46 SPAIN - CREDIT 



paper's (i) objections and oppose them with purely agricultural opinion and 

 ministerial arguments. 



The first objection to the decree is that the State intervention on which 

 it is based is not pertinent to the solution of the problem. 



To justify the government's agrarian policy in this case we will repro- 

 duce a passage from the explanation of the reasons for the decree in question. 

 The minister expresses himself as follows : " In the vSpanish rural class it is 

 impossible to insist on certain conditions of preparation where banking 

 and production are concerned. The conflict which is always pending be- 

 tween State intervention and free initiative must be decided, where national 

 agriculture is concerned, by proclaiming that it is the State's duty to sti- 

 mulate and favour the movement of capital towards the country and to 

 awaken in farmers sentiments which will enable them to learn, to develop 

 and to reach a position in which their signature will have a market value. 

 On the intensification of this movement depends the very existence of the 

 nation. A t^'^pical case is present for State intervention ". We should 

 add that the rural classes have, owing to the lack of private initiative, 

 never ceased to ask for this intervention. 



A second objection is that before creating a central organ, set over the 

 local organs, it is necessary that the latter should exist and be multiplied 

 throughout the coimtry. The Central Fund cannot create the local organs 

 contemplated, for the Spanish character, especially the character of the 

 peasants, is not only indifferent but also definitely opposed to association. 

 This is what is said in financial circles, but the truly agricultural circles 

 answer that this second objection is itself an argument which refutes the first 

 and justifies the State intervention thereby criticized. The Liga agraria 

 says in this connection, " Does not the spirit of solidarity exist among us? 

 The Central Fund was created for this educative task. Will not all the 

 loans be co-operative? This condition alone ensures its existence. To af- 

 firm the contrary is to disregard the inclinations of the race when it is well 

 directed. You say that this spirit cannot lead far. To lose this fear you 

 need only look at the marvellous co-operative and social movement which 

 has already reached the smallest village (2) ". 



(i) See " 1,3. Caja Central de Credito agricolo " in Espana Economica y Financiera, No. 1271, 

 aiadrid, 28 July 1917. 



(2) According to the official data of the Ministry of Fomento in 1914 the following organi- 

 zations aiming at encouraging the development of agriculture were then active : 



Chambers of agriculture 106 



Commimities of agriculturists .... 100 

 Agricultural federations and agricul- 

 tural associations 660 



Agricultural syndicates i,530 



Rural savings and loan funds .... 517 



Economic societies 46 



2,959 

 For the movement towards association and co-operation from the general point of view of 

 agriculture see the article already cited on co-operation in Spanish agriculture. 



