Gold, Black Shirts & Roses

One of Italian Finance Minister Guido Jung's favorite stories is about his encounter with President Roosevelt in the White House last spring (TIME, May 15). To Italy's Banking Association soon afterward Eccellenza Jung declared: "I had the honor of stating the attitude of the Duce to the President when he enquired of me as to Italy's attitude on two of the questions which the United States deems of preeminent importance for the London Economic Conference: monetary stabilization and the return of all currencies to a common standard which the United States cannot conceive of as other than gold. I replied that Italy had no need to stabilize, as she had already stabilized on Dec. 21, 1927, and had maintained and intended to maintain that stabilization unaltered; and that Italy had no need to return to a gold parity because she had placed her currency on a gold basis. I added that whatever other countries might do, Italy would not deviate from the policies laid down by the Duce, and that, instead of considering recourse to ultimately ineffectual means for adjusting internal to world prices, Italy would continue to make use of an instrument thoroughly tested out during the past ten years: our guild or corporative organization."

Into the Chamber of Deputies last week marched Eccellenza Jung to rejoice publicly at what seemed to him a belated return by President Roosevelt to that principle of stabilization from which the White House strayed so far during the London Conference.

Cried Eccellenza Jung who was Italy's Chief Delegate: "Ah Signori! those nations which have remained faithful to gold have rendered a precious service to the world. President Roosevelt's latest step [to revalue the dollar between 50 and 60-c- gold is fresh proof of the wisdom of the Duce!"

Two days later, by order of Secretary of the Fascist Party Achille Starace, all deputies appeared in the Chamber with their coats off and wearing black shirts. They met to deprive themselves of most of the Chamber's powers in economic matters and to confer those powers on the organs of Il Duce's famed "Corporative State" (TIME, Nov. 20, et seq.). This elaborate mechanism for integrating production, consumption, employment, profits, imports and exports is best able to function, Dictator Mussolini believes, on a rock-firm gold standard and eliminates all necessity for a managed currency.

Coatless and black shirted himself, last week Il Duce faced the Chamber which thrice rose and sang the Fascist anthem "Youth, youth, springtime of beauty!"* before the 60 minute session began.

Forty minutes were devoted to the loudest and most frenzied cheering the Dictator has ever received in the Chamber. When the Corporative State law was proposed, the whole Chamber leaped up to adopt it by acclaim. Il Duce stilled the pandemonium, insisted on a vote, cast the first ballot himself. The count, presumably unanimous, was not mentioned in dispatches.

"After the bill passed," declared a Fascist press release, "the Duce pronounced 33 words from behind a table covered with a huge mass of roses:

PRIOR TO OUR PARTING, COMRADES, I WISH TO SAY THAT ALL OF YOU HAVE FAITHFULLY SERVED THE FASCIST REVOLUTION FOR WHICH WE ARE ALL READY TO FIGHT ANYTIME. ANYWHERE, WITH ALL OUR WEAPONS!"

After final huzzas and deafening cheers the Chamber marched out to dissolution by royal decree and new elections held under the Fascist system which permits the Fascist Grand Council to select all candidates. When elected the new Chamber is expected to vote total abolition of Italian parliamentary Government this spring, transferring all power to the Corporative State--much as though the U. S. Congress should abdicate in favor of President Roosevelt's organizations for Reform and Recovery.

That Italian investors back Il Duce, they showed in spectacular fashion by offering 6,000,000,000 lire when Finance Minister Jung opened his books for a 4,000,000,000-lire loan. Last week Eccellenza Jung dramatically announced that millions of the subscriptions had been in cash, ordered a mountain of banknotes returned to would-be investors. In Manhattan Kingdom of Italy 7% bonds issued at 945 Coolidge dollars each in 1925 sold for 1,000 Roosevelt dollars each last week.

*First two verses: Hail, Oh race of heroes! Hail, Oh land of immortals! Your children are reborn in faith and ideals. The valor of your warriors, the virtue of your pioneers The vision of Alighiri, today shines in every heart. In Italy and along her frontiers Italians are reborn. Mussolini has prepared them for the war of tomorrow, For joy in their work, for peace, for glory, And to the shame of those who forswore their Fatherland.

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