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Show ITALY PICES OT FIBIIL PROBLEM Country's Money Depreciates Depreci-ates in Foreign Markets, Notwithstanding Success, ECONOMY IS FORCED Extravagant Purchases Are Held Responsible for the Situation. ROME, Dec. 30. The big commercial j and financial problem now disturbing 1 Italy is the depreciation of her money I in foreign markets. Notwithstanding the success of her armies and the confidence confi-dence at home and abroad that her territory ter-ritory cannjt be invaded, the Jire (19.3 cents) has continued to drop in value ever since Italy entered t-he war. At the beginning of the war an American dollar was worth five lire fifteen centimes. During the proseut year this dollar in Italy has had an average av-erage value of six lire fifty centimes. This same general depreciation applies to every country in Europe. The lire, before the war quoted at par with the French franc, has lost 10 to 15 per cent of its pjrchasing power there. In other words, during tlie present pres-ent year it has taken an average of 112 lire to buy 100 French francs, the lowest average value of the lire on the Paris Bourse since 1371, when the present Italian government had just firmly established es-tablished itself by the taking of Rome. In calling attention to tnese facts Italie of Rome points out that the lire in Switzerland loses 28 per cent of its value and is worth no mere iu proportion propor-tion than the German mark, whereas the Spanish dollar or five pesetas piece, having less actual stiver in it than the five-lire or five-franc piece, is now worth in Paris six francs. Purchases Responsible. The Popolo Romano in a recent discussion dis-cussion ot the situation stated that tbe general reason for the depreciation of the lire was the excess of purchases made abroad over goods sold abroad, an excess which it estimates for the year 1916 at $333,000,000. This excess is due to war supplies bought abroad, to the destruction of the tourist trade of peace times and to the necessity of keeping keep-ing at home articles of food or clothing formerly exported. In practice this excess means that if an Italian merchant imports a quantity of American shoes at $4 each ne must pay an exchange rate that makes each pair really cost him $5.20. The Popolo Romano etates that unless some solution is found to the problem the country will, after the war, face disaster and will not then be in any hotter position to increase the exchange value of its money than now. It predicts that all the available moneys and bonds will be drained out of Italy by this species of war tax. It urges an "arbitrary fixing among the allies of an exchange standard stand-ard until after the war. It states that the final solution of the problem lies in domestic economy, the limiting of imports and, immediately after the war, the increase of Italian industrial exports to the orient. Economy Is Forced. Temporary measures adopted recently recent-ly by the "government are tending to torce economy in the consumption of all articles that 'must be purchased in foreign for-eign countries. It has placed an arbitrary arbi-trary price of 50 cents the two pounds of sugar, which is regarded as a luxury . in Italy, has taken ebarge of all beet sugar factories in Italy and of all sugar imported and has so limited the supply that even at this price sugar cannot be purchased in moro than two- pound lots. Each week a certain number num-ber of carloads of sugar is assigned to each large city, and when this supply is distributed sugar canuot be had for anv money. The government also has so limited the imports of coal that coal is now retailed re-tailed at $60 the ton, and the greater part of the population will be unable to use it at all this winter. While meats, particularly mutton, may be found on the market at 10 to GO cents a pound, a recent decree has forbidden the sale on Thursday and Friday of each week. Another decree provides for the closing of stores at 0:30 at night and the dimming of street lamps at 10:30. If the lire continues its depreciation in value other national economies may be forced upon the people of Italy this winter. |