No Surprise in London Over Decision London, Nov. 9.
The decision of the Argentine Government to raise the remittance rate from 16 to 17 pesos to £1 adversely affected the prices of Argentine railways yesterday morning on the London Stock Exchange, as payment of dividends thereby became even more difficult than at present The decision did not come as a surprise to City circles, who, in view of the deterioration of the Argentine export position, have been expecting such a move.
The official export rate was left unchanged at 15 pesos. Consequently, the spread between the official import and export rates is now two pesos, as against one peso previously.
From these profits the Government could absorb losses arising from the maintenance of fixed prices for grains, which it has under contemplation.
Rectification of the adverse trade balance by rendering imports more expensive, while creating a fund for export subsidies, is the second important motive behind the Argentine Government's measure.—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.