Evening star., 1926-08-22
FASCIST ITALY HARD PRESSED
TO KEEP INDUSTRIALLY AFLOAT
Internal Party Friction
Also Said to Make
Leaders Worry.
Further U. S. Loan Held
Needed, But Last Is
Called Failure.

| N0A1Su u11u1Ce
By Gable TO The Star and New York World
| CH1ASSO. Switzerland, August 21.--
| The quiet Withdrawal last May from
the American market of the 500, Q,000.-
| 600 bankers loan to Italy, which re.
suited in a decline to SO Of stock
foated at 94l2, is not known to the
Italian public. The suppression of
/ free press has its advantages. But
the failure of this venture, started
! by J. P. Morgan and at first support
ed by | 900 American banks. has had
its effect upon the industrial situation
in Italy.
1t has made money tight. 1t has
| convinced the overhopeful captains
of industry that the United States is
not the bottomless we'll of gold into
which the Fascist government has put
| in hand to withdraw unlimited cap.
ital for Italian concerns
It's immediate effect was to send
| the Italian Confederation of Indus.
try the one and only business union
of the Italian industrialists. to Rome
! to demand credits from the Fascist
state. Otherwise factories would be
shut down and the specter of whole
| sale unemployment. without the dole.
would stalk the countryside.
Premier Is Impressed.
, This ultimatum from the big en-
ployers of labor to the supreme head
! of the Italian state is the more re-
markable because the Italian Confed-
Grafton of Industry has gone over
to Fascism in body: it's representa-
tive Signor Benni. their pariamentary
representative. has seat in the
grand Fascist council. Moreover
the confederation was Fascismo'> :
earliest supporter from the days when
red labor, literally supplied from
/ Moscow, seized the factories in Sep.
tember, 1920. Volpi has steadfastly
refused imitation to please this pow
erful class; but. after long and often
stormy meetings, Mussolini decided
that something must be done to keep
! the heavy industries" alive.
The metallurgical industries are to
receive credit to the extent of $780,
100000. or four times the amount
which Italy expected to have from
the American bankers loan. The bulk
of the money is to he spent in making
and exporting submarines. poison gas
and other munitions of war to Fin
land. Persia and Rumania. The sum
thereby allotted to Rumania has moth
i ing to do with the 100 ,000. .OOO.lire
loan which the Duce recently au-
thorized the big oil concern, "Agip,"
! to advance to that country for pros
pecting and boring purposes.
The cotton spinners, who get moth
ing, are furious. Immediately after
the metallurgical houses. foremost of
which are the Breda and Iva con-
Germs. obtained these credits the AS.
sociation of Italian Cotton Spinners
decided to cut their products by re-
! duclnG the working days to four hours
for six weeks: a the end of that time
the situation will be examined and
If needful, further reductions will be
made.
Workers Are Dismayed.
Their decision has struck dismay in
the hearts of their workers. already
hard pressed by soaring food prices
and low salaries. The Fascist press
has not even noticed the decision; but
business men think it bad sign of
the times, because the cotton textile
industry is the most developed of all.
Industrial shares continue to slump;
yet large sums are being spent on
public works, some needed. others not.
Official eXhorta tions to tighten purse
strings and only buy homemade goods
carry little weight when people see
millions being spent on the so-called
disqualification" Of Rome and other
cities, the isolation of ancient monu-
ments by pulling down houses. the
plan for digging up Roman emperors'
ships from the little Lake of Nemi,
near Rome. and kindred schemes.
When Mussolini visited Tunis la st
May the street decorations and illumi-
nations alone cost nearly 81 .000. 900.
The city had to raise a special loan
to pay for the three days visit. In
nine months more than SIG 5000. 900
have been spent for public works in
the south of Italy, but little result is
TO be seen. Houses. ports. new minis
tries and public offices have absorbed
sums that richer countries cannot af-
ford TO spend.
Fascist Affairs Troubled.
But this is not the only cause for
hostile. though we'll concealed criti-
cism. The internal affairs of the Fas
cist party have taken a turn for the
worse ever since Farinacci. beloved of
the rank and file. was forced to re-
sign from his post of secretary gen
eral F'ederZoni, minister of the in
terror. had planned this for months.
The two men hate each other SO cor.
daily that their attitude during pub
lie ceremonies became standing
joke
F'arinacci is a laundering, uncul-
tured, uneducated. devoted Fascist
ex-Mason. anti-clerical, but he has the
gift Of attracting the devotion of the
masses of Fascists of the lower classes
FederZoni, highly educated. fastidious
and subtle. had many a chance of
friction with Farinacci. who gave
counter orders to local projects. who
are under Federzoni's control-at
least nominally. The battle was long.
but the subtle FederZoM won and
Farinacci had to resign his secretary
ship.
He raised four provinces in the We.
netian and F'riulian districts against
their prefects-that is. against FEEDER,
Zoni, And it required all MusSolini's s
prestige to get the Cremona despot.
as he is called. out Of the revolted