"Not a Loan"

Italy established, last week, a credit of $50,000,000 in Manhattan through the good offices of the ubiquitious J. P. Morgan & Co. The credit, Finance Minister de Stefani told the Chamber of Deputies in Rome, is to be used "as occasion demands" in checking fluctuation in the value of the lira, It was also clearly a measure assist him in reducing the fiduciary note circulation. This statement did not please the Deputies, who thought it a great pity that the Fascist Government should have recourse to foreign financing after having boasted that Italy was able to do without such aid. The Finance Minister laid their minds at ease. This was not a loan, as some of the Deputies thought, but a credit,* and Italy was not contracting a new debt. He took the opportunity to explain that the allegedly imminent refunding of Italy's debt to the U. S. would not disturb the financial security of the country, for "it appears to be pretty generally recognized by the creditor nations that any settlement must be subordinate to the debtor's capacity to pay." However, it was impossible at the moment to inaugurate refunding negotiations.

The Deputies changed tone, cheered, crowded about his desk, congratulated him, shook his hand.

*A loan is a credit advanced; a credit is a loan which may be utilized.