BANKING. Flue banking systemic of Italy has been very unsatisfactory, owing to the general financial distress of the country and to misman agement. Previous to 1893 there were six banks of issue: the National Bank of the 'Kingdom. the Bank of Naples. the National Bank of Tus cany, the Tuscan Bank of Credit, the Roman Bank, and the Bank of Sicily. in 1892 disclos ures of illegitimate manipulations of bank funds and the collapse of the Bank of Rome precipi tated a financial crisis. This institution was put into liquidation in 1903, and, by the law of that year, the National Bank of the Kingdom and the two Tuscan banks were consolidated as the Bank of Italy. The right of issuing bank-notes was limited to this bank, the Bank of Naples, and the Bank of Sicily, which were chartered for twenty years from January, IS94. The amount of bank-note eirenlation allowed to these banks was fixed at $219.400.000. which is to he grad ually reduced to $172,800,000 within fourteen years. The allotment to the Bank of Italy was 8160,000.000. to he subsequently reduecd to $126, 000.000, or 781.1 per cent. of the total. the re mainder being divided between the other two banks. The banks, however, may issue notes in excess of their allotment when they have suf ficient security in Million or when advancing money to the Government. The Bank of Italy was soon charged with the gratuitous handling of all the fiscal transactions of the Treasury in the provinces, saving to the State 8240,000 an nually. Thus, without being really a State bank, it performs some of the functions usually intrusted to such banks in other countries of Europe, and is under strict Government control and regulation. The eapital stock of the Bank of Italy is nominally $00,000,000, although the paid up capital amounts to only about $42.000,000, part, of the difference having been absorbed by the losses of the Bank of llome. The eombined capital of the other two banks exceeds $12.000.000. The financial condition of the three banks of issue in the last year of the century was as follows: Cash and reserve, $127,000,000; deposits, $334, 800,000; notes in circulation. $2•7,400.000; total
assets and liabilities, $740,000,000 each.
In addition to these Italy has developed. with great success, a system of popular coiiperative banks. These are associations of people of small means who combine their savings for mutual loans and credit, and do a general banking busi ness on a eomparatively small seale, discounting commercial paper, workingmen's liens, treasury checks, etc.; keeping current accounts. and ad vancing loans 'on honor,' i.e. without any security whatever, to needy people who can bring recom mendations of two members of the association.
The first hank of this kind was opened in 1805 in Milan as the result of the agitation of Sig. Luzzatti. Ten years later there were 82 such banks with a membership of more than 77.000 and a capital and reserve fund of more than $9,000,000. in 1886 their number increased to 516, the membership to more than 250,000, and their working capital to nearly $18.400,000. In 1899 they numbered S19, with a proportion ately increased capital and membership. Other banks operating in Italy are credit banks, agra rian credit companies built on the plan of the popular eormerative banks, eri•dit-foncier banks, savings banks, and Government postal savings hanks.
In 1900 there were 5143 post-office savings bank offices with 3,1)93,340 depositors and total deposits amounting to $136,400,000. There were in the same year 464 offices of the ordinary sav ings banks, with 1.064,666 depositors and &posits aggregating 8203,011,310. In 1895 the coiipera tive savings banks and ordinary credit eon panics had 79:3 offices. 374.294 depositors. and deposits aggregating $53,210.606.
There are six clearing houses in Italy, which increased in volume of business in the ten years from $3,382,754.000 to $7.173.917.600, or more than 100 per cent.