The relation between the foreign banks and the Treasury, and the foreign banks and the district banks would have to be adjusted on a new basis, when these reforms are carried out. It is a mistaken idea to suppose that the foreign banks could be put out of business by any development that takes place in China, for at least several decades to come - except at the risk of incalculable harm to China. There is no use of Chinese institutions encroaching upon the functions of foreign banking institutions, primarily because Chinese banks do not have the capital, experience, connection or confidence necessary for the business. With their comparatively large capital and very widespread organization, including a network of branches in all parts of the world, foreign banks are able to obtain capital with the least expenditure of money. The greatest asset of foreign banks is the confidence reposed in them by the public and the justification of such confidence by a thorough publicity of their business and accounts. In any case, so long as the foreign trade of China is practically exclusively in the hands of foreigners no Chinese bank, however well constituted, could successfully bid for such business against the well-conducted foreign banks; nor could the former offer the same facilities to the merchants as the latter. Even wealthy Chinese have so little confidence in their own institutions as to deposit their liquid wealth in the foreign banks. Therefore, the best plan to adopt would be to seek the co-operation of the foreign banks for the reform of currency and banking in this country. For the Chinese Government itself, the foreign banks would prove the cheapest means of keeping in constant touch with the markets in all other parts of the world. As they control practically the larger portion of the stock of silver in this country, they remain great powers for good or evil.