ARGENTINA FACES CHAOS

Taranaki Daily News, 16 January 1931, Page 7

ARGENTINA FACES CHAOS

EXCHANGE DROPS SHARPLY ' \ _ ' . MERCHANTS IN A QUANDARY WHEAT MARKET DUMPING NEW GOVERNMENT BLAMED By Telegraph—Press Assn.— Copyright. Rec. 7 p.m. New York, Jan. 14. The New York Times to-morrow will print a despatch* from Buenos .Aires stating that Argentine exchange has dropped to such a low level that the peso is selling at 50 per cent, discount against the sterling and dollar, that the country faces the possibility of a moratorium, that private merchants purchasing American and British goods are facing bankruptcy and are informing the houses with which they trade that hereafter they will accept goods only on assignment until the exchange position improves.

The failure of the new Government to announce a financial programme that would reassure foreign and domestic interests in the elasticity of the currency system, while the Government declines to make the necessary shipment of gold abroad to support the exchange, and the activities of certain wheat interests who, selling at sterling, have dumped so much wheat into Liverpool as-to break the market, and none the less have made large profits on exchange, have all helped to produce a chaotic situation.