The New York herald., 1922-08-27
ITALY MAKES LOANS
EASY FOR FARMERS
War Forced Development of
an Excellent System of
Rural Credit.
TERMS ARE LIBERAL
Cash Always Ready for Ma
chinery or to Tide One
Over Until Harvest.
ALSO FAVORED IN TAXES
Bears Much Lighter Imposts
Than General Trade and
Industry.

Special Correspondence TO THE NEW YORK
HERALD.
New York Herald Bureau.
Rome, Aug. 10.
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 a 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 shining proof of the Gov
ernment's interest in stimulating the
1armer to modern and efficient means
OF production. Much of the elaborate
network of farm credit institutions
was set up rapidly during the war.
put 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 a matter of
geography, like many other important
aspects of the country's life. In the ex
celIently developed farm regions of the
north, including Emilia, Liguria Pied
mont, Tuscany and Lombardy. credit in
stitutions have grown up alongside of
the cooperatives and other farm-work-
ers' 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.
nd
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 Legislature
during the war Money was short, and
at the same time farm production had to
be increased. Therefore. from 1914 to
1871 thirty-eight different laws were
passed extending and modifying credit
institutions, putting State capital at the
disposal of rural banks and greatly in
creasing the mobility of money for farm
improvements and increased cultiva-
ton. .ass s4.s-e SIS -s.@ sis. @ss E l.s.
Before the war rural credit was ex-
tended by the State only for specialize
purposes and in definite regions The
necessity for increased production dur
Ing the war caused hex eassage OF laws
extending the privilege farm loans to
ordinary savings banks and to coopera-
tive credit societies with a capital of
100000 lire or more. These were al
lowed to engage In specified farm credit
operations totaling a fourth Of their
capital Several laws We're passed regu-
lating these loans with a view to making
them accessible to the farmer.
A series of laws was passed In favor
OF the southern farmer, traditionally
poor and in need of stimulation. This
legislation, in fact. had begun in 1901
when measures authorizing the savings
department of the Bank of Naples and
the Bank of Sicily Estate institutions
authorized to issue currency to tako
charge of farm credits for the province
OF Mezzogiorno and for Sicily, Sardinia,
Calabria and the neighboring provinces
These two banks. which are advanced
capital by the State as needed, act
through a network of cooperatives, rural
banks, consortiums and other organiza-
tions 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 animals, land and for
all sorts of improvements and are se-
cured by the crops of the coming har-
vest. Loans for improvements are linn
tied to 5000 lire, running for a year.
and for the purchase of farm machinery
or animals to 1000 and 5000 lire re-
spectively. running for three years
Loans made on harvested crops can be
made only UP to three-fifths of their
value and run for six months with the
privilege of renewal If part payment Is
made.
Many Restrictions Removed.
During the war a series of acts was
passed greatly simplifying the making
OF farm loans and removing many pre-
vicious restrictions. One of the most
radical was that of May. 1917, which
did away with the necessity of a writ
ten agreement of the basis of a loan
and made II possible to obtain a loan,
not on the basis of single product as
before, but on the whole estimated
product of the farm. This law was
passed especially to- encourage grain
growing.
Severe penalties were provided for
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