Giovanni Giolitti - First Term As Prime Minister

First Term As Prime Minister

Giolitti's first term as Prime Minister (1892–1893) was marked by misfortune and misgovernment. The building crisis and the commercial rupture with France had impaired the situation of the state banks, of which one, the Banca Romana, had been further undermined by misadministration. The Banca Romana had loaned large sums to property developers but was left with huge liabilities when the real estate bubble collapsed in 1887. Then Prime Minister Francesco Crispi and his Treasury Minister Giolitti knew of the 1889 government inspection report, but feared that publicity might undermine public confidence and suppressed the report.

The Bank Act of August 1893 liquidated the Banca Romana and reformed the whole system of note issue, restricting the privilege to the new Banca d'Italia – mandated to liquidate the Banca Romana – and to the Banco di Napoli and the Banco di Sicilia, and providing for stricter state control. The new law failed to effect an improvement. Moreover, he irritated public opinion by raising to senatorial rank the governor of the Banca Romana, Bernardo Tanlongo, whose irregular practices had become a byword, which would have given him immunity from prosecution. The senate declined to admit Tanlongo, whom Giolitti, in consequence of an intervention in parliament upon the condition of the Banca Romana, was obliged to arrest and prosecute. During the prosecution Giolitti abused his position as premier to abstract documents bearing on the case.

Simultaneously a parliamentary commission of inquiry investigated the condition of the state banks. Its report, though acquitting Giolitti of personal dishonesty, proved disastrous to his political position, and the ensuing Banca Romana scandal obliged him to resign. His fall left the finances of the state disorganized, the pensions fund depleted, diplomatic relations with France strained in consequence of the massacre of Italian workmen at Aigues-Mortes, and a state of revolt in the Lunigiana and by the Fasci Siciliani in Sicily, which he had proved impotent to suppress. Despite the heavy pressure from the King, the army and conservative circles in Rome, Giolitti neither treated strikes – which were not illegal – as a crime, nor dissolved the Fasci, nor authorised the use of firearms against popular demonstrations. His policy was “to allow these economic struggles to resolve themselves through amelioration of the condition of the workers” and not to interfere in the process.

Read more about this topic:  Giovanni Giolitti

Famous quotes containing the words prime minister, term, prime and/or minister:

    The Prime Minister has an absolute genius for putting flamboyant labels on empty luggage.
    Aneurin Bevan (1897–1960)

    We now demand the light artillery of the intellect; we need the curt, the condensed, the pointed, the readily diffused—in place of the verbose, the detailed, the voluminous, the inaccessible. On the other hand, the lightness of the artillery should not degenerate into pop-gunnery—by which term we may designate the character of the greater portion of the newspaper press—their sole legitimate object being the discussion of ephemeral matters in an ephemeral manner.
    Edgar Allan Poe (1809–1845)

    The prime lesson the social sciences can learn from the natural sciences is just this: that it is necessary to press on to find the positive conditions under which desired events take place, and that these can be just as scientifically investigated as can instances of negative correlation. This problem is beyond relativity.
    Ruth Benedict (1887–1948)

    Before any woman is a wife, a sister or a mother she is a human being. We ask nothing as women but everything as human beings.
    Ida C. Hultin, U.S. minister and suffragist. As quoted in History of Woman Suffrage, vol. 4, ch. 17, by Susan B. Anthony and Ida Husted Harper (1902)