BETTER TODAY

Evening Post, Volume CXV, Issue 119, 23 May 1933, Page 7

BETTER TODAY

DESPITE DEPRESSION ITALIAN AGRICULTURE Italian agriculture is actually in better economic condition now than in 1930, despite the- depression. Longterm debt incurred for agricultural improvements was reduced 39 per cent, last year i and the previous year as compared with 1930. Short-term debt was scaled-down,.not because of shrinkage of credit but because of more prosperous .conditions on the farm. This is indicated by the fact that the debt declined most in the, areas where'crop yields were highest, says a writer in the "San Francisco Chronicle.''1' Baron Acerbo,"Minister of Agriculture, has told the Chamber of Deputies that the situation has improved owing to a series of prudent measures that carefully avoided anything likely to affect adversely the credit, standing of the agricultural classes, such 'as moratoria and legal reduction of interest rates. Among the measures ■ taken by the Government are the authorisation of repayment by instalments of loans incurred for working capital, the conversion of over costly agricultural debts, grants of money to specially deserving farmers, and, in certain cases, the postponement, with the.consent of the lending institutions; of payments maturing on- land debts. The Association of Italian Corporations points out that the gross value of Italian agricultural production 'fluctuates between "£250,000,000 and £310,000,000 annually. The yearly net income is £50,000,000. The totaldebt is between £90,000,000 and £100,000,000. Of this sum, £30,000,000 has been refunded in recent years so that the interest rate is not unduly high. .Half of-the debt is long-term and half short-term. The association report'says:— "Taken as a whole, the situation is much'less critical than was feared a year ago. This is largely due to the steps to stimulate agricultural production along lines which have reduced costs and to assist the farmers to market their crops successfully, while insisting on' the scrupulous Tespeet of contracts which is the foundation of the nation's credit at home and abroad." • The various formsr of, relief from the Government cost the Treasury an annual sum of £1,000,000. Agricultural exports have fallen, but imports have fallen more and the'internal market continues strong, with prices high in proportion to the decline in other countries. Wheat sells for around Cs a. bushel. Millers have a strict Government order requiring'them to use 95 per cent, native wheat. The wholesale, price index of vegetable foods was 324,4 in January and of animal foods 293.5 on the basis of 100 in 1913. This compares favourably with the general index of 292 for all products, industrial and agricultural. .