None of the Allied Nations has had more or greater problems confronting it than Italy has. Manpower has not been lacking, but the want of raw materials for the making of munitions has been a serious handicap, and one that has been most difficult to overcome. Italy has been absolutely dependent upon her allies for steel and coal. After her declaration of war against Germany, she was left helpless. Badly as France and England needed these raw materials, they had to come to the assistance of their ally. For a long time the quantities received were insufficient, and a sustained offensive against Austria was impossible, for want of ammunition. This condition was greatly improved when the United States entered the war, and Italy received from us vast quantities of steel, and sufficient coal came from England to supply her needs. It must be borne in mind that when war was declared (August 1, 1914) practically all the industrial and commercial organizations in Italy were controlled by Germany. The largest banks and financial houses were German-owned. One of the most prolific sources of income, the electric and other plants operated by water-power, were in German hands. Germany had a firm grip on the resources of the country. Her agents carried on a propaganda which required the utmost courage of the Italians to overcome, and let it be said to the credit of the Italian people, they risked financial ruin when they decided to enter the war on the side of the Allies. The first result of their entry into the World War was to demoralize their securities and almost to destroy the value of their money. The _lira_, a coin which, before the war, was worth about 19 cents, decreased in buying power to about 11 cents. Bonds dropped alarmingly. With the United States as an ally, loans have been made to Italy, her credit has been re-established, the _lira_ has gradually increased in value, and with steel and coal in sufficient quantities for all purposes, prosperity is returning. It was the shrewd Bismarck who arranged with Signor Crispi, twice Premier, to come to the assistance of Italy. A loan was made, and the best Italian securities were obtained for a song. Ever since, the German grip has tightened. As a result of the war Italy will be restored to commercial freedom and she will have a new and much needed opportunity to expand. The Ansaldo Company, a new and gigantic corporation, is now one of the largest munition plants in the world. Italy has tremendous resources in her water-power which is now being developed. Like her allies, she will be able to manufacture many of the things she needs. Her airplanes are among the best that are made. Her engines are wonders of mechanical perfection. Her motor cars are unexcelled. Italy, prepared as she never was, is ready for the future. [Illustration: A MARKET SQUARE IN ROME PHOTOGRAPH BY E. M. NEWMAN] _The Food Problem and How It Is Met_ TWO