Evening star., 1949-01-30

nd its productive capacity is great.
ury had one of the largest reserves
of dollar and other foreign exchange
in the world. 1t had more than
$500, 100000 in gold on deposit in
the United States alone.
With the war over the devastated
and starving European countries
and Argentina's needy neighbors in
South America were forced to pay
exorbitant prices for Argentine
products, or go without them. Still
more money piled up. The gov
ernment bought out foreign enter
prises in Argentina or forced them
to sell. 1t appropriated others out
right and applied a wide variety of
stiff customs duties, taxes, excises
and other levies on nearly every
private business, and particularly on
private export-import operations.
Imports-Exports at Lowest
Yet, today the Argentine treas
ury is practically bare of dollars.
Imports and exports have declined
to an all-time low. Bumper grain
crops in Canada, the United States
and other countries have lessened
the worlds dependence on high
priced Argentine grain, and that
means less dollar exchange in
Buenos Aires. Because of high ex-
port taxes, arbitrary and uneco-
nomic measures and the low prices
paid to them by the Government,
farmers are producing less and less.
Why produce surpluses and be COM
PEELED to sell at loss?
Meanwhile, business enterprises
which the Government acquired in
the past few years by purchase,
forced sale or appropriation are all
in the red. The railroads, recently
taken over from British operators,
are losing at the rate of $200, 0,O00,-
600 year. The huge telephone sys-
tenn purchased from the Interna-
tional Telephone & Telegraph Co.
less than three years ago for $780,
000,0 900. is currently losing $36,0o0,-
900 year, even though 1t was one
of the most profitable concerns in
South America when the govern
ment took title to it.
Many foreign businesses, includ-
ing United States firms, have found
it wise to close their Argentine
operations completely. Branch plants
of General Motors and Ford were
among them. The United States
owned packing industry, one Of the
major enterprises of our citizens in
Argentina and hitherto one of the
most profitable, is in difhcult cir
cumstances. Other large firms are
on the verge Of bankruptcy.
Peso Still Declining
Imitation is at its peak. As this
is written the value of the Argen-
tine peso in terms of our dollar
Is worth less than half of what it
was 1s months ago, and it is still
declining in value. Government
price fixing has failed to halt or
slow the rise in living costs. The
Argentine black market in dollar
and other foreign exchange is the
most f1ourishing in the hemisphere.
Some Argentines say that it is not
even a black market, "but so open
and fragrant that only paid adver-
tising in the newspapers could make
1t more public" Yet, one high gov
eminent official boasts that it is q
good thing for the country. 1T
lets people make money in these
hard times" he told me. More and
more currency is being issued, and,
as one businessman described it,
printing presses are working over
time at the Ministry Of the Treas
ury. We don't know what the gov
ernment does with all that money,
or how it spends it" he added,
with a wry smile, "but we do know
where We are heading, unless q
miracle saves u.s."
Some Argentine and foreign OBJ
servers thought that the saving
miracle had taken place a short
time ago when Peron divested
Miguel Miranda, one Of the archi-
tects of Argentina's controlled econ