REPORTED IN GRIP OF INFLATION

Dominion, Volume 35, Issue 50, 22 November 1941, Page 10

REPORTED IN GRIP OF INFLATION

Conditions In Italy STEEP RISE IN COST OF LIVING (By Telegraph.—Press Assn. —Copyright.) NEW YORK, November 20. Italy is in the grip of swift inflation, with the Government spending SO per cent, of the national income on war, but collecting only 20 per cent, in taxes, says the former Rome correspondent of the "New York HeraldTribune,” Allen Raymond. Most of the difference is rolling from the printing presses in what is called money. The 'cost of living has risen 50 per cent. The Governments policy of blocking the prices of a few commodities has proved futile and the wealthy are putting their money into laud ami anything tangible that may survive the collapse of the cunency. .Most of the stories in Rome are virtually empty, with the sale of anything containing textile or metal materials forbidden. Stores have been closed, partially to protect the Italians against their German allies, who pour through the country in thousands carrying plenty of money and buying everything which is not available in Germany. Where the Germans get their money is no secret. When the British drove the Italians out of East Africa and Ethiopia they captured an enormous quantity of printed lire which was dumped on the Swiss market and bought up by the Germans at 60 lire to the dollar compared with the official rate of 19.80 lire. While die Italians are eating less than they like, it is reported that their health is improving as a result. The people of Rome have absolute faith that the British will not bomb the capital or other cities, except where there really are military objectives. There is actually a feeling of friendliness toward Britain, in contrast to the anti-German sentiment which exists. '