58 THE RISE OF ITALIAN FASCISM
compelled to go further along the road of prudent and
rather opportunist reform by the grave economic situation,
which confronted the government with problems so urgent
that they allowed no respite.
The economic crisis, so far delayed and partly disguised
by temporary distractions, broke upon Italy at the beginning
of 1920 and immediately reached a climax. The difficulties
of the food supply began to be felt ; the coal problem
became more and more acute. England now only supplied
300,000 tons a month instead of 800,000, and charged a
high import rate. The number of trains had to be reduced,
factories could only work half time. Other imports had to
be cut down : corn, sugar, frozen meat. The food question
was complicated by the rise in the rate of exchange, over
which control had to be established in the middle of April
1920. Besides, the Italian economic system had not yet
adapted itself to the new conditions. People continued to
speculate feverishly and start new businesses, for with peace
a new era of expansion and prosperity was expected. Hence
the demand for credit increased, and with it the fiduciary
issue. Abroad the fall in wholesale prices was a sign that
a new adjustment was inevitable.
Nitti made real efforts to cope with the situation, the
seriousness of which, particularly with regard to public
finance, he did not attempt to conceal. He warned his
electors in a letter written in October 1919 ;
c Present state expenditure exceeds receipts more than
three times; all state concerns are in debt, and thousands
of millions a year are lost owing to the fixing of the price
of bread ; the national debt is increasing at the rate of
a milliard a month ; each month our expenditure on
the army is greater than it was each year before the war/
Nitti introduced numerous measures of control and showed
great activity, launching a loan in November 1919 which
was very successful and brought in 21,000,000,000 lire in a
few months. Later, after his fall from power, he recalled
the long list of his decrees to prove that it was he who had
made the first most difficult and ungrateful efforts to avoid
the storm. This was true, but did not and could not avert