893.515/1559
Memorandum by the Assistant Chief of the Division of Far Eastern Affairs (Vincent)
Gold Coins for China
In connection with the two hundred million dollar gold sale to China, Mr. Friedman of the Treasury Department telephoned to inform me that Treasury was proposing to mint approximately $10,000,000 (US) of the gold into coins which he described as follows: Profile of Sun Yat-sen on one side; American eagle on the other. On the face with the American eagle would be the inscription “United States Mint”, or words to that effect, and a statement of the gold content of the coin (one ounce). On the other face of the coin there would be Chinese characters giving the same information. Mr. Friedman said that the Chinese Government had not agreed to this proposal but that it was hoped that an agreement could be obtained in as much as the Government’s original objection to coins was based on the fact that it would be necessary to state a value in terms of currency which the Chinese Government desired to avoid.
Mr. Friedman said that it was anticipated that these coins would circulate more widely than gold bars by furnishing the small investor with a savings or hoarding medium, thus widening the area of effectiveness in retarding inflation.
[Page 448]Mr. Friedman asked me whether I thought there would be any objection in the Department to the idea. I told him I thought it a good one and that I would speak to Mr. Hornbeck and Mr. Feis. Mr. Hornbeck approved and Mr. Feis interposed no objection. When Mr. Friedman called back I told him of the attitude of Mr. Hornbeck and Mr. Feis.