Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-09-09
BY HIRAM X. MODER\yELI..

BN HIRAM X. MODERN ELL.
Special Correspondence of The star and the
Chicago Daily News. Copyright 1927.
ROME. Italy. July 30.--When Mus
solini came to loWcr in 1922 an out
standing point in his program was to
put an end to ''war socialism" and
liberate private enterprise. Now. after
nearly Eve years of the Fascist
regime, il is evident that whatever
else II Duce has done for his country
he has not restored the regime of free
private enterprise On the contrary,
nearly every economic activity in the
kingdom is prescribed or limited by
government decree or by quasi
official governmental action
Throughout Italy stores are obliged
to offer their wares at government
fixed prices. Landlords must adhere
to fixed rentals. Wages are adjudicat-
cd by a government wage court.
Farmers are held to the harvesting
aud sale of their crops even ut n loss.
Bank loans are refused or forced on
government orders. on security and
at interest rates prescribed regardless
of normal financial standards. Fac
tories are obliged to continue opera
ton and pay their workmen govern
ment-fiNed wages even though they
must ooe ate at a loss.
Retaliation of Lira.
In theory free exchange and bar
gain may continue in Italy. In prac-
tice the government may fix the price
of every sale. loan or exchange at it's
own discretion. If private property
is defined as the right of every man
to do with his property as he likes.
oh
ished in Italy
This condition is the result of the
economic crisis induced by the reval-
uation of the Ira. whereby the Ira
has been Thy contraction of currency
an? credit raised from so to the dol
lar to Is TO the dollar. This almost
doubling the value OF the national
currency had the immediate effect of
almost doubling the price of Italian
exports abroad, While permitting for
elgn products to enter Italy at much
less than prevailing Italian prices.
Prices in Italy. measured in dollars.
jumped far above the world level.
IL is said that Mussolini. exasper-
ated by the unsteadineSs of the Ital-
ian currency. sketched the decree for
feVaiuatlon in half an hour, without
even consulting his minister of
process has gone far beyond the point
which economists. both Italian and
foreign. advised. and has embarrassed
nearly every department of Italian
economic life. This correspondent
mas never heard offered an economic
reason Tor the currency reyaluation.
an economic considerations and ali
economists urged stahiIization Of
World-price level-around % ia ,be
dollar. ~ me
Stakes Personal PRESTIGE.
III would seem that MusSolini bay.
ing staked his personal nrastica ~,
TeVaIuation, is now unable TO retraat
instead OF adjusting the Ira to Italv's
economic conditions, he chose to AID.
.Just itaiys economic conditions to tho
ar.i,iclaily reValuated Ira 1t is this
cal phase. ~
Mussolini is extraordinarily sinh.
born and resourcefui. Whenever an
economic law rises up to hit him he
nlts back with a government decree
ne Is exactly but very earnestIv) in
the position or the legendary Ameri.
can congressman, who, when in.
,ofIhed that his pet measure would
pc contrary to the law of SUNNY and
demand. moved to repeal the law of
supply and demand
Industry Suffers First.
The crisis appeared first in the in.
oustflai held. Foreign products be.
gan TO Hood the home market. while
the prices of italian exports auto.
matically jumped. American sulphur
was landed in Naples al a price lower
than 1t could be produced by the mis-.
eraDly paid Sicilian labor. Italian tex.
tile mills reduced to a three or four
day week. Italian automobile and
mechanical industries were faced
with the prospect of having to close
down. when a committee of indus
| trlailsts mentioned this to MussoIjni
ne is said to have replied: "If Won
close your factories / will open nv
| jails.'D any
Italian imports jumped: despite
their enormously decreased price In
IRE, the import figures show only q
slight decrease in value. hence a great
increase in quantity. Exports have
not begun to show a sensational de.
crease because factories have been
hIlInS orders placed months ago.
But presently there appeared a far
ACKNOWLEDGEMENTS