Dr. H. H, Kung's arrangement for the purchase of gold to be retained in the United States of America for use in China's monetary. stabiliza~ on programme" may be said. to follow normally from the findings the Report of the Economic Mis fon which visited China two years go under the leadership of Mr. Cameron Forbes. It will be recalled that the Forbes Report declared that the effect of the United States of America's silver purchase policy on China's economy had been "opposite from what was anticipated" and that though other factors were primarily Fesponsible for the monetary dificult lies developing in China from 1034 onwards there was "no doubt what-fever: that the situation has been Aggravated and accentuated by the silver purchases which rendered a Cangerous situation panicky". Comment in Washington on this report just after China had announced her abandonment of silver suggested that China might ud it desirable to sell silver for sterling and US. dollar exchange. The action taken by Dr, Kung does not exactly fit that prescription but, no doubt, America at all disposed to grumble at the substitution of gold for USS. cur-Feney, especially us the transaction does not involve actual transfer of the metal abroad. Obviously the principals prefer at the moment to be reticent in regard to the figures, but it can hardly be imagined tha! this is due to any fear of undue disturbance of the gold market
Text read from the printed page and cleaned; old type leaves the occasional error.