Luigi Luzzatti
Encyclopedia
Luigi Luzzatti was an Italian
political figure and served as the 31st Prime Minister of Italy
between 1910 and 1911. He was Italy's second Jewish prime minister after Alessandro Fortis
, though predecessor Sidney Sonnino
was of partial Jewish ancestry.
He is remembered being the founder of the Italian credit union
movement and for his book Dio nella libertà (God in Freedom), in which he advocates religious tolerance. This provoked an exchange of correspondence between him and Benedetto Croce
.
, he attracted the attention of the Austrian police by his lectures on political economy, and was obliged to emigrate. In 1863 he obtained a professorship at the Milan Technical Institute; in 1867 he was appointed professor of constitutional law at Padua, whence he was transferred to the University of Rome. Gifted with eloquence and energy, he popularized in Italy the economic ideas of Franz Hermann Schulze-Delitzsch
, worked for the establishment of a commercial college at Venice, and contributed to the spread of people's banks on a basis of limited liability throughout the country.
In 1869 he was appointed by Minghetti
under secretary of state to the ministry of agriculture and commerce, in which capacity he abolished government control over commercial companies and promoted a state inquiry into the conditions of industry. Though theoretically a free trader, he was largely instrumental in creating the Italian protective system. In 1877 he participated in the commercial negotiations with France, in 1878 compiled the Italian customs tariff
, and subsequently took a leading part in the negotiations of all the commercial treaties between Italy and other countries. Appointed minister of the treasury in the first Di Rudinì
cabinet of 1891, he imprudently abolished the system of frequent clearings of banknote
s between the state banks, a measure which facilitated the duplication of part of the paper currency and hastened the bank crisis of 1893. In 1896 he entered the second Di Rudinì cabinet as minister of the treasury, and by timely legislation helped to save the bank of Naples from failure.
Following the revolt and suppression of the Fasci Siciliani
(1891-1894), Luzzatti introduced two measures of social legislation in 1898. The industrial workmen’s compensation scheme from 1883 was made obligatory with the employer bearing all costs; and a voluntary fund for contributory disability and old age pensions was created.
After his fall from office in June 1898, his principal achievement was the negotiation of the Franco-Italian commercial treaty, though, as deputy, journalist and professor, he continued to take an active part in all political and economic manifestations. He was again minister of the treasury from November 1903 to March 1905 in Giolitti
's second administration, and for the third time from February to May 1906, under Sonnino
's premiership. During the latter term of office he achieved the conversion of the Italian 5% debt (reduced to 4% by the tax) to 3¾% to be eventually lowered to 3½%, an operation which other ministers had attempted without success; although the actual conversion was not completed until after the fall of the cabinet of which he formed part the merit is entirely his. In 1907 he was president of the co-operative congress at Cremona
.
He was minister of agriculture in the second Sonnino Cabinet (December 2, 1909 - March 21, 1910), and on the resignation of the latter was called upon to form a cabinet himself. His administration, which lasted until March 18, 1911, was not very successful. Although a man of first-class financial ability, great honesty and wide culture, he had not the strength of character necessary to lead a government: he showed lack of energy in dealing with opposition and tried to avoid all measures likely to make him unpopular. Furthermore, he never realized that with the chamber, as it was then constituted, he only held office at Giolitti's good pleasure.
During the First World War, he was consistently pro-Ally and strongly supported Italian intervention, but his tone was on the whole pessimistic. Although he did not take office while the war lasted, he was always consulted on all financial matters, and his sound advice was generally followed.
He became treasury minister in the second incarnation of the Nitti
cabinet (March 12 - May 10, 1920), but did not resume office in the third. At the general elections of May 1921, he decided not to stand for parliament again, and was made a senator. In spite of his great age, he continued to write on economic and financial problems with his accustomed lucidity and soundness of judgment, insisting on the necessity for Italy to return to freedom of trade
and to reduce government interference in business matters to a minimum.
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
political figure and served as the 31st Prime Minister of Italy
Prime minister of Italy
The Prime Minister of Italy is the head of government of the Italian Republic...
between 1910 and 1911. He was Italy's second Jewish prime minister after Alessandro Fortis
Alessandro Fortis
Alessandro Fortis in Forlì, Papal States was an Italian politician who served as the 27th Prime Minister of Italy from 1905 to 1906....
, though predecessor Sidney Sonnino
Sidney Sonnino
Baron Sidney Costantino Sonnino was an Italian politician.Sonnino was born in Pisa to an Italian father of Jewish heritage and a Welsh mother...
was of partial Jewish ancestry.
He is remembered being the founder of the Italian credit union
Credit union
A credit union is a cooperative financial institution that is owned and controlled by its members and operated for the purpose of promoting thrift, providing credit at competitive rates, and providing other financial services to its members...
movement and for his book Dio nella libertà (God in Freedom), in which he advocates religious tolerance. This provoked an exchange of correspondence between him and Benedetto Croce
Benedetto Croce
Benedetto Croce was an Italian idealist philosopher, and occasionally also politician. He wrote on numerous topics, including philosophy, history, methodology of history writing and aesthetics, and was a prominent liberal, although he opposed laissez-faire free trade...
.
Life
Luzzatti was born of Jewish parents in Venice on the March 11, 1841. After completing his studies in law at the University of PaduaUniversity of Padua
The University of Padua is a premier Italian university located in the city of Padua, Italy. The University of Padua was founded in 1222 as a school of law and was one of the most prominent universities in early modern Europe. It is among the earliest universities of the world and the second...
