The crisis in native banking was brought about very suddenly by the revolution of 1911, which converted the Middle Kingdom from a hoary empire into a new-fangled Republic. Even in the ports where paper money was freely accepted there was a certain amount of suspicion always inherent with regard to the issue which had no apparent support. It was also a notorious fact that the people who accepted the notes did not look into the question even as much as the bankers; all that they were interested in was in making a squeeze out of the exchange. The revolution brought about a sudden disturbance in the credit. The native banks were assailed from both sides; while on the one hand the foreign banks were pressing for immediate payment for whatever chop loans they might have given to the native banks, the latter had not even the benefit of using Government money, which was generally deposited with them by local officials. On the latter score the banks had suffered even a few months before the revolution, because of the anti-Manchu agitation in various parts of the country; and with the several local disturbances the Government had practically no revenue at all. When a sudden change in the situation was brought about by the complete destruction of credit there was no course open to the banks but to close their doors. This state of affairs in Shanghai and the ports reacted on the banks in the interior especially as for a considerable time past they had no silver to meet the notes. Thus, all of a sudden a transformation took place, as it were, by a magician's wand; and for a time at least no paper, not even the notes of the reputable and trusted foreign banks, had the slightest value in the eyes of the Chinese, even in ports like Shanghai. In view of the fact that all notes issued by Chinese banks were dollar notes, the dollar attained a value never before known in its history; I should have mentioned earlier that during the Boxer crisis paper was again at a large discount and the dollar was at a premium - although not as much as in 1911. The banks crumbled to pieces one by one, and as early as November of that year, or in the second month of the revolution, the number of the banks left was a tenth of those existing prior to 1910 - the rubber boom and the various local disturbances having already weeded out nearly half of the then existing native banks.