There is no better plan to arrive at a decision on this point than to compare conditions in China with those of other countries. A noteworthy feature in countries which have a central quasi-Governmental bank - the progressive countries having eschewed state banks - is that such countries are compact. The area within which the bank operates or controls business is very limited and there are no long distances, or days of travel necessary, to reach from one place to another. An exception must be noted only in the case of Russia; but trade is so elementary and Government so patriarchal in that country that a comparison with Russia is of no practical utility. I assume, in dealing with reform for China, that this country is on the eve of a marked industrial progress; also, however chequered, the administration of the country is to be more on the lines of England, France or America than Russia. Countries having a central bank are more or less manufacturing countries that have grown into capitalist countries; they have more to receive than to pay out. A third point is that when the central bank was thoroughly organized they had no different currencies in the country to regulate; and even in Germany where the Central Bank was established comparatively recently, it was done only after the unification of the country and currency was completed. Let us consider conditions in China. There are vast distances that have to be traversed, and it takes several days, if not weeks, to go from one part of the country to another, owing to want of proper communications. China is a debtor nation, and up to date it is a hard task for her to meet interest on her liabilities. There still remain currencies of various denominations to be systematized, before any central banking organization could direct the affairs of the whole country, even if that should be possible.