ITALIAN FINANCE

Greymouth Evening Star, 6 October 1936, Page 7

ITALIAN FINANCE

LIRA DEVALUED FOOD DUTIES REDUCED [BY CABLE—MESS ASSN. —COBTBIGUT.] (Rec. October 6, 11.30 a.m.) ROME, October 5. Signor Missolini has announced the devaluation of the lira at 92 to the pound, and 19 to the dollar. The devaluation is of approximately 40 per cent, of the gold content of the lira, 4/G77 grammes for every hundred, compared with .7/91. ; Mussolini’s announcement was made after a Cabinet meeting, and a communique announces .wholesale reductions in Customs duties on primary necessaries, including foodstuffs and coal.. It adds that, in order to prevent increased cost of living, the prices of certain articles, will be established at the present level, ..and fluctuations in others will be rigorously controlled in relation to world prices. The import duty on wheat has been reduced from 75 to 45 lire a quintal l " Duties on frozen meat and live cattle have been reduced respectively by. 65 and-60 per cent. The communique ■ announces that there will be.no changes in banknotes or currency at present in circulation. Additional taxes, will be imposed on companies, excluding colonial. The policy aiming at. 'maximum economic self-sufficiency will be continued, as essential to military requirements and national defence.

.COMPULSORY LOAN

(Rec. October 6, 1 p.m.) ROME, October 5.

, The financial measures include a practically compulsory loan, to. which the ownerstof fixed property will subscribe to the extent of five per cent, of the value of their property. They will also pay a special annual tax of 3/50 lire on every thousand lire worth of property possessed; thus; owners will be forced to buy bonds, and will then be taxed in order to pay themselves interest on them. Signor G'ayda describes the objects of the loan as the, balancing of the budget, without disturbing the money market with another State loan, secondly, to pay for the Abyssinian war. POLAND’S DECISION (Rec. October 6,2 p.m.) WARSAW, October 5. Cabinet decided that it was not necessary for Poland to devaluate. BRITISH GOVERNMENT’S APPEAL. WORLD CO-OPERATION URGED. [BRITISH OFFICIAL WIRELESS.] RUGBY, October 5. A cal for the complete removal of exchange restrictions and quotas, so that international trade could attain increased prosperity, was made by Mr W. S. Morirson, in a speech to the League of Nations Economic Committee.

He said that the British Government would be faced' by very strong pressure on the part ct certain interests in the United Kingdom to counteract the intensified competition which would result from the devaluation on the Continent. Such pressure would be difficult to resist, and he called upon other Governments to help the British Government -in this respect.. Before the Committee’s Ebusiness concluded, he hoped to. submit Tor consideration two resolutions: —First, to'cover the question of exchange restriction and quotas, and, second, regarding commercial access to, raw .materials. He suggested-? the -appointment by the Council of the League of a committee, composed'. of the Economic and 'Financial Committee of the League, and other qualified persons to undertake the study’ of the entire problem of raw“materials, and furnish the League, with a report. M. Bastid said that France hoped other countries would follow her example, bringing about a new monetary system. This was necessary to assist the economic recovery’ of the world. In reducing one-quarter of its quotas and its Customs tariffs, the French Government made a gesture to the world, but this could not have been done without realignment of the franc. Other countries would’ also have to reciprocate. The French Government was willing to take the necessary measures to liberate capital and make the circulation of money and goods easier. On Mr Morrison’s proposal, M. ’Speinasne. Minister of National Economy in France, was appointed rapporteur of the work of the Committee to the League Assembly.