Second, the foreign banks occupied an unfair position in China. They had won a virtual monopoly of banking, with the consequence that the Chinese banks had to appear as marginal competitors, weak and unsound because the people were “poisoned by economic oppression.”(235) The foreign banks issued paper money, which gave them cost-free capital; they discounted Chinese paper too heavily; and they paid either no or very little interest on deposits. In some cases they actually charged interest on deposits. A second step of economic nationalism had to be the elimination of the privileged position of the foreign banks, which were not subject to Chinese jurisdiction, and were thus able to compete unfairly with the native banks. Third, economic oppression manifested itself in transportation, chiefly by water. The economic impotence of the Chinese made them use foreign bottoms almost altogether; the possible revenue which could be saved or perhaps actually gained from the use of native shipping was lost. Fourth, the Western territorial concessions constituted an economic disadvantage to the Chinese. Wrested from the old Manchu government, they gave the foreigners a strangle-hold on the Chinese economy. Besides, they represented a direct loss to the Chinese by means of the following items: taxes paid to the foreign authorities in the conceded ports, which was paid by the Chinese and lost to China; land rents paid by Chinese to foreign individuals, who adopted this means of supplementing the tribute levied from the Chinese in the form of taxes; finally, the unearned increment paid out by Chinese to foreign land speculators, which amounted to an actual loss to China. Under a nationalist economic program, not only would the favorable position of the foreign banks be reduced to one comparable with that of the Chinese banks, but the concessions would be abolished. Taxes would go to the Chinese state, the land rent system would be corrected, and unearned increment would be confiscated under a somewhat novel tax scheme proposed by Sun Yat-sen. Fifth, the Chinese lost by reason of various foreign monopolies or special concessions. Such enterprises as the Kailan Mining Administration and the South Manchuria Railway were wholly foreign, and were, by privileges politically obtained, in a position to prevent Chinese competition. This too had to be corrected under a system of economic nationalism. The new state, initiated by the Kuomintang and carried on by the people, had to be able to assure the Chinese an equality of economic privilege in their own country. Sixth, the foreigners introduced “speculation and various other sorts of swindle” into China.(236) They had exchanges and lotteries by which the Chinese lost tens of millions of dollars yearly.