The Chinese Government should not forget the fact of the existence of powerful foreign banks. For instance, Section 1 of Article 42 of the Statutes or the rules of the Central Bank of China, states: "As mentioned in Article 3 Section 2, the banks and bankers who at present possess the privilege of issuing bank-notes in China will be deprived of this privilege as from a certain date to be determined by the Government, which date shall not be earlier than half a year and not later than three years after the promulgation of the law on the subject." Although technically the notes of the foreign banks are not recognized by China, they circulate very largely even in Chinese territory; they have not obtained the the privilege of issuing notes from the Chinese Government nor could the latter take it away from them. Hence it is absurd to make a rule like that. That the foreign banks have as their aim the facilitating of trade and not maintaining the privilege of issuing banknotes is proved by the fact that in Siam, for instance, they use the treasury notes, because they know that such notes are backed up by adequate reserves. The point I want to make clear is that, while the Government should call in the help of the existing native banks while reforming currency and banking, it should also seek the co-operation of foreign banks; in any case any attempt to disturb the present equilibrium would do no good, especially to the Chinese.