ITALY ACTS

Wanganui Chronicle, Volume 79, Issue 237, 7 October 1936, Page 7

ITALY ACTS

THE LIRA DEVALUED RIGOROUS PRICE CONTROL REDUCTIONS IN DUTIES IBy Telegraph—Press Association— Copyright] Received Oct. 6, 1.15 p.m. ROME, Oct. 5. Signor Mussolini has 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 ac compared with 7.91. Signor Mussolini’s announcement was made after a Cabinet meeting, and a communique announces wholesale reductions in the 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 their present level and fluctuations in others will be rigorously controlled in relation to world prices. The import duty on wheat has been reduced from 75 to 45 lira a quintal. The 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. The policy aiming at maximum economic self-sufficiency will be continued as essential to the military requirements and national defence. COMPULSORY LOAN TO PAY FOR WAR Received Oct. 6, 5.15 p.m. ROME, Oct. 5. The financial measures include practically a compulsory loan, to which the owners of fixed property will subscribe to the extent of 5 per cent, of the value ot their property. They will also pay a special annual tax on property possessed. Thus owners will be forced io buy the bonds then taxed in order to pay themselves interest on them. Signor Galda, in the Giornale D’ltalia, describes the objects of the loan as the balancing of the Budget without disturbing the money market with another State loan; secondly, to pay for tne Abyssinian war. REBUILDING COMMERCE DEVALUATION MEASURES t AMERICAN APPROVAL Received Oct. 6, 10.20 p.m. WASHINGTON, Oct. 5. The Secretary of State, 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 the other countries recognised that the extreme restrictions imposed on the trade of the world had created common injury and were ready to move toward rebuilding international commerce. Mr Morgenthau’s only comment regarding stabilisation was that everything seemed to be going extremely well. Italy’s devaluation is welcomed by bankers and economists as a contribution to the general readjustment of parities preceding stabilisation. POLISH CURRENCY CABINET DECISION WARSAW, Oct. 5. Cabinet has decided the it is not necessary for Poland to devaluate.