Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1901-12-23
ITALIAN FINANC CES
A Very Satisfactory Showing
for the Year
A Small Balance on the Right Side of
the Ledger : The Gold Premium
All but Wiped Out = Country's
Great Debt.

which was published by the Associated
Press August TO- Sig. Ferraris. an Ital-
ian deputy. a member of Crispi's last
cabinet, and the proprietor and editor
of the famous Italian fortnightly. the
Nuova Antologia. declared that he did
not know of n country in Europe whose
budget was in healthier condition
than Italy's.'' This valorous statement
is in great measure borne out by the
publication on Saturday OF the king
doms accounts for 190O-1901. They show
a surplus of IS. 100000 for the current
year and balance about half as larg,.
is promised for 1901-19O2. Moreover.
for the first time in fifteen years the
funds are quoted at par on the Paris
Bourse and the gold premium has all
but vanished-the rate of exchange in
London being barely 2 per cent above
par. Considering that in Germany the
fiscal year 19O0-1901 ended with de-
| felt of about 10000 marks. that Aus
| tria- Hungary is unable to add to her
military forces because of lack OF
| funds. and that in France the expendi
ture has run so. OO0 900 francs ahead OF
the revenue. the Italian showing may
well be considered satisfactory In
many ways IL is really extraordinary.
The wonder is. when one looks into the
details. that a balance on the right side
should ever have been struck over 40
per cent of the revenue is absorbed
every year in paying the interest on
the national debt. 1t is true that not
all OF the debt is dead loss. In round
figures. it stands today at 81. 100000. 900.
OF this some $500. O00, 900 has been spent
on railways and nearly $3.50. 900 on
public works-roads. canals, coast
works, the drainage and reclamation
of waste lands. harbors and so on.
Two fifths of the debt has therefore
been incurred for purposes which were
| largely necessary and which. at all
events. were intended to be reproduc-
! tive. If they have belied expectations
il has been mainly owing to bad man
agement The railroads have done
much to break down provincialism.
they have put new life into backward
districts. they have spread civilization.
At tine same time. their administration
has Deen and still is. abominable.
Many of them should never have been
built. others were constructed at an
extravagant outlay. all are over
manned with political appointees and
deficient in rolling stock. while the
slowness and unpunctua1ity of the
trains. the high traffic and passenger
rates and the constant congestion.
have made them the mockery even of
Englishmen. The state holds a two
thirds interest in the roads and guar
antees per cent on their working cap
itaI. The value of its interest has been
estimated at less than $3.50 0OO. 900. and
on the guarantee it loses annually
about per cent on the whole outlay.
or IS. 0O0, 900 a year. At the lowest
figure therefore about $500, ,000. 900 have
been sunk without return.
Much the same may be said of the ex-
penditure on public works. The largest
part of it was inevitable. but a great
deal has been merely wanton- In
Rome for instance. the government set
to work to rival the great buildings of
the emperors and dropped over s1O.
00O 900 in law courts and public offices,
with results that amaze travellers who
have realized that the Italy of today
is nearer in spirit to Chicago than to
medieval Florence. Large sums. too.
have been voted away to "conciliate"
particular neighborhoods or purchase
the support OF "bolters," and both par
ties have subscribed to the policy that
you cannot solve the problem of the un-
employed more satisfactorily than by
that nobody really needs. And in ad-
dition to all this. the making of italian
unity and the taking over of the debts
of the old states added perhaps $780,
600 900 to the national liabilities. For
the remainder of the $50 OO0, 900 odd the
naval and military and colonial re-
quirements of the last twenty years
are chiefly responsible.
In the face of this colossal burden.
the average mans income than in any
European country, it is no slight
achievement to be able to show a sur
plus. 1t is even possible that were
such sound financier as Baron Son.
nino to be given completely free
hand he might so remodel Italian
finances as to prevent the recurrence of
any further deficits. But on one point
every Italian seems agreed. and that is
that taxation has reached its highest
point and cannot be increased. To Sc
cure a perpetual surplus. therefore.
taxation must either be readjusted or
some substantial economies must BE-
effected in the standing expenses. If
both plans could be carried out side by
side the problem would be solved. As
things are at present the italian fiscal
system presses with unnatural severity
on. the poor. The rich are either ex-
empt altogether or contrive through
the favor of the collectors to evade
payment of their due share. a pro-
gressive income tax and duty on lux
uries would do something to remove
these Irregularities. and both schemes,
under the growing pressure OF the so
cialists, will probably be tried before
long. But 1t is mainly in direct econo
mics that relief is to be sought. Small
savings could be effected in nearly all
the government offices and in the pub
lie services attached to them. But to
have any substantial effect either the
army. navy or the public debt must be
reduced. So long as the Triple ALI
ance endures IT is improbable that the