Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1913-06-19
MEDIEVAL |: 1 FARM
SYSTEM N ITALY
Msrehants Are the Landowner and
When Crops Are Dad Furnish Feed
Fer the Farmsrs UnsM The Next
Harvest - comsmissien Investigating
ce.opssstive Credit institutions.

Fer the Farmer unsM The Next
Harvest - commissien Investigating
ce.opsrstivs Credit institutions.
The American commtssioa on agri-
cultural cooperation. which recently
began an investigation Of ~ coopera-
Ave banking societies Of Hurops. made
their initial inquiries In l1oeenco. Ita-
". and they had the advantageous ex-
perience Of first visiting part Of Eu-
rope where cooperative banks had not
made much headway.
Agricultural cooperation = pactaced
in only one form in the country about
Florence-societies for the purchase Of
agricultural machinery. fertilizer. seeds.
etc. This IL chiefly duo to tAs fact that
in the early days the merchants OF
Florence were the landowner, and
their estates were farmsd on share
basis by the peasants. II crops were
bad the landlord furnished food Tor the
This system Of land tenure still pre-
walls, and study Of the systems neaR
Florence has shown the commission
that cooperative credit institutions are
only possible where the need II great
Comparison Of, Conditions.
Comparing Italian conditions WITH
American, one Of the Florentins sx-
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. Signor Martclt. president
Of the Savings Bank OF Florence. do
scribed q practice common with banks
about Florence whereby the farmer
gives a mortgage to q bank and ~
ceives in return an open account for Q
certain amount Of credit. Thus .
farmer who considers that he needs
credit of $4,000 to operate his farm
gives a mortgage for that amount to
the bank. As he needs the money ho
draws on the bank. He pays interest
only on the amount which be bor-
rows.
For the long time loans Of the farm
ers the savings banks are allowed to
invest up to 30 per cent Of their depos-
its in farm mortgage. These mort
cages are Of two classes-for periods
up to ten years and for periods Of from
ten to thirty years. The shorter term
mortgage loans are repaid by the Dor
rowers in one lump sum. AZ In the
United States. but the longer term
loans are repaid by amortixdtdon-that
is. small annual payments made upon
the principal Of the loan The banks
are permitted to charge borrowers
only one-haIf Per cent moro than they
are required 70 pay Deposition. At the
present time the prevalent rate II 8
per cent though generally It u 4 per
cent. Money II loaned only up 20 50
per cent Of tho appraised value Of the
land
4 Mortgage Bank.
There II also Q mortgage bank IN
Florence. the Monte d Paschi. found
ed By one Of the early dukes Of Flor
ence This bank Issues mortgage deb
entures at 81. ~ ana per cent
Most Of the debentures now outstand-
ing are at per cent They sell tn
fe under par, which u the usual con-
ditton in Italy. and their lnafkse pe1es
compares favorably with government
bonds.
The cooperative societies for pur.
chase among the landowners have
been successful The farmers them
selves do not belong to thess societies.
but the landowners do all purchasins
Of farm machinery and fertflizef.
These societies are also active in edu.
o.&lo~>f A-1 r,aS.<~S~ A~a~~l.