New Britain herald., 1930-10-09
Powers Believe PacificatiOn of China Would Result When Nation Started Work Again

Salt Lake City, Oct. LP-Rec- ommendation for an international loan of several hundred million ounces of silver to China is under consideration by the senate sub-com- mittee on foreign relations, it was revealed here yesterday by Senator Key Pittman of Nevada, it's chair man.
 The loan, he said, would be a means of stabilizing Oriental trade and the pacification of China.
 Addressing the Salt Lake Chamber of Commerce, he reported the tenta- tive findings of the subcommittee, which has held hearings in Wash ington and principal Pacific coast cities on commercial relations with China. Testimony of bankers. manu- lecturers, exporters importe.7 and others familiar with the pc -ical and commercial history of China was heard
 The committee is considering the recommendation, through its report to the senate. of a plan to pacify China, finance the national govern ment. and place the 450,00o,o00 of Chinese people in the peaceful pur- suits of industry rather than the de- structive enterprise of war" Senator Pittman said. Some constructive action is essential. because our ex- ports to China, including wheat, lum- bre, automobiles and other manufac- lures. have fallen off over 50 per cent in the last seven or eight months.
 Would Form Pool
 The plan anticipates the joint action of China, Great Britain, France, Japan, the United States and yer pool would be organized by such governments, making available sev- eral million ounces of silver to be advanced to the Chinese national government as and when needed for peaceful purposes as approved by a 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 govern ment to participate in it's administra- ton, the advances of loans so made to be measured in ounces, and not in values and to be repaid. principal and interest in ounces of silver.
 According to the testimony of witnesses qualified to express an opinion, such plan would be agree able 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 pacification of China, the establishment of control of the na- tional government over the whole of China, the opening up of the vast interior and the revivification of all industry.
 Would Aid Commerce = Such an plishment. so these witnesses testify. would increase our commerce with China tenfold, would consume almost immediately our en- tire surplus of wheat and would greatly reduce our surplus of lum- Der. automobiles and other manufac- lures. China. under such conditions, 1t is contended by all of such wit nesses, could use more silver than Is now available from the total pro duction of all of the mines producing silver in the world.
 This would naturally have a tendency to increase the price of silver and the purchasing power of that metal, which is the only money or purchasing medium of China. as well as many other countries. Such increase in the purchasing price of silver would increase the purchasing power of all other countries, to the great benefit of our exports.
 The price of silver of course would change but it would fange within smaller limits and such de- mand would undoubtedly hold the price and purchasing power of sil-