THE WORK OF THE AGRICULTUR-\L CREDIT INSTITUTIONS 79 



a part of the capital of the Positos to fill the empty safes of the numerous 

 agricultural social organizations already existing in certain regions, which, 

 as their organization is perfect, onl}'- need capital to fulfil their mission. 

 To rightly understand this theory — among its advocates, Senor Coloma 

 deserves special mention — we must consider the capital at the disposal 

 of the Royal Delegation as consisting of three classes: (i) the funds which 

 are as it were its own capital, those to which no posito has any special 

 claim, but which belong to the institution as a whole, namely the interest 

 on the provincial assessments, that is to say, a sort of tax on the capital 

 lent by the Positos to the Provincial and central administrations for their 

 working expenses, and amounting altogether to 800,000 pesetas. In this 

 class are also included the amounts due to the positos from the State, on 

 loans granted on occasion of wars and epidemics; this debt has reached, 

 after many renewals, the amount of 14,357,842 pesetas. 



(2) The second class represents money the Positos keep immobilised, 

 not at interest, in current account in the branches of the Bank of Spain, 

 now amounting to 4,000,000 pesetas. 



(3) The last class consists of 40,000,000 pesetas now in the hands of 

 borrowers. 



Wrhen we study the history of the Positos, we find some of them called 

 Positos de la Tierra {Local Positos) differing, from the others in that their 

 administration takes root in a special locality and can found branches 

 {juntas auxiliadoras) in other villages. Those in *- -our of the theory we 

 are considering propose that the first class of the 1 unds of the Positos above 

 indicated be used for founding Positos de la Tierra by means of subventions 

 to the agricultural social organizations of the localities in which they are 

 formed. 



As to the second class of capital it is bitterly regretted that in a country 

 like Spain, where so much harm is caused by usury, there should be so large 

 a sum immobilised in the current account of a bank, especially when 

 this money is derived from the country to which it should return. 

 Such an anomaly is due to various causes, but chiefl}^ it is said, it must be 

 laid to the charge of the local administration of these establishments and 

 the borrowers. 



In fact, the law of 1906, when it entrusted the Municipal Councils with 

 the local administration did not consider that the managers would be 

 the councillors and would subordinate their trust to their administrative 

 and political duties, and that, therefore, it would be much more con- 

 venient for them to refuse a loan and thus escape all hability, without taking 

 the trouble to enquire into the solvency of the applicant. Even in the 

 villages the erroneous idea is often entertained that every borrower is a 

 ruined man. 



Now, it is claimed that the Delegation might solve the difficulty by 

 replacing the present managers by others better suited for the work. Such 

 are the managers of the voluntary rural organizations, syndicates, rural 

 banks, co-operative societies, mutual insurance societies etc. 



