893.515/385
The Treasury Department to the Department of State39
[Washington,] December 18, 1934.
Draft of Cable to be sent to the Central Bank of China by the Federal Reserve Bank of New York through the Chinese Legation in Washington
As Fiscal Agent of the United States for the purchase of silver, we beg to advise you that for the time being the following program will be pursued with respect to purchases of silver for the account of the United States:
- (a)
- No silver in China will be purchased above fifty-five cents per fine ounce and none except from you on the basis of a mutually satisfactory arrangement;
- (b)
- When the world price of silver outside of China is at or below fifty-five cents per fine ounce purchases of silver at home or abroad will be made as may be deemed advisable and steps will be taken to prevent the world price of silver from falling substantially below fifty-five cents per fine ounce;
- (c)
- This program may be terminated at any time on one week’s notice;
- (d)
- You are invited to send a representative at your earliest convenience to discuss these and related matters.
- Notation by the Economic Adviser: “This was handed to Mr. Feis by Secretary Morgenthau, Dec. 18—to take the place of the photostat draft attached [not printed]. H[erbert] F[eis].”↩