Show i ECONOMIC UNITY AS REMEDY FOR FORr I r SOARING COSTI COSTS COST I I Italian Suggest Suggests V Way r ay Out of Vicious Circle Circle CirI Cir Cir- Cir Cir- I cle in Europe 1 1 nV m ATOR Distinguished members of ot tho the Italian Ital ItaI- I Ilan ian fan parliament who accompanied Prem Pro Pre m niter micr er Signor Signer to London at th the e sittings of or the penco conference london April 3 W Whon 3 When hon Italy en eni entered entered entered en- en i the War our parliament passe passed d nn an act taxation b by roy royal I decree decree That is to sa say any taxation n l could 1 be o Imposed without the consent t of oC parliament en t. t I E Ever Er r since fresh ta taxation ha has haa bee been n introduced month by month In March arch another or ft A. a 1 year has been added to our burden At the tho samo sarno time we are arc issuing a t at t national loan of oC rl nearly J Wo We 0 intend to consolidate our tre treasury ury J bonds and reduce our paper t Situation Worse or c Notwithstanding tho the great patriotic tr efforts and careful financial management management manage ment of oC Signor and Signor r the treasury minister th tho o rate of ot exchange always alwa's grows worse It is is Cr very regrettable that tho the International International international inter Inter- national market does not appreciate tho the efforts and sacrifice of oC the Italian nation Italy is s an essentially tural i country tr In the southern and central districts district there are arc small peasant proprietors proprietors pro pro- I and a class of oC tenant farmers or who share hare their produce with the tho landowners Instead of or PaYIng payIng pay pay- Ing InS rent rent- The land is divided up into small holdings of or from about ten to twenty acres vie ve nave liac several mu- mu llon lion of or these peasant proprietors mU 1 and tenant farmers and at the pre present nt time Ume tho the yare are engaged In actively pursuing pursuing pur pur- suing their theft bent Agriculture Hampered When It Is considered that agriculture agriculture ture is the tho backbone bone of oC the tho country the tho high rate rale of oC exchange and the cost of or freight at present existing In Italy Itah form torm a serious even en for forit it It agriculture Farming Implements ments machinery and fertilizers fertilisers must be imported from abroad and are a a. avital avital vital necessity for tho the healthy maintenance maintenance main main- of ot agriculture Italy Itah Imports coal cotton wool jute and and all metals Under the pressure pressure pres pres- I sure ure created b by the unfavorable rate o of exchange and md the high cost of oC freightage c. w va we Italians find find ou ourselves selves I oy by a very verj vcr grave o a ana rI comple complex complex com com- plex problem pr l Before eore the war wo we im im- ported tons 01 or coat coal every n year ar We used to pay 3 50 and 1375 3 75 per ton In England England rarely rarely as much muchas as and 5 5 and the average cos cost of oC freight to Italy was only 2 per ton The re result result result re- re sult was we had coal for tor 6 and 8 a ton Cool coal Up Per Cent Today Today we ought to Import t 1000 tons a to year to allow sufficient for tho new territory of oC Trent and Trieste and for Cor industrial develop develop- ment menta But wo wo we now have to pa pay for forthe forthe the tho coal in fn England from 20 21 to 22 per ton with 1 freight of 14 11 Thus we reach sometimes 36 a ton when hen delivered to us This figuring in American money money On the other hand the thc rate of oC ex exchange exchange ex- ex change chanSe has risen more than per percent cent Coal which used to cost 40 10 lires in Italian mone money the tho lira Is s nominally nominally nominally ally about 20 cents now costs lire There is the same samo hl increase in I price In fn cv every ry direction so far as Italian Italian Italian Ital Ital- ian importations are arc concerned We Va Italians Import Import wheat t at at- at many at-many man many times the old rate Suppose we we paya pay pay paya a proportionate Increase on everything everything every every- thing thinS we 0 bu buy we wo we ar are arc piling up an enormous adv adverse trade balance Would Coat Billion 0 A A A. A v 0 t c a HaG in is me Inc past si tons ions of or coal for tor torIO IO lire To J have ha havethe aye th the same sarno quantity of coal at present we have to pay Ila- lire a fantastic sum Slim The gigantic cost o of all our Imports Is Is' Is chiefly due to tho the tho rate of exchange and the high freightage freightage freight freight- age rates rales Both conditions react Unfavorably un unfavorably un- un f favorably on ever every article Hal Italy produces pro pro- duces uces Since the Iho Armistice Italy has haft had hada a vicious circle The Tho cost of oC ln 11 living increases all th the time and nd Wages ages must rise accor accordingly ln-l ln Jn in Ita Italy I Is on ona a ri much higher scale scalo than in any r cou country n try Cn Unity tally It- It Sole Il There Is only one remedy The Thc al allies al- al lies HeB had unit unity of ot front during th war They rhey need economic unit unity now As s France J ranCo nad Belgium are arc also al o suffering suffer suffer- in ing the problem must be taken up and solved In an International manner There must be an International agreement agreement agree agree- ment for Cor the thc rates of exchange and merel merely In the Interest of oC Italy and oth- oth hr 1 countries which import largely l but in tho the interest of America and England a as ex llort erB If It Italy limits Its imports It wl will l be to the detriment of foreign exporters America and England again agal mu must t view tho the continental situation from the 8 so social social so- so cial mad nid political angle as well us as from that of oC economics cor An economic crisis In France Franco and Italy rr might l ht turn into asocial a n social and Jl political crisis which might quite readily extend t to England and even en to America nr Ended In the present ago it is no longer lon possible for or nations H lons to I live ve In isolation Every countr country in the world Interlocks economically ec and morally Before tho war for or example England n and ll Italy were like lUte neighbors separated only by hy tho channel Owing to tho the high rate of oC exchange and the tho cost o of freight England has lIas' hasso so 50 far receded from Italy Itah as if fC the two wo countries were now S separated sep sep- p- p by the ocean Ho How much far far- ar- ar I I ther then has America gone Sone from Ital Italy The war war seems to have changed clanged the physical l structure of oC Europe What we must we-must must all do at present nt Is s to con Con- 2 sider both the problems of or exchange and freight from Crom an international point of oC oCIe view lew and restore as much as pos poa- the old olet war pre conditions co It will be bo in the Interest of America Am and Ital Italy and It will greatly reinforce their traditional sympathy and friend ship |