Prudent?

Since the Italian debts to the U. S. and Britain have been heavily scaled down and funded (Italy paying the U. S. a doubtful 25c on the $1), the Italian government found itself last week in a position to undertake enterprises and expenditures which otherwise would not have been financially prudent. Examples:

Loan. Premier Averescu of Roumania announced that the Italian government has "voluntarily and unconditionally" offered to the Roumanian government a loan of 200,000,000 lire (some $8,000,000), to be amortized in 15 years (Italy is given 62 years to make part payment of the U. S. loan to her). Italy will get 8% interest.

A considerable portion of the proposed loan is intended for Roumanian governmental expenditures, the rest to be used in stabilizing the leu (par 19.3c; present value about 0.3c).

Air Program. General Bonzani, Italian Undersecretary for Aviation, announced last week that Italy now possesses 800 "front line combat airplanes,"* and that "the Department of Italian Industry is making satisfactory progress on 600 new planes, 250 of which will be of all-metal construction of the most recent type. . . .

He concluded: "This aviation program will put Italian aeronautics virtually on a par with, if not ahead of, the air forces of foreign nations."

Spring floods descending from the Alps swelled the great rivers Po and Adige until they overflowed last week, flooding towns, stopping rail-traffic, killing cattle.

*Authoritative reports placed the total number of Italian was-aircraft of all classes at 1,500 last year, with 850 ready for active service. The U.S. possesses 1,423.