Evening star., 1925-09-06
ITALY SEES NEW
ECONOMIC BIRTH
Use of American Capital for
improvements Would Put
Country on New Basis.
BY HIRAM Il. MODERWELL.
(By Radio to the Star and the Chicago
Daily NeWgt


ROME, September 5.-American
capital will create an Italian eco
nomic renaissan nee as soon as the debt
question is settled, according TO the
belief firmly held here This expecta-
tion has caused a striking change in
the last six weeks in the Italian at
titude toward paying America.
Whereas formerl~ large section Of
the Italian press fatty denied the
moral obligation, as well as the ma
terial possibility of paying anything,
today nearly every one acknowledges
the necessity for reaching a mutu-
ally satisfactory settlement. The gov
ernment, which has stoutly resisted
reputation, proves the seriousness OF
its Intention by the appointment OF
Finance Minister Nolpi to head the
debt delegation to America with Dr.
Alberti of the Bank CreditO Italian OF
Milan. who has been special commits
sioner collecting data as TO how the
debt might be paid.
Fletcher Returning.
Ambassador Fletcher is returning TO
America about the middle of Septem-
Der on a vacation, and will doubtless
be in Washington during the debt
conference in October and November
Several recent semi-official hints con
cerning Cooperation of American
capital with Italy have aroused the
belief that American loans already are
an accomplished fact. The Bourse for
two days recently was convinced that
~. p. Morgan & Company had loaned
upwards of 500, 900 900. 1t is certain
that such loans have been discussed
recently with a Morgan representa-
tive. as we'll as with a, representative
of the National City Bank. Whether
the loans would go directly TO the
Government or to prominent banks ol
a special consortium, their ultimate
purpose is investment in Italian pro
ductive and public works rather than
support of Government finance. which
now is in fairly satisfactory shape.
Numerous efforts to enlist American
capital in the aid of Italian enter
prises in the past three years have
failed because of the jealousy of rival
Italian interests. or fear that Ameri-
cans would obtain possession of es-
sential Italian industries Apparently
these difficulties will be avoided by
loaning the money TO the government
| or to consortium under government
enterprises, the government hYpothe
eating their bonds and shares a S secur
ity.
Program Long Needed.
The Italian government long has
felt the necessity of undertaking a
heroic program of public works. but
has not dared increase the burdens OF
the taxpayers, who already. according
to Italian statistics nav as heavy tal
as any people in the world, in proper
tion TO national income. 1t is hoped
the difficulty will be solved when q
debt settlement permits American
capital to flow into Italy to the tune
! of hundreds of millions of dollars.
Then, according to Italian hopes
vast districts where men spend thei
| lives, from babyhoOd to the grave
quiVering with chronic malaria Will b'
reclaimed: enormous marshes Will b'
drained and made capable of helping
feed the ever-increasing population
intensive agriculture and scientific
fertilizfng will reinvigorate soil ex
hausted by 30 centuries of farming
loans will bring civilization to innum
cradle communities now virtually tso
lated: Italian ports will be enlarged
and equipped with modern facilities
making Italy a great commercial de
pot in the highway TO the Near East
hydroelectric plants viii be multiplied
furnishing power and light to rail
ways factories. homes and farms or
two-thirds of the peninsula. and Italy
relieved of the necessity of importing
foreign coal and wheat. will become
truly independent for the first time IL
centuries.
Copyright. 1925. by Chicago Daily News Co !