THE MONTE DEI PASCHI 55 



of gradual repayment of loans by means of annuities, while maintaining 

 its right to demand the principal of the loan whenever it pleased; in 1866 

 the Monte undertook the conduct of Land Credit business in conformity with 

 the new legislative provisions and thus also the third proposal formulated 

 in 1862 was completely adopted ; in 1869 the Monte also began to conduct 

 agricultural credit business through its Savings Bank. Hence, as a result 

 of the innovations of these busy ten years, a critical revision and final com- 

 pletion of the rules of 1862 became necessary. 



For the purpose, a mixed commission was appointed, consisting of 

 three members elected by the Communal Committee and three others 

 appointed by the Board of the Monte ; the new scheme was ready in 

 June, 1870 and was, first of all, discussed by the board from June to Sept- 

 ember of that year ; in the early months of 1871 the Communal Council 

 appointed special commissions to examine it, but they refused the charge 

 so that the Council had to discuss the new scheme in the Report of the 

 mixed commission. The general discussion, which was really memorable, 

 was held on the 22nd., 24th. and 26th., April, 1872, the Mayor, lyuciano 

 Banchi in the chair ; in other later meetings (April 2gth., May 6th., 8th., 

 loth. and 13th.) the articles were approved. The principal points now 

 discussed were : ist. the ownership of the Monte; 2nd. investment of 

 funds; 3rd. management ; 4th. grant of advances. 



To whom does the Monte de' Paschi belong ? After a long debate, 

 article i of the Rules, conceived as follows, was approved "The Monte dei 

 Paschi is an institution of the city of Siena, to which it owes its origin, and 

 therefore the Commune has the superintendence, management and guardian- 

 ship of it, and administers it by means of an elective council." The form- 

 ula, in order to reconcile the various tendencies of the members of the 

 council and with the object of affirming the principle of the possession of the 

 Monte by the Commune without using the word " possession ", which 

 seemed dangerous, ended by grouping together rights and powers which, in 

 practice, are distinct and separate, such as those of management and 

 administration, superintendence and guardianship. However, the mun- 

 icipal character of the Institute remains clear. It was determined to exclude 

 any Goverment intervention. 



The rules, definitely approved in May, 1872, are still in force and estab- 

 lish the unity of the Institute, organized for the conduct of the various 

 kinds of credit business it has to do, with separate management for each of 

 them ; the administration is in the hands of the board and the proveditor ; 

 the Commune appoints all officers and employees ; at least half of the net 

 profits must go to increase the capital of the Institute, while the rest may 

 be used for works of beneficence and public utility for the city of Siena. 



By Royal Decree of December 7th., 1872, the rules of the Monte were 

 fully approved by the Government ; and thus the central authority aban- 

 doned in behalf of the Commune of Siena all right to the intervention, up 

 to then exercised by it, in the affairs of the Monte de Paschi, and this was 

 no small advantage for the city. It is necessary to observe at once that this 

 renunciation was, in substance, made only for the principal department, 



