AIR MAIL BULLETIN, FIRST NATIONAL BANK OF BOSTON

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00926A000200010007-3
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 5
• Document Creation Date: December 14, 2016
• Document Release Date: February 27, 2002
• Sequence Number: 7
• Publication Date: January 22, 1948
• Content Type: REPORT

CQU
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tal
200 07f
 25X1A
(ftplprov Fflr Felease 2002/07/229: CIA-RDP80-0Q9 6A000,20001000g-3
mall u e n ram uenos Tres, prlnte and orwardde from oston)
THE very important negotiations be-
tween the British Commercial Mission
now here and the National Economic
Council, are perhaps best described as
in a continuing stage, general opinion being
that the outcome is still conjectural. As regards
purchase of the British railways
General the impression prevails that
Conditions. Congressional approval will be
requested although the agree-
ment called for approval only by I.A.P.I. (Ar-
RENcE UTER LIIAY
Buenos Aires, December 29, 1947
gentine Trade Promotion Institute) in rep-
resentation of the Government. The National
Department of Investigations, Statistics &
Census, after being reorganized last year, again
publishes statistics which formerly appeared
monthly, and each month adds further informa-
tion. The new bulletin, started in January this
year, has gradually grown to 72 pages in the
August issue, the latest at hand. The following
interesting index figures are given on indus-
trial labor, using 1943 as a base of 100:
July
1943
1944
1945
1946
1947
Number of employees ..............
100
104.0
105.1
108.6
118.7
Man-hours worked .................
100
103.4
99.1
99.8
112.2
Total wages paid ..................
100
112.7
124.6
160.6
227.0
The increased means of payment shown in the
foregoing table, together with augmented cur-
rency circulation, loans and bank clearings,
reflected in the statistics printed on page 3 of
this bulletin, combined with keen demand and
limited supplies in many lines have naturally
brought about a rise in the cost of living. For
several years we have calculated living costs
in the City of Buenos Aires, with 1939 as an
index of 100. For the purpose we use an imagi-
nary family of four, with two children under 10
and a monthly income of 500 pesos. About 120
items are used, not including education or
entertainment. These estimates, made in Jan-
uary and July of each year, are shown below:
January 1944 ............ 120.2
July 1944 ................ 126.4
January 1945 129.8
July 1945 ........... 140.2
January 1946 ............ 151.1
July 1946 ................ 163.4
January 1947 ............ 174.9
July 1947 ................ 197.7
The increase in living costs is greater, of
course, for the higher income groups because of
heavier taxes resulting from increased Govern-
ment expenditure and the rise in the debt of the
OUR HEAD OFFICE, BOSTON OUR NEW YORK AFFILIATE
The First National Bank of Boston First of Boston International Corporation
67 Milk Street 2 Wall Street
Application may be made to either of the above institutions or direct to this Branch for information regarding
Argentina. Full facilities are available for the handling of international banking transactions such as Letters of
Credit, Travellers Checks, Collections, Securities and Credit Information.
Approved For Release 2002/07/29 : CIA-RDP80-00926A000200010007-3
 Approved For Release 2002/07/29 : CIA-RDP80-00926A000200010007-3
National Government from m$n * 6,597,000,000
at the end of 1942 to m$n 10,772,000,000 as of
December 31, 1946. The larger debt in turn
includes Government subsidies in foodstuffs,
such as sugar and bread, which are not directly
reflected in cost of living figures. Furthermore,
many persons dependent on unearned income
have also been adversely affected by rent
control and by the lower return from Govern-
ment bonds. In September there was an import
balance in Argentina's foreign trade of m$n
112 millions leaving an export surplus of m$n
83 millions for the first 9 months as against
m$n 1.116 millions export balance for the
similar period of 1946.
Moderate rains this month have benefitted
germination of the corn and sunflower crops,
sowing of which is about completed
Cereals throughout the country. Harvesting
and of wheat, linseed, barley, rye and
Linseed. birdseed is well under way. As yet
no official estimates have been made
of the new crops. Wheat yields generally are
reported to be good and in spite of an 18 % drop
in area sown, the crop is expected to equal or
surpass last year's of 5,615,000 tons **; trade
estimates of production vary from 5,600,000 to
7,000,000 tons. Linseed prospects are poor and
the trade calculates production at around
650,000 tons compared with an average output
of 900.000 tons during the last three years, and
much more before the war. The locust menace
appears to have been kept well under control
in general, although the linseed and sunflower
crops in Santa Fe have suffered somewhat.
