MONEY FOR ITALY

Timaru Herald, Volume CXLII, Issue 20509, 29 August 1936, Page 17

MONEY FOR ITALY

ISSUE OF FOREIGN CURRENCY PROPOSED United Press Association—By Electric Telegraph—Copyright (Received August 28. 6.30 p.m.) ROME, August 27. A decree authorises the issue of special Italian Treasury bonds in foreign currency on foreign markets. The bonds are redeemable in 12 to 36 months and will be exempt from all present and future Italian taxation. The Minister of Finance is empowered to determine Interest and other details. The object of the bonds, it is believed, includes the economic development of Abyssinia. “PASSING ROUND THE HAT” ITALIAN BOAST QUICKLY EXPLODED United Press Association—By Electric Telegraph—Copyright (Received August 29, 12.51 a.m.) LONDON, August 28. “Signor Mussolini is passing round a hat,” declares the city editor of “The News Chronicle.”. “He has signed a decree authorising the issue of bonds in foreign currency for the necessary amounts required to develop Abyssinia. The boast that Italy was able to exploit the conquest from her own resources has been quickly proved empty. The loan will not appeal to the London market, as the foreign loans committee could not grant permission in view of Britain’s non-re-cognition of the'conquest of Abyssinia. Similar difficulties arise in Paris. Hence it is expected Italy will concentrate on New York, despite the fact that Italian bonds there are quoted on a 9 per cent basis. The bonds have a term of between one and three years, but the security for repayment is obscure in view of the cessation of publication of Italian Treasury and other statistical returns.