LIRA DEVALUED

New Zealand Herald, Volume LXXIII, Issue 22543, 7 October 1936, Page 13

LIRA DEVALUED

IL DUCE'S DECISION FINANCIAL MEASURES A COMPULSORY LOAN By Telegraph—Press Association —Copyright ROME, Oct. 5 Signor Mussolini has announced the devaluation of the lira at 9-2 g to the pound and 19 to the dollar. Recent quotations have been about 64 to the pound against the previous par value of the lira of 92.46. The devaluation is of approximately 40 per cent of the gold content of the lira, 4.677 grammes for every 100, compared with 7.91.

Signor Mussolini's announcement was made after a meeting of the Cabinet. A communique announces wholesale reductions of customs duties on primary necessaries, including foodstuffs and coal. It adds that, in order to prevent an increase in the 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 on wheat has been reduced from 75 lire to 45 lire a quintal. The 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 the bank notes or currency at present in circulation.

Additional taxes are to be imposed on companies, excluding colonial concerns. The policy, which aims at a maximum of economic self-sufficiency, is to be continued as being essential to military requirements and national defence. The financial measures include a practically compulsory loan, to which, the 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 3.50 lire on every 1000 lire worth of property possessed. Thus owners will be forced to buy bonds and then will be taxed :in order to pay themselves interest on them. Signor Gavda, of the Giornale d'ltalia, describes the objects of the loan as being to balance the Budget without disturbing the money market with another State loan, and secondly to pay for the Abyssinian war,

An article by A. H. Tocker, professor of economics at Canterbury University College, on the possible effects of European currency devaluation appears on Page 7. POLAND'S CURRENCY NO CHANGE INTENDED WARSAW, Oct. 5 The Polish Cabinet has decided that it is not necessary for Poland to devalue her currency.