THE MONTE DEI PASCHI 49 



advanced a sum out of the public revenue, " amounting to 200,000 scudi 

 at 5 % interest, or 10,000 scudi per ann., out of the revenue of the Ufficio 

 det Paschi of Siena, with the precautions and security necessary for the 

 protection of His Highness." 



Although the justice of this rate of interest could not be called 

 in question, still, the Archbishop, Monsignor Alessandro di Pandolfo 

 Petrucci, was asked for his opinion, and, after consulting various theo- 

 logians and economists, he replied that he w as fully satisfied with regard to 

 the reasonableness and equity of the proposal. The deed of foundation bears 

 date, as said above, of November 2"<^., 1624 and the Monte dei Paschi 

 was opened on January 3rd., 1625. 



The 200,000 scudi advanced as security by the Prince out of the annual 

 income of the public board of pasture lands would correspond to 1,176,000 

 frs. at the present day ; the income had to be divided in various portions 

 called Luoghi di Monte (i) corresponding with modern bonds, to be sold at 

 100 scudi each and yielding interest of 5 scudi a year. In this way, "the 

 sure and certain fund was established, indispensable in order that the new 

 Monte might lawfull}^ receive money from collective bodies, or private indi- 

 viduals and from every quarter and every kind of public and private body ; 

 and that, on the other hand, the same Monte might lend on good security, 

 recei\4ng the same moderate and legitimate interest it granted its depositors, 

 any surplus being used to pay the expenses and commissions of the function- 

 aries and directors, as many as might be required to keep the Monte open 

 and ready for work. 



In other words the guarantee of the deposits consisted in the revenue 

 from the tax on the Maremma pasture land, which was considered the most 

 lucrative and the most certain the Grand Duke levied in the State of Siena 

 and which he had solemnly pledged in their behalf. The Monte might 

 lend the amounts it received in deposit to those requesting it at a rate a 

 little higher than that paid to depositors, that is, at about 5 14 %. 



The guarantee offered by the Prince was full and complete; legally 

 he could be called upon for payment of it in case of necessity, but as a matter 

 of fact it was never required, so that the guarantee remained purely moral; in 

 compensation, however, the Prince required, in his turn, a guarantee from the 

 deputies of the Balia, who had to engage up to the above mentioned amount 

 of 200,000 scudi not only all the bills oith.& Monte, all the advances of the 

 Monte di Pieid and all the claims the Commune had against the Monte, but 

 also, if this security were insuficient, the real and personal estate, rights and 

 documents of title belonging to all citizens and inhabitants of Siena, 

 except the priests. In the ultimate analysis, then, we find the security 

 to the depositors in the Monte dei Paschi offered by the lay citizens of 

 Siena themselves and consisting in all their possessions. 



(i) In the fifteenth century the creditors of the Bank of St George were distributed bj' reg- 

 ions of the city, and so their credits received the name of Luoghi. F. Ferrara. Introduclion. 

 op. cit. p. CXLIV. 



