THE FEDERAL BANK OF CO-OPERATIVE CREDIT SOCIETIES IN MILAN 31 



(b) to promote and encourage, in the interest of the above institutes 

 collectively represented, participation in the financial operations of the State 

 and others similar, not of local character, but compatible with their ivies ; 



(c) to encourage the institution of co-operative credit organiz- 

 ations, when the occasion presents itself ; 



(d) eventually to carry on credit busine-ss in all its branches, in 

 localities where none of its members exist, to the exclusion of all speculation. 



Its own funds will consist of the capital proper, which is unlimited and 

 formed by personal indivisible shares of lOO frs. ; the ordinary reserve fund 

 and, eventually, of other funds. No member may have more than fifty shares. 



Its executive authorities are : a general meeting of the representatives 

 of the adhering institutes, a board of management, a president, commission- 

 ers of accounts and arbitrators. 



The Board of Management consists of seven members, elected at the 

 meeting, from amongst the presidents and managers of the adhering instit- 

 utes. In addition to its technical functions, it must collect, for the bene- 

 fit of members, everv' kind of statistics, information and news relating to 

 commerce, industrv' and banking; engage in and conclude business in con- 

 nection with the above collective financial operations, and it is for this pur- 

 pose it deals with the contracting parties in the name of the federated instit- 

 utes, which are free to participate therein or not ; encourage the development 

 of the above institutes, by facilitating the mutual exchange of information 

 and services ; study and solve, in the interest of members, every question 

 relating to credit and savings, by the foundation of permanent organiz- 

 ations for the purpose of consultation, or when it may be, making use of 

 those already existing. 



The arbitrators, three in number, elected at the general meeting, decide 

 all disputes that may arise amongst members, or between members and the 

 society, and there is no appeal against their decision. 



The president is the legal representative of the society ; he has also 

 the chief supervision of it and the direction of the Bureaux. He is chosen 

 by the Board of Management from among its members. He holds office 

 for three years and may be re-elected. 



The working year closes on March 31st. of each 3'ear, and the balance 

 sheet " drawn up with the most careful commercial attention ", will be 

 presented at the meeting to be held in June. The profits will be distributed 

 as foUows : 50 % to the shareholders, 25 % to the ordinary reserve fund, 

 15 % to the board, to be used for the realisation of the objects of the 

 society or to be placed to the reserve fund, and 10 % to the employees. 



Such is briefly the organization of the new Federation and of the Cen- 

 tral Bank of the People's Banks, which, pro\nded with considerable means and 

 having a large programme, is certainly destined to give a still more \'igorous 

 impulse to the affiliated People's Banks, rendering possible by their union, 

 their participation in the most important financial operations, fruitful in 

 good results for the national economy, which it would be scarcely possible 

 to realise without union. 



