Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1872-12-08
A BAVARIAN SENS ATION-wHAT A
FEMALE BANKER DID.

/
ly recognized by his Excellency.
A BAVARIAN SENS WHAT A
FEMALE BANKER DID.
Miss Adele Spitzeder, of Munich, Bava-
ria, a second class actress and first class
speculator, has shown talent for swindling
on colossal scale which would put to shame
anything ever concocted in Wall street or
any other American street, even by the
most astute male Peter Funk. Munich
may now boast its beer, its Wagner, and its
| Spitzeder, without fear of competition.
The story is an interesting one, particularly
as showing the state of perfection to which
swindling has been brought in Europe. 1t
appears that Miss Spitzeder conceived the
idea that she was peculiarly qualified
for a banker, and accordingly made
the necessary preparations to go into
that business. This was two or three years
ago. Previous to that time she had de-
veloped a remarkable facility for borrowing,
fact it is said which numerous merchants
aud tradesmen can testify, and this appears
to have been regarded by her as one of the
] qualifications fitting her for a banker.
Having opened banking house, Miss Spit
zsder inserted advertisements in the
| wants columns of the Munich papers
for certain loans of money, Offering
therefor rather high rate of interest.
Mortgages were worth, at that time, Il
per cent per amman, and the banks
charged but 5 per cent, whereas Miss
Spitzeder offered 10 per cent per month. In
Munich, as in all the larger cities, there are
| gentlemen whose only means of livelihood
consists il looking after such cases, and
thus securing for their money the highest
rates of interest possible, and these men
greedily snapped at Miss Spitzeder's gilded
bait 1t was especially enticiog as she paid
three months interest in advance, aud the
remainder in quarterly instruments. The
scheme was a success. Money poured in
so copiously that the Spitzeder soon had
more money than she wanted. This easy
way Of getting money may have first sug-
gcsted to her ingenious mind and idea of
going into those monetary operations which
proved, in due time, such perfect mine Of
wealth to her. She took ali the money off
cred, gave certificates ofdeposit fer the same,
inserted new advertisements in the
papers, and received offers Of new
loans. Ii ths course ofthis business, the
p-aclica gradually developed which was
more Immediately the cause of the great
popularity and success Of her banking
scheme. She paid enormous rates Of in
teTest, and paid this interest in advance.
The interest was easilypaid out Of the prin-
cipal, and the interest which she paid came
back TO her again in the shape ofnew loans,
like bread cast upon the waters. At the first
view, it would seem as though such bust
hess transactions must end in speedy bank
rup,cy. But this only seems so. There
are two considerations that would eraoe
business of this kind to live for
several years. The first and most mpor
sat Of these is the constant Influx of
capital for, Of course, the interest W IS con
staltly paid out Of the principal; and tie
second, that the interest paid out was in
most cases reinvested as principal to again
bear interest. To make the thing look
plausible 10 the lenders, it was stated that
not only had Miss Spitzeder been remarka-
bly, successful in several large speculations
in real estate, netting her profits of 100 per |
cent, and, in some instances, even more, |
but that she had opportunities for loaning |
all the money she could command at I5625 |
per cent. per month. The new coat |
OF gliding on the bait made it brighter |
and brighter, and the funds which |
poured into her vaults were
almost too cumbersome to handle iconven-
ieatly. The depositors, for the most part,
were the laboring classes of Munich, es-
pecially household servants, and the neigh
boring peassntry. She had the support Of
the Ultramontane press, established paper
herself, and purchased two others. These
papers advertised and commended her en-
terprise to the public, lauded her person to
h9skies, and defended her against the at
tscks of the liberal press. To further
gain the good viii of the people among
whom she operated, she established
the so called "People's Kitchen" in
Munich, which furnished good and whole
some meals to toe poor at merely nominal
prices. 1t has been said that in this enter
p-ise she lost, on an average, from 90 to
100 forms per day. This, however, was
mere nothing, so long as she received
from $4,000 to 10000 forins per day over
the counters of her bank and its branches
scattered all through Bavaria. How many
millions we're thus received by the adven-
turess is not definitely known-perhaps not
even by herself. There was, indeed,
no lack of warnings uttered by
the Independent press and by the
authorities, both municipal and State, but,
for the most part, these warnings fell on
deaf ears. But the bubble burst at last,
and before the collapse was known, Miss
Spitzeder had gathered up what she could
and was among The missing. After the
collapse, the authorities broke open the
safes in her banking house, and they were
found empty. Before. her fight, she des-
troyed the books, so that it is impossible to
ascertain the amount, Of loss. The Chamber
Of Commerce of Munich, after an investi-
cation lasting five days, ascertained that
of Munich and immediate vicin-
ity lost about fourSmilion forms. This,
however, is but a part, perhaps but the
smallest part, Of the whole amount Moth
ing is yet known as TO the whereabouts of
this Spiizeder. There is some reason to
believe that she may be already in this
or at least eu-route for here. A
needy actor once applied TO her for help. |