Italian loan and revenue
Tipologia: Paragrafo/Articolo – Data pubblicazione: 23/01/1915
Italian loan and revenue
«The Economist», 23 gennaio 1915, p. 146
The Italian loan (writes a Turin correspondent) for 1,000 million lire (40 million pounds sterling) at 97, 4.50 per cent, interest, was floated between January 4th and 11th . The subscription offices (banks, savings banks &c.) were crowded, especially by many small subscribers; many subscriptions were from 100 to 1,000 lire. The best results give 880 million lire subscribed in the kingdom and colonies by private subscribers, to which must be added the 500 million lire subscribed by the banking syndicate of guarantee; total, 1,380 million lire. As the private subscriptions will be allotted all the amount subscribed, to the banking syndicate will be allotted only 120 million lire out of their 500 millions. The issue was undoubtedly a success, the more so as many capitalists feared to subscribe today, in the expectation of the possible war and of new debt flotation. The Minister of the Treasury is deserving of credit for having first imposed taxes to pay the interest of the coming debt, and, secondly, of having, by the issue of the 1,000 million 25-year bonds, relieved the Treasury, whose situation was not over easy, owing to the policy of their predecessors of postponing the indispensable debt issues. The earthquake, which has made so many victims in a most beautiful region of Italy, the Abruzzi, is adding a new burden to the Italian treasury, in a moment in which the expenses for defense preparations grow by leaps and bounds. Statistics lately published give for November an increase in the international trade (in million lire):
| Imports |
| Exports | ||||
| 1913 | 1914 |
| 1913 | 1914 | ||
| July | 236.3 | 254.4 | + 18.2 | 182.8 | 190.8 | +7.9 |
| August | 237.3 | 167.2 | -70.1 | 197.9 | 86.9 | -111.0 |
| September | 264.4 | 102.3 | -162.1 | 196.7 | 123.2 | – 73.5 |
| October | 299.5 | 142.5 | -157.0 | 237.1 | 173.9 | -63.2 |
| November | 331.9 | 166.6 | – 165.2 | 233.3 | 182.8 | -50.5 |
The exports are gradually rising, but they are still much lower than in the years past. The first six months of the financial year 1914-15 (July-December, 1914) give (in million lire) the following results. The figures are relating to special commerce only, exclusive of transit trade.
| Second Quarter of
| |||
| 1913 | 1914
| ||
| Income-tax | 267.6 | 279.4 | + 11.8 |
| Succession duties | 23.6 | 23.5 | -0.1 |
| Stamps and other taxes on wealth | 118.7 | 112.2 | -6.5 |
| Total taxes on incomes and wealth | 409.9 | 415.1 | + 5.2 |
| Excise | 107.0 | 90.6 | – 16.4 |
| Customs | 161.8 | 102.1 | -59.7 |
| Internal duties on com modities | 42.0 | 41.1 | -0.9 |
| Tobacco, gold, and lottery monopolies | 275.0 | 291.1 | + 16.1 |
| Total taxes on commod ities | 585.8 | 524.9 | -60.9 |
| Post | 64.9 | 59.6 | -5.2 |
| Telegraph | 13.9 | 16.3 | + 2.4 |
| Telephone | 8.2 | 8.3 | + 0.1 |
| Public service | 87.0 | 84.2 | -2.7 |
| General total | 1,082.7 | 1,024.2 | -58.5 |
The groups which have withstood best the war storm are the taxes on incomes and on wealth, and the public services products. The taxes on commodities lost heavily, and the shrinkage was highest in Customs duties. Out of the 59.7 million lire decrease, 25.3 are due to the reduction of wheat duties. Here is seen one of the gravest defects of protective duties, which, in war times, are to be reduced or give decreasing results as the international trade is shattered.
