PROVISION OF BORROWING FACILITIES. 297 



on condition of devoting a special department to land credit on modern 

 principles as in the French Credit Foncier. These are now known as the 

 privileged land mortgage banks of Italy. They are private institu- 

 tions, several of them, notably the^bank of Naples and Sicily, being 

 without shares and dividends, and based upon an ancient religious or 

 pious foundation. Other banks are of the ordinary joint-stock type, 

 but are not allowed to deal in long-term mortgage loans with 

 amortization, and upon issue of debentures unless their capital is at 

 least 400,000. A new society has now (1890) been promoted by 

 Government with a special law in'aid ; it is however to be a joint- 

 stock company, but with special privileges and monopoly, and will be 

 similar to the Credit Foncier of France. 



Class II. Public institutions are those founded by the State, 

 either by Government or by some local body whether province, 

 municipality or commune. These are but few in number and generally 

 of no great importance. Germany possesses a few, chiefly the banks 

 established to redeem the ancient feudal charges which burdened the 

 peasants. In Switzerland some of the cantons, notably, Berne, have 

 established State banks which are doing excellent work. Moravia 

 was endowed with a similar State bank in 1880. But many of the 

 land banks of Europe are largely controlled by the State ; the 

 Landschaften of Germany and the Credit Foncier of France are 

 notable examples so that it is difficult to divide banks by a hard-and- 

 fast line.* * In Russia there are State land banks of four 

 classes : (1) those directly founded by the State, administered by the 

 Finance Minister, and yielding profit to the State ; (2) land banks under 

 Provincial Governments directed by the Home Department ; (8) 

 institutions founded by communes ; (4) institutions under the council 

 of a particular charity under imperial patronage ; 'all these were 

 started before 1852 and little is known of their working. In 1882, 

 a Peasants' land bank was established to provide capital for those 

 peasants^ who wished to buy out their land ; this is essentially a 

 State bank. 



Imtiqpwe, Generally speaking, all land credit institutions 

 prior to 1850 or even 1860 were due to the impulse of Government, 

 varying from that of direction or direct fiat, to the mere passing of 

 laws favourable to their establishment, such laws being frequently 

 necessary by reason of a prior restrictive legislation such as is generally 

 unknown in England and India.* 

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