Before proceeding further with the details of the constitution and functions of the district banks, some general observations are necessary in order to make my position clear to my readers. The essential difference between my proposal and those that have been urged so far is that while the aim of the district banks is to improve banking and bring it into line with modern developments, the object of having a central bank is to prop an artificial currency. The constitution and functions of the district banks have nothing to do Whatsoever with specific proposals for currency reform; while the state bank is absolutely necessary in order to bring about the reforms proposed by Dr. Vissering. My banking proposals are connected with my currency scheme only in so far as it is best to have proper currency for any bank to do business with; while the state bank of Dr. Vissering is specially intended to help to maintain reserves, in order to make the proposed currency as stable as possible. As I have already pointed out, the principal defect of the state bank proposal is that it ignores altogether the existing native banks, which are still powerful factors in the financial and commercial polity of this country.