New-York tribune., 1921-11-13
Italy's Trade Pact Swamps
Country With German Goods
Removal Of Restrictions Brings Sharp Competition
and Home Industries Are Suffering
High Cost of Production

broideries of every kind. silk. wool and
cotton materials, dynamite. relatioo
porcelain, glassware, kitchenware. shocs
and stockings, watches Of all kinds ard
qualities, dyes. paints and artists ma.
terials, artificial flowers, unmade hass
teer, wines Of all kinds, liquors. bcas
trimming, fans. umbrellas, perfumes
carpets. curtains, pianos. guns. jcwclrv
automobiles, Photographic supplies
cnameled, gilded, si.vered and painted
ware and articles, feathers and furr
and, what the italians fear most
cinematograph films, all made in Ger
many
What Italy Exports
In return Italy sends into Germanv
wines, olive oil, cottonsecd oil. cirs-.
cites, tobacco, essences, laurel leaves
citric, boracic and tartarc acid dried
fruits, dried orange and lemon peel
salted orange and lemon peel, licorice
Juice, raw and woven silk, in colors
and crude, silk ribbons, roots for
brushes, pipe bowls, wooden furni-
ture, straw hats and straw braid.
gloves, automobiles, cinematograph
films, marble and alabaster, worked
tires, new and old potatoes, fresh
fruit, lemons, fresh table grapes. nuts
| almonds, tomato conserve. forage
cheese, feathers for beds, silk worms.
! juniper buds, ivory, bone, tortoise
shell, mother of pearl, musical instru-
ments, coral, hats and asbestos.
Although the German government
strived its best to include railway
engines and material, pressure was
brought to bear by Italian manufac-
turers to prevent orders from being
sent out Of Italy. The government
since January, 1919, two months after
the armistice, had already imported
143 locom motives, twenty-one passenger
cars, and 1872 freight cars full of
material for the railways amounting
to 232,000,000 francs. Sheer necessity
forced them to place these orders
abroad as during the war much of the
railway material and rolling stock had
been allowed to almost fall TO pieces
owing to the difficulty Of manufactur-
ing anything but war material. All
raw material would have to be I'M
ported, meaning agreat loss OF time
| for the state railways, which were be-
! ing reorganized.
| Naturally now this is not the case
| Factories need these orders, which
would now keep many workers busy.
For this reason the Premier has
promised to place future orders at
| home, providing, of course, the men
will abide by the terms under which
the government will place these orders
| Though a law was passed some ten
| years ago that home manufacturers
should be preferred, provided that tha
conditions were equal in regard to
price and quality. the offer must not
be more than 5 per cent higher than
m n cd IN
the difference Of exchange in various
countries competition cannot be equal.
For instance, lately the Belgian gov
eminent wished to place an order for
! 400 freight cars, for which six nations
sent in bids, the lowest of which was
that sent in by Hungarian manufac-
! turers who, owing to their low cx-
change. could make price which
other nations could not accept. Ger
many came second then Czecho Slo-
vakia. Fourth in line came France,
then Belgian firms, and dearest Of ali,
was Italy, whose price was double
that of Hungary, in Belgian francs
The reason for this was that Hungary
and Germany can supply their own
! coal and raw materials, while Italy has
to import them by paying England or
America in gold. Besides, salaries
paid in marks and crowns arc natu-
| rally much lower than those in Italian
lire. For instance, German workman
is paid 40 francs a day, which amounts
| to 10 Italian lire, and the same with
crowns.
Under such circumstances competi-
| tion is impossible, especially as Ger
many is fighting for her very existence
commercially and is determined to win,
and by this commercial treaty Italy is
risklng her own import and export
trade and getting the wrong end of the
stick. When trade conditions were
normal and workers cared only for
holding their jobs Italy could compete
with any other nation. 1t is true that
her markets were flooded with German
goods, but this did not matter. rs all
her own manufactures were sent TO the
four corners of the world. There WAS
no trade crisis nor were her workmcn
afraid of any competition. Now high
exchange and lack of coal and raw ma
t9rlAlS. added tn nd S4rio