The Stourbridge Observer, Cradley Heath, Halesowen & District Chronicle.
Stourbridge, West Midlands, England, 1870-03-12 00:00:00

BANKING IN NAPLES.

A Naples letter, in the Saha Public of Lyons, elvos
some curious detailA of the origin and downfall of the
receiving banks in that city :

" Gu,glielmo Ruffo-ScUla, the originator of the scheme,
now sixty years of age, Is the nephew of the celebrated Car-
dinal of that name, who in GU/ led the hands of lialahrians,
to whole he had promised the sack of Naples, and son of the
general who died Insolvent about fifteen yean ago. The more
eminent commercial firms took 110 part in the late folly, but all
persons unacquainted with business, women In particu-
lar, clericals, and even servants, rushed into it with a
blind precipitation rarely paralleled. People took all their
money out of Ih3 savings' banks and sold their rentee
and now all has been swallowed up, and the suma lost are esti-
mated at more than 50 millions. This colossal result was not
due to any scientific combinations, but to a chalice of the
most vulgar kind. A gambler la difficulties borrowing 20fr.
—such waa the starting-point of this extraordinary mania.
M. Ruffo Scußa having had his pockets cleaned out one even-
ing at play, borrowed Sufr. In paper from his neighbour a
female, promising to return the Cumin gold the ant even-
ing, and he kept his promise. Gold was then at 15 per cent.
premium, so that the 20fr. produced Mr. for the four and
twenty hours. The lady thought the operation original, and
offered to renew it for a larger sum. The reimbursement
was again punctual, and, at last, all the persons of the
society wanted to lend In their turn. Ruth, reduced to
expedients to raise a small sum, accepted the offers, but
fixed fifteen days for repayment. In proportion as his credit
improved, and his operations extended, he extended the
period of liquidation, and diminished the rate of interest
no far as to have no term less than a month, and not pay
more than 4 per cent. monthly. Everybody was persuaded
that Buffo had found the means of returning this prodigious
interest by operations with the money-changers, and he took
good care not to contradict that opinion. As long as the
bank hail a clandestine character and was spoken Of with an
Mr of mystery, its affairs prospered, and the deposits went
on crescendo But at Naples the Camorra blackmail
society) finds Its way into every business, and M. Rulid could
not escape the usual demands of contribution. Pamphlets
were published to show that the afftir was a grand swindle,
for Ruff o had refused to purchase their silence.

"Other persons set up banks In imitation of the original;
anti these were at first thought to be in reality branches of
Buffo's. To prevent the public from suspecting that the
coffers of Ruff° were getting exhausted, the Costa b ink was
created. After the Costa, another bank was set up under
the name of Janelli, then the Ferrier, these latter being bona
tide competitors. Ruffo brought them up, and that course
was a great blunder. From that moment banks sprang up as
by enchantment, and every day a fresh programme was
issued. The walls were covered with large placards on which
millions upon millions were arrayed in endless anceession.
Ike custom, Ts of Ruff° at last went off en moo, to his
rivals, and one fine morning he found himself in presence
of temands of reimbursement amounting to twen,y.eight
millions, whilst he had scarcely one in his strong-box. The
police at that moment acted with unusual river. In a
trio all the bankers, cashiers, and agents of all sorts
ere arrested, and more than six millions In specie were
st.questrated. But the evil had been already effected, and
thousands upon thoneande were mined."