Evening star. [volume] (Washington, D.C.) 1854-1972, 1941-10-26
Deterioration Marks
Ita|y'sE Economical Life,
u. 5. Report Says
Decline in Diet, Price
Distortion and Cutting
Of Trade Are Cited

Since it entered the war in June,
1910, the economic life of Italy has
suffered a marked deterioration"
the Commerce Department declared
yesterday in a report on italian
Wartime Economy" published in
Foreign Commerce Weekly.
Declines in the quantity and
quality of the national diet, distor-
ton of the price level, depletion of
the supplies of raw materials, the
elimination of oversee trade, and
the rapid increase in the public debt
are the principal evidences of this
deterioration, it said.
Italys entrance into the war was
followed by a strengthening of its
trade relations with Germany, the
survey pointed out. According to
an official Italian statement, Ger
many accounted for Al per cent of
1talys imports, and Al per cent of
its exports during the period from
June l to December 81, 1910.
THE chief deterrent to greater
trading with Germany lay in the
fact that the productive economies
of the two countries are only in a
moderate degree complementary,
both being deficient in raw mate
rails, and by preference exporters
OF manufactured products" the re-
port declared Nevertheless very
important contributions could be
made by each country to the other
in few products.
Coal Vital to Italy.
Most vital to Italy has been
the coal received from Germany, re-
portedly at the rate of about 1000
600 tons a month. German iron
and steel likewise appear to have
been an important factor in keep
ing Italian metallurgical plants
| active
Italy, on the other hand, has
been able to contribute substantially
to Germany's requirements of fruits
| and fresh vegetables, and has a
surplus of few mineral products
needed by Germany, especially mer-
curry, bauxite and sulphur. Normal
ly Italy's imports from Germany
greatly exceed the export trade. This
unbalance has probably persisted
but in return Italy has contributed
manpoWer to German agriculture
and industry to the extent of over
100000 workers in 194l."
The cutting off of overseas trade
which followed Italy,s plunge into
the war aggravated the scarcity of
such essential raw materials as cot
ton. wool, petroleum, scrap iron,
rubber, cotton and nickel, the report
stated.
Bread Rationing Is Evidence.
The recent adoption of the bread
ratlonlng system, 1t added. is evil
dence that this years wheat crop
was not much larger than last year S
output, which was $4,000 900 bushels
under national requirements. In
peacetime this deficiency could be
easily made up through imports
Under existing conditions. the only
remedy lies in stretching out the
national stocks by adulteratinp
wheat flour with mixtures of potato
and corn flour.
The italian government has been
giving continuing attention to the
problem of checking price rises
Prior to Italys entrance into the
war prices had risen 20 per cent
Since June, 1910. when Italy became
a belllgerent. prices are believed to
| have advanced even more Sharnlv
Though the government froze wages
at the levels prevailing in July
1910, rising prices have made it
necessary to grant supplementary
payments of family allowances,
premiums for industriousness," and
the like, representing an estimated
increase of about 10 per cent in wage
rates. Even with these payments
the gains in workers pay have failed
to keep pace with the increased cost
of living.