Such unification, however, could be effected with the consent and co-operation of local financial institutions or native banks. The advantages of a district bank as proposed by me would now be apparent. As shares of this bank would be held by all native banks in the district, as also by the Government, and as the advantages of being a shareholder of the district bank would be many, the local institutions would, therefore, consent to co-operate to bring about some sort of uniformity. A very large proportion of the variation in local exchanges is caused by the periodical plenty or scarcity of silver. The operation of the district banks would surely be attended with the regulation of the supply of silver, either in the shape of bullion or coin, to demand in all parts of China. The control of the treasury over the several district banks would be mainly connected with the regulation of metallic demands throughout the country. As and when necessary, one district bank could, in lieu of its paper, obtain its value in metal from a neighbouring district bank; these notes when brought to another district would only be securities, and should, on no account, be put into circulation. The moment silver flows back into the first-mentioned district bank, it would be able to redeem its paper. There is really no danger in such inter-district bank business, because every tael's worth of paper held by every one of them is fully secured by coin or metal. Such an arrangement would certainly prevent heavy rises or falls in exchange in the different places, owing to want or plenty of metal. The differences in local exchanges would thus be reduced to a minimum. Allowances for local custom would, of course, prove rather a difficult matter to tackle; but, when district banks are sufficiently powerful to regulate the supply and demand of the metallic currency, the members of the bank would see clearly that to keep up the local custom under such conditions would prove detrimental to the volume of all trade, and consequently of the profit of the banks. The disappearance of the differences arising out of local custom would only be a question of time.