Evening star., 1939-09-29
Italy, Opposed 10 u. 5,
Proposal, Trades on
Cash-Carry Basis
Laws Of Economic
Necessity Force Nation
To Do Business
. BY JOHN T. WHITAKER.

BY JOHN T. WHITAKER.
chicaso Daily News Foreisn Correspondent
ROME, Sept. 2o.-While declaim-
ing against President Roosevelt's
proposal to substitute cash-and-
carry for the arms embargo, Italy is
nevertheless doing business sub
stantially on cash and carry basis,
forced to it by the ineluctable laws
of economic necessity.
Italy is country poor in raw
materials and rich in good me-
chanics, with the sertngth and
weaknesses resulting from this sit
uation. High Italian diplomatic
sources say Italy is in a position
wherein nobody can force her to
fight. This is quite true. But it is
also position where the needs of
A 1000 900 people force her to trade,
while the lack Of international credit
and resources demands cash or
barter.
|
Before the outbreak of the war
trade with hard-money countries
was done on a restricted cash basis,
limited by the necessity of Italys
not spending more than she re-
ceived. Her trade with rubber
money countries was on bookkeep-
ing or barter basis which was
strictly proportioned according to
the amount of goods Italy needed
which these countries could send to
offset their purchases. These con-
ditions still hold. Thus, trade with
Germany is conditioned on the fact
that Germany owes Italy an esti-
mated $25,O0o,OOO already.
The payof should have been in
coal and machinery. The decreased
output of the Saar mines, owing to
the approach of the French forces,
has been Offset by the acquisition
OF the Polish mines in Silesia, so
Germanys coal exports may con-
tlnue unless Germany's needs are in
creased. But exports of machinery
are practically impossible. In fact,
hardly anything has come over the
Brenner border In the last three
weeks. Hence, normal trade from
Italy to Germany will be pared to
essentials, which, these days, means
materlel and munitions-mercury
sulphur and cellulose. The last
named depends on the supply of
pulpwood from Norway, the entry
OF which depends on the allies and
hence is liable to be restricted to
Italy's internal needs.
Limit on Exports.
On the contrary, exports to the
allies can be expanded to a limit
set only by allied capacity to pay
cash and furnish raw and semi
finished materials. It is too early
yet for any such expansion to show
in trade figures, but there are MANY
reports that business is going on
For instance, the French are be-
ieved to have ordered $500 freight
cars and an unknown number of
locomotives for which they are
furnishing the raw materials.
There are also reports, which can
not be checked at the moment, that
a large order has also been given
for Diesel marine engines by the
French, while the British are re-
ported to be interested in aero en-
gines. It may be recalled that one
Of the best Italian aero engines, the
Alta Romeo, was built from British
Bristol designs under license. Hence,
such engines are eminently suited
to British planes.
These are only reports, but what
is certain is that factories cannot be
allowed to stand idle, as they would
owing to the upset economic ar
rangements brought on by the war.
And those who pay cash can carry
it away
Copyright, 1889, Chicago Daily News, Inc ,