Position the Same as 2,000
Years Ago 'That gold was'the original currency of China, and not silver, was stressed by Dr. K, Bloch, an expert of the League of Nations attached to the National Economic Council of the Nanking Government, in an_address before members of' the Shanghai Rotary Club at their weekly meating on August 13 at the Metropole Hotel. When he came to China, declared Dr. Bach, everyone thought that the our rency' of China had been based silver for an' indefinite time, The gold currency, however, had' been Introduced' many hundreds of years ago, about 100 years after the reign of Alexander the Great. Tis. introduction led to a great decrease in the price of gold, and an increase Ju the price of silver, and the situation in China 2,000 years ago was that gold was cheap, and silver was dear. "China was then on a gold cur-
Tu 1929, an American mission studying Chinese economic problems recommended the introduction of the foreign exchange currency, and when first introduced into China silver: was very cheap. When silver became dear, China was given an opportunity to reform her currency, and that 1s what she did. The new currency was not the foreign exchange currency, In September, 1931, when the pound went off gold, prices throughout the world followed the movement of the pound, and gold suddenly became very dear indeed. Gold production, singe the pound went off gold, had increased by 25 per cent, and was still steadily increasing. "When the. increase in gold production com= menced, a new development followed. Ever since ancient times, the Far East had traded for gold produced by Near Bastern countries. The increase in gold production should have led 10 8 decrease in the price of gold, Dut actually it dia not"
British Currency Polley:
Dr. Bloch referred to the British currency policy. Britain was a country that had virtually gone off the Gold standard, but "actualy had Jnvested a large amount in gold, 'The prerent situation in China was exactly the same as it was 2000 years ego. Silver was dear, and gold was ehetp. During the Great War, declared Dr. Bloch, gold became' very cheap, and prices rose tremendously, Future wars might" have. exactly the same effect as war preparations had already had,
8 decided change in the polley of Asked what would be the result of the United States, Dr. Bloch said the view had been expressed that Ame: Ica's polley was harmful to China, He did not agree with this suggestion, 'A change, however, would most probably be harmful to China, a she held large stocks of sliver. "In reply to a question as to whether, inthe event of war, the price of' silver would yo up or down, Dr, Bloch said that the silver value would go up, and the gold value would go dos Dr. Bloch was also asked what, would be the effect on the Chinese Government if the event of a rise in the rice of silver, He could, he said in reply, give only what' he considered 0'be a reasonable opinion. It was reasonable to suppose that the Government would be able to do nothing at all in the event of silver increasing in value, The effect of silver smuggling would not cause a. fundamental change in international polley.. The smuggling of silver would not be arried On to a very great extent, The quantity of silver would be decreased by silver ornaments, ete, and Would be kept, and not sold for the purpose of being smuggled.
Text read from the printed page and cleaned; old type leaves the occasional error.