If there was room for the marketing of all the goods that came into the country, in an easy manner, it is possible that this new development in banking and, trade might not have worked any harm. Unfortunately, there was no clear grasp of the economic position of the country either among the Chinese or foreigners. If, as during the early periods of foreign trade, China was able to sell to foreign countries as much as it was willing to buy, this new development with regard to banking might have proved a help instead of a hindrance. The position was that, without sufficient exports, over-trading in imports threatened to bring about serious results. As the banks guaranteed all payments, there came a stage when the established and bigger banks had to prop up the credit and business of the new banks, which were more or less unsound. Even then there appeared to be no relief. If the Government had supervision over banking or the bankers themselves had a proper understanding of economics, they might have made efforts to relieve the situation by special efforts to encourage exports. It is an unfortunate fact that there was no concerted action on the part of bankers, merchants or the Government. All that the banks saw and felt was that the native dealers had obtained large credits in the shape of native orders from them; that foreign merchants had collected large sums from them which had not been paid back to them by the native dealers - and there was still more to pay; that the large quantities of goods in the hands of native dealers proved practically unsaleable for various reasons; and that the only course possible for the banks, with a view to safeguarding their interests, was to take over the goods. Thus was laid the germ of the trading by native banks - an action fraught with serious results for the future of business in this country.