Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-01
PROPOSED SILVER
|. LOAN IS DOUBTFUL
Legislation Would Be NeceS-
sary to Accommodate Chi
nese Government.
BY the Associated Press.

Considerable difficulty may attend eff
forts of the Nationalist government Of
China to negotiate a loan of a billion
ounces Of silver with the United States
Government.
Such a situation was outlined here in
official circles, which declared there Is
delicate question of international COM
plications involved and that individual
action by the United States in extend
ing such loan might be misinterpreted
by other nations, which, like us, are
in hearty competition for the foreign
trade of China.
Legislation would, Of course, be nee
essary before such a loan could be
promulgated. The Senate Foreign Re-
lations Committee has had subcom-
mittee investigate the situation with re-
spect to China, and testimony adduced
at many hearings gave weight to the
thought such procedure unwise from
an international standpoint and would,
in addition, offer no guarantee that the
silver industry in this country would
be aided.
Change in Standard.
Testimony has brought out that the
collapse of the silver market had its
INCEPTION when India was placed on
gold basis, which threw 35,O00,OOO
ounces of silver in hoard on the mar
ket augmented by the debasing OF
French money, which dumped an addl-
tional Ia 600 900 ounces. Prior to this
time the worlds silver production re-
NAMED fairly even at from 225.OO0, OOO
to $50 900 900 fine ounces year. Con
sumption was at about the same level
Consequently, testimony shows, the
dumping of 49, 0O0, 900 ounces on the
markets Of the world created, not an
oyerproduction, but an oversupply, TOT
which no outlet, as yet, has appeareo'
Witnesses appearing before tne sup.
committee, who are familiar Win VIC
Economic aspects of India, state there
are undoubtedly vast boards OF silver
still buried there. II this be true any
individual action on the part OF the
United States might be accompanied by
further dumping Of Indian hoaros IN
still greater volume, with resultant oe-
moraliZing effects.
Inasmuch as this Senate Subcorn-
mittee was created for the express pur-
pose of dealing with Chinese analrs' u
is considered unlikely that branch OF
Congress will take any action until the
subcommittee has been hearo.
Hearings Not Completed.
Judge Paul Linebarger, legal adviser
to the Chinese government, now en- route
to washington for the purpose OF nego-
tiating the loan, mas not Deen III 0ouCli
with this Senate Subcommittee, 1t was
learned. The move, 1t was said, Is purely
on ten initiative Of the Chinese govern
ment.
The subcommittee has not yet COM
pleted its hearings. Next weeks calen-
dar includes the appearance before IL
of three Chinese delegates to the recent
International Roads Congress here, who
will outline the lethargic conditions in
that country, and how loan properly
administered would return to the United
States in the form Of heavy purchases
of American goods.
The subcommittee looks kindly on
an international loan to China, which
would be advanced, jointly. by the prin-
cipal nations OF the world having heavy
commercial relations with it, the fund 10
be administered by representatives of
the lending nations. Action on such
proposition is expected to be taken at
the next session Of Congress.