893.51/6–1447
Memorandum by the Secretary of State to the Secretary of the Treasury (Snyder)
Dear Snyder: I am attaching a radio from your Treasury expert with the American Embassy in Nanking81 with regard to a possible “silver” loan to China.
I am not now proposing a loan and I have no idea that any such loan would be favorably considered by this session of Congress even were I to favor such action at this time.
What I would like is to have some of your experts analyze this to give us an opinion as to whether or not a “silver” loan is practical without regard to Congressional possibilities, I would like to have it examined to find out how such a loan might be managed. I would like to get the view of your people as to whether or not they thought such a loan would have a good effect in the establishing among the people of China their former confidence in the silver dollar to offset their present lack of confidence in any denomination of paper money.
I repeat again that I have not in mind at all the proposal of a Chinese loan. I am merely endeavoring to clarify for myself the various possibilities.