DEVALUATION OF THE LIRA

Nelson Evening Mail, Volume LXX, 6 October 1936, Page 5

DEVALUATION OF THE LIRA

ANNOUNCEMENT BY MUSSOLINI (United Press Association—By Electric Telegraph—Copyright) ROME, sth October. Signor Mussolini announced the devaluation of the lira at 92 to the £1 and 19 to the dollar. i-- ‘REDUCTIONS IN CUSTOMS DUTIES ■<; FOODSTUFFS AND COAL INCLUDED ADDITIONAL TAXES ON COMPANIES (Received 6th October, 10.40 a.m.) ROME, sth October. The devaluation is of approximately 40 per cent, of the gold content of the lira, 4.677 grammes for every hundred compared with 7.91. Mussolini’s announcement was made after a Cabinet meeting, and a communique announces wholesale reductions Jn customs duties on the primary necessaries, including foodstuffs and coal. The communique adds that in order to prevent increased cost of living the prices of certain articles would be established at the present level, and fluctuations in others would be rigorously controlled in relation to world prices. The import duty on wheat has been reduced from 75 to 45 lire a quintal. Duties on frozen meat and live cattle are reduced respectively by 65 and 60 per cent. The communique announces that there will be no changes in the bank notes or currency at present in circulation. Additional taxes will be imposed on companies, excluding colonial. A policy aiming at maximum economic self-sufficiency will be continued as essential to military requirements and national defence.

compulsory loan

BALANCING THE BUDGET (Received 6th October, 11.30 a.m.) ROME, sth October. The financial measures include a practically compulsory loan, to which owners of fixed property will subscribe to the extent of 5 per cent, of the value of their property. They will also pay a special annual tax of 3 to 50 lire on every 1000 lire worth of property posscsed. Thus owners will be forced to buy bonds, then taxed in order to pay themselves interest on them. ' Signor Gayda describes the objects of the loan as the balancing of the budget without disturbing the money market with another State loan and secondly to pay for the Abyssinian war. NO DEVALUATION IN POLAND (Received 6th October. 12.40 p.m.) WARSAW, sth October. Cabinet decided that it wa? not necessary for Poland to devaluate.