, 1876-03-29

hon1c. .iuiustrv us WA doubtless the raaa itnmo-
ta,ely aftos its introduction. Tho pr!co of manu-.
fact.1fod articles mora rapidly that that Ut
The labor, raw material, taxes, rents and tntor-
ont on ca:.ai wlic,, entered into tho coht Of pro-
ds1etion and italian man,,f tclurcrs' hHo thoHe
of tho United Statas under like circumstances at
The beginning Of onr own War teApod largo
profits on stocks f Foods an TaT naie's ,ae o
warda. hut tha state Of things did not l9st
loug. Al tic elomonts Of coat gradually III,
crossed IN price. It'll thov hal awsltoHed
p TUG eaflIer profits and Ten ,,;l Ep'd fo te t.1G
tarllly while ovory such fall IN gold in!irod n
htantiy aud to lts full o.tons 10 t'e profit OF ti!o
foreign cotnpotltor. 1ta'ian manutHctureMTs q now'
therefore, recognizo as fully a. the uoVofn-
snn,crH. TINT tits oxpsnlod aud foycrial state
Of tho currency IL extremely detrimental 70 'a'4s
interests. -au. at tn
Chambers outran tho moro frudcn1 cont1so'e "a
tho FINANCE Minister in tho tllroctton OF
A RETURN 70 BOUND MnHEY. ..
Thu Commission appointed to rapport upon the
proposed Banking law wished to inacrs . pro-
sion ; 1eqa5,f9h nn9h. tns seSsmo for reras ho
forced currency by q sinking fund. Dut algnor
Miughotti ro,sunded the C1ambors to s'ispond
thls Imperative obligation until ho could moro
With It. rio law OF 1874, the rrovIs|ons Of which
Sa "s 'la' III h.apss ssp5a' to t's'sl Gs ~ s prs
arat,on onlN-that is to soy. law which should
DO followed BY otcf 4ws ana r"vs,ptps t. IT,
furious etfocts Of tho forced CURRENCY. and pro-
yjJc for ttu extinction at tho earliest possible
mononr." Many 1npmbcra Desired moro bum-
mary proceeding, but nobody was found 70 I'D.
yvcatc ipro!ongcd suspension on tho ground
tl,at paper was tho "poople's money" or that
lit stiaulatod trade.
After putting tic law Of 1874 into operation.
and witnessing ita offccts for nearly yeh!,
and after carefully considering tho proposals.
which lad beon made In tho Chambers for moro
srecltlo action Ia the direction OF rcsuming
speclo.paymonts, the Flnacue Minibtor ca1ne 20
TIM conclusion that no moro decisive steps could
as yct bo adopted. The finances Of ltaly nte ~
While our revenues afford a1s hnuua! antPluH,
which Inns enabled ua to pay OF many hnudrodd
Of millions Of our debt within tue past ten yoAra
tic Italian Treasury has experienced continued
1o debt OF Italy has boon increased almost ha
much ~ ours has boom diminished. biEnor
h1nghotst, therefore, very Justly hfEnos TINT.
until there ts 4 surplus Ia tho National Treasury,
nH we'll ~ commercial balanoo IN ihVor OF tho
country, It would bo worsa than usoloss to forco
resumption. ,,..-...-.
liz arriving At this conclusion, ho diacuaaea at
longth
TWO ALTERNATIVE METHODS
PROPOSED for reaching that To6ult: ~ lmme-
NAEo lEBul4ILlUU uf ulc4A0 u y 4AAE0 AuAA ~
gradual resumption, Or, preparation for resu,np-
tlon, by means Of a a!nktnG funtl. As to lnan
1t would DO nbcossary to borrow not less tllan
e2U0 0tN, 900, which is tho amount Of qnnst-Gav-
sTsa Ct 1 psF rs s.a ss1sFssa 81 sas oa t' vs af
below par, would etill further do
p1oHB their price, add largely to tho anuual in:
tosoat roqniro tho imposition OF ner taxoa, and
goucially disturb trade. Tho brouze-token coin
ago, of which GIG, 900 600 is now IN circulation.
would speedily be reduced to it's Did amount Of
el,00O 900, and tho ba!ance would hhvo to be re-
deemed in gold. A. loan matlo undor such clr-
oumstances would increase tho annual deficit Of
tho Budget $10, 900, 600 Or Bi2. .000 900 and would
bo very likely to bring about commercial crisis,
and now aud moro hopeless auBncnston.
