ITALY’S CREDIT FACILITIES

Wanganui Chronicle, Volume 79, Issue 197, 23 August 1935, Page 6

ITALY’S CREDIT FACILITIES

THIS morning’s cable news contains significant information

regarding the trend of Italian finances, ■which may have an important bearing on developments in the Abyssinian dispute. In view of the serious deterioration of Italian exchange one of the “Big Five” banks has recalled its entire Italian credits, and the other banks are expected to follow this lead. The Daily Telegraph’s Rome correspondent also reports that the Italian 'Treasury account for July shows that the expenditure on the Bast African expedition amounted to £6.250,000, while the Budget deficit for July alone was £8,350,000. From the point of view of Italian finance, the position must be alarming, for the Italian credit structure has been decidedly weak for some time. Lack of foreign credits and notoriously large Budget deficits have been Italy’s lot, and it would seem that the country is in poor condition financially to proride the sinews of war. It might well be asked if League sanctions will be necessary to defeat the Italian objective. Such unofficial actions as are being taken through the ordinary channels of credit may preelude the necessity for any official declaration.