I9H-] 



Agricultural Credit in Italy. 



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enterprise in that country was co-operative credit. Societies 

 known as Popular Banks were formed in the towns on the 

 Schulze-Delitzsch principle adapted to the special conditions 

 of Italy. Later, Rural Banks, formed on the Raiffeisen 

 system, began to be established, and the number of these has 

 grown rapidly year by year. The "rural banks" especially 

 serve the small farmer, while the "popular banks" by 

 preference deal with the proprietors of estates of large or 

 moderate size and with tenant farmers. 



Popular Banks. — These banks are essentially organs of 

 credit for the great industrial and agricultural middle classes, 

 and they have their headquarters generally in urban centres. 

 They have the form of limited liability companies, and the 

 nominal value of their shares varies from a minimum of 

 5 francs (4 shillings) to a maximum of 100 francs (£4). 

 The popular banks assist agriculture in several ways : they 

 discount the bills and acceptances of rural banks, and, in 

 addition to the ordinary forms of credit, a large number of 

 these banks grant loans to farmers upon mortgage, credits 

 on current account, and loans upon guarantee. 



The popular banks have no federal organisation, but there 

 are several regional groups. In addition there is the Associa- 

 tion of the Popular Banks, which was founded in Rome in 

 1876, and is principally a propagandist body. In 1870 the 

 number of popular banks existing in Italy was about 50 ; at 

 the present time there are about nine hundred with a total 

 capital of ,£10,000,000, and with more than half a million 

 members. 



Rural Banks. — The rural banks complete in the country 

 the work of the popular banks in urban centres. The first 

 of the rural banks was founded at Loreggia in 1883. ^ n 

 ten years their number had grown to 129, and to-day, it is 

 stated, that there are about 1,800 of these banks existing in 

 Italy, of which about 1,300 have been founded by Catholics, 

 while 500 are neutral in religion. 



The rural banks, which by their constitution can deal only 

 with their members, have for their principal object the pro- 

 vision of capital to the peasants (small freeholders, farmers, 

 and metayers) for their different requirements, without ex- 

 cluding loans for purposes of consumption, or those not 



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