A SERIOUS POSITION

Poverty Bay Herald, Volume LIII, Issue 16389, 11 July 1927, Page 11

A SERIOUS POSITION

CONDITIONS IN ITALY •

WIDESPREAD DISCONTENT (Tho Times.) (Received July 11. 2 p.m.) LONDON, July 10. The Times publishes the results of investigations by a correspondent who has just returned, from Italy. He says the sensational rise in (lie lire is chiefly due -to the immense importation of American capital, which precipated a severe, crisis, with a great falling off in exports, a .slump in wholesale cereal prices, the contraction of an internal shortage of money, and an increase in unemployment. Wages have been reduced by 10 per cent., while the. cost of living has only dropped 5 per cent. All classes are suffering, resulting in widespread discontent and misgivings as to the future. The Italian newspapers at present only exist for propaganda purposes, therefore it is only rarely that an unprejudiced opinion is heard, such as that of Senator Gonti, the wellknown industrFalist, who, speaking in the Senate, called attention to the depreciation of stocks, which had decreased by 682,000 lire in six months.

Senator Rota pointed out that as a result of the failing prices many peasant landowners in. the north were involved and had abandoned their holdings. Agriculturists were so distressed that the Government was establishing banks and opening extraordinary credits.

It is possible that Count Volpi's assurance that a revaluation of the lire will be made, even at the risk of mortgaging the country to America, is the best policy, but sufferers resent the difficulties and regard the lack of prosperity as the fault of Fascism. They might be more willing to make sacrifices if given a fair hearing, but the (rovernincnt has not permitted public, criticism or adopted a thorough method of carrying out its economic, policy. It has mobilised a eombrous bureaucracy to tight high prices, fining, closing down, and even threatening the imprisonment of shopkeepers who either refuse or are unable to bring down prices. Only inferior foodstuffs have decreased in price. Eestauranteurs have lowered their charges, but smaller portions are being served to patrons.

The enforced reduction in rents caused a cessation of building, resulting in unemployment, Signer Mussolini's remedy for which is public works, and ibis irritates the heavilytaxed citizens, who consider the reckless expenditure of public money tantamount to squandering. The Fascists' increasing intimidation may prevent bitter distress and discontent appearing on the surface, but these conditions are now most acute since the inauguration of Fascism.

The Government is still maintaining its policy. Signer Mussolini, repeatedly uncompromising, answered the hysterical appeals of the industrialists and agriculturists. Fascism's stranglehold on the methods of popular expression may prevent political repercussion, but many changes are possible lief cue Italy recovers her equilibrium,