London, July 12.
London financial circles believed today that the "strange action" of the United States Treasury in permitting the price of foreign silver to drop sharply in the past week was directed to prevent Japan from sharing in economic benefits by which Britain and the United States extended and to China.
London financial quarters report that Japan was hard hit when the British-sponsored Chinese stabilization fund withdrew its support of the Chinese dollar last month after it had been determined that Japan was benefiting from the fund more than China was.
Japan, it was pointed out, has been gathering silver together in occupied areas of north China and selling the silver in London at high prices made Possible by the United States. This support to Japan now has been withdrawn in retaliation for Japanese attacks on British and American interests in China, it was believed.—United Press.
Text read from the printed page and cleaned; old type leaves the occasional error.