Evening star., 1925-11-13
italy Settles.

Negotiations for the funding of
Italy's war debt TO the United States
have been successfully completed
The congratulations of both nations
should so to the commissioners rep
resenting the United States and Italy.
Their task was no mean one. Len
tence toward Italy. whose finances
admittedly have been in bad situa-
tion, and justice to the United States,
whose peoples money is involved,
were prime essentials. In the settle
ment announced yesterday both of
these elements have been given con
Sideration.
Italy is the third largest war debtor
of the United States, only the debts
of Great Britain and France exceed
ing hers. The principal of the Italian
debt. the amount actually advanced
to Italy, is $1,64S, goo, 900. With in
terest to date this debt has become
S2138, 600, 600. Under the terms of
the debt settlement now adopted Italy
is to pay to the United States a total
of s., ,407. 100000 over a period of six
t3 two years.
Concessions have been made to
italy in the matter of early payments,
which are to be small, and in the
matter of interest, which Will amount
to about one-half of one per cent.
For the first years Italy will pay to
the United States 5000 900 annually.
Thereafter the payments will be in
creased until in the last seven years
of the debt settlement period Italy
will pay $4,000. 600 each year.
Italy's capacity to pay has been
the guiding factor in the settlement
The American War Debt Commission
has been fully informed in this re-
gard. From the first it has been un-
derstood that the United States would
deal as fairly and as leniently as pos
sible with all its debtors with whom
it was associated during the World
War Such is the treatment that has
been accorded to Great Britain. to
Belgium, on down the line until Italy
has been reached. If the terms to
Italy are easier than the terms to
other debtor nations, it is because of
the understanding both here and
abroad that Italys capacity to pay
the huge debt is today not so great.
Doubtless the proposals made by this
country to Italy and to France will
be the subject Of comparison, and II
will be found that the terms offered
Italy were more lenient than those
onered France. But the capacity of
France and Italy to meet these obli-
cations is vastly different France
has become the possessor of rich re
sources and territory, of coal and
iron, as a result of the Versailles
treaty, which Italy has not Frances
repara tons from Germany also are
greatly in excess of those which will
be paid to Italy.
The settlement negotiated with Italy
must still be ratified by the Italian
government and by the Congress of
the United States. A measure of
criticism may be expected before the
ratification is completed, but conf
dent prediction is made that both will
accept the terms now laid down.
The funding of Italys war debt to
the United States will be followed
by similar arrangement of Italy's
debt to Great Britain, and it is ex-
pected by further negotia tions of the
French debt to the United States.
Slowly but surely the tangIe of world
finances growing out of the war and
the huge international debts and
reparations is being Strengthened out.
The step taken here by the Italian
and American War Debt Commissions
IS by no means one of the least
toward this desired end. Great Brit
ain several years ago set her Euro
pean allies an example. Her debt to
the United States was funded. Her
credit has scared. Her financial sta
bihty has increased. These other ma
tons, as they fund their debts. NAV
look forward also to greater credit
and greater stability
Italy came to the United States not
as bargainer but rather as a debtor
acknowledging her obligation and Of
fertng to do her utmost to settle 1t.
Her attitude from the first gave hone
that settlement would be reached