The Washington herald., 1921-12-26
RED TAPE IDEAS
SERIOUSLY HURT
ARGENTINE TRADE
Views on Commerce and
Finance Appear Self
Conferred.
BIG CROPS SEEN
Official Minimum Prices and
Embargo on Gold Exports
Retard Economic Gain.
) CROPS SEEN

BCENOS AIRES. Dec. 3. The
frst thing that strikes the foreign
obseryer in Argentine. is the self
centercd nature OF its views on COM
merce and finance. Confident in it's
potential natural wealth. the coun-
try either can not or will not see
that 1t must be content for a time
to take that factor for granted and
DO Its best with the means imme-
diateIy available. In plain language,
until IL realizes that IL must sell its
exportable surplus at the price
which consumers will pay. and not
hold out. for &bsurd figures based
OF. an assumed cost of production
which Is to a great extent deriva-
tive from war conditions. gone for
good and all. there is a small hope
Of an. Improvement in trade.
big Crops Forecast.
There is every reason to believe
that the wheat and the Iinseed crops
are reasonably safe from disaster,
and that despite all the vell-meant
efforts of those who would taik
prices higher by scares. such as
frost. drought and the like. both
the cereal and the oleaginous WELD
will be heavy. With close IN a mil
lion tons of the FORMER still TO ship
and over 100000 tons OF linseed In
hand. this does not look like high
prices in 1919.
II. as is credibly estimated, Ar
gentina. after providing for her
own needs. has 100000 tons OF
wheat to sell and nearly a million
tons Of iinseed. the sooner she re-
duces her figure. or. better still. re-
moves the clog OF ofiicial minimum
prices. the sooner will she be able
TO correct the INEQUALITIES of ex-
change. II may be observed that
the improvement in quotations OF
the Argentine dollar Is not by any
means due to the recent 10000. 0oo
loan which has been closed by the
Blair group of banking interests in
New York. A far more potent fsc>
tor Is found In the virtual post
ponement of the restrictive import
measures outlined in the Fordney
bill and the consequent shipment Of
hnseed. hides and wool to the
nited States.
There is certain amount of
mystifcation here regarding the
thAhhci an TINS - Ntos ~
tine. attempt to tap the New York
market for capital has been ar
ranged. A two year loan in z per
cent Treasury bonds was taken by
the banker. at 81 and issued to the
investing public at ssA. and the
net proceeds lie at the disposition
Of the Banco de la Nacion, Argen-
tina. to be drawn against in ac-
Il. -
the Argentine government. 1t was
generally understood that this meant
the possibility OF more favorable
rates being granted TO bona nde
traders having accounts to settle
than to bankers interested princi-
palIy in arbitrace transactions. but
although some seo.ooo,ooo have been
taken in the course OF the current
month there IL small Improvement
to be seen. Buenos Aires still quot
ing New York at 1910, which Is
but four and one half points under
the end of October quotation.
Apparently the Argentine govern
ment intends to recoup itself for
the loss in exchange suffered when
adjusting the payment TO the Brit
fish government for the previous
SO. 600, 600 loan taken up by the
British treasury in New York by
peddling out its present credit bal
ance in that city at just enough
enough below the market to insure
that all drafts go through the ON
cial bank. This is quite legiu-
mate business. but what will hap
pen when the said balance is All
drawn. Unless Argentina is by
that time shipping heavily TO the
North either gold or grain, the re-
bound will go so phenomenal as 10
put a complete stopper on United
states shipments hither, save IN the
case of articles that can not be got
aIsA-hers