The New York herald., 1922-08-27

farmers guilty OF bad faith. Stealing
or injuring farm implements or use OF
the loan for other purposes is now pun
fshed under the criminal instead OF
the civil code which has brought about
great Improvement.
Agriculture has been greatly favored
by the Government In the matter Of
taxation which weighs heavily uron
Industry and trade AT the beginning
OF the war farm credit operations were
exempted from the 'tasso di bollo" and
the tax on convertible property, as we'll
as relieved Of half the tax upon the
execution of documents. Landowners
cultivating their own land were also
favored in every way by the law,
Besides working through existing
banks the Government has created sew
eral State institutions in various parts
OF the country 10 mobilize farm credit.
The most important body was created
early in 1920 as section OF land and
farming credit in the National Credit In
stitute for Cooperative founded in 1913.
This section was given an initial capital
Of 10000, 900 lire and was empowered TO
loan money for the development of large
or small tracts, of land and for raising
agricultural standards in general.
An important sectional consortium Of
created In the province Of yenetia. which
has proved a great force in reconstruct
ing the farms injured by the war.
The State credit institutions have had
their greatest growth in the regions of
Naples and In the Marches. UmHria and
Liguria. Farm credit operations through
the Bank of Naples. for instance, in
creased during the war years from 49,
934.159 to 4S,s0s.Ss2 lire and during the
same time the institute for Rural Credit
of Liguria increased its direct and in
direct dealings from the small sum of
1925 to 1.775.395 lire. The operations
through the Bank of Sicily decreased.
however.
Private Credit Example.
a typical example of private credit
institutions which are more important
than the State ones is the Italian Fed
Grafton of Rural Savings Banks, which
represents more than 1000 cooperative
credit institutions scattered over Italy
and which Is following a wide program
for the development of rural credit. This
federation is under the control of the
Catholic Populist party.
The extent to which this system has
grown is shown by the figures gathered
from 1,121 credit institutions In 1918
the deposits amounted to 2o1. .ss3.1S0
lire, representing the savings Of thou
sands Of families and 64,519,257 lire
were issued in loans for agricultural de-
velopment. In 1921 from data collected
from only 9S7 institutions deposits were
329,2s6,99S and loans 104,562.417 lire,
These institutions have effected a
revolution in the old system under
which thirty years ago the small private
farmers and land workers were the VIC
tins of extortionate rates for loans.
After the war the credit institutions
in the north began to change their char
acter from institutions primarily of
credit to savings institutions. This was
a critical moment for the rural credit
bodies. When ready money began to
flow out Of the land into the banks
there was a widespread attempt on the
part of private banks to absorb this cash
and divert it for industrial uses or often
for frank speculation. The Federation
of Rural Credit institutions showed it.
self a protector of the interests of the
farmer, conducting a countrywide cam
paign eliminating in congress in Rome
in November. 1920, and another at Tre-
viso in April, 1921, which were domi-
mated by the slogan THE fruits of the
earth must return to the EARTH"
A special commission has been ap-
pointed to study the question of increas-
ing rural credits, headed by DR.. Mario
Under Secretary of State for
Labor. This commission in series of
conferences has just formulated series
Of practical proposals to be presented to
the Minister of Agriculture.