Roca-Runciman Loan

One vice president who does things is Julio A. Roca of Argentina. He went to London nine months ago to negotiate a special trade agreement necessitated by the Ottawa Conference's preference of Dominion meat for British markets, and to discuss foreign exchange. British firms have great sums frozen in Argentine banks through foreign exchange regulations. Before he left England, Vice President Roca sat down with President Walter Runciman of the British Board of Trade and initialed a treaty including an agreement whereby British firms anxious to get their money out of Argentina may buy with their blocked pesos a special issue of 20-year 4% bonds issued in sterling.

In Buenos Aires books were opened last week for subscriptions to this Roca-Runciman loan. Argentina waited nervously to see how British firms would take the bait. Would they subscribe, or would they prefer to bootleg their money out of the country a few pounds at a time by selling pesos at special rates to tourists and others with dollar bills or pound notes? With relief Finance Minister Federico Pinedo soon announced:

"Although the goal was -L-10,000,000 sterling, subscriptions were -L-13,526,335. . . . There were 371 subscriptions ranging from -L-100 to -L-3,000. The great success of this loan virtually assures the cleaning up of all British blocked funds."

U. S. businessmen, with approximately $45,000,000 in blocked Argentine accounts, reared in alarm. Long hoping that through some miracle they would be able to obtain better terms, they suddenly realized last week that they will only be able to get their money by tying it up as the British have done in long-term bonds and selling them as opportunity offers for what they will bring. In Washington Secretary Hull offered little sympathy. Said he :

"Argentina has neither notified this government of its action nor asked for its advice. The whole affair seems to be a matter between the individual creditors and the Argentine Government."

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