To such of my readers as are trained on the principles of Western economics and others who are not fully acquainted with the economic situation in this country, a statement like the above would appear to be extraordinary. Any student of modern economics knows that the issue of bank-notes is purely a matter of convenience and the banks that are allowed to issue notes consider it a privilege, although they must be prepared to meet every note, with gold or silver as the case may be, on demand. The fact of the well regulated native banks scorning the privilege of issuing bank-notes is easily understood, when it is known that the Chinese, even to-day, have not understood the principle of holding reserves in cash to redeem paper, on demand. The general impression among bankers who usually had no acquaintance with the principles of banking as known in Europe was, that the issue of bank-notes was the means of raising capital as cheaply as possible. The difference, as they understood, between the bank-notes and the Government notes issued under the Ming and other dynasties was, that, while the former must be redeemed sometime or other, the latter was inconvertible money. It is, therefore, evident that they were not aware of the fact that the notes should be redeemed "on demand"; the difference between the correct idea of a bank-note and the Chinese idea was that while the issuer of a bank-note has really no choice in the matter of the time when, or the place where, it is offered to him, the Chinese believed that the issuer of a bank-note had the choice of redeeming the notes when and where he pleased - although, of course, as a matter of policy, it was considered better to meet the holder of the notes more than half way. In short, the Chinese banks believed that the bank-notes were none other than promissory notes, especially when the very terminology of the notes confirmed them in such belief. It is always best that the man who gives a promissory note should pay as soon as the holder demands the amount; but he has also the right of days of grace; and when he is unable to meet the demand a promissory note does not become void and he can obtain delays, one or more times. The difference between a bank-note issued by them and a promissory note, according to the Chinese bankers, was that while in the one case they didn't pay interest in the other they had to.