NO GOLD COVERAGE

Hawera Star, Volume LIV, 24 July 1935, Page 9

NO GOLD COVERAGE

ITALY SUSPENDS DECREE. MONEY NEEDED FOR ABROAD. Tlnlt«<3 Preea A«v>=lAtloo —By Electric Telegrapn Copyright}. LONDON, July 23. The Italian Government has suspended the 40 per cent, coverage of gold for notes, owing to the urgent need for money for payments abroad. The decision to suspend the gold coverage was reached at a sc-crct Cabinet meeting, according to the “Telegraph's” correspondent. The decision was not released until after the banks and burses closed for the day. No reaction thus occurred. It is pointed out that the decision is entirely contrary' to the official policy of maintaining tin: 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 “Telegraph’s” city editor says Italy’s, decision is the first blow to her finances from the projected Abyssinian, campaign. The financial year which has just closed showed a deficit of nearly £12,000,000, exclusive of the Abyssinian military preparations.