Early this month a serious shortage of bags for
sacking the present crop in Cordoba was
reported and this, plus a shortage of gasoline,
is said to have retarded harvesting in that
province. Mr. Miguel Miranda, President of
the National Economic Council, has stated that
all oleaginous seeds produced here shall be
processed in Argentina. In this connection no
linseed has been exported this year and only
about 37,500 tons last year. Official statistics
show that in the first nine months this year
537,249 tons of edible oil seeds were processed
here, yielding 168,741 tons of edible oils, of
which 94 % came from sunflowerseed, peanuts
and cottonseed in the proportions of 75 %, 13 %
and 6 c'', respectively; 655,249 tons of non-edible
oil seeds produced 201,908 tons of non-edible
oils of which 200,959 tons were obtained from
linseed. Negotiations have been concluded to
supply Brazil with 500,000 tons of wheat at
m$n 60.00 per 100 kilos. The first 100,000 tons
have already been exported and it is believed
that the greater part of the balance will be
shipped from the Port of Rosario. Argentina
will receive iron, lumber and textiles, and all
monetary transactions connected with this
agreement will reportedly be effected in dol-
lars. Private sources state that an agreement
is about to be concluded by which Holland will
construct 30 ships (including passenger liners
and tankers) over five years, in return for five
yearly quotas of 50,000 tons of cereals, 35,000
tons of linseed oil and oil seed cake, 12,000
tons of hides, and 5,000 tons of wool. Under
another agreement being negotiated with
Venezuela, Argentina would receive 1,500,000
tons of crude petroleum annually for five years,
in return for cereals, meat and other Argentine
products. Portugal is said to be negotiating the
purchase of wheat. Since our previous issue
850,397 tons of grain have been exported,
maintaining the recent spurt in grain ship-
ments, of which total 161,904 tons were wheat
destined chiefly to Spain, Italy, Portugal, the
United Kingdom and Brazil; 524,492 tons were
corn shipped principally to the United Kingdom,
India, Belgium, Eire, the Netherlands, Spain,
Italy and France; and 164,001 tons were other
grains including barley, rye and oats, sent
to the United Kingdom, India, Belgium, the
Netherlands and Switzerland. The Government
commenced purchasing the new crops on Decem-
ber 22nd through its monopoly, A.T.P.I. The
official prices for barley and linseed are the
same as last season, namely m$n 13.50 and
m$n 30.00 per 100 kilos respectively. The Govern-
ment's new prices for wheat (m$n 20.00 per
100 kilos up to July 31, 1948 and m$n 18.00
thereafter), rye (m$n 17.50 per 100 kilos) and
oats (m$n 16.00 per 100 kilos) do not apply to
purchases from land owners who receive grain
in payment for rent. Such sellers will be paid
last year's prices of m$n 17.00 for wheat,
m$n 14.50 for rye and m$n 13.50 for oats per
100 kilos.
It is reported today that the packers have
been instructed to suspend meat shipments to
Great Britain as from January 7, 1948.
Cattle No official confirmation of this action
Sheep had been given to the press but it is
and believed that it has to do with the
Hogs. sterling inconvertibility problem. Pas-
tures in the main livestock areas have
deteriorated considerably this month and in
some districts farmers are disposing of their
animals hurriedly, The condition of cattle is
considered only fair generally. Offerings in the
market continue to be very large and on the
average are 45 % above those in recent years.
This unusual supply has forced the price level
down by about 10 % during the past week and
many classes are selling at the lowest levels
? m$n, sign--for "monads nacional" or paper currency. At par one paper peso equalled $0.4245 U. S. old at
former gold parity of the dollar; present exchange value of the peso at the official buying rate is 10.2978.
There are various selling rates ranging from ;0.2680 to $0.20 in U. S. currency.
All we1~11t
Rj1 4u colbef TWidnel f ~6omoi'In indW- D bb26d4~UAdbb2 i6 66tY7-3
 Approved For Release 2002/07/29 : CIA-RDP80-00926A000200010007-3
in nine months. SHEEP offerings remain
seasonally large and are well taken up generally
because of strong packer demand. Prices for
some classes of animals were weak during the
first ten days of the month but a firm tendency
in the past fortnight has brought the general
level back into line with those of a month ago.
