ii2 ITALY 



set up by Sigiior YVallemborg, at Loreggia, near 

 Padua, the first of those Village Banks which 

 have since so powerfully affected the general 

 situation. 



Experience had shown that the ordinary banks 

 — including the People's Banks — were beyond 

 the reach of the peasant or the humble toiler 

 who had no security but his honesty and his 

 labour to offer in return for a small loan for 

 the purchase of a calf or some implements, 

 which might be of inestimable advantage to 

 him ; while it was essentially part of the Italian 

 system that financial credit should be at the 

 disposal of all deserving persons, whatever their 

 worldly position. The Village Banks, therefore, 

 aimed at reaching agriculturists whom the 

 Peoples Banks had been unable to touch; but 

 between the two there was perfect harmony, 

 the one being, in fact, regarded as a natural 

 complement of the other. 



The Village Banks thus established have a 

 twofold character. Those known as "Agrarian 

 Banks" are country branches (in effect) of either 

 a People's Bank or a Savings Bank, or, alterna- 

 tively, are affiliated to some central organization 

 to which the deposits they receive must be 

 forwarded ; whereas the " Rural Banks " have 

 complete self-government, and can themselves 



