Evening star., 1926-03-27

The Senate has received much en-
| jlightenment in the last two days IN
connection with the debate on the war
| debt settlement, regarding the imam
cial and economic conditions in Italy.
The speech of Senator Smoot, with
| It's exhaustive tables of statistics
whose full significance cannot be
grasped without study, brought out
surprising facts-such as that the
Italians are now rivaling the Orientals
! in their low standard of living, indi'
Gated bv the total cost in some re-
gions of only IL cents a day per
capita. for subsistence. Then comes
| the high tax that Italians are paying.
as compared with the taxes in other
countries. For comparison of income
taxes, it is noted that an income OF
| $50 a week in the United States eS-
capes all income tax, but II Such. an
income We're imaginable in Italy 1t
would be taxed $312.50 year; in Eng
land, $3.50; in France, $149.76; in de-
feated Germany, SOS.
Mussolini has reduced the military
budget to a lower figure than it had
reached since the two years before the
war. In 1912 the military eXpendi-
lures amounted to $202 2,071,000; in
1918, S17O,612 900; under Mussolini, in
1928, it was only S151 $4,000, and in
| 1924, S161, ,865, 900. Last year it was no
higher, nor is it running higher now
in spite of the recent threats of war to
protect the Tyrol. Prior to the war
Il912'13) the military expenses
amounted to 38 per cent of total eX-
penditures; under Mussolini, IA to II
per cent.
While II cents a day for food is
not the average, but the extreme or
low cost, the statistics disclose, &C
cording to Senator Smoot, The
skilled worker in the north of Italy
must live on, roughly, $1.25 day
and there are many Italians in the
south of Italy living on 20 to 20
cents a day" oo>
Yet, that is the people (40,00O,OOO)
now required to pay taxes, Whlch VII
pay the war debt, not only TO the
United States, but also to Great Brit
ain within 62 years. The debt to
Great Britain is 25 per cent more
than the S2,042, 100000 due the United
| States.
Secretary Mellon, in letter to
Senator Smoot, has stated that since
| Great Britain demands equivalent
navmentS on her claim whenever
Italy pays the United States, ii we
demanded the same terms of settle
ment as we gave to Great Britain, II
would require Italy to add $160,OO0,-
| 600 annually to her present tax bur-
den. Mr. Mellon adds:
1.-THE present total of all Italian
| taxes is about $3.50, 100000 a year.
| The present total of all American
taxes is about $7,500,OO0,oO0 year
| Adding $160,000000 to the Italian
| hn "a
| 81 ,4OO. .00O, 900 to taxation in America
The Italian people, how
ever, are now SO heavily taxed IN
proportion to the national income
| that this additional tax would have
| forced them below the level at Whlch
! life can be supported. Such pay
ments today are impossible. we
| would have made a China OF Italy
Italy could not have paid
and such an insistence would nave
meant only that the United states
would have received nothing.
| "The British American settlement
calls for an average annual paymen!
equivalent to as per cent of the total
British budget of expenditures, the
Belgian settlement 3.5 per cent and
| the Italian settlement to America
| alone 5S,tI per cent, and to America
| and .GreAt Britain 11.47 per cent OF
Italyss total budget expenditures
III
| Europe is our largest customer
! Unless the finances of Europe can be
restored her currency placed on a
sound basis, and her people able .to
earn and to spend, this country will
not be able to dispose of it's surplus
of food material and goods. Our ex-
ports to Belgium last year were
$1l4,o00,00Q and imports $66,Qo0,0o