The Daily News. TUESDAY, AUGUST 15, 1916. ITALY AND GERMANY.

Taranaki Daily News, 15 August 1916, Page 4

The Daily News. TUESDAY, AUGUST 15, 1916. ITALY AND GERMANY.

One of tiie remarkable features of the war situation is the apparent disinclination of the Italians to break with the Germans. Their traditional foes, of course, are the Austrians, and against t'hem they have concentrated their energies, but so far there is little or no sign of a breach with the nation that is using the Austrians as mere tools. What is the reason? It is to be found in the grip Germany has on the commercial life of Italy. At this very moment Italy is paying the owners of the German ships commandeered a few months ago a monthly rent ill consideration of the loan. The explanation is that Germany and Italy are bound by a secret treaty, signed after Italy had thrown in her lot with the Allies, and according to t'hut treaty if the two countries go to war each will respect the property of enemy subjects. The curious reader may find the essential points set out 111 Dr. Dillon's new and striking hook, "Ourselves and Germany," a 000k that well repays close study. More than a quar-

ter of a century ago an enterprising Teuton started the Banca Commercialc ot Italy with a modest capital. In 1014 the capital of the institution approached six and a-quarter millions sterling, oI which 02 per cent, was subscribed by Italians, 20 per cent, 'by Swiss, 14 per cent, by French and only 2% per cent, by Germans and Austrians combined. Ii spite of this distribution of tho capital the control is absolutely in German hands and the bank is to all intents and purposes a Gerf/» >: <:tution, governing commercial and . to a large extent political Italy by ineani of Italian

money. Its ramifications are almost ami it has the whole country in its net. It is into rested in eighteen large textile factories, sixteen of the most important chomi"al, electrical ami technical companies, .six great food companies, twenty - six transport companies, tweiity-seven steel companies, including those engaging in naval

construction, live large mining ventures and twenty-eight electrical companies.. Through these industries it operates politically as weil as commeichilly. The agents of the transport companies, for instance, are in every village, active propagandists working to instructions. No native business is permitted by it to attain large dimensions, and no large business can prosper unless it obeys the direction of the Banca Commerciale as to where it shall trade. Any.German I firm that desires to extend its business to Italy can do so by operating' through the bank and obeying its instructions. No movement prospers in Jtaly without the bank's sanction. Directors of controlled industries have - been in every Ministry, and the Italian Senate and Chamber of Deputies have not infrequently been merely the channels for the expression of the desires of the German rulers of the country. The. bank is a State within the State, so powerful that it can dictate even the foreign policy of the country. Dr. Dillon declares that the 'furco-Italian war was stopped not. by either belligerent, but. by the lianca Commerciale, whose agent opened the pourparler,?. The terms of tile settlement were drawn up In the main 'by a rep'- : erii.K" of ri>s> Societo Commercials »nd the Orient", sud o£-shoor of the Banca Commerciale, wliie'h reaped ' the commercial fruits ci' the treaty of peace. Indeed, the German institutions seem to have secured every single advantage that Italy gaintd by her successful war. The story, is full of sensationalism. Representatives of controlled corporations have access to Italian naval arsenals whenever they so desire. One of them has been in close touch with the Ministry of War throughout the last year and another is. associated with the Italian aviation service. Dr. Dillon's book, of course, has a strong political intention, and his chapters regarding the association of Germany and Italy raise delicate and highly controversial issue, but we take it that in the main his facts are correct, and it is with the facts that we have to deal here. Everywhere before the war the Germans had been weaving its nefarious web, and what has taken place in Italy is no doubt indicative of what these areh-sehemers have been doing in other countries. It only shows the necessity of effectively clipping the wings of the German and to prevent 'lim from ever again being allowed to deal on equal terms in, at any rate, our own Kmpire. France, Russia ami Belgium have also had their lesson, and they are not likely to forget it in a hurry. Commerce, it Imo been proved beyond any possibility of doubt, has I been used by. the Teutons chiefly as a means to gain military dominance, and if the Allies do not recognise this fact and take the necessary safeguards for the future, then the peace that follows will not be enduring.