AUS'l'RlA - CO OPERATION AND ASSOCIATION 



The farmers at once availed themselves of the advantages offered by 

 the banks and had recourse to them for loans to extinguish others the 

 conditions of which were more burdensome. But much of this capital 

 -^Aas used immediately for the improvement of agriculture and the scientific 

 improvement of livestock, and in this way considerabty improved the eco- 

 nomic conditions of the country. 



The savings deposits in 1896 made a total of 582,900 crs. ; in 1906 

 they had increased to 16,143,000 crs. and in 1912 to 28,874,470 crs. 



The credit current accounts also deserve special consideration ; from 

 336,900 crs. in 1896 they rose to 7,824,000 crs. in 1906 and to 14,116,401 crs. 

 in 1912. For the most part, this amount represents the subventions in 

 current account the rural banks give to other popular economic institutes 

 and especially to the co-operative distributive societies, the development of 

 v.'hich is especially to be attributed to the support they receive from the 

 Rural Banks in this way. 



The rate of interest in the Rural Banks is very low: on deposits it is be- 

 tween 3 Y2 and 4 % ; on loans between 4 ^ and 5 %. Although the law 

 aUows of a margin of i ^ %, practically it is reduced to i %, and with 

 this the banks cover their working expenses and form a reserve f tmd to meet 

 possible losses. The chief item of expenditure is the salary of the cashier 

 and bookkeeper; no other officers are paid. 



In the rural banks the share capital is not important ; the members 

 are liable to the amount of their whole estate (unlimited HabiHty), all equally 

 and jointly and severally in respect to third persons, for the engagements 

 entered into and on this ground share capital is not necessary ; the applic 

 ations of members for loans are met out of the sa\dngs deposits or loans 

 obtained from a credit institute on the security of^the joint and several 

 liability of members. 



B. — Distrihiitive Co-operation. 



The first distributive Consortium was founded at S. Croce in Giudicarie 

 in 1890, imder the name oiSocieta co-operativa per acquisto e smercio di ge- 

 iieri (Co-operative Society for Purchase and Sale of Goods), through the 

 influence of Don L. Guetti. The object of this Consortium was collectively 

 to provide the goods needed by the members to meet the requirements of 

 their domestic and rural economy, at the most favourable prices, 

 distributing the goods among them in accordance with their needs, at 

 cost price increased by a percentage charged for the cost of management 

 and working. 



In 1892 two other consortiums were founded, in 1893 five more ; since 

 then the progress has been very rapid, so that ini9o6 there were already 245 

 co-operative societies, which had increased to 250 in 1912 with more than 

 32,000 members. 



From Table VI, which gives the situation of the distributive consor- 

 tiums, we may learn the ultimate credit and debit balances at the end of each 

 of the last financial years, from which it is evident that the economic 



