PROVISION OF BORROWING FACILITIES. 345 



institutions, supplements and completes the material worth of the 

 shares, which are accumulated gradually, and even in some cases by 

 weekly instalments of a few centimes/ 



" In order to secure the efficiency of such a moral guarantee, it is 

 most desirable that the members of the association should be well 

 known to each other, especially during the early period of its existence, 

 and that the bank authorities should maintain a strict supervision 

 over the granting of loans and advances. 



" The area in which the operations of the bank are carried on 

 must therefore not be too extensive, so that its members may have 

 frequent opportunities of intercourse with it and with one another, and 

 be able to take an active part in its management without personal 

 inconvenience, and SIGNOR LUZZATTI accordingly recommends the 

 conversion of branches of existing banks into independent institutions, 

 whenever their condition is sufficiently flourishing to justify such a 

 course, as well as the foundation, in large centres of population, of 

 small independent banks, side by side with those already established." 



44 



