Silver Loan Not Sufficient: British Banker Stresses Raising of Eastern Standard ANOTHER official view of the much-discussed proposals for making @ large silver loan to China has been provided by Dr. H. H. Kung, Minister of Industry, who welcomes the idea for the development of industry and the comp.*.on of the reconstruction programme.
Dr, Kung, however, prefers that the loan be made on certain conditions, namd partly in silver bullion and partly in gold credit. China must buy abroad but not with silver as it would tend to depreciate further the silver rate.
Mr, J.-F, Darling, a director of the Midland Bank of England, offers another contribution to the perplexing world problem, He advocates rai ig the standard of the East by restoring silver to its position as ce-equal of gold at a given ratio.
Nanking, Jan, 28.
Considerable significance is bein attached to the view held by De.
Kung, Minister of Industries, the muciediscussed American silver Igan'to: Chine, in' view of the con: troversy over this Issue.
Interviewed by press representatives. here. to-day, Dr. Kung said awas in favour of this loan under Certain conditions. "For the develop-rent of industries and the comple-Bion of China's reconstruction pro-the 'Minister would like to be granted partly {in silver bullion rage laun, preferably from America. fand partly in wold credit, the latter {fo be used exclusively for the pure Chases of machinery' and. material for constructive purpose.
China can make. good use of a large quantity of silver to be bor. Towed and returned in silver", said the 'Minister. of Industries." "With the white metal, we can coin money for circulation forthe purpose of ying materials within our country and for" payment of "constructive nbour in the realization of our reconstruction' programme, to. avoid the damping of, the silver onthe world market and further depreciate ing its value, the elzeultion of the borrowed sliver should be "confined within China, 'This' would increase production, give employment to the Deople ang increase' the Purchasing bower "While the Dr. Kung, "will benefit the people within the country if the silter ie Xetually distributed in Ching, asa measure to reciprocate the friendly act of the Tending power, Ching Should buy abroad, Dur mot with silver as it would fend to depreciate the silver rate further, Soa gold fae airyer rote earth Be a god to China at the same time, to sup: plement the "This. wil {Enable us fo buy machinery and Yaw materials necessary for our. indus trial revival and help solve the unemployment question. abroad, Under this arrangement, I eliave, the Toan will be of mutual benefit as China, with her great potential resources, could increase her production, absorb the over-production now menacing the whole economic, world and re-Vieve the general business depression throughout the world.
"This will further solve our problem of disarmament, an issue which is so vital to the peace and tran-quality of the Chinese nation, With the money thus obtained, industrial prises could be launched utilise the services of the disbanded troops, who would be turned into the codual of gold at a given right(ul, time-honoured position
ratio in the money of the world."
This restoration, he conclude could only be effected by the nations fof the world agreeing to issue their currency notes against both geld fand silver at a given ratio and he urged the British Empire to take the lead in this matter.
Mr. Darling's scheme, under the Rex' Money Plan, is that All the gold reserves of the British Empire—about 150,000,000 "from the Bank of England and £100,000,- 1000 from the rest of the Empire—in a new Bank The Bank of would issue against the [gold a new money—not coin, but a Money of account. In other words, sum on deposit with the Bank of the Empire.
'A holding of this new money, for which the name of Rex is suggested, would be regarded as gold in each the countries of the Empire. The Bank of England, for instance, Fwould hold Rex instead of gold against its note issues.
The Bank of the Empire would be prepared to buy gold at a fixed minimum price, paying for it in Rex.
An essential part of Mr. Darling's scheme is the rehabilitation of silver by providing that the Bank of the empire should buy silver, payin in rice thi 8 fixe ratio to its minimum price for gold.
'That is to say, assuming a fixed ratio of 20 to 1, it would pay in Rex the same price' for 20 02, of silver a5 for 1 oz, of gold. This would confer on silver & value of about Bid. a fine ounce and make the rupee worth 1s. 58d.
It would immediately rehabilitate the value of China's silver currency jand India's silver treasure to more than three times their present valu The power of the Bank of the: Empire to change its price for gold be "used to. maintain equilibrium between gold and silver the 20 to 1 ratio. If too much silver were being sold to the Bank, the Bank would restore equilibrium by, raising its price for gold without raising its price for silver—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.