In order to insure a effective reform as also to secure a perfect system of control by the Government, it is essential that the total number of the proposed district banks should be started, as far as possible, simultaneously. As the unification of currency is the fundamental object of these banks, such an object would be better and more easily attained by simultaneous activity than by a procedure that is likely to dissipate the energies in different localities and different periods. The details of the management, direction and control might easily be arranged; and as they might need modification to conform to special conditions in different localities, it would be unwise to make hard and fast rules with regard to them. Nor is it wise to insist upon foreign directors, managers or secretaries for the direction of the institutions, although it would be advantageous for the Chinese themselves to have foreign advice and control.* In any case, the management of these banks should be in the hands of Chinese who have some training of the modern methods of banking as also a thorough understanding of, and acquaintance with, native banking methods. I do not believe in the possibility of thorough change in Chinese banking methods, however advisable it may be, because such a change would dislocate business and would result in more harm than good. As the native banks supply twice as much capital as the Government, they should, of course, have the majority of the directors on the board. But as the bank would have control over the note issues, and as it would be more or less a collector of taxes for the state besides being the bank of the state, the secretary or manager should be one whose nomination should be confirmed by the Government - this official being one acquainted also with foreign banking methods, as much as possible. The best native banks in the locality being members of the district bank, and the directors being chosen from among them, it is more than likely that, even apart from the supervision of the Government, there would be no likelihood of attempts at frenzied finance. A foreign advisor, enjoying the fullest confidence of the foreign banks and the Government, who has knowledge of Chinese banking, would prove an invaluable help. And it would be to the interest of the banks to be frank with him, because of the advantages of keeping well in with the foreign banks in the ports and the foreign Governments to whom China is indebted.

* At the start, it is certainly absolutely necessary to have foreign aid.