The New York herald., 1922-01-02
ITALY'S BANK CRASH
POSTWAR INCIDENT
An Isolated Case and Gives No
Cause for Alarm, Says
SOleri.
OTHER BANKS THRIVE
Nations Finances Generally
Are Sound, Minister
Asserts.
OTHER BANKS THRIVE

ROME, Jan. ] (Associated Press) -
An optimistic account Of TtaIy's finan-
cial position was given in an interview
Questioned by the Associated Press cor
respondent as to the possible effect OF
inc closing Of the Banca Italiana d
Sconto
With regard to the bank The courts
ave defined the powers of the receivers
Who are to proceed with the liquidation
OF tie affairs OF the institution by list
me its assets and are To avoid unneces-
saiV expense in paying the personnel
engaged In the work. The receivers are
empowered to make a complete recon-
structicn OF the affairs Of the concern.
he court also ordered that funds be-
longinS to communes, provinces and
charities on c.erosit IN the bank shall be
l"astored TO them.
This present situation is one of the
aost-war effects" said NJ. Soleri. "It is
llhe collapse of one OF those colossal in
stitutions which We're necessary during
the war--the superstructure based upon
the industries of war which were pre-
vented from converting themselves read
~ to peace basis because Of the slow
rehabilitation of Europe and because of
me crippled condition Of industry EVERY
where.
Other Banks Prosper.
"Our normal peace time financial in
s'ltutions continue to thrive the other
banks are going ahead. in strong inan-
cal position. The Banca Italiana di
Seonto depended for its strength on the
prosperity of certain manufacturers. and
~ the failure Of these it was bound to
suffer while the others. depending in
q greater measure on the fields of agri-
culture, remain untouched by the indus
rial crises which sweep the world from
time to time.
You can see this situation is isola-
ted because the confidence of the public
IN other institutions remains mistaken.
I'VE still remain firm in our estimate
that Italy's deficit for the present fiscal
Eear will be reduced to 5000. 900. 900 lire,
the present furry having given no cause
for us 20 change that figure. What nat
ural richness there is in Italy will still
fructify: our soil will still make us re-
turns it constitutes our greatest re-
rource And we have reduced expendi-
lures TO the lowest possible limit.
National Debt Unified.
"our national debt has all bees uni
fed. as we are not setting aside a
meeting the whole. We have estimated
our share of the German indemnity at
a low figure in order to be on the
safe side. We are receiving some coal
from the Germans. which helps a bit.
Though our foreign trade shows an
nnfavorablc balance, this is more than
offset by other income which remains
unseen. For instance. elngrant remit
tances yield us more than i,00 100000
lire annually Then there are the tour
ists and other channels by which money
is brought into the country. thus OFF,
setting the unfavorable trade figures.
thus we are not in a bad way in that
respect.
"You noticed that Italian exchange
suffered just a little and that only on
the first announcement of the Sconto
banks crisis. On the whole, one can
take all these evidences and soon see
that the present crisis is isolated to the
Sconto bank. There is no panic and no
need for alarm"
LoNpoS. Jan. Ia dispatch to the
london Times from Rome. dated Satur-