The Washington herald., 1913-05-25

they are going forward or backward, the
comparison takes on a different aspect.
The agricultural development OF Italy
is steadily progressing. Its experts Of
foodstuffs are increasing. This boast can
not be made by the United States OF
America. Indeed the food exports Of the
latter country are steadily decreasing
and the agricultural production IS in
creasing only about one-fifth as fast DIS
the population, so that from certain stand
points agriculture in Italy Is in a far
better condition than in the United States.
Then, too in considering the benefits of
cooperation among Italian farmers. there
must be taken into consideration the
handicaps that had to be- and even still,
have to be overcome The educational
system, though il is now becoming ra pidiy
better, was long neglected. The rate of
illiteracy in the south of Italy is very
high. The people are naturally conserv.
alive and the farmers objected at every
step to the Introduction of improved
machinery and chemical fertilizers. The
superstition that exists throughout Italy
Is known TO everybody. Think how hard
task il must have been TO teach bust
ness methods to a people who placed i'm
plicit belief in the power of the evil eye
and who considered an accumulation OF
ton from disease. And yet the farmers
Of Italy have cooperative diaries. CO.
operative banks, buy their implements
and fertilizer practically at cost. and have
even developed their cooperative insti-
buttons in tire educational field.
There are some eighteen hundred so
called rural banks in Italy. Though
they enjoy certain rights from that gov
eminent as to exemption from taxation
and are in part controlIec ny the gov
eminent. they are, strictly speaking,
banks of the people or rather by the
people. Their success. which has been.
remarkable, is based upon the thrift of
the Italians. 1t is curious thing that
IN country where, at least on the sur
face. there seems to be so much osten-
tation and love OF display. the peopIe a,
heart should be SO thrifty. Yet all STU
dents OF italian life vouch for this. Their
rural banks have simply employed as
credit asset this national thrift. They
have created capital from toll and hon
esty. Some Of the banks were formed
without share capital: others with a lin
tied capital: but all of them depend
chiefly upon the savings of the country
folk for funds wherewith to advance the
loans to the farmers. The strength of
these institutions is shown by the fact
Aidt oH beCennDer ol, lSlu, the aggregate
amount of deposits held by rural banks
was about sl2.Ooo,00o This might not
seem a large amount for America but
when reduced to the level of Italian
standards it is quite remarkable. Be-
sides these deposits. of course. the banks
have large surplus of their own de-
rived from purchases of capital shares,
payments on loans. and in other WAYS
Loans are made to the farmers running
generally for about two years, and the
money Is generally loaned at from be-
tween 51-2 to per cent. These Door
peasants can more easily secure banking
than can the farmers of
the United States, the wealthiest, most
endowed farmers of the uni
verse. All these savings are devoted to
the development of agriculture. Through
these institutions the farmers are as
sisted In the purchase of implements, fer
tilizers, manures, stock, and even in the
permanent improvement of the land. One
very interesting institution in the Italian
rural districts Is the Comizio Agrario.
This is committee, composed of the
leading farmers of each district. which
studies farm problems and reports on
them to the ministry of agriculture
1t is the cooperative credit institu-
FOR the italian farmers. There are
TWO forms OF these cooperative banks,
both modelled after the German. The
type most generally found in the rural
district is similar in form to the Raft
'eisen banks of Germany They are
simply associations Of farmers living