MONTI DI PIETÀ. - Institutions whose purpose is to lend sums of money against pledges, with a minimal payment for expenses, so as to combat usury and come to the aid of the less well-off classes of the population. In the economic ideals of the Middle Ages the theory prevailed that money lent out is unproductive: in this case every interest was considered usury, and those who devoted themselves to such activity were reputed usurers: the Jews, and abroad the Italians, designated by the name of Lombards.
The m. di p. originated in Italy as early as the 14th century. There had previously been some attempts at credit institutions, which differed in purpose from the m. di p., because charity lay outside their field. Thus in 1196 there was a first attempt at Freising in Bavaria, followed in 1350 by a kind of mutual fund organized by the burghers of Salins (Franche-Comté); from 1361 there is a bequest by Michael of Northburg, bishop of London, of a sum to the Chapter of the cathedral, so that it might be distributed in loans on pledge and without interest for the duration of one year. The first to think of instituting true m. di p. were the Franciscans, with that of Florence, in 1358, through the work of Francesco da Empoli, which however, for lack of organizational experience, soon ended in failure. In 1454 a credit institution was established at Ancona, through the work of Marco da Montegallo, to assist the city with loans, but in this case there was no true m. di p., however much it has been regarded as such. The majority of the m. di p. were instituted in the second half of the 15th century. Fra' Domenico founded one at Ascoli in 1458; Michele da Carcano another at Perugia, in 1462, approved by Pius II in 1463, and the necessary capital was collected through alms by fra' Barnaba da Terni. The initiative spread rapidly and m. di p. were founded at Orvieto (1464), at Aquila (1466), at S. Giacomo della Marca and at Fabriano (1470), at Fano (1471). In the same year Sixtus IV sanctioned the statutes of that of Viterbo and in 1479 those of that of Savona. In 1484 Innocent VIII permitted its institution at Mantua. New foundations received a strong impulse from Bernardino da Feltre (v.), who instituted them at Parma, Rimini, Cesena, Chieti, Narni, Rieti, Lucca,
Siena, Padua (in connection with the b. Angelo Carletti da Chivasso), Pavia, Milan.
An examination of the statutes shows how, in general, the m. di p. were organized on a single model. The staff employed had a technical character; the most important functions belonged to the conservator, the depositary and the notary. The first (also called massaro and montista) had the task of accepting the pledges, preserving them and seeing to their restitution to the owners, once these had met their obligations. The second (also called treasurer or cashier) dealt exclusively with cash operations, while the third was charged with the administrative part, that is, the drafting and custody of the records. Other minor employees were: the one charged with the appraisal of the objects pledged, the one who put them up for sale when they were not redeemed at maturity, the crier and the subordinates. The administration was entrusted to religious and laymen, the former by right, the latter chosen by lot among members of determined categories. To cover operating expenses it was customary to exact a small contribution, which some theologians condemned as interest, alleging the illicit nature of the loan. In 1496 the Augustinian N. Boriani published a pamphlet De monte impietatis (Cremona 1496), in which he judged such activity scandalous and condemned it. The Dominicans joined him, and the Franciscans polemicized against them. The question of the gratuitousness of loans was also debated in a General Chapter of the Observants, held at Florence at the end of the 15th century, and the thesis of gratuitousness was upheld by Michele da Segni, who proposed by this means to put an end to the attacks of the adversaries. Bernardino da Feltre opposed it, affirming the necessity of charging a minimum, as compensation for expenses, because it was necessary to remunerate those who lent their work in the m. di p., and it would not have been possible to provide for this except by means of the contribution of those who would avail themselves of them. The latter thesis prevailed, and the vicar general of the Order, Evangelista da Perugia, also adhered to it. The first official recognition of the lawfulness of this came only at the Fourth Lateran Council (1515). Thus the m. di p. were recognized and it was established that a small compensation was lawful, provided it did not exceed what was strictly necessary to cover expenses. Only the popes Julius III and Pius IV included in the management expenses a share of interest to be paid to whoever had supplied the Opera with the necessary capital.
In the 16th century the m. di p. of Rome and Naples were instituted. The first in 1539 by the friar minor Giovanni Calvo; the second in 1540, to assist the needs of the population, following the expulsion from the Kingdom of the Jewish lenders, through the work of some philanthropists (Aurelio Paparo and Leonardo di Palma) and, it seems, also through the advice of St. Cajetan of Thiene.
The foundation of the m. di p. was a very important innovation, from the social point of view, because credit came to be granted on mild terms precisely to the humblest classes of the population, which had the greatest need of it. Those benefited from it who, in the event of possible, sudden necessities, had no reserves to draw upon and would have been forced to resort to Jewish and Christian usurers, facing the payment of heavy interests.
In the other countries of Europe the m. di p. appeared later. In 1572 and 1607 there were some at Bruges and at Lille. Later (1643) that of Paris was founded, which had a notable growth, so much as to justify its strengthening about a century later (1777). Even later is the institution of the m. di p. of Madrid, which began its activity in the 18th century. There were none in Germany or in England. In these two countries credit institutions were created above all for small merchants and industrialists, while pawn lending remained in private hands. It is noteworthy that in many cases the m. di p. expanded their activity to the point of becoming true credit institutions.
Bibliography18 works
Giuseppe Coniglio