New York, June 7.
American foreign trade, particular ly that with China and the Far East, will be seriously damaged if Con-Kress passes the Silver Bill without eliminating the provision levying 150 per cent. tax on silver profits, it }was predicted to-day by bankers and brokers.
In support of this contention, these Hnancial authorities cited the present procedure in financing commercial transactions between China and the United States.
Tt is the custom, they said, when buying Shanghai exchange. to, sell silver futures in New York simultane. ly, and vice versa. Such a, trans-The bankers pointed out, is the direct antithesis of the gambling which the profits tax is designed to encourage, since each individual transaction is covered as it is made for the purpose of avoiding the assumption of a speculative exchange position by the banks, Should the proposed ax be enforced. banks in the Untted States and American banks ju China then would find themselves in the impossible position of having to pay a 50 per cent. levy on their profits on a silver futures contract purchased in New York, should the price of the white metal here rise before delivery was taken and the transaction closed. without being allowed to deduct corresponding losses suffered in Dealers in the white metal for legitimate purposes will be affected by the proposed tax, as well ax speculators, it was stated by Mr. J. Chester Cuppia, acting president of the New York Commodity Exchange.
One of the principal resuits of the imposition of such a levy, Me. Cuppia said, would be to drive the silver futures market to London and Shang-hal, with the result that the United States Government would be put at the mercy of foreign markets in its silver purchasing programme.
Industrial users of the white metal will be injured by the projected tax. Mr. Cuppia asserted, while the effect upon the foreign trade of the United States would be disastrous.
Opposition to the Silver Bill in its entirety and on fundamental prin~ ciples was expressed by the New York State Chamber of Commerce in a res~ elution adopted Rere to-day.
The resolution declared that there ig no danger of a shortage of gold land that the adoption of hi-metallism would, therefore, be a calamity.
The chamber agreed that the price of silver should be stabilized in the interest of world trade.
It contended. Shansha however, that the United States cannot bring about stability in the price the white metal without an inter~ ational monetary standard—United Press.
Text read from the printed page and cleaned; old type leaves the occasional error.