SOUTH AMERICA

Dominion, Volume 15, Issue 54, 26 November 1921, Page 12

SOUTH AMERICA

POSITION IN BUENOS AIRES

“NOTHING MOVING EXCEPT EXCHANGE RATES” From Our Own Correspondent. Palmerston North, November 24. The following extracts from a lettetf received by a Palmerston North hurt-* neos man from Mr. W. H. Love, of Buenos Aires, should be interesting, aa they show that that country is, if any-* thing, in a worse position than is Nei< Zealand “The situation here is exceedingly crU tical. Failures last month were over 18 million dollars, which shows an increase pf 16 million dollars over those for film same period of 1920, while the differ, ence between the failures for the first; six months of this year and those tea the same period of 1920 amounts to 43 million dollars. These figures speak ter themselves. Millions and millions ol dollars’ worth of merchandise, mostly) from the United States, are stored i® the Customhouse warehouses, as well aa out in the open spaces along the dock sides, as there is not sufficient space to take care of the goods which, buyer* here have not been able, or 'have refused, to accept or pay for. The niarkei for the past two years has been over, stocked in almost every line, and ship, load after shipload of merchandise ha* arrived in the meantime, only to accentuate the already heavy congestion. Now th"o market is flattened out and thread. "Nothing is moving except exchanga rates, and they are moving in the wrona direction. The American dollar stand* to-day e.t a premium of 46. Order* which have been and still saw arriving were placed on the basis of 25 per cent, to 35 per cent. In the meantime however, the Argentine Government has raised its tariff from 15 per cent. rf> 20 per eent. all round, and American dollar exchange has -advanced 46 pet cent., making a difference ot, say per cent, on cost of goods, which niean* that if buyers here took up their dref they would stand to lose a sure 35 pet eent.-that is, if prices held good. however, have fallen and are still falling, so the goods remain untouched fl and out of Customs warehouses. Ihe e have been many disastrous fires, and 1 1» holders of. goods therein have sent up fervent prayers for the relief th s fared, the insurance companies bean g the brunt of the low. Sev( 2“ 1 p ? £ li I ke . Customs warehouses have suffered like-, wise, resulting in the tess of miHions dollars’ worth of merchanffise i hile there have not been wanting i“ sin “ tions as to the origin of & the coastal service was he d P until a month or so ago- T llO company controlling most of the vear an enormous fleet ot -nips too bright juft a P* ; busine. its gold deposits Clreed up and tion. ” >ressu y h J® and perand perhaps millions. When. fhtVdo, things Will change considerably. We are all living in