1 JUNE 1934, Page 30


In addition -to the actual flotations of new capital, the cheapness of money' is continuing to stimulate conversion operationS, and before this number appears in print I expect that particulars will have been published of the conversion of two outstanding Argentine Loans into a new 41 per cent. Stock. = In this case the 'conversion will undoubtedly be aided by the good credit enjoyed by Argentina. It is a credit which, in a sense, has even been enhanced during the last few years because Argentina has passed through a severe testing time. As with an individual, SO with a country, the •fulfilment of obligations is easy enough during time; _ of prosperity and during ,times when maturing obligations can often be met by fresh borrowing in the lending country.

(Continued on pale 370.)

Financial Notes

(Continued from page 868.)

During the past six or seven years, however, Argentina has passed through most trying times with regard to her agri- cultural and general economic position, while it has, of course, been impossible for her to borrow fresh loans in any permanent form here. Nevertheless, she has not only steadily met the service of her debt, but has also redeemed a good deal of outstanding loans and those facts will now stand her in good stead in any conversion operations which may be contemplated. A. W. K.