Evening star., 1949-10-03
Argentina
Continued From First Page.)

Britain and the other countries
have been by about 80 per cent
in relations to the dollar.
What Argentina has done Is to
cut the value Of her money
sharply in relation to the dollar
but only moderately In relation to
the devalued pound.
For merchandise, an elab-
crate new schedule of exchange
rates applies. In most cases that
schedule requires Britain and
other countries which cheapened
their currency to pay more for
what they buy in Argentina. In
some cases they give more pesos
for dollar purchases, which makes
prices cheaper for those who can
pay with dollars.
A separate document issued by
the Central Bank covered ex-
ports Of Argentine merchandise.
This document showed that meat.
which is the principal Argentine
export to Britain. will take new
rate OF $40 pesos to the pound.
Up to now the pounds paid for
meat had been converted at the
rate Of 1888 pesos.
Thus, Britain will have to pay
many more devalued pounds in
order to produce the same number
of pesos for cattlemen and packers.
Aim to Spur Trade. ~
Wheat. corn. linseed and oil
seed. which also are top Argentine
exports. also fell into the classifl-
cation which brings $40 pesos per
pound. Those products also had
the previous rate of 1883 pesos
per pound.
On some other exports Argen-
tina obviously intended to stimu-
late sales by devaluing the peso
in relation to the dollar.
Edible oils, which the United
States does not buy but which
might be sold in dollar areas now.
will take a rate of 4.8321 pesos
per dollar. compared with the old
rate of 1882.
Quebracho extract, on which
the United States is q good custo-
mer, will take new rate of 5.7286
against the old rate of 3.9801 per
dollar.
Two other Argentine products
that the nation would like to ex-
port to the United States in
greater volume-wool and hides
were given a rate of 4.8321 instead
of 1852.
Insurance Required.
In connection with the suspen-
sion of imports, the Central Bank
that import permits
issued before trading halted two
weeks ago would be honored if
took the precaution to
insure them. Insurance permits
cost q small fee and most traders
buy insurance automatically. Thus
some import may continue, but
new permits will not be granted
Immediately.
On the black market, dollars
have been selling for 13 pesos
each until the past few days,
when undercWer traders suspend
ed operations.
Black marketeers have been
watched closely by government in
spectors since monetary reform has
been under consideration. The
black market has been used by
persons in Argentina who wished
to transfer their pesos to currency,
but the most spectacular prices
have been paid for dollars.
Free Market Rates.
The new exchange rates Of nine
pesos to the dollar and 25.20 to
the pound are what is called the
free market"
These rates, however, in actual
practice are established by what
the Central Bank will pay in buy
ing and selling. No other rate can
be fixed as the Central Bank by
law is the sole purchaser and
seller.
The free rate Is announced to
private banks at the opening of
business each day. Today's an
covered only the dol
ar and the pound. Private bank
,rs said they were waiting further
word from the Central Bank about
other currencies.
Although the "free market"
.ates theoretically cover transmits
lion Of profits made in Argentina
~ foreign companies, profits have