New York, Nov. 7. DECLARING that the silver-purchasing policy of the United States Governmient had accentuated the seriousness of China's economic situa! but denying that the policy was in any way responsible for the collapse of the real-estate boom at Shanghai, the American Economic Mission to the Far East submitted its long-awaited report to-day, The chief suggestion advanced by the Missio:; under the chairmanship of Mr. W. Cameron Forbes, was thai the United States take steps to establish in China an authoritative agency empowered to extend long-term credits to Chinese buyers of American goods and services, That Ameri purchases of tin should be made to a large extent in China, with a view to bolstering Chinese exports, was likewise advocated in the report issued to-day.
Regarding the effects of the United States silver policy on China's economy, the Mission declared that. the Fecatudy of the London aver aptes: beneficial effect which had been preent and' Chins Teervaton dicted for the policy was "incorrect," and stated that the result was "op Rw. noted that Ching merely posite from what was anticipated. agreed of tell ler vending The members of the Mission denied, om demenetied cla! but Wid cat cuon ballan however, that the worldwide. slive purchases were to blame for the Experts hee were without informa-collapse of the expanding real-estate market in Shanghai, which, it main tained, was due to an "over-ambitious Diuiding programme and also unwise speculation in realty."
Frankly assessing the workings of the American silver policy in the Far East, Mr. Forbes and his colleague: said, "There is no doubt whatever thatthe situation has been aggravated and accentuated by the silver purchases, which rendered a dangerous situation panicky.
Why Depression came The Mission's report quoted a memorandum by Dr. H. H, Kung, Minis-for of Finance of the Chinese Na tonal Government, which he pared for the Forbes group in Jui Dealing with the unfavourable effects the United States silver policy, the memorandum asserted "the depression has come to China chiefly as a result of external forces. affecting ¢he country's economic life, notably reduced purchasing power. Other dons increased the value of China's silver currency in terms of the leading currencies, which had been influenced by the currency policies of the governments concerned....It Is obvious that China's present' economic difficulties are becoming -more acute, although' In most other countries the bottom was reached two or three years ago."
The Mission reported that it had found urgent need for the establish ment of an agency capable of meeting competition from nations bidding for China's business. The members declared that Great Britain, Italy and other nations were using! Boxer Indemnity funds to create reserve from which to finance tale to China of materials for the building of factories, shies and railways. "The report, said, that. che United States could open the way to development of its trade with China "by providing means for the extension of long-term eredils Chinese buyers."
Text read from the printed page and cleaned; old type leaves the occasional error.