, he attracted the attention of the Austrian police by his lectures on political economy, and was obliged to emigrate. In 1863 he obtained a professorship at the Milan Technical Institute; in 1867 he was appointed professor of constitutional law at Padua, whence he was transferred to the University of Rome. Gifted with eloquence and energy, he popularized in Italy the economic ideas of Franz Hermann Schulze-Delitzsch
Franz Hermann Schulze-Delitzsch
Franz Hermann Schulze-Delitzsch was a German economist. He was responsible for the organizing of the world's first credit unions.-History:Schulze-Delitzsch was born at Delitzsch, in Prussian Saxony...
, worked for the establishment of a commercial college at Venice, and contributed to the spread of people's banks on a basis of limited liability throughout the country.
In 1869 he was appointed by Minghetti
Marco Minghetti
Marco Minghetti was an Italian economist and statesman.-Biography:Minghetti was born at Bologna, then part of the Papal States....
under secretary of state to the ministry of agriculture and commerce, in which capacity he abolished government control over commercial companies and promoted a state inquiry into the conditions of industry. Though theoretically a free trader, he was largely instrumental in creating the Italian protective system. In 1877 he participated in the commercial negotiations with France, in 1878 compiled the Italian customs tariff
Tariff
A tariff may be either tax on imports or exports , or a list or schedule of prices for such things as rail service, bus routes, and electrical usage ....
, and subsequently took a leading part in the negotiations of all the commercial treaties between Italy and other countries. Appointed minister of the treasury in the first Di Rudinì
Antonio Starabba, Marchese di Rudinì
Marquis Antonio Starabba di Rudinì was the 18th and 21st Prime Minister of Italy between 1891 and 1892 and from 1896 until 1898.-Biography:...
cabinet of 1891, he imprudently abolished the system of frequent clearings of banknote
Banknote
A banknote is a kind of negotiable instrument, a promissory note made by a bank payable to the bearer on demand, used as money, and in many jurisdictions is legal tender. In addition to coins, banknotes make up the cash or bearer forms of all modern fiat money...
s between the state banks, a measure which facilitated the duplication of part of the paper currency and hastened the bank crisis of 1893. In 1896 he entered the second Di Rudinì cabinet as minister of the treasury, and by timely legislation helped to save the bank of Naples from failure.
Following the revolt and suppression of the Fasci Siciliani
Fasci Siciliani
The Fasci Siciliani, short for Fasci Siciliani dei Lavoratori , were a popular movement of democratic and socialist inspiration, which arose in Sicily in the years between 1889 and 1894...
(1891-1894), Luzzatti introduced two measures of social legislation in 1898. The industrial workmen’s compensation scheme from 1883 was made obligatory with the employer bearing all costs; and a voluntary fund for contributory disability and old age pensions was created.
After his fall from office in June 1898, his principal achievement was the negotiation of the Franco-Italian commercial treaty, though, as deputy, journalist and professor, he continued to take an active part in all political and economic manifestations. He was again minister of the treasury from November 1903 to March 1905 in Giolitti
Giovanni Giolitti
Giovanni Giolitti was an Italian statesman. He was the 19th, 25th, 29th, 32nd and 37th Prime Minister of Italy between 1892 and 1921. A left-wing liberal, Giolitti's periods in office were notable for the passage of a wide range of progressive social reforms which improved the living standards of...
's second administration, and for the third time from February to May 1906, under Sonnino
Sidney Sonnino
Baron Sidney Costantino Sonnino was an Italian politician.Sonnino was born in Pisa to an Italian father of Jewish heritage and a Welsh mother...
's premiership. During the latter term of office he achieved the conversion of the Italian 5% debt (reduced to 4% by the tax) to 3¾% to be eventually lowered to 3½%, an operation which other ministers had attempted without success; although the actual conversion was not completed until after the fall of the cabinet of which he formed part the merit is entirely his. In 1907 he was president of the co-operative congress at Cremona
Cremona
Cremona is a city and comune in northern Italy, situated in Lombardy, on the left bank of the Po River in the middle of the Pianura Padana . It is the capital of the province of Cremona and the seat of the local City and Province governments...
.
He was minister of agriculture in the second Sonnino Cabinet (December 2, 1909 - March 21, 1910), and on the resignation of the latter was called upon to form a cabinet himself. His administration, which lasted until March 18, 1911, was not very successful. Although a man of first-class financial ability, great honesty and wide culture, he had not the strength of character necessary to lead a government: he showed lack of energy in dealing with opposition and tried to avoid all measures likely to make him unpopular. Furthermore, he never realized that with the chamber, as it was then constituted, he only held office at Giolitti's good pleasure.
During the First World War, he was consistently pro-Ally and strongly supported Italian intervention, but his tone was on the whole pessimistic. Although he did not take office while the war lasted, he was always consulted on all financial matters, and his sound advice was generally followed.
He became treasury minister in the second incarnation of the Nitti
Francesco Saverio Nitti
Francesco Saverio Vincenzo de Paola Nitti was an Italian economist and political figure. A Radical, he served as the 36th Prime Minister of Italy between 1919 and 1920....
cabinet (March 12 - May 10, 1920), but did not resume office in the third. At the general elections of May 1921, he decided not to stand for parliament again, and was made a senator. In spite of his great age, he continued to write on economic and financial problems with his accustomed lucidity and soundness of judgment, insisting on the necessity for Italy to return to freedom of trade
Free trade
Under a free trade policy, prices emerge from supply and demand, and are the sole determinant of resource allocation. 'Free' trade differs from other forms of trade policy where the allocation of goods and services among trading countries are determined by price strategies that may differ from...
and to reduce government interference in business matters to a minimum.