74 SPAIN - CREDIT 



on the origin of these estabUshments and the vicissitudes they have passed 

 through. 



■\'i Their origin cannot be ascertained with precision: although the prin- 

 ciple on which they are based was already known to the Roman law, the 

 pubhc granaries then founded disappeared at the date of the invasion 

 of the Barbarians, so that there is no link between them and the " Positos ". 

 The only certain fact we can take account of is that the CathoUc Kings 

 encouraged their foundation in the whole Kingdom and the first regulation 

 of them dates from the Pragmdtica of Philip II in 1584. 



The " Positos " were founded to serve as storehouses for a certain 

 quantity of grain to be distributed to the peasants for their consumption 

 or for sowing in seasons of scarcity. They had besides to " provide travellers 

 with cheap bread and succour the poor ". 



Thus, these municipal granaries were in the first place charitable 

 institutions, and even for their loans they only asked an insignificant 

 rate of interest, a quantity of grain varying with the amount of the loan, 

 but always very small, called " creces " . 



The Positos were therefore, at first, institutions of Royal foundation. 

 They were so successful and so welcome that private persons also began 

 to found them, so that in 1558 there were 12.000. We shall not here show 

 through what vicissitudes the institutions passed after having attained a 

 certain development. It is enough to say with the former Royal Delegate 

 of Positos, Zorita, that " in certain places, civil wars, CarUst and Regional, 

 led to the disappearance of the positos and gave the opportunity to 

 unconscientious debtors or responsible administrators to destroy the 

 proofs of their engagements or of their guilt; in addition to this, crises 

 and famines to a certain extent justified the employment of the funds of 

 the Positos on municipal undertakings or for assistance to the needy, 

 perhaps as advances to be repaid, but not repaid owing to the circum- 

 stances of the time ;often, the disaster was due to evident malversation on 

 the part of unscrupulous and, in most cases, insolvent, councillors". So, in 

 1850, there were hardly more than 4,000 Positos. 



It must be added that, the positos, maintaining their primitive organ- 

 isation while agriculture developed progressively, soon ceased to meet the 

 needs of the latter. 



A law then became necessary to make their administration independent 

 of poUtics and local discussions and restore them to their former flour- 

 ishing condition. 



Such a law was passed on January 23rd., 1906. 



The principal provisions of the law are as follows: All the services 

 in connection with the positos are subjected to the Agricultural Department. 

 The positos will no longer confine themselves to advancing seeds to lab- 

 ourers but will extend their action to include loans in money, act as rural 

 loan and savings banks, facilitate the purchase or the employment of 

 agricultural implements, machinery, manure, breeding stock and all requis- 

 ites for agriculture and livestock improvement. They may likewise receive 

 grain in deposit and grant advances of not more than 50 % of the value 