HOG offerings in the market continue small
with prices very firm. On December 8th a record
price of m$n 1.57 per kilo live weight was paid
for hogs and since then top quality lots have
been selling slightly under that peak.
The wool market continues very firm. Good
prices have held for all grades with merino and
coarse crossbreds up about 5 % over
Wool. last month. The United States has
figured as an important purchaser of
fine wools but interest for coarse wools on the
part of carpet manufacturers has fallen off
sharply. Buying for European account has been
generally steady with France continuing to be
the principal buyer of fine and medium
crossbreds although on a lesser scale than last
month. Roumania through its newly arrived
purchasing commission has already made some
small acquisitions of fine wools. The local in-
dustry is buying merino wools actively at
slightly higher prices than foreign purchasers
and in a recent sale reportedly paid a record
price. of m$n 41.00 per ten kilos for a "Ca-
marones" lot.
Heavy purchasing early this month by the
United States as well as France and Yugosla-
via, has substantially reduced the hide
Hides. stocks under A. T. P. I. control. The
statistical position of the market is now
very strong and according to an announcement
by Mr. Miguel Miranda, President of the Nation-
al Economic Council, no purchasing offers will
be considered until next March since hide stocks
have been reduced to the point where there is
no longer an exportable surplus. The trade is
inclined to discount this statement somewhat
and indications are that the A. T. P. I. continues
to dispose of small lots at very high prices.
United States buyers at present are out of the
market, but the trade believes that A. T. P. I.
will be able to maintain its present favorable
position, particularly in view of the sustained
strong European demand. Official Roumanian
and Dutch missions, at present in Buenos Aires,
are said to be negotiating the purchase of
sizeable quantities of hides. Current A. T. P. I.
prices for the various hide selections show
advances of more than 5 % over those of a
month ago and are the highest in more than 25
years.
In the free exchange market the dollar buying
rate showed a further decline to 401 *** at
today's close which compares with
Exchange. 402 at the time of our previous
writing. Rates in the official market
remain unchanged as follows :
Buying Dollars Pound
For basic exports ........ 335.82 13.52
Non basis exports ........ 398.01 16.03
Selling Dollars Pound
Ordinary ................ 422.89 17.03
Preferred ................ 373.13 15.02
The Buenos Aires Stock Exchange turn-
over for the-month of November rose to m$n
282,689,000 from m$n 271,180,000 in
Bonds. the previous month. Trading in bonds
this month has been more active than
previously and prices on the whole have
remained steady. City of Buenos Aires Munici-
pal 3 1/2 % issues dropped 1/2 point to m$n 90.95
on the 26th, the lowest quotation since the
conversion in December, 1946. Province of
Buenos Aires 3 %'s dropped 1/4 point to m$n
90.77 today which is a new low also since the
December conversion. The share market con-
tinues dull with prices generally showing only
minor changes from a month ago. The high, low
and present net quotations in December for the
principal bonds compared with prices at the
time of our previous writing are as follows:
NET AVERAGE
PRICES Nov. 24 December
Various Issues High Low Present
National Bonds 3%n
1946/2000 ....... 92.03 92.05 91.98 92.02
Buenos Aires City
31% % .......... 91.32 91.38 90.95 90.97
Province of Buenos
Aires 31/z % ... 91.26 91.15 90.77 90.77
We extend to our readers cordial
wishes for a successful New Year.
THE FIRST NATIONAL BANK OF BOSTON
Buenos Aires Branch
?.? Exchange is quoted at so many paper pesos per 100 foreign units except sterling which is given in so
many pesos to the pound.
Approved For Release 2002/07/29 : CIA-RDP80-00926A000200010007-3
 BANKING AND BUSINESS gp~MOVEMENTS
pprove or Release 2002/07/ I- N A T R A- E 926A000200010007-3
Beef, mutton
and
products
Grains and
products
Forest
Products
Miscel-
laneous
TOTAL
Textiles and
products
Iron and
products
Food and
related
products
Fuel and
lubricants
lumber and
products
Quantity .
Quantity
First 9 Months 1946 Tons
1,049
4,763 189
232
6,233
51
347
149
3,106 1 429
First 9 Months 1947 Tons
1,052
4.338 155
137
5.682
59
655
151
3.582 553
first 9 Months 1946 m$n.
