551.5 F 1/10⅔

The Secretary of State to President Hoover

My Dear Mr. President: I have your letter of the thirteenth18 enclosing a letter from Under Secretary Mills19 on the silver matter, which I return herewith.

[Page 640]

I am in entire agreement with Mr. Mills in his judgment that any agreement for silver purchases is unwise. As to the first suggestion of an international agreement of the governments not to sell silver, I should think the effect of such an agreement if reached would be beneficial to American mining interests both in this country and abroad and in Mexico, nor do I see any harm in it. Such an agreement to have binding force in this country would have to be referred to Congress for approval.

I am not optimistic as to the willingness of those countries which are the largest factors in the silver situation as consumers or importers, such as India or China, to make a firm agreement in the matter, but I see no objection to the exploration of the subject.

Sincerely yours,

Henry L. Stimson
  1. Not printed.
  2. Ogden L. Mills, Under Secretary of the Treasury; no copy of letter found in Department files.