The Sun.
London, England, 1867-01-23 00:00:00

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The Italian Financial Statement.

FLORENCE, Jan. 18.

Signor Scialoja delivered yesterday, in the Cham-
ber of Deputies, the second portion of his financial
statement, detailing the means by which he proposed
to meet the deficit resulting from the accounts of
public revenue and expenditure, which he presented
and explained to the Chamber in the sitting of the
previous day. The house was crowded in every
part, and the minister rose to make his statement
amid profound silence. Signor Scialoja spoke as
follows :

" Yesterday, gentlemen, I had the honour to lay
before the Chamber that portion of the financial
statement having reference only to the public re-
venue and expenditure, and from the analysis I made
of those accounts, it resulted that in future years we
shall be able to count upon resources of no incon-
siderable extent which we have not possessed in the
past. We may very confidently hope that by means
of some small sacrifices we shall reach 1880 with
the liquidation of 60 millions of the debt—that year
being the period at which two very important items
of the debt—the national loan and the domainial
bonds—will be extinguishes]. The principal consi-
deration upon which my argument is founded is
that the amountitof the deficit estimated for 1867 at
185 millions lire can only be modified to a very small
extent either on the side of the excess or diminution
—since the expenses have been accurately calculated
and no extraordinary cases are anticipated that
might render the estimate fallacious. It is now ne-
cessary to enter upon the measures which appear to
me best calculated to enable us to effect gradually
the equilibrium of the budget. Had not Italy passed
through periods of war and revolution, and were
she placed under more favourable economic condi-
tions, the means of recruiting the treasury would
be easy. So, also, if in Italy that firmness of pur-
pose which I am rejoiced to see animates all were
united to what I might call the sublimity of courage
which so greatly characterises the young and vigor-
ous nation dwelling beyond the Atlantic, and which
can only exist in a country whose material prospe-
rity, having endured and increased through a long
series of years, has only been interrupted by a single
war, I should say—Let us cover the 185 millions of
deficit by 185 millions of taxes. In fact, after a
most disastrous war of five years, America found
her public debt increased by 15 milliards, obtained
for the most part from the national capitalists, and
in order to meet this heavy burden and the war ex-
penses, new and onerous taxes were imposed upon
the nation, one alone of which yielded a revenue of
one milliard and 500 millions. We have no means
of obtaining so great a result. We must therefore,
in order to cover our deficit, have recourse to more
moderate measures than those adopted by the Ame-
ricans. Nevertheless, the complete independence
we have now attained should inspire the taxpayers
with fresh courage, from the certainty that they
have reached the last stage of their sacrifices. I
stated that our deficit amounted to 185 millions, 85
millions of which I intend to provide for by expe-
dients which will reduce the public expenditure, by
supplementary taxes, and by modifications of exist-
ing taxes calculated to render them more produc-
tive. For the remaining 100 millions I propose
providing by means which I shall explain in due
course. Commencing with the 85 millions, I have
the honour to explain to the Chamber that among
the items comprised in the intangible portion of the
budget, I have particularly devoted my attention to
the pensions, which amount to 45 millions, and in-
crease annually ina measure disproportionate to the
nature of the expense, in consequence of the pacific
revolution which we have accomplished, and the
necessity of furnishing means of subsistence to the
men who have in some manner served the country.
Distinguishing those pensions that must necessarily
always exist from those which have resulted
from our political condition and originated
in retiring allowances, I have accurately
examined both classes, and have drawn up a bill
which will shortly be laid before you. This mea-
sure, by transferring the service of pensions to the
Deposit and Loan Bank, and assigning to that esta-
blishment a revenue corresponding to the amount of

the public indebtedness under this head in a year
in which the expenditure may-serve as the basis for
a normal reckoning, the Treasury will shortly
effect a reduction of about 17 millions in
the debt. It is necessary, in order to esta-
blish the basis of the public revenue and ex-
penditure, and the means of providing for
the deficit, always to take into account the trans-
actions which form an indication of the greater or
lesser degree of material prosperity enjoyed by the
country, and otherwise tend to increase it. Ob-
serving, therefore, the immense annual movement
of securities disclosed in the kingdom, we see
that it is represented by an amount of three mil-
liards, upon which a light tax could be imposed
of so much per thousand, placing the stamp
upon each document after the English system,

and rendering liable to this tax Government con

cessions. By thus establishing an impost similar
to that of the registry and stamp upon the transfer
of moveable property, we produce a revenue of from
15 to 16 millions, causing scarcely any trouble and
no expense for collection. For the other 52 millions
it is necessary to provide by taxes, which will be
complements of existing taxes rather than new im-
posts."
The Minister then adverted to the project previ-

ously brought forward by him upon the consolida-
tion of the land tax, and insisted anew upon the
necessity that the income tax, distinct in its nature
from the land tax, should reach that part of the
income not affected by the land tax. "It is my firm

idea and conviction," continued Signor Scialoja,
" that the income tax is designed to reach all
that enters the pockets of the taxpayers. (Move-
ment.) Ido not go far in this. Let us not
imagine ourselves superior or inferior to the
truth ; and I make this recommendation be-
cause—l speak frankly—it is a characteristic
of Italians, and I am an Italian myself, to
give way sometimes to exaggerated opinions—
(" Oh !" and movement on the left)—and to be
unwilling to comprehend the true bearing of things.
The impressions of the Italians, it has been said by
a man of genius, are phantasms—(murmurs on the
left)—and I add that this produces no small incon-
venience, and might cause injurious results. The
land tax is too onerous, and is ill distributed. With
the same franknea as I have hitherto used in my
statement, I shall state, gentlemen, why I speak
thus cl€arly upon the measures to be taken to meet
the financial deficit. To this course lam urged by
two excellent reasons. In the first place, by the
wish that, as far as regards myself, all disguise may
cease between the Government and the Chamber;
and, in the second, because in the ensuing month of
February I shall have the honour to lay before you
a bill relative to the assessment of the land tax. I
declare frankly that I should not presume to present
to the Chamber a. bill that I had not announced
some time before, in order that you might be
enabled maturely to consider and decide whether
another man should sit in the place that I occupy.
The tax upon articles of consumption under all its
forms, in order to become useful to the State, must
be gradually transformed into a tax upon produc-
tion. (Movement.) I will explain." The minister
then proceeded to enter upon this subject, and ad-
verted to the two taxes that at once affected pro-
duction and consumption—that proposed by Signor
Sella upon grist, and his own bill for taxing wine.
" The committee appointed by the Chamber did not
feel justified in rejecting these taxes upon produc-
tion, nor did they condemn the tendency towards
them ; but after examining both, and seeking the
weans of substituting if it were possible a tax upon
circulation proportionate to the value of the beve-
rages, they committed to the Government the care
of seeking the pheenix of taxes, that which imposed
upon circulation is less troublesome than that upon
manufacture. When speaking in their report of
the tax on grist, the committee above mentioned did
not directly examine the merit of the proposal, but
made a very sensible observation. They said that
there was no proper administrative machinery to
obtain from that tax an advantage oommensurate
with its inconveniences. Although I had not the
honour to agree on all points with the reporter of
that committee, I nevertheless considered it indis-
pensable to consider the inconveniences pointed out.