Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-10-08
u. s. Sill VERLOAN
TO CHINA PENDING
Pittman Says Senate Sub.
committee Considers Rec
ommending Such Action.
BY the Associated Press.


SALT LAKE CITY, october g.
Recommendation for an international
loan of several hundred million ounces
Of silver to China is under considera-
ton by the Senate Subcommittee on
Foreign Relations, it was revealed here
today by Senator Key Pittnan Of Ne
vada, its chairman.
The loan, he said. would be q means
OF stabilizing Oriental trade and the
pactflcation of China.
Addressing the Salt Lake Chamber Of
Commerce. he reported the tentative
findings Of the subcommittee, which has
held hearings in Washington and
principal Pacific Coast cities on COM
mercial relations with China. Testi-
nnony Of bankers, manufacturers, ex-
porters, importers and others familiar
with the political and commercial his
tory Of China was heard.
Committee Considers OK.
1.-THE committee is considering the
recommendation, through its report to
the Senate, of q plan to pacify China,
finance the national government and
place the 450, 900 900 of Chinese people
in the peaceful pursuits Of industry
rather than the destructive enterprise
Of war;" Senator Pittman said. Some
constructive action is essential, because
our exports to China, including wheat,
lumber, automobiles and other manu-
features, have fallen off over so per
cent In the last seven or eight months.
THE plan anticipates the joint action
of China, Great Britain, France, Japan.
the United States and other interested
governments. A silver pool would be
organized by such governments, max
ing available several hundred million
- ell 90 Aa Arrov -
Chinese National government as and
when needed for peaceful purposes as
approved by Joint Commission Of such
lending powers.
"The agreement would probably have
to contain provisions that would bring
the four dominant war lords of China,
who now control vast armies and areas,
into the National government to par
ticipate In its administration, the ad-
vances or loans 80 made to be measured
in ounces, and not in values, and to
be repaid, principal and interest. IN
ounces of silver.
Agreeable 20 Government.
According to the testimony Of wit
nesses qualified to express an opinion,
such q plan would be agreeable TO the
National government, the four war
lords and the people Of China. The
plan, in the opinion Of such witnesses,
would result in the immediate pactflca-
ton of China, the establishment Of
control of the National government
over the whole Of China, the opening
up Of the vast interior and the reviV-
fication Of all industry.
such an accomplishment, 30 these
witnesses testify, would increase our
commerce with China tenfold. would
consume almost immediately our entire
si,rr,iYie nf w11eak ard vn1ld QreafiY re.
duce our surplus Of lumber, automo-
biles and other manufactures. China,
under such conditions, 1t Is contended
by all Of such witnesses, could use
more silver than Is now available from
the total production Of all Of the mines
producing silver IN the world.
This would naturally have tend
eney to increase the price Of silver and
the purchasing power Of that metal.
which Is the only money or purchasing
medium Of China, Is wen rs many
other countries. Such increase In the
purchasing price Of silver would In
crease the purchasing power Of al
other countries, to the great beneflt OF
"The price Of silver, Of course, would
change, but 1t would range within
smaller limits, and such demand would
undoubtedly hold the price and pur-
chasing power Of silver throughout the
world at such Q limit as to insure pros
perity IN China and all other silver
using countries.
sOf course. after the Senate has ap-
uroyed q resolution containing any such
nlan, Il would then have 10 60 to the
President Of the United States to be
contaminated into an agreement II the
plan met his approval"