The New York herald., 1921-06-06

the wages. with wine at lire instead
of 60 centessimi), bread at 1.S0 kilo,
this means that a family can put aside
from $50 to 200 lire a week.
LAS a matter of fact the price OF
living has recently increased and the
municipal bulletin shows that, taking
100 as the pre-war basis, while in jan
uary. 1920. the average price of the
principal necessities of life (bread. rice,
neat. oil, lard, potatoes and milk was
,350.53 per cent. in January. 1921, this
figure had risen to 432.17 per cent,
in February. 1921, TO 445.43 per cent,
and in March, 1921, TO 466.7S per cent
The latest rise is due to the abolition
of the bread and meat subsidies.
Prices Soar in Rome.
Everything else in Rome is proper
tionately high, and it is the general
opinion that in the last two months
prices have risen still higher In spite of
the great fall in exchange Whether .nis
fall was due to the increased taxation,
as stated by Signor Glolitti, is not cer-
tain, although the reduction of the paper
circulation in March by one and half
milliards, undoubtedly had a good effect
in this direction.
Signor Schanzer, one of the most
noted Finance Ministers that Italy has
had in the past, in criticising the last
budget. stated that a normal budget Of
the future should show fifteen millards
of receipts against sixteen milliards Of
normal expenses. or deficit of one
milliard This deficit should rapidly
disappear. either for ordinary reasons,
such as the gradual reduction OF war
pensions, etc. or for special reasons, as
the regulation Of the foreign exchanges
But above everything the question Of
Italian finance is dependent on the ques-
ton of her agriculture and her indus
tries.
1t may be here noted that the reduc-
ton of the deficit from fourteen mill
liards to four, was not due. as many
foreign papers said, to energetic cutting
down of expenses by the Government.
On the contrary. the Government offices
are full of "limpets, "stlrawing 800 to 500
lire a month. plus high cost bonus,
and two weeks ago ii was announced
that every Government official would re-
ceive 100 francs advance, costing the
State 130,000.000 a year more.
For this reason it Is probable that the
Italian foreign policy for a considerable
period Of time, will be chiefly an eco
nomic and financial policy. with the OBJ
ject of assuring to Italy continuous
supply of raw material at convenient
prices. and of obtaining long time and
sufficient credits to. pay for that ma
terial
What Italy Earned by War.
The fact is that the war DESTROYED,
once and fore all, the legend that Italy
was incapable of Industrial production.
In an age of iron and steel she can
never hope to be entirely independent
of foreign countries for her raw ma
terials, but the extraordinary impetus
given to her by her war industries has
placed her in an enviable position for
many of her former settlers. And 1t is
her very success in turning herself into
an Industrial force during the war that
is responsible for her temporary
troubles.
Her banks are strong and we'll organ
lied. and are now clear of all foreign
moneys. Count Volpi, the director OF
the Banca Commerciale and the last re-
naming signatory of the Treaty Of
Ouchy, said that it Is absolutely untrue
that there is any foreign money in Ital-
ian banks. The rumors of Hugo SHINES
obtaining control in the country are alb
surd. The German domination has gone
once and for all. Although the workers
are lazy in the north. until after the
out the country.
I'VE are developing our hydraulic
electric powers" said the Count though
owing to the high cost of copper and
other material II will be- slow work till
things settle down. But remember we
use In Italy five times the amount OF
hydro-electric power used in the United
States and fifteen times that used in
England.
I'VE cannot ever be quite independent
OF foreign coal. We shall, think, for
some years, require a minimum OF
100000 tons, for we must have coal
for our mercantile marine, some classes
Of furnaces and for gas, but we shall
not in future be totally dependent on
foreign coal We commenced to develop
our Ignite mines during the war, and
last year we mined over a million tons.
This is only a beginning"
EIectrifying the Railroads.
Other great developments are taking
place in Italy. Before the year Is COM
pleted the railway from Modane to
Genoa will be electrified and also the
line from Turin to Milan. The Rome
Naples dirittissimo, the construction of
which was delayed by the war, Is being
proceeded with. and for the electrifica-
ton of this the waters of the Sirene
will be harnessed.
Along the coast new harbors are being
constructed. some with the aid of for
eign capital. The much needed coal
harbor at Genoa progresses slowly, but
should be finished in ten years. A huge
harbor TO the south of Naples has been
planned and new harbors at Carrara,
Livorna Leghorn) and Brindisi will be
commenced soon. The economic value
of these harbors will be great, not only
in the saving of freights but also In
relieving the pressure on the Italian
railway system. which, owing to the
natural formation of the country, Is not
capable of great elasticity. For in
stance, ships chartered for Genoa pay a
shilling n ton extra on the freight, owing
to the delays in unloading. To ship
Carrara marble at present from the