MISCEl^LANEOUvS INFORMATION RELATING TO CREDIT 

 IN VARIOUS COUNTRIES. 



ARGENTINE RF.PUBLIC. 



THE FRANCO-ARGENTINE MORTGAGE BANK IN i'jis-iqi6. — U information, Paris, 

 27 December igi6. 



The results obtained in 1915-1916 have again been injuriously influen- 

 ced by the stagnation of business, which has continued in the Argentine, 

 contrary to the hopes raised by an excellent corn harvest and b}^ the great 

 need in Europe for the country's products. 



The profits which the farmers hoped to reap from abundant harv^ests 

 and the high selling prices in purchasing countries were sensiblj^ reduced 

 by the great difficulty of finding ships for transport and the consequent 

 enormous rise in freights, which in many cases, and notabty in those of 

 corn and maize, came to surpass the value of the merchandize in the produc- 

 ing country. Hence in the Argentine the price of cereals sank to a level 

 which left hardly any profit to agriculture ; exportation was arrested ; 

 and landowners were in consequence much embarassed. 



The mortgage banks naturally felt the reaction from this economic 

 situation ; and the Franco- Argentine Bank found, in spite of its caution 

 in granting loans and its vigilance in exacting due annual payments, 

 that the arrears of interest owing to it amounted on 30 June 1916 to 

 11,836,777.90 francs. 



In consequence however of the slowing down of business, of the reduc- 

 tion of the habitual expenditure of the republic in foreign countries, and 

 the reduction of imports, the unemploj^ed capital in the banks is very plen- 

 tiful and can be obtained on easy terms. Therefore, in spite of the straits 

 of landowners, mortgage banks have been obHged to lower the rate of in- 

 terest on their loans. But, since the cereal harvest in North America and 

 Europe was defective, prices have risen in the Argentine, and for some 

 time an improvement in the economic situation has been perceptible. 