1,201.000
Va
1.098.000
lue
1 63,000
341.000
2.703.000
198,000
201,000
107,000
Value
196.000 127,000
First 9 Months 1941 m$n,
1.404.000
1.997.000
77.000
172,000
3,650,000
588,000
477,000
138,000
266,000 217.000
MARKET PRICES (1926 MONTHLY AVE. = 100)
WHOLESALE PRICE
INDICES (I 26=100)
Estimated Exportable Surpluses
(First of Each Month)
MONTH
Wheat
Maize
linseed
Farm Ex-
port Steen
Wethers
Lambs
Salt hides
Dry hides
Quebracho
Extract
82 Prod. not
incl. Agric.
23 Agric.
Prod.
Wheat
Maize
Linseed
Thou. Ions
Thos. Tons
Thou. Tons
1848
September ....
154b
298
224b
139
95
149
218
247
215
250.6
198.6
334
631
-
October .......
154b
303
224b
172
95
149
272
257
215
253.9
195.4
243
339
-
November ....
154b
266
2246
175
81
130
280
275
215
255.2
188.2
198
205
-
December ....
143b
274
208b
171
81
133
254
261
215
256.4
180.9
2.100
30
-
1947
January ......
131 b
223
192b
175
87
157
-
-
241
258.5
179.7
2.040
-
-
February .....
131b
205
1926
172
78
143
327
-
267
264.3
172.0
1.935
-
-
March .......
131 b
193
192b
172
98
155
303
308x
267
265.6
163.6
1,805
-
-
April .........
131b
191
192b
171
101
154
327
302x
267
268.4
163.7
11670
2.165
-
May ..........
131b
154b
192b
171
99
153
303
308x
267
270.1
166.4
1.461
2.040
-
June ..........
131b
154b
192b
171
95
145
285
308x
274
270.8
166.0
1.190
1,970
-
July ..........
131b
1546
192b
171
112
168
278
299x
296
272.7
166.3
875r
1.920z
-
August .......
131 b
1546
192b
174
115
153
278
289x
296
276.6
167.0
633z
1.837z
-
September ....
131b
154b
192b
176
104
141
278
287x
296
278.8
167.4
481r
1.716z
-
October .......
131b
154b
192b
176
87
119
267
289x
296
278.8
168.2
253s
1,504r
-
November .....
131b
154b
192b
175
83
121
276
289
296
a
a
98z
1,247z
-
December .....
-
871z
-
December 19th
-
221z
-
BUENOS AIRES BANKS AND BRANCHES
(Not including Central Bank)
CENTRAL BANK OF THE ARGENTINE REPUBLIC
YEAR AND
Cash and
Clearings
Gold in
Exchange
Redis-
National
Curren
1
Dep
Reserve
Combined Re-
MONTH
Due from
loans
Deposits
Capital
Vaults a
and Gold
Abroad
counts
Bonds
in
(irculation
b
t
mains!
Currency
urn (Legal
Min. 33 %)
Banks
m$n
m$n
m$n
m$e
m$n
m$n
m$n
m$n
m$n
m$n
m$n
%
millions
millions
millions
millions
millions
millions
millions
millions
millions
millions
millions
Dec. 319t. 1936
842
2,231
3,542
380
2.931 *
1,224
303
-
19
1,302
552
139.7
92.8
1937
706
2.701
4,030
421
3,466 *
1,354
68
-
111
1.359
485
123.7
86.9
1938
623
2,948
3.932
415
3,182 *
1,224
lc
-
124
1.328
431
115.9
83.6
.939
700
3.137
4.059
415
3,393 *
1,224
171c
-
327
1,401
610
117.2
77.5
1940
751
3,145
4,121
422
3,423 *
1,071
258c
11
320
1,413
546
108.6
75.0
1941
889
3,655
4.762
433
4,029 *
1,075
467c
-
423
1,583
644
111.7
75.8
194E
1,114
3,885
5.514
436
4,6160
1,076
1,021c
-
439
1,850
933
123.5
78.5
1943
1.564
3,073
6,221
445
5,014 *
1,091
2,109c
-
442
2.132
1.624
165.3
87.5
1944
1.910
3,686
7.470
449
5,737 *
1,242
2,586c
-
755
2,624
2,059
158.9
83.6
19411
2.340
3,943
8.554
448
6,068 *
1,223
3,451c
-
699
3,120
2,337
161.0
86.8
1946
868
6,091
10,661
538
8,286 *
1.711
4,096c
3.719
907
4,065
960
138.9
111.8
November 1946
1,089.
