The Department of State, Mr. Morgenthau disclosed later, has heartily Approved all aspects of the agreement. He added that Senator Key Pittman, jas chairman of the Senate Foreign Relations and Silver Committees, and Senator Charles L. McNary of Oregu, minority leader, had been fully ed-vised.of the progress of the negotiations.
Mr. Morgenthau said he anticipated that the agreement would help trade between China and the United States, but Dr. Sze said that there was no plan afoot at present to use any of the Silver Act. Heretofore the Silver Act relieved China in one of its great emergencies, through the United States purchases of silver when China could not look elsewhere for aid in sustaining its international exchange."
"The value of the Chinese currency depends upon reserves upon, bullion value, Hence, the rise ud fall of silver will not affect commodity prices. Therefore, the Sino-American agreement cannot create an inflationary or a deflation ary effect."
The programme also means, the Senator declared, that hoarded bullion throughout China will be re-issued by the Notional Treasury in the form of uniform colns—United Press,
Text read from the printed page and cleaned; old type leaves the occasional error.