THE MONTE DEI PASCHI 59 



In Italy, there are no legislative provisions relating to agricultural 

 improvement credit ; we have, on the other hand, a first law of June 21st., 

 1869, for the regulation of credit for farmwork, authorizing the foundation 

 of institutes and societies for the purpose of granting farmers and land- 

 owners or facilitating for them as sureties, discount, the negotiation of 

 promissory" notes, bills of exchange, bills to order, produce warrants etc ; 

 and allowing them for the purpose to issue special bonds to bearer, called 

 buoni agrari (land bonds), payable at sight. 



Before the promulgation of this law the board of the Monte de Paschi 

 decided, by vote of F'ebruary 22nd., 1869, to undertake by means of its 

 Saving Banks the grant of agricultural credit ; but this was only author- 

 ized a year after the law was passed and more exactl}^ by Royal Decree 

 of June 15th., 1870, and the work was only begun in the following August 

 and consisted chiefly in discounting bills bearing two signatures of which it 

 was enough that one should be a landowner's. Subventions were also guar- 

 anteed on pledge of land bonds and produce and huoni agrari were issued, the 

 circulation of which, in amount about 1,200,000 frs. has always been 

 unexceptionable so that the Government has repeatedly renewed the con- 

 cession. Up to a few 3'ears ago, we may say, the Monte de Paschi 

 conducted agricultural credit business in accordance with a high standard 

 and with noble intention, opening current accounts for agricultural con- 

 sortiums at very low interest, rediscounting bills accepted by these con- 

 sortiums at the same very low rate, and directly discounting for landov% ners 

 bills at six months' date, renewable ever>' three months for another three 

 months, with a deduction of one tenth, at 4 % interest ; and has always 

 assigned a part of the profits from this special department for prizes for 

 the encouragement of new agricultural methods or the building of healthy 

 and comfortable farm houses. 



On December 31st., 1902 the independent agricultural credit business 

 was suppressed and on January ist., 1903 it was undertaken directly by the 

 Savings Banks, which also make ample pro\-ision for commercial credit. 

 The huoni agrari have been withdrawn from circulation, so that on the bal- 

 ance sheet for June 30th., 1913 there was only an amount of 200,0(^0 francs 

 shown for them. 



Finally, the Monte de' Paschi has not neglected the modern forms of 

 thrift. In 1883, it contributed 100,000 francs towards the guarantee funds 

 for the Is ational Insurance Society against Accidents to Workmen in their 

 Labour, undertaking the business for Tuscany and Umbria. in accordance 

 with the law of July 8th., 1883 ; similarly in 1901 it undertook the agency 

 for the Provinces of vSiena and Grosseto, for the National Thrift Bank for 

 Workmen's Disablement and Old Age, founded in accordance with the law 

 of June 17th., 1898. 



