Ogden Standard-Examiner | 1920-06-06 | Page 4 | Argentina Hurt by U. S. Bankers

Britain Scores Advantage in Prestige by Offer on Big Loan BUENOS AIRES. June 5. Although sho agreement on the part of the British' government to pay off . the $50,000,000 owed by Argentina to United Stales bankers, payable May 15, has been hailed here as "an act of friendship," official publicity baa not yet been given to the understanding understand-ing In banking circles that the agreement agree-ment was only conditional part of an Ingenious financial arrangemcn which enables Great Britain to pay her own hundred million dollar debt to Argentina Ar-gentina without sending to thid country coun-try a single cent. Not only is this $50,000,000 lo be credited by Argentina against Great Britain's obligation, but the remaining 550.000.000 after being renewed,, is to be gradually extinguished through an arrangement whereby Great Britain Brit-ain for a certain period pays In London Lon-don the Interest on the principal part of Argentina's external debt, bankers have learned. l'rniso Great Britain. Thus far the Argentine government, govern-ment, which was unable to get a renewal re-newal of the loan in the United States, has made public only the fact that Great Britain has agreed to take care of the obligation in bohalf of Argentina Ar-gentina and La Epoca, the government organ has praised the transaction as an evidence of Great Britain's friendship friend-ship to Argentina and of great promise prom-ise for the future relations of the two countries. Bankers say there is no doubt but that the payment by Great Britain of Argentina's debt has greatly increased ! the prestige of the. British in this j country nnd has been correspondingly detrimental to that of the United j States, but called attention to the fact" that the transaction is not without its advantago to Great Britain also. Regret Failure. "I regret it very much," said one Argentine banker to The Associated Press correspondent, "but I fear the failure of the American bankers to renew our loan and the fact that Great Britain has stepped into tho breach and paid it, means a loss of economic good will toward the United States. While the complcto transaction is a good business deal for Great Britain, tho fact stands out In public opinion that the British did what the Americans Ameri-cans would not "We in financial circles cir-cles understand that money is badly needed for domestic purposes in tho United Stales. Nevertheless, Britain and America are represented as waging wag-ing a commercial contest for trade in Argentina. Tho economic effect of the transaction in favor of British prestige Is obvious." As told In local banking circles, the boat terms that Finance Minister Sala-berry Sala-berry could get from tho American bankers on his recent trip to the United Slates' was a renewal of the So0.000.000 for five years at 7 percent, per-cent, tho bankers asking delivery of the now bonds at 92 which would have been equivalent to an Interest of 9 1-4 percent. The maturing loan was at six percent. j Turning to the British government! through a prominent Anglo-Argentine I banker the minister was able to get a loan of $G0,000,000 at five percent 10 pay off the Americans, This ho was able to do, it is pointed out, because be-cause of conditions which enable Groat Britain to pay her own obligation obliga-tion to Argentina. a $100,000,000 credit for cereals, on favorable terms. oo