ITALIAN FINANCE

Otago Daily Times, Issue 23005, 7 October 1936, Page 9

ITALIAN FINANCE

DEVALUATION OF THE LIRA ADDITIONAL COMPANY TAXES (United Press Association) (By Electric Telegraph—Copyright) ROME, Oct. 5. Signor Mussolini announced the revaluation of the lira at 92 to the £ and 19 to the dollar. 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 Cabinet meeting, and a communique announces wholesale reductions in Customs duties on primary necessaries, including foodstuffs and coal. It adds that in order to prevent increased cost of living, the prices of certain articles will be established at the present level, and fluc.uations in others will be rigorously controlled in relation to world prices. The import duty on wheat has been reduced from 75 to 45 lire a quintal, and duties on frozen meat and live cattle will be 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 a maximum economic self-sufficiency will be continued as being essential to military requirements and national defence. A COMPULSORY LOAN ROME, Oct. 5. The financial measures include what is -practically a compulsory loan, to which the owners of fixed property will subscribe to the extent of 5 per cent, of the value of their property. Thej will also pay a special annual tax of 3.50 lire on every 1000 lire worth of property they possess, thus owners will be forced to buy bonds, and then be taxed in order to pay tuemselves interest on them. Dr Gayda describes the objects ot the loan as. first, the balancing of the Budget without disturbing the money market with another State loan; secondly, to pay for the Abyssinian war. POLAND'S DECISION ' WARSAW, Oct. 5. Cabinet decided that it was not necessary for Poland to devaluate, AMERICAN COMMENT WASHINGTON, Oct. 5. (Received Oct. 6, at 10.30 p.m.) Mr Cordell Hull expressed approval of France, Switzerland and the Netherlands devaluing their currencies and lowering their import duties as " a move towards rebuilding international commerce." He said it showed that other countries recognised that extreme restrictions imposed on the trade of the world created a common injury and were ready to move towards rebuilding international commerce. Mr Morgenthau's only comment regarding stabilisation was that everything seemed to be going extremely well. Italy's devaluation is welcomed bv bankers and economists as a contribution to the general readjustment of parities.