Ilo creation Of the ainkinG fund. though not
90 Immediately dangerous, Woui' land almost nn
would 10 . very SLOW so,ncdY, siuco IN appro-
prtatton to tho sinking fund Of e10,000,0b0 a
ycnr would not retro tho s2u0 200 700 of paper,
ior which tho Government III responsible. be-
fore 1soA. small ~ such m annual appropEia-
tion would be. 30 lung al tho revenue "a d.
flcient. It wonld have to DO borrowed and rc-
pcatod small loans would 10 regarded 10 Europe
as moro detrimental to tue pnbfc credit than
single largo one ~ they disturb Quotations and
Tho old method Of sluklng one debt BY tho
creation Of another is nor thoroughly exploded,
~ WAS shown In tho dobato on TINT Hnbiect Inst
summer in tho English House Of Commons.
THE nsL7 LEGITIMATE nIaKlso FUND
III ono doriyo1 from taxes, or from tho Bnln or In
como uf specific property ind, IN most chsos, It
IL far batter to apply tho available nehus d1toot
" 10 tho debt than to creato q parallel sinking
fund for ilH ultimate redemption. It was pro-
poAod in Italy to create 4 sinking fund OF this
sort by tue conversion into reuts nf tho do
mains hold for charitable uBcs; bnt 10 this it
VIA ob}ccto,l. that 10 long as tl.e ecclesiastical
md public domains 1asroay partly hy1osilocaso!l
wou1d bo uselesa to put moro Of that k1nd of
property upon ho market.
4 luuu To tho Government Of tho whole or d
part OF the capital Of hsnks, vltlsou: iu!orosL
signor MinKletti. Buoh = plan wAs propusod
In Austria In 1867. but Lad tloro falod. While
| racOgnixiug tie duty Of tho banks 10 cooper
a.o actively with the Government at tho
proper uiosnont 10 restoring sound currency, he
considorcd TINT the present immobilzation ot a
largo part VI their capital would bear heavily
upon tho industry Of tho country. and liu'nlsh
production, rhci. the Government lAyo oVery
motive to stimulate.
Tho whole tenor OF tho report goes to show
TINT there ia no trick ot finance, nrd no ingo-
/ uuity OF cunjuHng. bY which tho hard roatv OF
| D deficit can be converted into q aurpus and
| tint, without surplus. dehtB, however nucI,
| t.,oy may 10 slftud, cannot DO paid, Tho pa
per-Mouey Of Italy IL = debt, and, 10 loug 81
| tho Government III unable to moot ita current
| exponaeb out Of \ ousrout roytnue, 1t II q debt
| whcil 1t cannok pay.
| II Remains to suy fow words In e1plana-
ttOu Of
| Tllk BANKING Law or 1874.
measure adopted solely with Wow to tts bear.
ing OH the currency question. lrior to 1860,
| each OF tho principal divisions OF Italy had it,
own banks Of Issue, the circulation Of Which was
almost wholly local. An attempt Was mndo in
1SG9 to combine tho National Danka OF sart1inia
aud Tuscany, In order to give moro national
character to their tnsnes; but II VIM dofeatod
through provincial JoaIouB,eu. Public opnlon
howoyer. both III Europe aud America,
haa been making constant progress
In tho direction Of unltary
currency, aa was shown by the great p1cpondcf:
anco OF auifragos tu ita favor bstota tic cole
brated F1euch Enquata OF 1861, Italy has
finally accepted the prevailing judgment; ant
tho lam OF 1874, although It doos not wholly dc
nway with provincial iHsuoH OF bank. .notos, Eoe.
worry far towards giving them na.lon4! cilarao.
ter. Th1 Experimentation III by that law 70
st1lcted TO tue iasuos Of ak bauks, namely; the
National Dank Of sardtnik, the National Dank o
Tuscany, the TuscAu bank of Crod.t, tue l}anl
of Romo. tho Hank Of Kaplea, and the Hank o
Hicjly. Thcso lnstitutioua hare fosmod t4elu
Bclyos into
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