Evening star., 1920-07-14
AMERICAN EXPORTS
/. BARRED BY ITALY,;
L|RA IS TOO LOW
Imports From U. S. Have Al
most Ceased During Last
Three Months.
BY HIRAM X. MODERWELL.
By Cable to The Star and Chicago
Daily News. Copyright 1870.

By Cable to The Star and Chicago
| Daily News. Copyright, 1920.
| ROME, July 13.-American exports
are being virtually boycotted by Italy
as result Of the low value OF italian
money, according to the opinion OF
many careful observers, both Italian
and American.
| During the last three months i'm
portations from the United States
have almost ceased, except for such
necessities as cotton, petroleum and
coal The other chief exports from
the United States to 1taly-namely.
\ automobiles, shoes, foodstuffs, lum
| ber machine tools, silk goods and agri
cultural implements-are no longer
being, purchased in substantial guam
titles.
| Many American commercial men
have been examining the situation
here with the eyes Of experts. Among
them is Maj. Case, who represents an
American international corporation
and is now in Rome. They all agree
that so long as Italys reconstruction
is retarded Americas export trade to
this country will go lamely. The 1tal-
ian boycott began about three months
ago. 1t was encouraged by govern
mental restrictions and taxes on i'm
Iports of luxuries. This was the chief
exchange. The boycott was not or
ganized or malicious. AS a whole, the
Italian people are friendly to the
United States, however much they
may dislike the American foreign pol
icy. Still Italians who would like to
buy American shoes at the New York
prices of. say, SIS begin to shy when |
these same shoes cost $50 or s75 in
Italy. because of the difference in ex-
change. The Italians also like the
low priced American automobiles. but
they refuse to pay limousine prices
for them.
Tourists Are Gamers.
The only class of Americans who
are the gamers by this situation are
the tourists who for mere trifle
other country in the world can show.
1t is agreed that the inability of
American firms to sell their goods in
| Italy will continue as long as the
exchange rates remain SO abnormally
high against Italy. 1t is generally
expected that these unfavorable rates
will continue for long time and that
the exchange value Of the lira will
decline again. This is because eco-
| nomically, Italy is now on a dead
center. Although making brave eff
forts. the country is not able to carry
on any considerable work of recon-
struction without the aid of foreign
capital
oscar SlnlEalia, an eminent Italian
| economist, processes the greatest con-
fdence in Italy's potential strength
| but considers the present situation
| discouraging. He asserts that after
detailed study he has found that
northern Italian workmen are equal
cheaper than the American. He urges
that American capital take advan-
| tage of this situation by sending raw
materials here to be worked up by
ern markets. Without some such CO.
operation. he declares. Italy will not
be capable of purchasing largely in
the United States for several years.
Further Loans Unlikely.
| American financial men who have
visited here, however, declare that
there e,. is no possibility. of further
fated. therefore. like the other Euro.
pean nations to remain an economic
invalid and condemned to a long con
valescence, because she must spend
her energies In making living in
stead of getting well.
1t is agreed by all, however. that
the invalid is doing remarkably well
considering the Indifference Of the
doctor The Italian output of goods
is greater than one would imagine.
99nsidering con 9e the multitude of strikes.
The increase in Italian exports re-
Gently has been greater than that in
France. For the first time in four
years, also. enough coal has been Sc.
cured to meet the minimum needs of
industry. The Po valley is being
Igradually electrified. At present 50
per cent of the industry in Milan is
| operated by hydro-electric power
| from the Alps or the Apprentices.
The northern Italians have shown
| remarkable organizing genius. Fin
ally. Italy is now the only former
| belligerent in Europe whose finances
are on a sound basis.
| If Premier Giolitti can realize his
stringent taxation program, Italy's
| financial resurrection should be rapid
Her economic recovery would be
speeded up greatly If trade with Rus
| sia were opened. permitting her to
buy necessities cheaply from the east.
Under present conditions, however,
the American comm mercial man must
wait long while before he can begin
| to sell on a large scale in this country.
All this is another example of the
economic truth that no nation can
profit permanently from the misfor-
| tunes of another.