INFLATION

Rotorua Morning Post, Volume 3, Issue 620, 26 August 1933, Page 5

INFLATION

(Press Assn.-

ARGENTINE CONSIDERING THE ADOPTION OF ROOSEVELT'S POlllCY IDENTICAL PROBLEMS

-By Telegraph — Copyright).

Buenos Aires^ August 23. The question of the day in the Argentine is whether to follow President Roosevelt's example in inflation, which is arousing intense interest, and has already won the support of a large portion of Congressional and popular opinion. Immediate action has been delayed owing to the crisis in the Cabinet caused by the resignation of the Minister of Finance, Sr. Hueyo. The Conservatives, to whom President Justo owes his election mainly, are strongly supporting "controlled" inflation. Argentine problems are eonsidered to be almost identical with those of the United States, with the qualification that industries are not so fully developed here. Low commodity prices, farmers threatened with .foreelosure of mortgages, unemployment, an unbalanced Budget, and declining revenues are the most pr.essing problems of the day. Projected solutions •follow the Roosevelt model. Mortgage f oreclosure is temporarily f orbidden by law. Legislation has been prepared for the abandonment of the gold standard, authorising a large issue of Treasury bills, and for other steps towards inflation. La Nacion editorially opposes a moratorium on foreign dehts and a new Treasury issue as dangerous and unnecessary. It urges a patriotic loan of about £40,000,000 to retire Government indebtedness, including a huge amount owing to the Bank of the Nation. It urges more elastieity in the operation of the re-discount law, which it admits is equivalent to veiled inflation. La Nacion also ealls for temporary suspension of sinking-fund payments on the puhlie deht, internal as well as foreign. It argues that the over-payment on the sinking fund would halance the Budget, while the patriotic loan would cover the Government's debts, thus solving the two outstanding financial problems, without injuring Argentine credit abroad.