Middletown transcript., 1922-11-04
.A-AssRn ~
ITALY LIBERAL
IN FARM LOANS
Cash Always Available to Help
Out the Farmer.
IS ALSO FAVORED IN TAXES

ceIlent System of Rural Credit--Lib.
eraI Terms Given on Money for
New Machinery or to Tide One Over
Until Harvest-Farmer Bears Much
Lighter lmposts Than General Trade
or Industry.
Money may be next to impossible to
get at present for the Italian manu-
facturer or business man, but for the
farmer who wants to buy new field
or get the latest machinery or tide
himself over until harvest time money
is to be had at the bank nearest him
without elaborate ceremonies and
with liberal terms of payment.
Italy recognizes that she is an agri-
cultural country, and her rural credit
system is a shining proof of the gov
ernment's interest in stimulating the
farmer to modern and efficient means
of production. Much of the elaborate
network of farm credit institutions
was set up rapidly during the war,
but unlike the hasty distension of in
dustry which was followed by an
equally hasty collapse, this system is
thriving and the fundamental princi-
pies laid down during the war hold
good and are being extended.
Rural credit in Italy is matter of
geography. like many other important
aspects of the country's life. In the
eXcellentiy developed farm regions of
the North, including Emilia, Liguria,
Piedmont, Tuscany and Lombardy,
credit institutions have grown up along
side of the co-operatives and other
farm-workers' organizations and are
dominated like them by the Catholic.
Socialist or Fascist parties, as the
case may be. In the less advanced
southern part of Italy, Sicily and Sar-
iinia the state has had to take the
Initiative in making capital accessible
TO the farmer.
Farm Credits War Problem.
The question of farm credits was
one of the chief ones before the legiS
!lture during the war. Money was
short, and at the same time farm
production had to he increased. There
fore. from 1914 to 1921. IS different
laws were passed extending and mod
Sysng credit institutions, putting state
capital at the disposal of rural banks
and greatly increasing the mobility
If money for farm improvements and
Increased cultivation.
Before the war rural credit was ex-
tended by the state only for special.
Ted purposes and in definite regions.
The necessity for increased produc-
zion during the war caused the pas.
Sagc of laws extending the privilege OF
Farm loans to ordinary savings banks
and to cooperative credit societies
Hith capital OF 3.0oaOOO lire or
more. These were allowed to engage
~ specified farm credit operations to-
Ealing a fourth Of their capital. Sey.
e.d laws were passed regulating these
loans with view to making them ne
casSihle to the farmer.
series of laws was passed in IA
vor of the southern farmer, tradition
ally poor and in need of stimulation.
This legislation, in fact, had began in
c9Ol when measures authorizing the
savings department of the Bank of
Naples and the Bank of Sicily Estate
institutions authorized to issue cur.
rency) to take charge of farm credits
for the province of MeZzogiorno and
for Sicily, Sardinia. Culabria and the
neighborng provinces.
These two banks. which are ad
vanced capital by the state as needed
Act through n network of co-npcra.
lives, rural banks. consortiunS and 9th
er organizations close to the farmer.
| The smaller Institutions clear through
these banks, forwarding the farmers
savings and diScounting their notes
| loans are made for the purpose OF
| purchasing farm machinery. farm an
| imals. land and for all sorts of i'm
| provementS and are secured by tht
| crops of the coming harvest. Loans
| for improvements are limited to 5OO
lire, running for year, and for thu
| purchase of farm machinery or am
| mails to 1000 and 5000 lire respective
| ly, running for three years. Loans
| made on harvested crops can be made
only up to three-tifthS of their value
and run for six months with the priv
ilege of renewal if part payment is
| made.
Many Restrictions Removed.
During the war II series of acts was
passed greatly simplifying the making
! Of farm loans and removing many pre-
| yious restrictions. one of the most
radical was that of May, 1917 whci
| Ala nUav with the pprpSSjtv of n writ
tvn agreement as the basis Of a loan
aud made it possible to obtain loan
not on the basis Of single produce