Foreign Relations of the United States Diplomatic Papers, 1934, The Far East, Volume III

893.5151/365: Telegram

The Minister in China (Johnson) to the Secretary of State

Peiping, February 22, 1934—3 p.m.
[Received February 22—6:22 a.m.]

97. Your 43, February 17, 3 p.m.⁸

1. In well-informed circles, North China, it is not believed that the rise in price of silver has been an important factor in the increase in trade.

2. It is believed that depreciation of United States dollar has been a very important factor.

3. Other factors have been (a) increasing confidence among businessmen in the United States, (b) purchases by American importers of Chinese products in anticipation of further rise in price of silver.

4. There is a belief among North China foreign bankers that a stabilization of the price of silver would be a great benefit all around but they fear that if price is stabilized too high there would result a sharp contraction in trade and the Chinese Government might be inspired to depreciate Chinese silver dollars.

Johnson

8. Not printed.