Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-09
ITALY DECLARED OPTIMISTIC
DESPITE FINANCIAL SETBACKS
Chamber Of Commerce Official Says Coun-
try Is Showing High Morale-Im-
proved Conditions Looked For.

ing the banking facilities available for
refunding loans at lower rates of in
terest, but this can only serve as D
palliative and cannot remove the root
Of the evil'
The drastic cut IN the salaries and
wages of all government servants. he
points out. was intended, not only TO
afford relief from a difficult budgetary
situation, but also to set an example
for private employers. 1t has been fol-
lowed pretty generally throughout the
country. he adds, by reductions in the
compensation of all classes Of workers,
from managers of companies to manual
and agricultural laborers.
Despite the earnest efforts that have
been made to reduce production costs
IN other directions" the report con-
tinues, they are still too high and must
be brought down to lower level If a
revival of activity is to take place.
Where directors have accepted cuts in
their emoluments running as high as
25 per cent, labor has been asked TO
give up about 10 per cent on the aver
age and appears to have acQuiesced
with better grace than might have been
expected. AS the crisis continued and
became more severe the mass of the
people seems to have learned that it
Is better to work for smaller wages than
not at all.
Parallel with the movement for
lower salaries and wages there was
launched in November, under the aus
pices Of the Government, campaign
for lower prices, which is being pushed
with extreme vigor. Obviously, the two
go together, and if the cost of living
can really be brought down II will be
the most effective means Of softening
the feelings Of those who have been
called upon TO sacrifice part OF their
income.
Price Spread Widens.
"In Italy, as elsewhere, the spread
between the wholesale prices and re-
tail prices has been widening, and the
rapid fall in the former has not been
reflected proportionally in the latter.
From the available data it appears that
wholesale prices declined by at least
20 per cent during 1880, but that the
decrease in retail prices was only about
7I2 per cent. This is a situation that
evidently deserved attention. and the
Italian regime has attacked it with
characteristic energy. A general reduc-
ton of 10 per cent in rents has taken
place ana in many cases on the initia-
tive Of the landlord, without waiting
for a request from the tenant. Public
utilities have cut their rate by 10 per
cent. Bread, macaroni, those staples in
the diet of the italian masses, are
cheaper; clothing and shoes now cost
less, and so on down the line.
TO what conclusions does study OF
Italy's present situation lead? Perhaps
the most urgent problem at this time
is that of maintaining the stability OF
the budget. The weight Of taxation is
already so heavy that It is seriously
hampering business and imposing no
light sacrffice on individuals, but not
withstanding it has proved insufficient
to cover expenditures. Furthermore, to
the amount collected by the Treasury
must be added the numerous contribu-
tons that go to support the network
of organizations making up the So
called cooperative" state, If the total
cost of government is to be arrived at.
Italy is organized and reorganized down
to the last person, and while this makes
it possible for the regime TO exert its
authority and make felt its policies IN
very effective fashion, it also costs
great deal of money. The financial
problem does not however, appear to
be sufficiently grave to constitute real
danger and should be relieved, if not
definitely solved, by the strong meas
ures that have been taken. If the fight
against high prices can be won sdch
discomfort as has been engendered by
wage and salary reductions should tend
to disappear and in general the mass Of
the Italian people has shown large
measure of patience and has adapted
itself to unpleasant, but necessary,
changes with a minimum of friction"