Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-11-04
UNLIMITED Liability"
Feature Is Omitted.

bank LuZZat-
Unlimited Liability ii had the
Feature Is Omitted. .,a. .. .s,. - th, Svs
suited to the German because of a Gen.
fury of practicing the idea under gov
ernmental compulsion. was not suited to
the Italian. He knew that the italian
would never be willing to bind his every
dollar to make good the obligations of
his bank. The readiness with which the
Friendly Societies recognized the new
bank as a secure place for the invest
ment of their funds largely took the
place of the unlimited liability" feature
of the German system, which Schulze
thought was the only plan under which
the bank could hope to secure outside
credit.
The Italian town banks use as the chief
channel of credit the bill of exchange. the
advance bill. and the trade bill. 1t is
easier to refuse a renewal of one OF
these bills if the borrower is making poor
use of his money. and easier to redis-
count them, which appeals to the bank.
Where funds are limited. the preference
always Is given to the small borrower.
and some of the richer banks make small
loans to peasants too poor to be men,
bers.
Unlike the situation in Germany. there
is cooperation between the town and the
country banks. and the town banks fire.
quently furnish the country banks with
surplus funds. while some of them have
gone SO far as to start branch banks In
the country districts. sometimes as mere
auXiliaries, but more frequently as self
governing colonies on the way to ulti-
mate independence. Whether the friend
ly relations between the town and coun-
try banks is the result Of a more states
i manlille policy between them than Is pur-
sued in Germany, or whether II Is be-
ritory to be in the way Of the other. the
best observers have not decided; but the
fact remains that where the country
banks and the town banks of Germany
have a mutual antipathy, those of Italy
are on friendly terms.
The town banks of Italy" are popular
places Of deposit with the vase earners
Of the Italian cities. Although the rank
and file Of them may be small their to-
tai deposits aggregate Sl40GO0.OOO. which
is in excess of tine loans they make Dy
$50 900. 600 showing that the Italian banks
have higher percentage of noa-borrow-
ing members than those of Germany.
The town banks of Italy are composed
: Of members from every class of society
Forty-five out Of every hundred mem
bers are artisans. small shopkeepers and
small farmers. Clerks and professional
members bring this up to five-elghths OF
the total membership. In some of the
smaller banks share of stock Is but 81.
while in others il goes as high as SO
The small borrowers banks of Italy.
whether they be rural or urban. have
proved as successful in promoting the
well-being- of those TO whom their credit
is extended as have the Raiffeisen ana
Schulze-Delitzsch banks of Germany.
They have enabled thousands OF small
italian farmers to get on their feet III an
economic sense, and have rendered un-
usual service in the extension of the aSIi-
cultural interests in the country districts
and in aiding the urban artisan to ac-
ouire a home for himself and his family.
Every observer comedies that the Italian
system is we'll suited to the needs of the
country