74 I'OUTUGAIv - CREDIT 



loth., 1907, completed by the Executive Regulations of June 27th., 1907; 

 and by the amendments made therein by law of September i8th., 1908 

 and Decree of October ist. of the same year. By the Decree of May loth., 

 1907 and the Executive Regulations of June 27th., 1907, an amount of 180 

 contos de reis (900,000 francs) is placed on the Estimates of the Department 

 of Public Works, Commerce, Industry and Agriculture, to meet deficits 

 due to the discounting of warrants. These were issued for brandy and 

 spirits of wine and were discounted by the General Deposit and Thrift Bank 

 (a State Instiution), or any establishment which would undertake the charge, 

 but the rate might not be more than 5 %. The term for discotmting was 

 one year, and, in exceptional cases, fixed by the Government, two 

 years. 



All suits in relation to warrants were dealt with by a special commission 

 consisting of the President of the Central ]\Iarket of Agricultural Produce, 

 and two other members, appointed, one by the Central Association of Portu- 

 guese Agriculture, and the other by the Commercial Association. 



The warious credit institutions having evinced the greatest reluctance 

 to discount warrants, the Government authorized the General Deposit 

 Bank to do it, up to the amount of 1,200 contos de reis (6,000,000 frs.) and, 

 in exceptional cases, up to 1,800 contos (9,000,000 frs.), after consultation 

 with the Superior Board of Agriculture. 



The warrants were discounted in the case of deposits in the General Ware- 

 houses of the Central Market for Agricultural Produce, up to the amount 

 of 60 % of the value of the brandy and spirits of wine, at the rate of 2.62 

 reis (or 0.0131 frs.) per degree of alcohol, and in the case of deposits with priv- 

 ate persons up to the amount of 50 % of the same value. But the second 

 case was, however, quite exceptional. 



In the first case i %, and in the second 2 %, per annum was deducted 

 for insurance against commercial losses. Whoever presented warrants to 

 be discounted undertook to sell the goods deposited at the rate of 2.62 

 reis (0.0131 frs.) per degree of alcohol, b^^ the litre, as soon as the management 

 of the Central Market of Agricultural Produce could sell at that price. When 

 the depositor did not find buyers after discounting the warrant, and con- 

 sequently was not in a position to pay at date of maturity, the Commission 

 granted him a week's grace, on the expiration of which, it proceeded to sell 

 the goods. The sale was not necessarily^ by auction, but might be conduct- 

 ed privately, provided the price ofiered was not less than 10 % of that 

 shown in the special register. In case of loss, the Commission paid the 

 difference, taking the money for the purpose from the special fund of 180 

 contos (900,000 frs.), but only in case the insurance was insufficient to 

 cover the loss. 



The law of 1908 and the executive regulations for its appUcation in- 

 troduced some sHght modifications of the above system : authorization 

 was given to discount warrants issued in the case of wine deposited in the 

 warehouses of the wine societies and regional wine societies of co-operative 

 form, as well as of the Winemaking Companies founded in accordance with 



