War and the Future: Italy, France and Britain at War

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Except in the case of Venice, the war does not seem as yet to have made nearly such a mark upon life in Italy as it has in England or provincial France. People speak of Italy as a poor country, but that is from a banker’s point of view. In some respects she is the richest country on earth, and in the matter of staying power I should think she is better off than any other belligerent. She produces food in abundance everywhere; her women are agricultural workers, so that the interruption of food production by the war has been less serious in Italy than in any other part of Europe. In peace time, she has constantly exported labour; the Italian worker has been a seasonal emigrant to America, north and south, to Switzerland, Germany and the south of France. The cessation of this emigration has given her great reserves of man power, so that she has carried on her admirable campaign with less interference with her normal economic life than any other power. The first person I spoke to upon the platform at Modane was a British officer engaged in forwarding Italian potatoes to the British front in France. Afterwards, on my return, when a little passport irregularity kept me for half a day in Modane, I went for a walk with him along the winding pass road that goes down into France. “You see hundreds and hundreds of new Fiat cars,” he remarked, “along here – going up to the French front.”

But there is a return trade. Near Paris I saw scores of thousands of shells piled high to go to Italy…

I doubt if English people fully realise either the economic sturdiness or the political courage of their Italian ally. Italy is not merely fighting a first-class war in first-class fashion but she is doing a big, dangerous, generous and far-sighted thing in fighting at all. France and England were obliged to fight; the necessity was as plain as daylight. The participation of Italy demanded a remoter wisdom. In the long run she would have been swallowed up economically and politically by Germany if she had not fought; but that was not a thing staring her plainly in the face as the danger, insult and challenge stared France and England in the face. What did stare her in the face was not merely a considerable military and political risk, but the rupture of very close financial and commercial ties. I found thoughtful men talking everywhere I have been in Italy of two things, of the Jugo-Slav riddle and of the question of post war finance. So far as the former matter goes, I think the Italians are set upon the righteous solution of all such riddles, they are possessed by an intelligent generosity. They are clearly set upon deserving Jugo-Slav friendship; they understand the plain necessity of open and friendly routes towards Roumania. It was an Italian who set out to explain to me that Fiume must be at least a free port; it would be wrong and foolish to cut the trade of Hungary off from the Mediterranean. But the banking puzzle is a more intricate and puzzling matter altogether than the possibility of trouble between Italian and Jugo-Slav.

I write of these things with the simplicity of an angel, but without an angelic detachment. Here are questions into which one does not so much rush as get reluctantly pushed. Currency and banking are dry distasteful questions, but it is clear that they are too much in the hands of mystery-mongers; it is as much the duty of anyone who talks and writes of affairs, it is as much the duty of every sane adult, to bring his possibly poor and unsuitable wits to bear upon these things, as it is for him to vote or enlist or pay his taxes. Behind the simple ostensible spectacle of Italy recovering the unredeemed Italy of the Trentino and East Venetia, goes on another drama. Has Italy been sinking into something rather hard to define called “economic slavery”? Is she or is she not escaping from that magical servitude? Before this question has been under discussion for a minute comes a name – for a time I was really quite unable to decide whether it is the name of the villain in the piece or of the maligned heroine, or a secret society or a gold mine, or a pestilence or a delusion – the name of the Banca Commerciale Italiana.

Banking in a country undergoing so rapid and vigorous an economic development as Italy is very different from the banking we simple English know of at home. Banking in England, like land-owning, has hitherto been a sort of hold up. There were always borrowers, there were always tenants, and all that had to be done was to refuse, obstruct, delay and worry the helpless borrower or would-be tenant until the maximum of security and profit was obtained. I have never borrowed but I have built, and I know something of the extreme hauteur of property of England towards a man who wants to do anything with land, and with money I gather the case is just the same. But in Italy, which already possessed a sunny prosperity of its own upon mediaeval lines, the banker has had to be suggestive and persuasive, sympathetic and helpful. These are unaccustomed attitudes for British capital. The field has been far more attractive to the German banker, who is less of a proudly impassive usurer and more of a partner, who demands less than absolute security because he investigates more industriously and intelligently. This great bank, the Banca Commerciale Italiana, is a bank of the German type: to begin with, it was certainly dominated by German directors; it was a bank of stimulation, and its activities interweave now into the whole fabric of Italian commercial life. But it has already liberated itself from German influence, and the bulk of its capital is Italian. Nevertheless I found discussion ranging about firstly what the Banca Commerciale essentially was, secondly what it might become, thirdly what it might do, and fourthly what, if anything, had to be done to it.

It is a novelty to an English mind to find banking thus mixed up with politics, but it is not a novelty in Italy. All over Venetia there are agricultural banks which are said to be “clerical.” I grappled with this mystery. “How are they clerical?” I asked Captain Pirelli. “Do they lend money on bad security to clerical voters, and on no terms whatever to anti-clericals?” He was quite of my way of thinking. “Pecunia non olet,” he said; “I have never yet smelt a clerical fifty lira note.”… But on the other hand Italy is very close to Germany; she wants easy money for development, cheap coal, a market for various products. The case against the Germans – this case in which the Banca Commerciale Italiana appears, I am convinced unjustly, as a suspect – is that they have turned this natural and proper interchange with Italy into the acquisition of German power. That they have not been merely easy traders, but patriotic agents. It is alleged that they used their early “pull” in Italian banking to favour German enterprises and German political influence against the development of native Italian business; that their merchants are not bona-fide individuals, but members of a nationalist conspiracy to gain economic controls. The German is a patriotic monomaniac. He is not a man but a limb, the worshipper of a national effigy, the digit of an insanely proud and greedy Germania, and here are the natural consequences.

The case of the individual Italian compactly is this: “We do not like the Austrians and Germans. These Imperialisms look always over the Alps. Whatever increases German influence here threatens Italian life. The German is a German first and a human being afterwards… But on the other hand England seems commercially indifferent to us and France has been economically hostile…”

“After all,” I said presently, after reflection, “in that matter of Pecunia non olet; there used to be fusses about European loans in China. And one of the favourite themes of British fiction and drama before the war was the unfortunate position of the girl who accepted a loan from the wicked man to pay her debts at bridge.”

“Italy,” said Captain Pirelli, “isn’t a girl. And she hasn’t been playing bridge.”

I incline on the whole to his point of view. Money is facile cosmopolitan stuff. I think that any bank that settles down in Italy is going to be slowly and steadily naturalised Italian, it will become more and more Italian until it is wholly Italian. I would trust Italy to make and keep the Banca Commerciale Italiana Italian. I believe the Italian brain is a better brain than the German article. But still I heard people talking of the implicated organisation as if it were engaged in the most insidious duplicities. “Wait for only a year or so after the war,” said one English authority to me, “and the mask will be off and it will be frankly a ‘Deutsche Bank’ once more.” They assure me that then German enterprises will be favoured again, Italian and Allied enterprises blockaded and embarrassed, the good understanding of Italians and English poisoned, entirely through this organisation…