033.1100 Rogers, James H./17: Telegram
The Consul General at Shanghai (Cunningham) to the Secretary of State
[Received April 17—2:30 p.m.]
173. For Morgenthau from Rogers. On one aspect of the silver problem in China there is a [no?] difference of opinion. Any considerable rise in silver price will aggravate greatly already depressed conditions in agriculture.
[Page 431]Reasons are: (1) Most Chinese farm products are international in no [a?] way with prices largely determined in markets outside China, (2) hence a rise in the price of silver carrying with it a rise in Chinese currency in terms of dollars, pounds and yen will produce corresponding slump in prices of most farm products whether imported or exported on balance, (3) the fact that gold price of silver has not risen substantially is temporarily of little importance as markets are largely outside gold countries.
Further depression in agriculture apparently very serious politically as well as economically. Will report further this aspect after other important conferences. [Rogers.]