5,541.
10.720e
530.
8,841
1.465
4.221
3.189
859
3,716
1.063
148.9
113.2
July 1947 ..
1,190e
9.048.
11.533.
544e
11.262
1.893
2,356c
6.166
958
4.404
1.498
95.4
72.6
August 1947 ..
1.081.
9,217e
11.573e
549e
10,348
1.502
2,573c
6,705
952
4,526
1.855
87.5
63.1
September 1947
1.222a
9.474;
11.694.
549.
11,439
1,125
2,695c
7.474
953
4.657
2,086
81.1
57.0
October 194'7 ..
1,144a
9,946a
11,804e
550e
11.638
948
2,685c
7,565
947
4,744
2.135
73.3
51.4
November 1947
-
-
-
-
I 11,000
675
2,922c
7.922
947d
4,837
2.402
69.5
47.1
* Monthly averages. a) On basis of gold content after revaluation in June, 1935. b) Not including deposists with other
banks for account of Central Bank. e) Also includes gold in country to account of foreign exchange fund. d) All but
min. 250 millions of these bonds are used for open market operations, to control monetary circulation. e) Previously
figures given included only banks holding shares of the Central Bank. Present figures comprise all Argentine banks.
YEAR AND
MONTH
Stock
Exchange
Turnover
Ave. Net
PriceG Bonds ovl.
*
Retell
1939Sales 100
ailing
Dollar Exchange
Rates
Ave. S ,
***
Liabilities
Failures bilities
Railroad
Earnings Gross
Import
Cust Receipts oms
INDUSTRIAL PRODUCTION
Number of workers employed 1937 = 100
M
m$n
9L
free
official
min
m$n
m$n
R
Z
R
P
(000)
per
(000)
(000)
(000)
g
'
?
$
d
`o
s
9
1937 Mo. Ave.
115.071
100.22
-
333.06
96
323.48
0
6
6.005
5
728
43,710
38
526
28.518
26
698
`e
?
y
1938
1939
74,162
85.827
100.26
100.69
-
100.0
391.
433.14
.
33
2
383.28
.
6,141
,
40,899
.
22,503
104
107
106
108
114
117
119
108
1940
97,055
100.22
103.2
436.90
422.89
7.737
37.689
19,238
108
110
105
112
115
119
116
111
1941
140,962
100.75
108.7
423.57
422.89
4,817
42,559
15.180
120
115
102
118
122
122
117
117
1942
131.137
94.36
126.8
423.31
422.89
4,521
47,628
13,370
128
129
103
119
134
128
136
124
?
1943 ?
179,637
94.23
131.7
408.10
422.89
4.286
52.512
8.282
134
138
104
110
139
130
143
126
1944
236.356
96.86
150.5
402.28
422.89
3,521
61,940
7.386
146
142
105
113
145
139
144
131
1945 ?
244,352
95.36
166.8
403.48
422.89
5,013
67.627
8,823
137
132
107
114
156
144
168
132
1946
330.537
95.37
209.0
408.66
422.89
3.134
68,987
19,040
141
149
112
121
161
148
187
137
November 1946
340.468
95.54
248.9
409.48
422.89
1,878
66.733
21,217
152
150
118
124
164
148
191
143
July 1947 .....
401.917
94.54
263.1
408.38
422.89
5,129
-
46.535
168
151
137
125
162
142
192
149
August 1947 ..
271,182
94.49
300.1
406.15
422.89
1,497
-
40.852
-
-
-
-
-
September 1947
Octoober 194'7
.
7
'
SCI
4
80O
926
002
061
007-
November 1947
282689
92.02
_
403.00
422.89
-
-
-
-
-
-
-
-
MISCELLANEOUS
5 % interest through October 1941, 4 % from Nov. 1941 to July 1946 and 3 % thereafter. `? Principal retailers City
of Buenos Aires. **' mn ner 100 dollars: Eaehanee Control established October, 1931: Free Market in November, 1933.