WOOL AND EXCHANGE.

Ashburton Guardian, Volume 55, Issue 14, 27 October 1934, Page 5

WOOL AND EXCHANGE.

HELPING THE PRODUCER. DECISION IN ARGENTINA. ... ■ ; * (United Press Association—Copyright) BUENOS AIREiS, October 25. In an effort to raise 'wool prices, the Government agreed to-day to forego the profits on exchange operations < arising from wool exports. This will give exporters approximately 13 per cent, more than they are receiving now for their drafts. ... •..-.. The Government'c action is intended to ensure that the increase will be passed on to the farmers. Under the controlled, economy regime instituted last November, exporters were forced to sell their drafts to the Government at fixed rates of exchange. The Government then auctioned the drafts to importers' wanting to remit fund's abroad. This system piled up huge profits, enabling the Government to finance the recovery plan. In view of the low wool prices, the Government lias agreed to buy the drafts fiom exporters at the average of the lates bid each day by importers, less S per cent. This deduction, guarantees the Government'.' against Toss in a falling exchange market. Exporters cannot avail themselves of the new measure until they have sold all their present stocks as well as the wool : already purchased from the producers but not yet delivered. It is hoped this wilL increase the wool prices on the farm,s. . „;..',