None of the Allied Nations has had more or greater problems confronting
it than Italy has. Manpower has not been lacking, but the want of raw
materials for the making of munitions has been a serious handicap, and
one that has been most difficult to overcome. Italy has been absolutely
dependent upon her allies for steel and coal. After her declaration of
war against Germany, she was left helpless. Badly as France and England
needed these raw materials, they had to come to the assistance of
their ally. For a long time the quantities received were insufficient,
and a sustained offensive against Austria was impossible, for want of
ammunition.
This condition was greatly improved when the United States entered
the war, and Italy received from us vast quantities of steel, and
sufficient coal came from England to supply her needs.
It must be borne in mind that when war was declared (August 1, 1914)
practically all the industrial and commercial organizations in Italy
were controlled by Germany. The largest banks and financial houses were
German-owned. One of the most prolific sources of income, the electric
and other plants operated by water-power, were in German hands.
Germany had a firm grip on the resources of the country. Her agents
carried on a propaganda which required the utmost courage of the
Italians to overcome, and let it be said to the credit of the Italian
people, they risked financial ruin when they decided to enter the war
on the side of the Allies.
The first result of their entry into the World War was to demoralize
their securities and almost to destroy the value of their money.
The _lira_, a coin which, before the war, was worth about 19 cents,
decreased in buying power to about 11 cents. Bonds dropped alarmingly.
With the United States as an ally, loans have been made to Italy, her
credit has been re-established, the _lira_ has gradually increased
in value, and with steel and coal in sufficient quantities for all
purposes, prosperity is returning.
It was the shrewd Bismarck who arranged with Signor Crispi, twice
Premier, to come to the assistance of Italy. A loan was made, and
the best Italian securities were obtained for a song. Ever since,
the German grip has tightened. As a result of the war Italy will be
restored to commercial freedom and she will have a new and much needed
opportunity to expand.
The Ansaldo Company, a new and gigantic corporation, is now one of the
largest munition plants in the world. Italy has tremendous resources in
her water-power which is now being developed. Like her allies, she will
be able to manufacture many of the things she needs.
Her airplanes are among the best that are made. Her engines are
wonders of mechanical perfection. Her motor cars are unexcelled. Italy,
prepared as she never was, is ready for the future.
[Illustration: A MARKET SQUARE IN ROME