The sun., 1918-12-23
ARGENTINE FINDS
CONDITIONS GOOD
Plenty of Idle Money, Crops
Good and Industries Are
Flourishing.
ARBITRAeE RESTRICTED
Uniformity Of Contracts Pro-
posed to Settle Disputes
in Export Field.

Argentina financial ana business
situation is characterized by an ex-
cessive amount Of idle money, which
cannot find employment because Of tho
restricted volume Of private business.
according to information received by
the Guaranty Trust Company Of New
York from Its, special representative
In Bucnos Ayres
He makes a sharp distinction, how
ever, between private business and
the operations OF the British Food
Commission, the American Wool Com
mission and other similar agencies.
Capitalization OF Government pur-
chaaes has curtailed private exports,
and while important with respect to
money values tho private import busi-
ness represents comparatively small
quantities Tonnage u scarce and
preferential allotment IN given to Gov
ernment orders IN the case Of such
ships as arc available For tho pres
ent, so far as private BUSINESS trans
actions are concerned. small returns
and big profits are the rule. Continu-
ing. he says:
Home industries are profting
greatly through present abnormal
conditions and have on the whole
contrived TO make splendid profits
There is. however, an almost. unani-
nous opinion that these earnings can
not be even approximately maintained
when peace conditions again prevail.
hence noticeable hesitation to en-
bark upon completely new industrial
enterprises on a large scale.
Crop Prospects Appear Good.
AS regards agriculture, conditions
are decidedly favorable. but owing TO
the above mentioned centraliZa ton OF
Government purchases and lack of
shipping space, prices are not as high
as they might logically be expected to
be. Prospects Of the coming crop ap-
peared to very good, and as consid-
able stocks from last years crop still
remain unsold. lower prices may be
expected toward the close of this year
with the exception perhaps OF linseed
| OF which there Is a reduced stock.
Great emphasis is laid upon the
| fourishing aspect Of the cattle indus
try. Cattle raising has enormously
increased the bank balances OF those
engaged in this enterprise, notwith-
standing severe partial droughts and
other dangers and plaques customary
| in this country. As a consequence
land properties utilizable for cattle
raising have registered considerable
! increases in value. followed closely by
agricultural land; while speculative
camp and town properties have, so
| far, scarcely followed suit
From the bankers point of view
the situation is one which perhaps
offers greater security than formerly
in credit operations. but decidedly
| smaller profits. Discounts have fallen
| to unheard Of levels, business having
been done in some cases at as low a
rate as per cent, which offers a
market contrast with pre-war rates
of and per cent. ON the other
hand the interest rates on fixed de-
posts have kept relatively steady be-
tween and per cent, so that there
is little margin on the employment OF
| resources.
Foreign exchange business has
been adversely influenced. in the case
OF private banks. by Government
financing of purchases of Argentine
products, causing a great reduction
in the amount OF export drafts. Ar
btrage business between banks and
their foreign correspondents has SUI
fered equally on account OF Govern
ment restrictions, chiefly in Italy and
the United States. and where business
is still possible it has become very
hazardous owing TO the enormous eX-
change fluctuations in the worlds
principal financial centres.
/ Business Operations steady.
| uTba daIay and annarep, difFiCultv ir