893.515/370
The Under Secretary of State (Phillips) to President Roosevelt
Dear Mr. President: I believe that you will be interested to have before you a copy of a cablegram from Dr. H. H. Kung, Minister of [Page 456] Finance, which the Chinese Minister has just handed to me and which relates to our silver purchases. I have already sent a copy of this communication to Secretary Morgenthau. In this connection I am also sending you a message dated the seventh instant which we have received from the American Consul General in Shanghai,37 in which the statement is made that American business and prestige are suffering because of the fact that the Chinese are asserting that present distressing financial conditions are due to America’s silver policy and purchases.
In addition to the foregoing, the Treasury has sent to us a copy of a cable to the Chase Bank from its representative in Shanghai in which the following sentence occurs:
“Anti-American feeling growing. If Chinese Government cannot stop outflow Shanghai silver stock not sufficient to meet requirements and Chinese currency may be forced off silver. Confidential report Japanese Government will make loan China and Chinese currency will be managed in line with Japanese yen.”
In view of the situation which appears to be rapidly developing, I am wondering whether you would care to consider any modification of our present policy.
Faithfully yours,
- Not printed.↩