FIRST BLOW TO ITALY’S FINANCES

Dominion, Volume 28, Issue 254, 24 July 1935, Page 9

FIRST BLOW TO ITALY’S FINANCES

Recent War Preparations

DECISION TO SUSPEND GOLD COVERAGE

By Telegraph.—Press Assn,—Copyright. (Received July 23, 7.50 p.m.) London, July 22. The Italian Government has suspended the 40 per cent, gold coverage owing to the urgent need of money for payments abroad. The “Daily Telegraph’s” Rome correspondent says that the decision to suspend the gold coverage was reached at a secret Cabinet meeting. The decision was not released until after the banks and bourses had closed for the day. No reaction has thus occurred. It is pointed out that the decision is entirely contrary to the official policy of maintaining a high nominal lira value which Signor Mussolini has pursued ever since his famous speech at Tesaro in 1927 when he declared that Italy would defend the lira and maintain its value, if necessary with blood. The “Daily Telegraph’s” City Editor says that Italy’s decision is the first blow to her finances from the projected Abyssinian campaign.