Italy In Grip Of Swift Inflation

Northern Advocate, 21 November 1941, Page 6

Italy In Grip Of Swift Inflation

ißec. 1 p.m.) NEW YORK. Nov. 20. Italy is in the grip of a swift inflation, with the Government spending 88 per cent of the national income on war but collecting only 20 per cent, in taxes, says the former correspondent in Rome of the “Herald-Tribune", Mr. Allen Raymond. Most of the difference is rolling from the printing presses in what is called money.

The cost of living has risen 58 per cent. The Government's policy oi blocking prices on a few commodities have proved futile, and the wealthy are putting their money into land, into anything tangible that may survive collapse and currency. Stores Empty Most stores in Rom are empty as Most stores in Rome are empty, as or metal material is forbidden. The stores are closed for part of the shopping hours to protect Italians against their German allies, who pour through the country in thousands carrying plenty of money and buying everything that is not available in Germany Where the Germans get the money is no secret. When the British drove the Italians out of Ethiopia they captured an enormous quantity of printed lire which they dumped on the market. Sold Lire to Germans It was bought up by the Germans at the rate of 60 lire to the dollar, compared with the official rate of 19.80 to the dollar. Though the Italians are eating less than they like, it is reported that their health is improving as a result. The people of Rome, the correspondent adds, have absolute faith that the i British will not bomb the capital or any other city except those where there are really military objectives. There is a feeling of friendliness towards Britain in contrast to the anti-German sentiment.

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