The best service that a proposed metallic reserve could serve is the regulation of foreign exchange - as the local exchanges would by then have been fully regulated. The Chinese Government could only regulate foreign exchange, if it had adequate supplies of both gold and silver. If all the reserves should be in silver, it would mean that China for all time would be at the mercy of the gold countries. To obviate such an eventuality the best plan would be to keep a part of the additional metallic reserve in gold, in one of commercial centres of Europe, preferably London, because it is the money centre of the world. Another advantage of keeping the reserves in gold and in London would be that the whole amount need not be in metal or coin; the larger part of it might be invested in gilt-edged securities, or loaned out in call money, thus bringing in a small return to China.