Evening star., 1925-11-03


authority to settle the war debt of our
two nations.
I'VE recognize fully Italy's efforts
during and since the war II is espe-
cially in the after-war period that
Italy's constructive ability has drawn
10 her the attention of the world
Sound policies; under the forceful di.
rectiOn of Premier Mussolini have rad
ically reduced government expendi-
lures, increased revenue and balanced
italy's budget. This is Il governmental
achievement worthy Of highesi praise.
We know. too, something Of the diff
cultleS Italy must face UWin- TO nat
ural conditions and the heavy fiscal
burden imposed bv the war. We be-
l;eVe, however, that with Il continual
'lon OF your present political and eco
nomic stability Italy is assured it's po-
Stion as great nation
In negotiating with YOU "A settle
'1cnt of the debt this commission win
spply the principle Of It;tly's capacity
90 pay and will give due weight to
The special conditions existing IN your
situation. we will. ! am sure. come
to terms which will he within TtaIy's
power 20 fultH without undue pres
sure upon her or her people and
which VIII also recognize the sacri-
Hces made by the American taxpayer
in the advances of our Treasury We
TWO nations desire "a just. settlement
which viii insure economic peace"
Sees Debt of Honor.
Count Nolpi mead Of the Italian
commission, in conveying TO the Amer
."an commission his thanks. laid stress
upon In" help given Italy by America
IN the war and the burden of that war
upon Italy and her people. He then
said
'When peace. which America. with
such great authority, helps protect all
over the world, Was assured Itaiy
notwithstanding her extremely diff
cult financial situation, offered to set
tie her war debt with the United
states, within the limits of her capac-
tty to pay.
This acknowledgment of her debt
constituted an obligation of honor
which Italy intended and intends 10
ahsolTc, and 10 this end she resoIN ed
that the head of the delegation sent to
the United states should, aside from
my modest self. be her own minister
of finance, in order to add to the
solemnity of her pledge.
Upon starting he present ucgutia-
tion, Italy accepts the principle laid
down by the American Debt Commits
sion that each debtor nation shall be
pay its debt within its particular ca
paCity 70 pay.
In determining capacity of n ma
ton the report Of the Dawes commits
sion has shown that there are two
principal elements-tirst, the capacity
TO collect in a country from it's people
the necessary money, and, second the
transfer of the money so collected in
the national currency to the creditor
country in the currency Of the latter.
Made Heavy Sacrifices.
''In order to show to the American
commission Italy's capacity to pay in
these two regards, there has been pre-
pared and submitted to the American
commission a Recommendation of "a
monographs, composed of material
gathered along scientific lines by the
most prominent Italian statisticians
and economists. These monographs
show:
"Q) Italy's burden in the war was
equal to 80 per cent of her total ma
tional wealth. She lost 652 900 men
and 458.O00 of her youths were dis
abled.
"(2) Italy received no valuable COL
onies out of the war.
"(3) Italy's share of reparations II
10 per cent, as against 81 per cent al.