The Evening Star: WITH WHICH ABE INCORPORATED The Evening News,Morning News,and Echo. MONDAY, JUNE 13, 1892.

Auckland Star, Volume XXVIII, Issue 139, 13 June 1892, Page 2

The Evening Star: WITH WHICH ABE INCORPORATED The Evening News, Morning News,and Echo.

MONDAY, JUNE 13, 1892.

For the cause that lacks assistance, ■For tie ■wrong that needs resistance, for the future in the distance, And the good that we can do.

It is instructive to observe that the causes which have produced financial depression and political unrest in these colonies have had analagous effects in an ancient European State. The financial condition of Italy is at pre-

sent causing grave anxiety to her friends and boundless exultation to her enemies. The Marquis di Rudini's Ministry -was shipwrecked on the financial rock, and the new Premier, Signor Giolitti, who only secured a majority of nine for his financial pro-

posals, has forwarded his resignation to the King. This has not been accepted, and it seems probable that a dissolution will follow. In the meantime, the Chamber of Deputies, which has successively resisted the drastic measures of reform proposed by Rudini and the more modified scheme of Giolitti, has granted supplies to the Government for the half-year. The crisis is by some ascribed to the unpopularity of the Triple Alliance, although probably it may be more truly laid to the account Of the general extravagant expenditure, and the refusal of the Chamber to allow the re-assessment of real estate and properties paying the large income taxes.

The financial depression in Italy is indeed due to a variety of causes. One of these is a mania for land speculation, similar to that we have passed through in our own colony. When little rhore than twenty years ago the Papal Government was abolished, there were not wanting those who predicted that the Eternal City would speedily outrival in population and resources the other great European capitals. Rome, as the metropolis of United Italy, was to surpass in magnificence the Rome of the Caesars. Among the shoals of adventurers who hastened to seek their fortunes there, land speculators were prominent. A building mania set in which entirely altered the face of some quarters of the city$ r and many an Italian patrician in impoverished circumstances was induced to sell for a high price the dilapidated mansion which had been the home of his forefathers. Ancient buildings of great historical interest passed into the hands of speculators, who either modernised them, or ruthlessly pulled them down to make way for rows of stuccoed villas. Rents rose enormously, and many speculators made large fortunes.

The inevitable collapse, however, has now come, and'houses and land may be purchased in Rome and other Italian cities at a reduction of sixty per cent, upon former prices. The loss in nominal values on this description of property is stated to amount to no less than 300,000,000 lire in Rome alone, while the banks have so largely advanced on this depreciated real property in Rome and other cities that it is said a forced liquidation would mean universal bankruptcy. The financial difficulty has been further increased by a reckless expenditure on railway construction, and the Government, in order to win partisans, have yielded to clamours of districts for an extension of railways to placed from which payable returns cannot be looked for. , ,

But more serious still has been the strain upon the Treasury for military and naval equipments; The cost of a powerful navy, which has hitherto Served ,no practical purpose, has caused great dissatisfaction among a certain section of Italian politicians. Her place in the Triple Alliance, although it has gratified the political pride Of Italy, has been maintained at a cost which the nation is ill able to bear, and the French are already predicting that Italy must choose between separation from the Triple Alliance or ruin. So serious indeed is the political outlook that there seems some reason in the remark made by a statesman recently, that King Humbert must make his choice between disarmament or abdication.

The financial difficulties had become so great, that in the early part of 1891 Signor Crispi was no longer able to cope with them ; the over issue of paper money by the six great Banks aggravated the condition of affairs. His successor, the Marquis Rudini, was no sooner in office than he bent all his energies to the re-organisa-tion of the credit of the country. Such pressure was brought to bear upon the Banks as to induce them to take measures for regulating the circulation of paper money, which had hitherto far exceeded the legal allowance, and was only secured by onethird 04 the amount in metallic currency. Rudini also proposed a political programme, which included, among other things, a renunciation of part of the share of the State in the receipts of the railways in the interests of agriculture, arid several enlightened measures to ease the burdens of trie* working classes; and enable them to make a suitable provision for old age.

But it soon became apparent to Rudini that more vigorous measures would have to be carried out to avert financial ruin. With the true wisdom of an enlightened statesman, he sought to avoid laying increased burdens upon 'the already overtaxed poorer classes. He wished to impose new taxation upon the class most able to bear it. Owners of large estates in Italy, as well as in New Zealand, have hitherto managed to escape paying a fair share to the revenues of the country. Unfortunately for the Premier, he was not backed by the Chamber of Deputies. Many of the members of that body were personally interested in preventing additional levies upon the large estates. They were equally averse to reducing the extravagance of an overgrown Civil Service, in which, we may presume, many of their relations have snug billets. Signor Giolitti, during his short tenure of office, has not been moire fortunate than bis predecessor, and no adequate scheme has apparently been yet devised to save the nation from threatened bankruptcy.

The Italian Government are in a most embarrassing position. They have so far, managed to outrun the constable, but if the country is to progress, reform must be drastic and speedy, The position of the. Kiing is by no means enviable ; on the one hand all who lean to the Papal party are disaffected with his Government"; on the other, the aristocracy have so much influence in

the administration of affairs that they seem able to largely thwart measures designed to impose due taxation upon them, while they clamour against any retrenchment in war expenditure that they imagine will diminish the national glory. Many of the peasantry are so impoverished that it is hopeless to extract further revenue from them. When we read of thousands, not of loafers, but of hard-working peasants in agricultural districts, who can only get one meal a day, we see how false is the policy of any nation that keeps up huge fleets and armies by taking the bread from famished mouths; and how possible it is to keep up an outward appearance of prosperity by lavish expenditure on public works, while the mass of the people are every day becoming poorer, and the State itself is pursuing a course that, if not checked in time, must sooner or later end in national bankruptcy. The vote of the Chamber of Deputies may stave off the threatened disaster for a time, but they will probably have to revert to Rudiai's proposals to lay increased taxation upon the large estates and to cut down the overgrown public expenditure.