound - because the existing and well-regulated banks would be jealous of the prerogative of being members of the district bank.