The New York herald., 1922-03-27
ITALY TO REDUCE ITS
BANK INTEREST RATE
Scont0 to Settle With Credi-
tors and Ansaldos to End
Receivership.

Special Gable TO THE NEW YORK HERALD.
Copyright, 1929, by THE NEW YORK HERALD.
New York Herald Bureau.
Rome, March 26.
The italian Government Is TO an
nounce soon q further reduction In the
rate OF interest paid to banks of issue.
Until recently the Treasury paid 6 per
cent to three Italian banks CT issue
Treasury bonds now bear 5a per cent,
which is to be lowered to 5 per cent.
The Sconto Bank publishes a second
agreement for the payment of Its credi-
tors. proposing this time to give de-
positors OF 5000 lire or less 81 per cent.
of their deposits. Depositors of larger
amounts would receive 81 per cert. Of
which per cent. would be in shareg Of
the Sconto Bank The creditors are not
contented wishing the State to guaran-
tee payment. but the Government indi-
Gates an unwillingness to intervene
The Ansaldo Steel Works propose end
ing their receivership and starting
afresh by cancelling their old capital OBJ
legations Half the existing assets would
go TO the shareholders, while the re-
mainder would serve as the basis for
the formation OF the new company. The
receivers hope the State wiz not de-
mand 400,0 900, 900 lire as excess profit
tax, already assessed.
1t is believed generally In the italian
business world that excess profit tax
legislation is breaking the back OF the
big industry. The high amount or taxa
ton exceeds the possibility of collection,
resulting in partial paralyzntion Of fac
tories or else false profits returns on
the company's books.
John r. Macarthur, the New York
contractor and dplomatist. returns to
Italy April 10 with American engineers.
to begin an initial survey of the extern
siye port Improvement planned at Pal
ernlo. The Italian Government has
granted TO the Macarthur corporation
in Italy capitalized at f20. 100000. con-
cessions covering the enlargement and
planning OF the Port OF Palermo. even
to the eventual construction Of factories,
electric railways and general improve
ments. II is anticipated that the COM
pany will increase it's capitalization TO
ESQ, 900, 900.
This enterprise is most favorably re-
ceiyed in Italian business. circles. Ma
tionalist susceptibilities were placated
through the formation or the Italian
company. In which many Italians paru-
cipated.
Tourist travel TO the northern Italian
lakes Is greatly hindered by bad roads,
wherefore private COMPANIES arc con-
Guiding negotiations with the italian
Government TO build three motor high
ways from Milan 10 Lakes Como, Mag
riore and varesi, each road about eighty
miles in length. They are expected 70
save enough In tires in three years 70
pay for the cost Of construction.
Several hundred thousand Italian
workers will participate in tho recon-
struotion of northern France. when the
French approval just granted. is put
into execution. The French agree TO ne
Rotiate for reconstruction with the Itai'
ian trade unions and cooperative socie-
ties, granting them the same status az
the French. The largest Italian labor
organizations already have drawn NJ
reconstruction programs and the labor
gangs are ready.
Concern for the effect on italian trade
makes the italian Government uneasy
over the Franco British agreement on
the advisablity OF overthrowing the III
partite agreement regarding zones OF
Influence In Asia Minor. The Italians
insist that they would welcome return
of peace in Anatolia, but not at their
expense. Their fear is that the line OF
demarcatlon which the Allies will fix ~
negotiations with the Turks will not
make allowance for the italian economic
zone, should the Greeks withdraw. The
italians point out that the British have
Constantinople. and the French hav'
syria, while the Italians. through this
ARRANGEMENT. would come out empty
handed.