Worcester daily spy. [volume] (Worcester [Mass.]) 1850-1888, 1872-12-09
Am Fx1raordinnrr Cnreor.

An EXTRAORDINARY career
One of those audacious swindes which
occasionally succeed in Europe, through the
sheer force of impudence in the swindlers and
ignorance and greed in their dupeS, has just
come to collapse and exposure in the city of
Munich, the capital of Bavaria. We are ac-
customed to think of the Germans, in their
native land, as thrifty and sagaciouS people,
who earn their money painfully, accumulate
savings slowly, and invest them with almost
pusillanimous caution, looking out sharply for
the interest, but even more so for the prospect
Of seeing their money again Yet these frugal
and cautious BavaTians have been the willing
and eager victims of one of the most bare faced
frauds ever conceived, such as no Yankee would
ever have thought of attempting, and certainly
not upon his own countrymen, who, whatever
their other failings, are not pre.eminent foreasy
credulity.
1t appears that two or three years ago an
actress of little note named Adele Spitzeder,
being, as she often was, in need of money, and
having had some experience of borrowing
iu a small way, advertised in the Munich papers
FOR loans, offering to pay higher rate of in
terest than was customary there. The offer
was sufficiently attractive 10 bring more propo-
sails than she needed or expected, but she took
all the money offered and advertised for more.
Her success in securing the confidence of lenders
was so great that she soon enlarged her opera-
tons, which gradually developed into a banking
business on an immense scale and acquired
extraordinary popularity by virtue Of two (ca-
lures in which it differed from the practice
of other bankers in Munich or elsewhere; she
paid enormous interest and paid it in advance.
Money in plenty could then be borrowed in
Munich on good mortgage security at four and
a half per cent per annum, and five per cent
was the ordinary bank rate: but Miss Snitzeder
paid ten per cent per month. A person placing
on deposit with her 100 fiorns received at once
30 forms as the interest for three months, and
at the end of that time 80 forms more, and so
on till at the end of the year he had received 100
forms, and still held the obligation of the bank
to repay his original deposit
1t may be thought that business conducted
in this way must very speedily come TO grief:
but, though eventual ruin was inevitable, it had
elements of temporary and not very brief suc-
cess. The excessive interest was necessarily
paid out of the capital. bur. confidence beno
once established, the very cause of ultimate
bankruptcy became the basis of apparenttbourb
transient prosperity. One hundred and twenty
per cent. interest per year was a TEMPTATION
which the thrifty Bavarians were unable TO re-
sist, and, besides attracting daily fresh deposits
it induced most Of the lenders to add their inter
est to their investment A man might 20 to the
bank with a hundred forms and after depositing
it and receiving his three months interest in
advance, and depositing that also, come away
with nine forms in his pocket, besides certif.
cate for 1870 forms bearing interest at ten per
cent monthly.
The people of Munich certainly proved cred
uous enough, but even to them some explana-
ton of such exceptional inanciering seemed
necessary. Ii was given out, therefore that
Miss Spitzeder had conducted essfully some
extensive speculations in land. from which she
had made profits exceeding 100 per cent, and
that she had opportunities Of lending almost
unlimited amounts of money at rates yarvino
from fifteen to TWENTY-FIVE per cent per month
AT any rate, her customers found their interest
paid promptly; their principal was ready for
them when they wished TO Withdraw If and
they had TO encourage them tbe examnIe or
thousands of their neighbors and STRANGERS
whose enthusiasm for the wonderful female
banker was unbounded. She derived strenotb
TOO, it is said from the support of the Catholic
clergy and press. She herself established one
newspaper and bought two Others. in all of
which her enterprise and benevolencc wore e,,.
toed, and her claims 10 the confidence and
favor of small capitalists and the pooresneciaIIv
were warmly urged. Among other mems Of
gaining the popular approval. she established
what she callsd the "People's Kitchen AT Mn.
Mich, where substantial and well cooked meals
were furnished at very low prices:
OF course this could not 20 on without warn
ings from the press and the public authorities
but they fell on unheeding cars, and were
ascrbed by the newspapers and persons in the
interest Of the Catholic Savings Bank" as she
called her institution. to jealousy and solf.inter
est. But the end came at last. One MORNING
the bank was found closed: the benevolent
"bankeress" had Disappeared and tho donosit.
,horities csusea tho ',iies iue au
thew were emnfy Thora -, - 9'o&en open out