The benefits of credit

Luigi Luzzatti - 1869

A precocious youngster, who would one day become prime minister, at the age of twenty-two Luzzatti published a book entitled “The diffusion of credit and the popular banks” that proved highly influential. On 21 March 1869, invited to give a conference in the city by the Società del Mutuo Soccorso of Bergamo, which a month earlier had launched a public offering of shares aimed at establishing a cooperative bank in the city , Luzzatti memorably spoke for three hours without a pause on the subject of “the benefits of credit among the less wealthy classes”. The prospectus of incorporation indicated that the company would be considered incorporated when the number of shares subscribed – with a value of 50 lira each – reaches 300. On 18 April, the incorporation of the Banca Popolare di Bergamo was officially executed before a notary public. A total of 1300 shares had been subscribed.