Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-03-20
Everybody's
Business
Reconstruction Finance
CORPORATION Is Similar to
Italian Governr1 emit
Agency.
BY DIR. MAX WINKLER.

Special Dispatch to The Star.
NEW YORK, March 19-The Recon-
struction Finance Corporation recently
organized in the United States, on care
full examination, would appear to have
been patterned after somewhat similar
organization in Italy.
1t is curious to find that the name of
the man heading the enterprise is the
same in each case Eugene Meyer is
charged with guiding the destinies OF
the American institution, while Teodoro
Mayer heads the Italian corporation.
The Mayer creation preceded that OF
the American 1t was organized in
pursuance of a decree promulgated by
the italian Cabinet Council. 1t is known
as the Institute Mobiliare Italiano and
has an authorized capitalization OF
500, 100000 lire, equivalent to about
SIG, 100000.
One half of the capital is to be sub
scribed by the government-owned Casa
Depositi ct Prestiti. and the other hall
by a number Of financial institutions
approved by the minister OF f1nance.
Powers of Institute.
The institute is authorized to acquire
shares in industrial enterprises and
issue against them its own securities,
both stocks and bonds. The service on
the latter will be secured by charge
ON the income received from the various
holdings. or may obtain various otner
forms of guarantees including one from
the Italian government. The amount
of securities to be issued Is not to ex-
coed 10 times the issued capital OF the
institute.
The MANAGEMENT is vested in
board of is members. The president
and vice president are appointed by
royal decree proposed by the prime
minister in agreement with the hnance
minister and the minister OF corpora
tions. OF the other members, two are
appointed by the minister OF flnance,
one by the corporations minister ana
the remaining 10 by the groups SUD-
scribing to the capital.
II is expected confidently that the
effect upon the public will be favora-
LEADING resumption of public
participation on large scale IN the
securities markets, which have been
depressed largely on account OF bear
ish sentiment and speculation Tor the
decline. The new institute completes
the task of supplying all the funds re-
auired in connection with the changes
which occurred recently in the status
of the Banca Commercials Italiana.
Senator Mayer, who as chairman OF
the Budget Committee will head the
institute, is considered one OF the great
financial experts of Italy.
He is a native of Trieste, leading sea-
port on the Adriatic. and is response
BILE. among others, for the development
of the Assicurazioni General, one of
the country's leading insurance COM
panies. During the postwar period,
Senator Mayer played an important
part in the economic and financial re-
Mobilization of the devastated area, sur
rounding the Italian battleflelds His
work was characterized by ext~aordi-
nary insight and vigor, to which, in
large measure, may be attributed the
satisfactory results he has achieved.
Economic Difficulties.
Due to the reputation Signor Mayer
enjoys as statesman, economist ana
political leader, Signor Mussolini in
trusted him with the management OF
an enterprise designed to speed the
Kingdoms economic recovery largely
through the extension of financial aid
to industrial and commercial institu-
lions. 1t is confidently expected, that
Signor Mayer will fully justify the
confidence the country has placed. in
him.
Nevertheless, in Italy, as elsewhere,
the economic difficulties are of fun
damental character. InstrumentalitieS
created for the purpose of curing eco
nomic ailments, may provide temporary
relief. They do not afford perma-
nent solution, which, after all, is what
Italy desires. Improvement in secu-
rites prices, which may follow the &C
tivities of the institute, will prove only
of transitory nature. In order to be
genuine and lasting. fundamentals will
have to improve.
Thus far there is relatively little evil
dence of such developments IN the
Appenine kingdom. Italy awaits the
adjustment of the major problem of
Europe, which has become world prob
lem Reference is made to repara-
tions-the heritage from the great
catacylsm.
1t is upon the solution of this prob
lem that the salvation of the world de-
ponds. It Is sincerely hoped that the
Lausanne Conference, scheduled to con-
vene in June, will provide such solution.
(Copyright, 1892. by the North American
Newspaper Alliance, Incl