1911 Encyclopædia Britannica/Luzzatti, Luigi

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LUZZATTI, LUIGI (1841-), Italian economist and financier, was born of Jewish parents at Venice on the 11th of March 1841. After completing his studies in law at the university of Padua, 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 Schultze-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 Rudini cabinet of 1891, he imprudently abolished the system of frequent clearings of bank-notes 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 Rudini cabinet as minister of the treasury, and by timely legislation helped to save the bank of Naples from failure. 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.

See L. Carpi's Risorgimento Italiano, vol. ii. (Milan, 1886), which contains a biographical sketch of Luzzatti.