Although the dealer that bought the cargo from the foreign merchant was responsible for the honouring of the native orders, the latter turned to him only when the banks did not pay. Naturally the first parties which had to bear the brunt of the crisis were the Chinese banks. The usual practice is for the foreign merchant to send the native order to his bank immediately on receipt to be placed to his account - the foreign bank tacitly agreeing to collect the money for him from the native bank. As is well known the process of the adjustments of accounts is not on the basis of every single order received by the bank. In the course of ordinary business the foreigners sell and deliver their goods upon the receipt of the native order and the Chinese sell and deliver their products on the receipt of the cheques of the foreign merchant. Just as the foreign merchant sends the native order to his bank for collection and to be placed to his account, so the Chinese dealer sends his cheque to his native bank for collection and to be placed to his account. A sort of clearing house arrangement exists by which all the cheques in the hands of the native banks are adjusted with all the orders in the hands of the foreign banks, and the balance struck. There has always been a certain amount of give and take between the banks, and the cheques and native orders from untrustworthy parties are weeded out. Nevertheless, in the ordinary course of business, the banks could not be over-scrupulous in the acceptance of either - when especially they are presented through and by the banks. But there is this difference; the foreign bank does not take responsibility for the payment of a cheque drawn on it, except when marked 'good for payment"; on the other hand, the native orders are all given by the Chinese banks, irrespective of the trustworthiness of the dealer who presents such native orders. The result was that, while the standing of foreign banks was in no way affected by dishonouring of the cheques drawn on them, the position of the native banks was affected by non-payment of the native orders. Consequently when smaller native banks became embarrassed the bigger ones had to come to their rescue and pay up the sums due on the native orders - in order to preserve the credit of native banking as a whole. At first this process began as a matter of accommodation; later on, however, when sound native banks saw further accumulations of cargo as a result of holding the weaker banks up, it became incumbent upon them to drop a few of the weak ones; and the foreign banks and merchants were notified of the fact that orders issued by certain banks could be taken only at their own risk.