In 1887 a severe banking crisis occurred in Sardinia.
Its trade also in books, hops, horses, and cloth is considerable, and a large banking and exchange business is done here.
The banking institutions are supervised by an inspector of finance, who reports annually to the General Assembly.
The first private state bank was opened in 1817; an act of 1831 provided for a safety fund guaranteeing bank circulations and derived from a 41% tax on capital stock and a 1 o% tax on profits; but this law was modified in 1842, the tax being removed from banks giving specie guarantees; and a free banking act was passed in 1851.
In the large towns banking and commerce flourish to a degree beyond what might be expected.