GERMAN YOKE

Gisborne Herald, Volume LXVIII, Issue 20619, 21 November 1941, Page 6

GERMAN YOKE

ITALIAN RESENTMENT FLOOD OF CHEAP LIRE GRIP OF INFLATION (Elec. Te!. Copyright—United Press Assn.) (Reed. Nov. 21, 1.40 p.m.) NEW YORK, Nov. 20. “Italy is in the grip of swift inflation with the Government spending 8C per cent of the national income on war, but collecting only 20 per eon! in taxes," said the New York HeraldTribune correspondent, Mr. Allen Rayment, in a message from Rome. "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 Government’s policy of blocking prices on a few commodities has proved futile and Hie wealthy are putting their money into land and anything tangible that may survive the collapse of the currency. “Most scores in Rome are virtually empty, with the sale of anything containing textile or metal materials forbidden. The stores are closed partially to protect the Italians against their German ‘allies.’ who pour through the country in thousands, carrying plenty of money and buying everything not available in Germany.

“Where the Germans get the 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 GO lire to the dollar, compared with the official rate of 19.80. “While the Italians are eating less than they like, it is reported that thenhealth is improving as a result. “The people of Rome have absolute faith in the British not to bomb the capital or other cities, except where there are really military objectives. There is an actual feeling of friendliness towards Britain in contrast tc. the anti-German sentiment.”