The Express.
London, England, 1865-12-23 00:00:00

THE MONETARY CRISIS IN ROME.

The Correspondent-is; di Roma publishes an
official explanation of the causes of the money
crisis in that city as follows :
The financial difficulties from which Europe bas not yet
reeovered, and the high pries of gold in Americadhaveled to
en imams io the rates of interest and exchange on all the
moos markets, and consequently on our own. Thiogs
not, however, have arrived at their preheat situation
is Rome had it not bees for particular oircumetanoes.
Rome has to send abroad large sums of money to meet three
different demands :—l. The intereet of the 104014 because
the holders of coupons are meetly abroad, where they
receive the amount of the sures due to them ; 2, the food of
the inhabitants, as large portion of the provisionsconsumed in Rome ais furnished by provinces now
torn from the Pope and annexed to a foreign
state ; 3, manufactured goods, because unfortunately
at Rome, as elsewhere, habits of luxury, or what
the English call comfort, are gradually entering into the
habits of the 1i411111116 and the country is obliged to bring
front abroad articles which the national industry does not
supply. Te meet those requirements there are but two
resources—to send money abroad or to sell drafts on folio
conotries. Theme latter being insufficient, as the raw ma-
terial and works of act exported are greatly inferior in
value to the imposts, money must be sent from ROM..
Formerly the nation had, on the contrary, three scums of
compensation. In the first place, the sums which Rome
owed to the provinces in exchange for the supplies of food
furnished were paid partly in bank notes and partly by the
taxes which the government levied there, so that the money
either did not leave the city, or was quickly returned to the
treastuy, by which means the specie waa soon restored to
circulation. Then thegmoney paid by foreign shareholders
in the railway companies and other public undertakings at
Rome, and which was spent by the constructors in the city,
has disappeared, as the works are now at an end, and • con.
trary movement has taken place by the obligation of the
government to pay to foreign companies the difference be-
tween the guaranteed interest and the profits. To the
above must be added the departure of • portion of the
army of occupation, and consequently a corresponding
diminution in the expenditure made by France in
oak at Rome. Lastly, the tourists and faithful
who visited Rome and spent considerable sums
of money have sensibly decreased in number. Evil-
minded persona have put into circulation false re-
porta, and thee% aided by the cholas, have prevented,
or at lout delayed the beneficent co-operation of visitors,
and thus derived the Romans of • principal resource. We
do not mention other compensations, such as Petee's Pence,
the prodoet of dues on the execution of ecclesiastical affairs,
the revenues of lands which the great Roman proprietors
pewees thread, and others, as those resources still
exist. From the above facts there will be no difficulty
in understanding why coin has become rare, sod why
the rate of exchange is so high. The foreign creditor
who has to receive the pries of goods sent to Rome
obtains payment by a draft on • Roman merchant, who
must cash it in lire for Italy, is francs for Franse,ffelgium,
or Switzerland, in pounds sterling for England. cc the
seller receives item the Roman merchant a bill payable
either at borne or abroad. But in all cases the transaction
results is the sending of money away from Rome, and the
despatch is not effected without the aid of the natural
intermediaries, the bankers or money changers. When these
were in possession of the compensations referred to, they
settled accounts simply by means of foreign bills. But now
that they have no longer any such drafts they are forced to
send cash at • great expense. The merchant has to bear
that coat, which causes a rise is
bills of exchaege ; they
are obliged to procure specie on the thot, and this muscat=
increase in the price of coin.