The Washington herald., 1921-07-31
= -
ARGENTINE TRADE
DAMAGED BY OUR
HIGH TARIFF RATE
Exchange Rates Easily
Upset on Small Buy
ing.
CJnCEC THE MARKET
CLOSES THE MARKET
United States Is Important
Market for Nations
Exports.

BUENOS AIRES. July SO-Aneri-
can exchange continues to be the
dominating factor in the Argentine
money market. and it is noticeable
that a very small buying of Amert-
can exchange still Is sufficient to
establish an altogether dispropor-
tionate advance in the price of the
dollar. It is not believed here that
the new emergency tariffs in the
United states will improve the sit
uation. since they are expected to
exclude or at least greatly curtal
American imports of Argentine
dairy products, fresh and preserved
meats. wool. linseed. maize, and
wheat
Hitherto the United States has
been an important market for Ar
gentine linseed, maize, and the other
mentioned products, with the eN-
ception Of wheat. OF the 172,00O
bales of wool shipped this season.
for example. the United States took
more than half, and during the first
quarter of last year 100000 tons Of
linseed. $4,000 tons of maize, and
10000 tons of wheat were shipped
TO the American market. Almost a
complete closure of the market may
be expected as a result of the
emergency tariff law. which i'm
poses duties of IS cents a bushel on
wheat. 80 cents on linseed. Is cents
on maize, cents a pound on chiliec
and frozen meats, 25 per cent "ad
valorem" on preserved meats. Is to
As cents a pound on wool, Genus
a pound on butter and butter SUB
stitutes. and % per cent "ad val
orem" on cheese.
Must Have American Goods.
Although the low varue OF Ar
gentinea currency in New York will
no doubt continue to restrict Ameri-
can exports to this market, it is
quite certain that Argentina will
still import from the United States
on a considerable scale. Mexican
oil. which is paid for in dollars;
timber and other building materials.
coal. kerosene. agricultural ma
chinery and implements, Office fur
niture and equipment. and a va
riety Of other manufactured goods
will continue to be shipped to this
market from the United States. even
~ the premium on the dollar goe.
much higher than lit now is. In
other words. the United states may
shut out Argentine products. but
Argentina cannot altogether do
without American merchandise, and
the burden OF the higher cost must
fall on consumers Farmers
throughout the country are com
planning bitterly of the immense
increase in the cost of agricultural
implements. which Is felt all the
more severely because they have
been encouraged by tke national
governments scheme of minimum
prices to hold their grain for higher
prices and are now being offered
from to 4 pesos the 100 kilos less
than current market prices
1t should be borne in mind that
although the commercial situation
is unsatisfactory at the present
time, the country has enjoyed sew
cral years of great prosperity, and
that money Is still plentiful in mos.
of the agricultural and pastoral
areas, as well as in the towns. Con-
seduently buying Of American goods
and commodities, some of which are
necessities and can be had only
from the United States. is not likely
to be eliminated because of higher
costs due to an abnormal exchange
position.
According to recent statistics
from the United States. the balance
Of trade against Argentina during
~ he - To-
last was S53.552,SSS United States
currency, and during the earlier
months of that period, when the
trade balance was against the
United, States, the latter country
shipped to Argentina S30.65Q,000 in
gold. Therefore there was a total
balance of over s93, 10000 against
Argentina for the seven months,
whereas in the calendar year 1920
there was a trade balance of $69,-
900, o00i in favor of Argentina, and
of y32, 900. 900 in 1919. These figures
in themselves are, perhaps, suffl-
cient 10 explain the severe fall in
the value of the peso in relation
to the, dollar since the beginning
of the,year. and the great decrease
in the volume and value of exports
and the fact that over 100000 tons
OF wheat are still unsold owing to
government interference with the
freedom of the market explain the
weakness and unsteadiness of ex-
change. on London, Paris and other
European centers. Prohibition of
luxury imports and the removal of
duties and restrictions of all kinds,
which, handicap the export trade,
would alleviate the situation, but the
nationaf finances are too much in
volved to- make any sacrifice Of
revenue possible. and the proba-
bility is that abnormal conditions
will continue to prevail in the ex-
change market for an uncomfortably