550.S1 Washington/568
Memorandum of a Conversation Between American Representatives and Canadian and Mexican Representatives
Meeting: At Department of State, 3:30 p.m., May 16.
Present: The Secretary of State, Senator Pittman, Mr. Warburg, Mr. Johnson, Mr. Alberto Pani, Mexican Minister of Finance, the Mexican Ambassador, Mr. Gomez Morin, Director of the Mexican National Railways and the Bank of Mexico, Mr. Arroyo, Chief of the Tariff Section of the Mexican Ministry of Finance, Mr. de la Torre, Secretary to Mr. Pani, the Honorable Charles McCrea, Minister of Mines of the Province of Ontario, Canada, and Mr. Hume Wrong, Chargé d’Affaires of Canada in Washington.
The Secretary of State opened the meeting but was obliged to leave immediately for other business, and turned it over to Senator Pittman.
Senator Pittman requested Mr. McCrea to expose his views. This Mr. McCrea did at length, but it soon developed that neither he nor Mr. Wrong had any authority from the Canadian Government to make any commitments even in principle. Mr. McCrea discussed the background of the world silver situation, which he considered must create a demand for world action. He discussed the relation of world trade to money, pointing out that the industrial nations can produce more than any possible world demand under present conditions. He pointed out that the Atlantic trade is saturated, and that the industrial nations must look to the Pacific trade for any further expansion, as in that region the purchasing power is almost entirely in silver. He said that it was a mistake to tell the people in Eastern Asia that their money is a commodity. World action is necessary to increase the purchasing power of the Asiatics. Mr. McCrea is of the opinion that the Pacific demand eventually will be greater than the Atlantic for manufactured commodities, but not through the migration of peoples and the development of new countries. It will come about through raising of the standard of living in the Eastern Asiatic countries.
Senator Pittman then spoke, outlining the ideas of this Government in regard to the stabilization of silver values and the restoration of its purchasing power.
Mr. Warburg then spoke of the advisability of a definite commitment to remonetize silver at the Economic Conference, and explained in detail the plans suggested by this Government.
The Canadian representatives expressed their personal approval of the suggestion that silver coinage should not be further debased, that it should return by degrees to a proper fineness, and that silver should be included in the reserves of the central banks.
The Canadian representatives at the conclusion of the various expressions [Page 517] of opinion, left the meeting at 6 p.m., but later returned at the request of Mr. Pani, who was evidently very much disappointed at the attitude of the Canadians who did not agree entirely with the propositions of this Government, and at their lack of powers to carry on any authoritative discussions.
Upon their return, Mr. Pani asked the question “Can the United States, Mexico, and Canada agree on any common program on silver before the London Conference?” Mr. McCrea and Mr. Wrong stated that they were sympathetic to the general program outlined by Senator Pittman, but could not make any commitment in regard to the special. Mr. Pani ventured the remark that we were not here to sign an agreement but to explore the situation. Senator Pittman again detailed some of the plans of the United States. Mr. McCrea and Mr. Wrong then definitely stated that while Canada was sympathetic to the restoration of silver, it would not commit itself as to any ways and means. Mr. Pani said that he was compelled to leave Thursday evening12 for Mexico, and would therefore not be able to remain for any further conversations after that date with the Canadians. Mr. Wrong suggested that the matter might be carried on when proper authorization had been received from Ottawa, with the Secretary of State and the American Ambassador.
Senator Pittman read the following points with which the Mexican representative said he was in agreement:
- 1.
- Against further debasement of silver coinage.
- 2.
- The remon[et]ization of debased coins to a proper degree of fineness.
- 3.
- Favor the use of silver as part of bank reserves.
- 4.
- Against any tariff on silver.
- 5.
- That the interested countries will participate on an equitable basis to offset sales from India of silver bullion if necessary.
- May 18.↩