Great Falls daily tribune., 1920-06-06
BRITISH GAIN
IN ARGENTINE
FINANCE DEAL
Pay 500, 100000 Debt
Without Sending Cent
to Country Where 1t
Owes the Money.
Does 1t by Agreeing to
Pay $50, 900, 900 Owed
to u. S. Bankers by the
Southern Nation.

Buenos Aires, May 3O.-(By The As
sociated Press. Although the agree
ment on the part Of the British govern
ment to pay off the $4,000, 900 owed by
Argentina to United States bankers,
payable May 10, has been hailed here
as IAN act of friendship" official pub
GGty has not yet been given to the I'M
derstanding in banking circles that the
agreement was only a conditional part
of an ingenious financial arrangement
which enables Great Britain to pay her
own hundred million dollar debt to Ar
gentina without sending to this country
q single cent.
Not only is this S5O,OO0.OOO to be
credited by Argentina against Great
Britain's obligation, but the remaining
$50,OO0,000 after being renewed is to
be gradually extinguished through an ar
rangement whereby Great Britain. for
a certain period pays in London the in
terest on the principal part of Argen-
tina's external debt, bankers have
learned.
Where England Gains.
Thus far the Argentine government
which was unable to get a renewal OF
the loan in the United States, has made
public only the fact that Great Britain
has agreed to take care of the obligation
in behalf of Argentina and La Epoca,
the government organ has praised the
transaction as an evidence of Great Bri-
tain's friendship to Argentina, and of
great promise for the future relations
of the two countries.
Bankers say that there is no doubt
but that the payment by Great Britain
of Argentina's debt has greatly increas-
ed the prestige of the British in this
country and has been correspondingly
detrimental to that of the United States
but call attention to the fact that the
transaction is not without its advan-
tage TO Great Britain also.
II regret it very much" said one Ar
gentine banker to The Associated Press
correspondent, "but l fear the failure of
the American bankers to renew our loan
and the fact that Great Britain has
stepped into the breach and paid it,
means a loss of economic good will to-
ward the United States.
Good Business Deal.
while the complete transaction IS a
good business deal for Great Britain,
the fact stands out in public opinion
that the British did what the Americans
would not. We in financial circles un-
1erstand that money is badly needed for
domestic purposes in the United States.
Nevertheless, Britain and America are
represented as waging commercial
contest for trade in Argentina. The
economic effect of the transaction in
favor of British prestige is obvious.
AS told in local banking circles. the
best terms that Finance Minister Sala-
berry could get from the American
bankers was a renewal of the 10000
600 for five years at Z per cent, the
bankers asking delivery Of The new
bonds at 92 which would have been
equivalent to interest of 9M per cent.
The maturing loan was at & per cent.
Pay Another Debt.
Turning to the British government
through a prominent Anglo-Argentine
bank, the minister was able to get loan
of $50, 100000 at ) per cent to pay off
the Americans. This he was able to do,
1t is pointed out, because of conditions
which enable Great Britain to pay her
own obligation to Argentina, a $780,
100000 credit for cereals, on favorable
terms.