CO129-452 - Others & Individuals - 1918 — Page 287

22nd August, 1918.

283

Sar 36047

Dear Grindle,

We delayed answering your official letter of the

26th July, with regard to American silver for the China

trade, pending the result of negotiations which we were

compelled to undertake on our own behalf with the Americans,

and even now we are not in a position to give you a full answer. It may, however, be useful to you for your private

information to know how the matter stands.

Owing to the insufficiency of silver recently

to meet the heavy demands of this country and India, it

has been necessary to press the United States to fix

a maximum price for silver in America, and to control

the grant of licences for export. This they have now agreed to do,

and licences will only be given for civil and

military needs arising out of the war. The need for this

policy arose out of the urgent demands for silver coinage

in this country, which we could not neglect without the

risk of a most serious dislocation of credit here, and out of the decreased amount which we could purchase in America, largely it is thought owing to the competing buying of

"니다

Sa the China banks. We cannot well seb how the measures now

taken