The Canton guaranty system of Hong merchants,which is imitated by the Safety Fund of New York State,is an ex post-compensation system arrangement to maintain the overall credit of the Hong merchants guild. Its purpose is to prevent the overall foreign trade activities from a individual Hong firm failure,in effect,originally industry self-discipline organizations. Absence of a prior and effective disposal mechanism in the system itself,the Qing government officials extraction and the compulsory allocation of risk disposal,together with the loss-free trading and compulsory lending behavior of foreign traders in violation of commercial logic,caused the full decline of the Guild. In fact,the Canton guaranty system motivated all Hong Merchants failure at the domestic stage,instead,made a Hong merchant acquired a credit over the whole world. The U.S. drew the essence from Chinese system by taking in deposit insurance under bank supervision,but it still suffers from government intervention and ineffective political rivalries. It is possible for us to understand the reasonable function and implementation condition of deposit insurance system.