THE ITALIAN FINANCES,

Auckland Star, Volume XXV, Issue 49, 26 February 1894, Page 2

THE ITALIAN FINANCES,

The finances of Italy are in a mosb critical condition. The Budget presented bo Parliamenb the other day shows a deficit of £7,080,000, and a series of most) stringent proposals, tho most striking amongsb which is the imposition of an income tax of twenby por cenb. have been broughb down by the Governmenb. The position in which Italy now finds herself is exactly thab in which those who have studied hor career during bhe lasb twelve years fully anbicipated to find her. And yeb one cannob bub sympathise with her in her misfortunes, which have been bhe result of striving after an ideal too costly of realisation. For some time past, her own stabesmen have been perfecbly conscious of the direction in which she was drifting, bub they were powerless bo arrosb her. Yob they were hopeful that by some means or other the crisis might be staved Off.

In his speech delivered in tho Chamber of Deputies jusb two months ago, Signor Crispi placed the position of the country beforo the House, and appealed to them to sink all party differences, and to work together for the salvation of Italy. Albhough there were many dissentient murmurs from sections of the Houso during the course of hia spirited declaration and appeal to leb patriotism triumph over party, the first intimation of tbe stringent economy which ib is propoaed to etfecb in bhe finances waa received with cheers. Ib was Understood ab that time thab when Signor Crispi spoke of sacrifices which bhe country musb be called upoß to make he referred to come reduction in tho standing army. It waß rumoured that it was bhe intention of tho Governmenb to break up two of tho bwelvo corps, which would release nearly forty bhousand Italians from compulsory service. In our latesb cablegrams bhere is no specific mention of euch a reduction. On the other hand we aro told of a proposal to impose an income tax of twenty per cent. From these two facts we would infer that the reduction of bhe army ia nob contemplated. Moat probably tho conditions of bhe Triple Alliance prohibib Italy from decreasing "her fighting strengbh, and she is unable to effect economy in a deparbmenb of bhe service which presses mosb heavily upon her people and is chiefly responsible for her preaenb doplorablo sbate. No doubb seeing thab this greab avenue of expendibure cannob be in any degree cloaed, economy in obher branchea of bbc public aervice and fresh taxation ie bhe only method open to averb national bankrupcy. Ib ia greatly to be wished that Buch rigid retrenchment in the civil departments might be adopted as would averb the necessity of more taxes being imposed. But it ia very doubbful whether any retrencl ment of bhab nabure would avail. Things are in too bad a Btate for any retrenchment to remedy them. There mußt be taxation. We in New Zealand hardly know wbab baxatior: means in comparison with the Italians. Our landdwnera cry out, but what cause havo bhey beaide landowners and peaaant farmore in Italy, who have for some yeara paab been required to pay into the State Exchequer taxes amounbing bo aboub forby-five por cent, of their incomes or earnings. Nor have the people in tho bowna been much better off. Whab they are going to do now if furbher burdens are laid on them is a problem indeed. The question which sbabeamen are now asking themselvee is not merely will Italy be solvent, bub will the Italians be able to Btand under bho terrible load of taxation imposed on them.

Italy in ber preaenb difficulties conveya a solemn lesson to the nations of Europe. She should teach them, aa a recent writer haß said, thab the pressure of their unconscionable armamenbs is rapidly becoming intolerable to the peoples respectively submibbed bo bheir rule. Four million men are acbually under anna ab this presenb momenb in Europe, and bhe European war budgeb is considerably in exceßs of one hundred and twenby millions. Ib is irnposBible that the nationß can Bustain Buch burdens long. Being richer than Ibaly, which is a poor country, they may Btave off the evil day, bub bhe time musb shortly come when they too will find as she has found,

the load unbearable. As for Italy, her only hope of salvation is in a reduction of her army. Her allies must* release her from the pledges, the carrying oub of which has led her into her presenb plight.