Evening star., 1931-12-27
ITALIAN BUSINESS
IN STEADY TREND
Credit Deflation and Variety
of Industry Have Aided
Nation.
Special Gable to The Star.

ROME, december 26.-1taly has nee.
essarily been affected in much the same
manner as other countries by the world.
wide economic depression. but she ha.
met her financial and economic diff.
cultles IN an imprGssively businesslike
fashion. During the last four month.
OF 1881, Wnen many European coun-
tries were forced off the gold standard
and some of them were even on the
verge OF bankruptcy, Italy, at least out
WardIy, remained steady and self-con.
ndent, opposing resistance to the
Crisis which surpassed all expectations
.Ihe value and quotation of the lira
remained practically unchanged, the
government being determined to de.
1end II TO the utmost limit. The bourse.
remained open as usual-although the
volume OF business transacted was al.
most negligible-and there was M
withdrawal of foreign capital or any.
tnlng IKE panic. This was largely due
TO the financial policy persistently pur.
sued by the Fascist government in re.
cent years, which consists in the defla.
tion OF credit and currency and on The
avoidance Of recourse to foreign loan:
ard short-dated credits.
Productions Varied.
The comparatively less gravity Of The
crisis iii Italy than elsewhere was ais,
due to her less advanced economic
construction, the greater variety il
production and the lower importanc,
that trades like metals, coal and othel
fundamental industries hold in tht
general economy of the country. Fur
ther, the Italian economic market ma
been rather remote for several year,
past from the intense activity which
was noted in other countries.
Government finances could not escap,
the unfavorable influence of the de
preston, especially in view of the ex
tenslve program of public works which
was undertaken as the most effective
means of coping with unemployment
The economies effected in all depart
ments were insufficient to Offset tn,
additional cost of relief works, and tn,
collection of taxes was rendered nor
difficult by the reduction in the earn
ings of every class of taxpayer.
Budget Deficit Shown.
Consequently the financial year 1880
81, which ended on June 20, 1881
closed with budget deficit Of 895,000
900 lire, against an estimated surplus o
pit 600, 900 lire and a surplus of ISL,
600. 600 lire in the preceding flnancla
wear. The revenue amounted altogethe
to 20,Oe3 5000 lire, with diminutior
of l,444 100000 in respect to estimated
revenue. and the actual expenditure II
&c. .979 100000 lire. being a dlmlnutlor
of 218,O0O000 with respect to esti
mated expenditure. The estimates TO
the current fiscal year, which begal
july !, 1881, show revenue amounting
to 20,l62 100000 lire, against an ex
penditure of 2l088,O 100000 lire, or
defcit of 926,o0O.000 lire. If to thi
deficit we're added the expected defici
on movement of capital the total DEF
icit would be LAO, 100000 lire.
This deficit. however, has alread
been slightly surpassed in the first fou
months of the financial year, July-Oc
tober. The budget deficit now amount
to 1857. 100000 lire. against deficit o
728 600 coo in the corresponding perlo
of the preceding fiscal year. TIL
growing budget deficit has been met b
levying for revenue purposs an ad va
lcrum customs surcharge of Is per cen
on all goods entering Italy. The dut
on coal is 10 per cent and dlfferen
rates have been fixed for oil and gaso
line. while cereals and such goods as ar
entitled to special treatment on &C
count of existing trade agreements ar
exempt. The government expects tn
new tariff to yield some 800000,000 lir
year.
Unfavorable Balance Cut.
With regard to the balance of visibl
trade. the official returns for the frs
10 months cf 1881 show that import
decreased from 14432 100000 lire il
1880 to 1894 100000, while exports de
creased from 10.108 100000 to 1926,
900 900, so that the import excess de
creased from 4,324 000,0 to l,658000,
900 lire The adverse trade balance
still sufficiently large. but the impor
tant point is that it shows substantial
decrease as compared with all othe
postwar years. AS against 5.l20000,
200 deficit for 1880. the import exces
in 1929 was 6.429.OOO,O00. for 1923 j
was 1851 100000. for 1927 it was 4,
100 100000 The import surplus il
1925 was 7.925,o0O. 900, in 1921 it wa
8.047 100000 In the pre-war year l9l,
it stood at 1904 100000 lire. The i'm
provement in this years trade balanc
is largely due to decrease in imports
but exports have diminished as well
1t Is significant that during Septembe
and october exports slightly exceeded
imports.
Business in all its branches was dul
throughout the whole year. The hom
market was depressed and the Stool
Exchange reflected the prevailing lacl
of confidence. The available statistic
all tell the same tale of a hard-fough
battle against the prevailing economi
depression. The output of pig iron ant
steel for the first 10 months of 1913
amounted, respectively. to 425,8l2 ant
l,229,932 tons, as against 448,715 an
l,523,997 tons in the corresponding pe
riod of 1880. The National Associa
ton of Metal Industries reports for tn
first 10 months of 1881 an output o
28184 tons of iron alloys, against 80,
271 tons in the corresponding period O
1890: 20198 tons of lead, against 10,
948 tons: 1873 tons of zinc. agains
! 1882 tons; 998 tons of mercury
against 1900 tons.
(Copyrieht, 1917