The New York herald., 1921-06-06
Prices Away Up, Even Ris-
ing in Rome, Although
Exchange Falls-No
New Loans.
BIG IMPROVEMENTS MADE
New HarbOrs, Extension of
Water Power, Public Works
and Additional Indus
tries Planned.

This is the second article on
Itaiy's recovery from the wreck
caused by the war and deals par
ffculariy with labor conditions.
ItaIy's policy for some time to come
will be chiefly a policy of economic
and financial rehabilitation; the Sc
curing of raw material and the
obtaining of credits to pay for the
material so that her workmen can
produce and enrich the country.
Special Correspondence to THE New YORK
HERALD.
ROME, May 1.-the great question
with which Italy has to deal to-day is
the labor question. 1t is the direct re-
suit of the titanic struggle of the last
seven years. But as Italy was the
first to be struck by the communistic
cyclone, so she will probably be the
first to be clear of 1t. At least this is
the opinion of Signor Giolitti, the octo-
genarian statesman, who is once again
ruling the destinies of the country
with an iron hand.
In talking with THE NEW York
HERALp's correspondent he enumerated
some of the measures that his Govern
ment has taken in order to bring
peace to the country.
I'VE have changed a deficit Of four
teen milliards to one of four milliards,
and although this may still seem a
very large deficit, 1t Is a great i'm
provement, and in future budgets this
will disappear as certain expenses, en-
gendered by the war, automatically
are extinguished. This has been done
by imposing heavy taxation.
I'VE have taxes and supertaxes on
capital, excess war profits, patrimony,
&C.. and I have also imposed a luxury
tax on everything from automobiles
to jewelry and clothes. This has had a
most beneficial effect. and the people
have accepted it without murmur.
"The results are to be seen in the
fall in the exchanges. These have
come down a great DEAL But we do
not intend to do anything to force the
exchanges down; we will have no new
loans abroad for this purpose. The
exchange will become more normal as
the different countries settle down to
work.
Bread Subsidy Removed.
I'VE have also removed the bread
subsidy, which meant four millions off
the deficit But the best remedy will
be when the workers realize that pro-
duction only will abolish deficits and
high exchanges.
The question OF the control OF the
factories bill, which has been a good
deal discussed here and abroad, Is a
very serious one. and must receive care
full consideration. The word control in
Italian has a different eaning from
what il has in English. where 'coopera-
tion' would be more correct This is a
very serious question. by which 1t Is
hoped that the workers win learn the
real conditions OF industry. and the re-
sponsibilties attached thereto. These
are questions which affect the whole
world, and are the natural outcome OF
the present conditions. But you will see
that they will be settled as soon as
people recognize that work is neces-
city and an honor"
on my expressing my surprise at the
rate Of living in all quarters of Rome.
the Premier replied:
YES, there Is plenty OF money. and
wages are high, but IL Is paper money.
The paper circulation Ia about 20 mil
lizards of lire, and we have a gold re-
serve OF about one milliard. But what