I have repeated rather monotonously that any reform in this country should not only conform to old traditions but also take stock of existing institutions. All the proposals for banking reform that have been made so far are entirely oblivious of the fact that innumerable and in many cases, comparatively powerful, native banking institutions exist in every part of the country. In every locality, business is not possible without the aid of these banks and, as has been seen oftentimes, the breakdown of one or two of these banks brings about a complete deadlock in business. It is absurd to believe that any tangible reform could be brought about, without the aid of the existing banking institutions. To co-operate with them or to take them into any scheme proposed would certainly ensure success.

Here again, the recent legislation of the United States should give us very useful help. The division of the country into several banking districts could be made by the Ministry of Finance. Every native bank within that district, that is a member of one of the guilds in the district, would ipso facto become a member of the District Bank, and subscribe proportionately to the capital of the District Bank - the total of the capital supplied by the native banks to be fixed at two-thirds of the authorized capital. The rest of the authorized capital, or the balance of one-third, should go to the Government. Of the total number of directors, two-thirds must be elected by the bankers, the Government to nominate directors in proportion to its holding.