033.1100 Rogers, James H./18: Telegram
The Consul General at Shanghai (Cunningham) to the Secretary of State
[Received April 19—3:10 p.m.]
183. For Morgenthau from Rogers. Careful conversation with 10 of the biggest American import firms (group apparently most favorably affected by higher silver price) has following opinions:
- (1st)
- All except two are more interested in stability of silver price than in level at which stabilized. Reasons are every abrupt rise in price causes considerable loss in inventory and every abrupt fall requires upward price adjustments and hence leads to loss of business.
- (2d)
- Of the three favoring a higher price of silver only one suggested as much as 60 cents American money. The impression prevails that any considerable rise at this time unless based on international action is apt to be short lived and hence may lead to further damaging fluctuations in near future.
- (3d)
- Four said further sudden rise in price of silver would be disastrous to China and would react adversely on their business.
All four foreign financial advisers to the Minister for Foreign Affairs stress stability and oppose any further rise in the price of silver.
Chinese banker opinion virtually unanimous for stability and against further rise silver price.
So far have found no Chinese opinion favorable to further rise in silver price. Would appreciate suggestions from Pittman14 or others acquainted here.
Statistical investigation of available import and export data as related to silver price is progressing rapidly. Cable report will follow soon.
[Page 432]To evaluate possibly [possibility] of making payments abroad in the event of increasingly adverse trade balance which might be anticipated from further rise in silver price, estimates of various other items in Chinese balance of international payments are being gathered. [Rogers.]
- Senator Key Pittman, of Nevada, chairman of the Senate Committee on Foreign Relations.↩