My proposal, in brief, is that concomitant with the organization of the district banks a sufficient number of the unit coins should be minted. These coins should be that part of the capital provided by the Government for the formation of the district banks. As the Government has, under my scheme, to supply a third of the capital the amount of coin supplied to each one of the banks would depend on the capital of the district banks in the several places. It is evident that all the district banks need not have the same amount of capital. For instance, the bank of Kaifeng need not have the same amount of capital as that of the Chengtu circle; the latter bank would have to provide for the trade of 70,000,000 people, while the former would have to cater for 25,000,000 or 30,000,000. The capital subscribed by the local native banks in each district must be fully in metal. Immediately the scheme and management is arranged, the bank would have to issue paper money for the total amount of its metallic reserve and coins. Simultaneously with the issue of this paper the existing silver, old and foreign coins, might all be bought in. Care should be taken that, in spite of the fact that the bank possesses reserves for the full amount of paper, the latter is not forced on the people. The public must have the choice of either metal or coin. This would not entail hardship or failure, because it would be obligatory on the part of the district banks to give silver coin of legal tender of an equivalent value in exchange for bullion, the value being calculated on the weight and fineness of the silver offered. Of course, there is a contingency that the stock of the coin in reserve might soon be exhausted. But the bullion that is received by the banks could easily be minted at once and the stock replenished. It would be advantageous, therefore, at the outset, for the Government not to charge even for coinage expenses. Once the paper became popular, the coins would come back to the vaults of the banks, as it is generally more convenient to deal with paper than with metal or coin. What the Government would lose at first by not charging for the cost of coinage would be gained in the long run by economy in coinage, and coins remaining in the vaults of the banks, and not losing weight on account of frequent changing from hand to hand.