Evening star., 1932-03-06
ITALY FREE OF SOCIAL UNREST,
US. TRADE OFFICIAL REPORTS
Miss Elizabeth Humes Gives
Authentic Closeup of
Conditions There.
Declares italians Like Us and
Like to Trade With Amer
lean Firms.

Italy has safely weathered the hard
est year yet experienced under Fascist
rule; trade has languished, particularly
with the United States, and is further
hit by recently promulgated import
tariffs, made by stroke of the Mus
solini pen, but the italian populace are
patient and Italy unlike most of the
rest of Europe is experiencing little or
no social unrest. This is the picture
painted by the Department of Com
merce trade commissioner at Rome,
Miss Elisabeth Humes, reporting in per-
son to her superiors here, after a three
year absence at her foreign post.
This capable and experienced young
business woman is one of three feminine
members of the Department of Com
merce foreign staff. They outrank any
women in the foreign service of the
United States. In addition to Miss
Humes, they are Miss A. Viola Smith,
the American trade commissioner at
Shanghai, China-and still at her post
there despite the shot and shell OF the
japanese invasion, and Mss Gudrm
Carlson. our trade commissioner at Oslo,
Norway.
A Closeup Of Italy.
Miss Humes with the Italian business
and political situation at her finger tips
has come home to get a closeup Of
business conditions in this country and
to do some missionary work with
American business interests to promote
foreign trade with Italy. The United
States formerly in first place in the ma
tions Of the outside world as a pur-
veyor of goods to Italy has yielded her
lead to Germany, and though trade be-
tween Italy and the Soviet is increas-
ing, our trade commissioner still has
a message of cheer for the American
business men. She finds little streaks
of silver in the business clouds.
I'VE have just seen the close OF prob
ably the hardest year Italy has yet had
to weather in the 10 years of Fascist
rule" said Miss Humes in an interview
here. Unemployment has reached
nearly million, increasing 65 per cent
during the year This figure is, how
ever, deceptive as an index OF indus
trial and commercial activity, as pro-
duction has not declined proportion
ately. About one-third Of the unem-
| ployed are receiving insurance. The
government employs large numbers on
public works and is applying Winter
program for absorbing many thousands
more on projects involving $45,oOO,O00
! expenditure.
Finances Running Behind.
Government finances are running
steadily behind, but, at that, no worse
than in many other countries and con-
slderably better than most. Last fiscal
/ year showed a deficit of just under a
billion lire. The current fiscal year was
! budgeted for half billion deficit and
! after the first five months showed well
| over billion. Customs receipts and
all tax returns, except the turnover taX,
which was raised from l per cent TO
| 212 per cent in the Spring, have been
far behind expectations
Reports on industrial activity during
the year show marked reduction in all
major industries with the exception of
shpbu1ding and rayon. Steel produc-
tlon Is down 20 per cent, cement IL
per cent, with all textiles, with the ex-
ceptlon OF rayon, working from only &c
! TO 70 per cent of normal The auto
motive industry seems to be one Of the
hardest hit Of all, Even with the mar
ket closed to foreign cars by $50 per
cent duty, the domestic output is kept
| down to the minimum.
BY the express will Of the head Of
the government, the lire has been
maintained at or near par. This has
peen mace possible by Italy'S new for
elgn ooHgations, the improving balance
/ OF trade and the actual physical scar
city OF the Ira (only $4,000 900, 900 in
clrculation)-all of which has made
speculation difficult.
! When for fiscal or protective pur-
poses, 1t Is considered expedient to raise
import duties. this can be done over
nlgnt by a stroke of the pen. In Sep
temoer general Is per cent ad valorem
duty was applied for fiscal purposes,
without warning, to all items, with
| leW exceptions, and during the year
the specific duty on a number of items,
notably radio. nitrate fertilizers. grain,
nour, etc, was raised to prohibltiVe
levels. 1t is still too early to judge just
what the effect of the Is per cent ad
valorem duty will be.
General Revision of Treaties.
'The Government is following up its
announced policy Of a general revision
| OF commercial treaties, favoring those
countries that buy from Italy, and ne
gotiations for new agreements with
France, Germany and Spain are now
under way. In this connection, 1t Is
interesting to note that while the agree
ment with Russia resulted in Sc per
cent increase in exports to Russia dur
ing the flrst nine months Of 1881, the
long credits are said to be proving Dur
densome to Italian suppliers in spite
of the guarantee of the italian Govern
ment of their ultimate payment.
Italys foreign trade balance mas
actually improved under the depres-
sion; Exports for the last three months
OF the year exceeded imports, and the
unfaVorable balance for the year Is
only q billion and half as compared
with fur and hn1f hillinfa for lQ3U.