El Paso herald. (El Paso, Tex.) 1901-1931, 1913-11-04

'--By Frederic J. Hassin-g
Continued from page l. this seetiOn-)
limited liability" feature Of the Ger
man bank. Luzzatti had the genius
TO see that this thing, suited to the
German, because Of a century Of prac-
ticing the idea under governmental
COmpulssOn, was not suited to the
Italian He knew that the Italian
would never be willing to bind his
every dollar to make good the Obliga-
tions Of his bank. The readiness with
which the Friendly societies recognized
the new bank as d secure place for the
investment OF their funds largely took
the place of the unlimited liability
feature Of the German system which
Schulze thought was the only plan IN
der which the bank could hope to Sc
cure outside credit.
Small borrower Gets Preference.
The Italian town banks use as me
chief channel Of credit the bill Of ex-
change the advance bill. and the trade
bill It is easier to refuse a renewal
OF one Of these bills il the borrower IS
making poor use Of his money and
easier to rediscOunt them, which ap-
peals 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 10 pea
SAINTS too poor to be members
Unlike the situation in Germany,
there is cooperation between the town
and the country banks, and the town
banks frequently furnish the country
banks with surplus funds, while some
Of them have gone so Tar as TO start
branch banks in the country districts
sometimes as mere auxiIiarieS but more
frequently as self governing colonies
on the way to ultimate independence
Whether the friendly relations between
the town and country banks is the re-
suit of a more statesmanlike policy be.
tween them than is pursued IN Ger
her
has preempted enough territory TO be
in the way Of the other, the best
Observers have not decided out tn6
fact remains that where the country
nave a mutual antipaIhy- those OF
Italy are on friendly terms
Popular With Wage Farmers.
The town banks Of Italy are popular
earners Of the Italian cities Although
the rank and file Of them may De
small, their total deposits aggregate
$40, OO0, 600, which IS in excess OF the
ing that the italian banks have
higher percentage OF non borrowing
members than those Of Germany.
The town banks OF Italy are COM
posed of members from evry class OF
society Forty five out of every 4UO
members are artisans small shop
keepers. ana small farmers Clerks
and professional members bring this
up 10 i've GlSnLS OF the LuLal Mltl-Dc-
ship in some of the smaller banks
a share OF stock is but 81. while N
others it goes as high as see.
The small borrowers banks Of italy,
whether they be rural or urban, have
proved as successful in promising the
wei being OF those TO whom their ere
dit is extended as have the Raiffeiseu
and Schulze-DelttzSch banks of Ger
many. They have enabled thousands
of small Italian farmers to get on their
feet in an economic sense, and have
rendered unusual service in the extern
sion Of the agricultural inlrests in
the country districts and in aiding the
urban artisan 10 acquire a home Tor
himself and his family. Every Obser-
yer comedies that the Italian system
is well suited 10 the needs Of the
country.
(Thfs is one OF the regular features
of The FL Puso HeruId.)