Bum's Rush

Swept into office by the biggest majority in modern Argentine history (apparently 304 electoral votes to 72), Presidentelect Juan Peron lost no time getting into action. Though he had still to take the oath and receive the sash of office, he bossed the Government that last week agreed to send some food to Europe (but little for UNRRA), released a blandly conciliatory denial of the U.S. State Department's Blue Book charges, and disavowed all desire of dominating its weaker neighbors.-

Then, in a bombshell decree that took Buenos Aires businessmen completely by surprise, the Government nationalized the Central Bank of Argentina and moved in on the business community. This" was the explanation:

By taking over the bank, in which the Government had hitherto held only a part interest, Peron obtained for the state "its sovereign right to issue money," and what was more immediately important, the right to borrow enough money to finance his huge military program. Argentina's military government has not come near balancing its budget since it seized power nearly three years ago. In that time the budget doubled, with military expenditures accounting for nearly half of the total. Peron's schedule for air-base construction alone--most of it along the Brazilian and Paraguayan borders--will cost $250,000,000. Till last week the Central Bank would lend the Government no more than a tenth of its average revenue, or about $25,000,000 a year. Nationalization fixed that.

Juan Peron took satisfaction in dealing a swift kick to the men he once called "those 500 bums in the Stock Exchange." To run the new bank the Argentine strong man picked stout, fiftyish Miguel Miranda, who learned to take orders long ago as president of the government-controlled Industrial Bank. Out of their positions as head of the Stock Exchange and of the potent Industrial Union (equivalent to the National Association of Manufacturers) went Eustaquio Mendez Delfino and Luis Colombo, whose opposition to Peron's campaign-timed bonus and wage-rise decrees had not been forgiven. Into their places went men who could collaborate, as well as drink, with the Presidentelect.

* Last fortnight Chilean rotos ("ragged ones") demonstrated before the presidential palace in Santiago, carried banners: "Viva Peron."

This file is automatically generated by a robot program, so reader's discretion is required.