Evening star., 1925-05-21
Mussolini on Italy's Debt.

Premier Mussolini, in a speech be-
fore the Italian Senate, discusses the
question of Italys war debts, which
amount to one hundred billion lire.
One-half of this debt is owing to the
United States, amounting to s2,13S,-
543,S52. Mussolini said that while
the United States has taken no
official steps to open the debt ques-
tion-which is surprising in view of
the notice sent out few days ago
from Washington calling upon the
debtor nations to consider ways and
means of acknowledgements
were to be taken into consideration.
He then proceeded to enter a plea for
leniency. saying:
The Italian government recognizes
it's debts and has declared that. COM
patible with its present and future
economic and financial situation. II
will face its debts. But l believe that
the Senate will agree when l say that,
considering Italy's blood sacrifices in
the war and the volume of our riches
much inferior to that Of France, we
should have a place in the category
of privileged nations. If it is desired
that we pay the request should be
conditioned upon our ability TO pay.
Just as an arrangement of leniency
has been made with the conquered, so
should it be made equally with the
conquerors.
Assuredly the United States has
been lenient to its war debtors. 1t
has applied no pressure upon them.
1t is not applying pressure now, but
is simply reminding them that, save
in the case of Great Britain, none of
them has made a move toward settle
Italian Senate Premier Mussolini
is G. arly laying a foundation for a
plea for easy treatment when the time
comes for a practical "conve sation"
on the subject Of debt adjustment
The United States has no expecta-
tion that the nations now in its debt
for great sums advanced during the
war will pay at the expense of their
own fiscal stability. 1t has no desire
to unsettle their financial foundations.
1t does not look for the impossible
But it does look for a definite arrange
ment for payment whatever the length
of time that may be required for final
settlement.
Yesterday the British pound sterling
sold practically at par. within one
eighth of cent of dollar parity. That
the recovery Of British currency has
been largely due to the arrangement
for a debt-funding cannot be ques-
toned. So long as the continental
debtor nations neglect to effect plan
of settlement their currencies will be
at a discount. There can be no
stabilization as long as these heavy
liabilities remain indeterminate and
without any move whatever for set
tlement.
A moratorium has been granted the
debtor nations by the United States
already. Indefinite extension is not to
be expected and is not to be desired
for the sake Of the debtors themselves.
Postponement of discussion adds to
the financial liabilities and weakens
the moral position Of the powers that
SO freely borrowed American dollars
in time of need, with the full ex-
pectation at that time of ultimate
| payment.
There is no suggestion in the Amer
lean official position of a doubt of
the intention of the debtor nations to
discharge their debts. No reflection
/ is cast upon their good faith. In ask
ing for a statement of intention the
United States simply brings the mat
ter into the realm of discussion on a
practical basis.