Nothing hampers China’s interprovincial trade more than the absence of a national credit system and commercial paper. Treaty-port China gets long enough loans from the foreign manufacturer. The trouble is that the importer can not collect quickly from his customer, and when he does, the medium is coin, bullion and barter, unnecessarily and clumsily handled, whereas coin, bullion and barter should only be used for the balances. China needs a modern currency system, and a modern credit system as well. It is in accord with manners and business accuracy when at a fair you are informed that an article will cost you a thousand coins (cash) to say: “I’ll pay you 500 _good_ coins.” If you had a thousand counterfeits you could elect to pay with them, but never be so bucolic as to pay a thousand good coins when a thousand coins are asked. As suggested by America, China’s new coinage will have a silver dollar, half, quarter, dime, nickel, two cents, cent, half a cent, and one-tenth of a cent, all minted in government mints, and alone accepted as legal tender in taxes, telegraph, railway, telephone, customs, likin, stamp and other charges. Very slowly the old system of using provincial coinage of debased value, bullion (sycee) exchange, private bank notes, etc., will pass away. A central bank, like the Ta Ching, helped by a four-nations foreign loan, backed 40 per cent. by the government, and 60 per cent. by private subscriptions, with about $6,000,000 capital, could make a good beginning in taking care of the new system. Although a silver coinage, the government, like Japan’s, stands to guarantee the fixed value of the coinage as equal to half its face in gold; that is to say, the central bank will hold reserves so as to redeem or guarantee a silver dollar at fifty cents gold. The silver is to have a fixed purity standard, like the Philippine peso, or the American dollar. Japan stepped into Korea and refused to accept the old coinage. It immediately became copper bullion, and had no other value. For safety’s sake, the Japanese insisted that the coins, worth nominally one-tenth of a cent, should be broken at the square hole in the center. The steamer _Seneca_, in 1912, brought 1,400 tons of these broken Korean coins to New York, whence they were shipped to Chrome, New Jersey, to be smelted. China can not be so rigid, as she has not the police or army, but if she could safely be rigid, nothing would clear up the coinage question better than copying this Japanese example. Since the adoption of the gold standard in Mexico, the government has to accept the old Mexican dollar as legal tender for one dollar gold, which gives a profit of 100 per cent. to the lucky holders of these silver dollars. There are many of them in China; indeed the Mexican dollar was for many years the monetary standard in China, and the thrifty Chinese are smuggling the unchopped coins into Mexico as fast as they can be gathered up from the Shansi, Kwangtung and other bankers.