The New York herald., 1921-06-05

out tho eUectS OF LHc 1CuT uHu re-
1oin hcr industrial strength.
Then are acyittcn By trained
obscYUer 1oho has spent months
in Italy studying conditions tor
The New York HERALD.
kseciak Corresrondsrco TO THE New YORK
HERALD.
ROME, May 15.--Italy at the present
tinic Is suffering from measles and
mumps. The crisis through which she
Is passing Is twofold. economic and
social. Since the outbreak Of war
prices have been soaring. until now
they appear to have reached their limit
and the liquidation is about TO COM
mence. Wholesale prices already be-
gin to show some sign Of falling, pro-
duction is reduced to a minimum, the
number of the unemployed daily In
creases, hours are being shortened,
bankruptcies are more frequent, the
banks have closed all credits, and
many establishments are In conse-
auence shut down. This is the eco
nomic condition.
On the social side the workers, led
BY numerous Communists and an
archists, are filled with indiscipline
and an absolute objection TO work. In
september, 1920. when as result OF
the lockout at the Romeo works at
Turin a general strike was declared
and the factories were occupied by the
workers. they claimed that the fac
tories should be their property and
.-e-- would work thern. After a very
short time they found hat TO run a
factory was not 20 cass as it looked
they had f0rs ttcn eli about the aues-
ions 81 credit. purchase ~ raw ma
tcrial and selling facilities and, having
found out their mistake, quickly aban-
doned the factories to the proprietors.
Policy of obstruction.
or the resumption of work the
axitators started a different policy, the
policy OF pdressc, with the result OF
innumerable strikes. greatly reduced
production, enormous loss of wealth to
the country, In the industrial world In
Itsly in 1920 there were 1900 strikes,
affecting l2,500,0o0 workers. with
productive loss OF is,39S,.27 working
hours. In the Arst seven months OF 1920
III. Italian industries were working at
full pressure, so that by the esd OF
Aurust the increase of production was
already l,26o.ooo.ooo lire above that
for the whole OF 1912. During the last
not only did not increase but. In fact.
decreased go that the increase of 1920
over 1919 reached only 1,i3s.o00 900
instead Of also. 100000. which would
have been attained II the rate OF pro-
duction had been maintained az during
the first part OF the year without auto
matically increasing as II should have
done.
II In the policy OF iaxiness which
must be fought IL Italy is to start vel.
again
The economic crisis can be fought
IN various ways. Certain Government
measures will have to be rescinded. as.
for instance. the war pronts tax, the
new law in shares (hitherto In Italy ell
sharcs have been 10 bearer--4ths Gov
eminent has nov decreed that all shares
must be nominativo and a heavy tax IL
levied on this transfer). The Govern
rasat Will have TO put its own house
In order" and cut down It's expenses
The "suua dersrs'' are as much at work
to-day In italy az they have been In
other countries. The Anticipated tariff,
which 10 not able 10 cope to-day with
the asituatien. will have TO be changed.
These. however. are all points which
other Governments have had TO face.
and Italy will be able to do also.
where Social Question DiHer~.
Capital and labor--the social oues-
tion-is an entirely different one in Itsiy
from abroad and is made more difficult
by the psychological characteristics y
q southern race which has been mus h
disturbed BY the intrigues of Foreigners