Mr. Chang, who lived in Hopei Province in China, found himself in need of money to meet some special business expenses back in 1918. He might have gone to his relatives and asked them, as members of his family, to lend him the money. Or if there were not enough relatives to provide the sum needed, he might have persuaded one of his friends to introduce him to one of the well-to-do money lending families of the community, but that would have involved the payment of interest of two, two and a half or even three per cent a month. To save the heavy interest charge and to avoid putting too much burden on his relatives, Mr. Chang went to thirty of his friends and relatives, told them of his need for funds and invited them to join a mutual savings society. Such societies are very numerous in North China. They are popular because the members provide the capital sums that they use in turn and so avoid the expensive services of the money lender.