Evening star., 1920-03-07
STRICT ECONOMY
|SRULE IN ITALY
Nation Accepts Warning That
) U. S. viii Make No More
+ European Loans.
NJ EDGAR ANsEL MOWRER.


OnhleGram to The Star and the Chi
cage Daily News. Copyright. 1SzO.
ROME, March 6.-The recent warn
ing that tho United States Treasury
would make no more loans to Euro
DAan nations until a balance has been
reached in their internal budgets was
taken SO eeriously by the Italian gov
ernment that 1t is making herculean
efforts to meet the situation. These
involve further sacrifices by the peo-
pie. Perhaps Carter Glass. who as
Secretary Of the Treasury issued the
warning, was not aware OF the DIM
Guilty Of the problem imposed on Italy
and how heavily its solution must
weigh on the common people. Yet
the Italians are ready to submit.
r:,a situation before the announce
meht was this: Italy had debts OF
more than SO, 00O, 100000 lire (norma1ly
$4,000. .eoO.o .ooo) and these are steadily
amounted in value to lS.oO0.00O.OOo
lire S3.300 000, ,000) and the exports to
100000. .o98 lire (31,040. .000.0O0). A
remarkable Improvement was noted
in the last half Of the year in the
trade balance or the ratio Of imports
to exports and in the reduction of the
paper circulation.
Nevertheless the exchange situation
was disastrous and something else
had to be done. The army. therefore.
has been cut to 100000 men and will
be further reduced. This still is in
sufficient. All public services which
before the war actually yielded re-
turns have through increase in sal
cries and expenses been reduced from
five TO one in the first semester to
eight to five in the second. The
normal ratio before the war was three
to two and the difference was made
UP by emigrants' remittances and
tourists expenditures in Italy.
The present loan. which already has
reached 17.oD0.oo0.oo0 lire (normally
$s.400.006.0 .000). will probably reach
30.0o0.000.000 lire t$4.00o. ZOO, ,o0O and
will enable the government to pay off
the outstanding debt in part. The
burdens on the railroads and postal
increase on postage and telegraph
tariffs haB proved insufficient. The
latest measure tends to restrict the
delivery OF parcels. The railroad
deficit demanded a more radical cure
and this has now been found in the
minimum equa1ed only by the serv-
ice during the hardest days after the
Caporette sdisaSter. This will permit
diminutfop OF the amount of grain
which 10 soid by the government un-
DER cost and at tremendous loss.
specified lnDSrtatlons Forbidden.
Moreover. the importation of oils.
tats. milk products. condensed milk.
pork, canned meat. tuna fish and dry
vegetables is absolutely forbidden.
The Importation of cereals. frozen
meat. bread. fash. sugar and bacon il
restricted. The minister of commerce,
commenting on these provisions re-
Gently. said that Italy was the first ma
tfon 70 adopt Draconian economy,
1T must do So" he continued, "ff
i is to avoid utter bankruptcy. win
back American confidence and reduce
the cost of living. These provisions
mean TO the common people the return
20 pffvation and suffering greater
IMAM those endured at any time during
the war. believe that the cost Of
living IN Italy Is proportionately and
perhaps. actually higher than 1t is
AnywhereS else in the world. The In
crease sinceJul 1914. is shown by
ehe jump from the index figure of ia
20 an inds1k Agure Of 573 in Decem-
6er, 1913. Theitendency Is to increase
to per cent monthly. These ngures
are given by the economist Bacchi, in
the Cerriere Economics. and are prob
ably exact The Limitation of con-
eumption win doubtless help to lower
the high cost Of living. but TODAY,
after the return of peace, which was
expected to bring relief. heroic meas
ures are needed for The re-establish-
ment Of normal conditions In Italy
and Europe.