146 HUNGARY 



A solution of these difficulties was sought by 

 the setting up, in 1890, of a co-operative credit 

 bank for the county of Pest. This county bank 

 was to serve a three-fold purpose. It would 

 place the surplus deposits of the wealthier 

 districts at the disposal of the poorer ones for 

 the purposes of loans ; it would so control the 

 formation and the operation of the village banks 

 as to ensure their being based on beneficent 

 motives instead of simply a desire for divi- 

 dends ; and it would send travelling accountants 

 through the districts concerned in order to see 

 that the books of the local banks were properly 

 kept, and to give the officials such advice or in- 

 struction as they might require. The further 

 arrangement was made by the county co- 

 operative credit bank (of which Count Karolyi 

 became the chairman) that, as an additional 

 means of checking the tactics of the money- 

 lenders in their campaign against the village 

 banks, no branch should enter into serious 

 obligations with non-members, in the way of 

 receiving substantial deposits, without first con- 

 sulting the central office. 



The capital for the new county co-operative 

 credit bank was raised by the issue of shares to 

 be taken up by the local banks. Of these there 

 were then about 200 : but the effect on the 



