30. ITALIAN INTERNATIONAL COM MERCE. As the present kingdom of Italy was only established in September 1870, we cannot go back further than 1871 in considering the progress of the Italian commercial move ment. We shall therefore begin to consider the commerce of Italy from 1871.
The import trade of Italy greatly exceeds her export trade, which fact depends on two principal causes: on the manner in which the customs officials appraise the merchandise; and on the fact that the enormous rush of foreign visitors to the country brings in a great quan tity of money, which, makes possible an in fringement of the fundamental principle of an exchange of products.
In the 35 years, lasting from 1871 to 1901, the excess of imports was not uniform, and these great fluctuations depended on general Causes.
From the year 1896 to 1900 there was a period of increase of imports, which was still more marked in 1900 and 1901, when the rate of increase was maintained at 320,000,000 of lire, a little less than $64,000,000. But the en tire commercial movement represents an in crease from 2,900,000,000 lire ($580,000,000) to 3,745,000,000 lire ($749,000,000). The char acteristic, therefore, of the present commerce of Italy, as shown by the customs house statis tics, is a constant excess of imports.
Finally, there is the period of rapid rise whioh lasted for eight years, and which, accom panied by so many other indications of the growing commercial activity of the country, gave an assurance that this sign of prosperity was founded on a solid basis. Here are the relative figures, given in millions: (1898) 1,413; (1905) 2,078.
The periods of greater exportation are as diverse as the causes that determine them. There was a long time —17 years — from 1871 to 1887, during which the fluctuation was barely perceptible; Italian export trade remained steady at the million mark, very gradually di minishing during the three years 1881-83, when there was a fall in exports.
In 1::: •the new general tariffs and the new treaties of commerce, but above all the applica tion of the tariff of reprisal between Italy and France brought about a period of unusual de pression, which lasted 10 years before the ex port trade resumed its previous figures. But dating from 1898, there began a period of pros perity which is noteworthy and gives the highest figures in all the 35 years.
The division of Italian commerce into the four great groups into which we usually divide the various products, denotes the nature of her commerce. In 1905 the variations between im ports and exports gave the following figures in millions of lire: It was 10 years ago that we found a re markable increase in the exports of the first class, agricultural products; but the foodstuffs increased in importation as well as in exporta tion; so that on the whole they exceeded the trade in manufactured articles. Notwithstand ing the fact that the imports of grain rose from $22,000,000 to $41,000,000, the group of foodstuffs shows an increase of $9,000,000, hence a growth of $22,600,000 of exports, as against a growth of $13,600,000 in the im port trade of the same group. Briefly, an
exhaustive study and analysis of statistics shows that in the course of 10 years the imports increased 1.36 per cent in proportion to the whole in first-class merchandise, and the ex ports have decreased at a greater rate — that is 2.46 per cent; that the merchandise of the second group was imported in an increase of 2.32 per cent of the whole, and the exports in creased even more, that is, 4.62 per cent; that manufactured articles were exported in an in creasing ratio of 3.83 per cent above 1896, and hardly reached 1.22 per cent in imports; that the trade ,in foodstuffs showed a decrease of 4.08 per cent from that of 1896, and finally de creased 5.99 per cent. Taking altogether the improvement in trade in the groups we find that while there is an absolute growth in the trade in foodstuffs, there is a noteworthy de crease in the trade of other groups. And we make the further observation that statistics of the Italian Department of Commerce show: (1) An increasing development of national in dustries, which demands an increasing quantity of articles of the first class, and will enlarge the sphere of the export trade; (2) a greater degree of prosperity of the country which in creases the demand for home consumption of manufactured articles and foodstuffs; (3) a transformation of the agricultural industry, which is losing ground in some of its exports and gaining ground in others. We also observe that commercial exchange with other countries is greatly facilitated at the present day; that the principle that *Products can be exchanged for products° is less applicable in the transac tions between one government and other sepa rate governments; and that we can see more readily than ever before that there is a note worthy equilibrium of commercial exchange be tween one country and another. But as the commercial treaties, in modifying the ultra protectional character of the general tariffs, aim at improving those commercial relations, which tend to equalize the value of the imports and the exports between every country, it is interesting to note this side of international commerce. In the case of those countries with which the Italian import or export is to the value of $2,000,000 or more, there is evidence of a fair equilibrium; a few are excepted, which will be specially mentioned. Great Britain, in 1904, exported an excess of $35,000, 000 to Italy, but if we consider that $28,600,000 represents the hard coal which she sold to Italy, the difference is reduced to $6,400,000, a comparatively small figure. Russia exports to Italy $29,000,000 more than she imports from that country, and this is accounted for by the $27,000,000 worth of grain which she sold to Italy. The British possessions in Asia ex port an excess of $17,800,000 to Italy, $12,000, 000 of which represents raw cotton in bulk, which Italy imports from India. The $14,200, 000 of excess of importation from Chin:t prises $13,000000 of raw silk in bulk. The ex cess of $7,600,000 in imports from the United States is owing to raw cotton, of which Italy imports $29,200,000 worth.