ITALY: Drastic Deflation

A suave oval-faced Italian with a scrubby Vandyke beard, added half a cent last week to the value of the lira.* No prestidigitator, Finance Minister Count Volpi performed this modern alchemy by obtaining Premier Mussolini's assent to a hard-headed Cabinet decree enforcing deflation of the lira. So drastic is this reform that Signor Grandi, Under Secretary of State for Foreign Affairs, commented:

"No other Government in Europe could carry out the program we have embarked upon without placing machine guns in the streets."

Briefly, the Treasury was instructed to transfer $90,000,000† to the...

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