The Parker post., 1913-09-06
ANCIENT FARM PLAN
Agricultural Co operation as
Practiced in Italy.
Merchants Near Florence Are Still the
Landowners and Peasants Work
on shares-Landiord Sustains
His Tenants.

Florence. Italy.-At the beginning
Of its investigation Of cooperative
banking societies the American com
mission on agricultural cooperation,
assembled by the Southern CONNER
cial congress-, had the advantageous
experience Of first visiting part OF
Europe where cooperative banks had
not made much headway.
Agricultural cooperation is prac-
ticed in only one form in the country
about Florence-sOcieties for the pur-
chase Of agricultural machinery, fer
tiIizer, seeds, etc. This is chiefly due
to the fact that In the early days the
owners, and their estates were farmed
On share basis by the peasants.
If crops were bad the landlord fur
nished food for the peasant farmer
until the next harvest. This system
Of land tenure still prevails, and study
of the systems near Florence has
shown the commission that cO-Opera-
tive credit institutions are only posi-
BILE where the need Is great.
Comparing Italian conditions with
American, one Of the Florentine ex-
perts who appeared before the COM
mission suggested that In the United
States the solution Of the problem OF
farm finance might be found In an en-
largement Of the operations Of exist
ing banks. Sig. Martelli, president OF
the Savings bank of Florence, de-
scribed practice common with banks
about Florence whereby the farmer
gives a mortgage to bank and re-
ceives in return an open account for Q
certain amount of credit. Thus
farmer who considers that he needs
q credit Of $4,000 to operate his farm
gives mortgage for that amount to
the bank AS he needs the money
he draws on the bank. He pays in
terest only on the amount on which he
borrows.
For the longtime loans of the farm
ers the savings banks are allowed to
invest up to 80 per cent of their de-
pOsits in farm mortgages. These mort
cages are of two classes-fOr periods
up to ten years and for periods OF
from 10 to 80 years
The shorter-term mortgage loans are
repaid by the borrowers in one lump
sum, as in the United States, but
Amortization-that is, small annual
payments made upon the principal OF
the loan. The banks are only per-
mitted to charge borrowers onehalf
per cent. more than they are required
to pay depositors. At the present
cent, though generally it is four per
cent. Money is only loaned up to so
per cent Of the appraised value of
the land
There is also mortgage bank In
Florence, the Monte di Paschi. found
ed by one of the early dukes Of Flor
ence. This bank issues mortgage de-
bentures at three and one-half, four
and one-half and five per cent. Most
OF the debentures now outstanding
are at five per cent. They sell
trifie under par, which is the usual
COAuiIiOH III lIdiy, anu lAcll Ludi hOe
price compares fayorably with gov
ernment bonds.
The cooperative societies for pur
chase among the land owners have
been successful The farmers them
selves do not belong to these socie-
ties, but the landowners do all pur-
chasing of farm machinery and fertil-
izer These societies are also active
In educational work, and maintain ag-
ricultural experts, who travel about
from village to village instructing the
farmers in scientific agricultural
methods