, 1885-03-05
A RUSSIAN BANKER.
Career Of the Director Of the skopin Bank
Ending In siheria-How He Managed
Financial Matter. tor a Period
Of Twenty Year--

him any education beyond that afforded by
the primary school OF the town. His uncle.
millionaire merchant. bequsathsd to Ivan
his property and name. Then Ivan Rykoff
had his own sweet will. He tried his utmost
10 squander his fortune, and In the course Of
years he succeeded. About 1880 Ivan found
himself penniless. About that time the prov
inces were granteda certain degree Of self
government, and towns received the right Of
establishing banks OF their own. Ivan Rykoff
saw bis opportunity at once. He induced
his townsmen TO open a city bank and
TO elect him as Its director. The principal
capital OF the bank was 10, 900 roubles. The
town authorities had authority to examine
the bank at any time, and the town was res-
ponsible for its management. Director
Rykoff, however, wanted to run the bank
alone, and he knew well how TO achieve his
purpose In the first place he loaned from
the bank large sums Of money to every bank
officer. the vice director. the cashier, the
bookkeeper, and all the clsrka These men
could never make their debts good. Then
he went for tho town authorities Soon the
mayor and tho most influential aldermen
became debtors OF the bank far beyond their
means. Soma citizens, headed by 4 rich
merchant named Popoff, formed an opposi-
ton party, and threatened to overthrow the
director. Rykoff went to see Popoff.
you are going to ruin the bank, said the
latter, @and the town, too, and l am worth
10000 roubles.D
Here are 10000 roublss for YOU an
swered Rykoff. laying the cash on the Ia
BILE.
~You are fast making money and fame,
and 1 am left in the shade" continued
Popon.
aWeIl, will 1000 per annum be enough
for your asked the director.
IL was enough. and the opposition van
ished. As to tho townsmen who grumbled,
they were pacifed with vodka, which was
offered to them by the director ad libitum.
Soon in many Of the provincial papers both
lay and religious, there appeared glowing
accounts OF the extraordinarily fiourishinR
condition OF the Skopin City bank, which,
unlike other banks, paid 8 per cent interest.
In some Of the newspapers of the capital
there appeared articles commencing to pub
lie attention the new financial genius who
had appeared In Skopin. 1t was said tina
by his wise investments and new enterprises
the director OF the Skopin bank was In
creasing the capital intrusted to him 100 per
cent, that he had beautifed his
town, and erected educational n char
liable institutions, and was fast developing
the natural resources of his province.
Priests, monks, widows, retired officers, old
noblemen, and others rushed to Skopin
and entreated Ivan Rykoff 70 take their
money. The funds Of the Skopin bank
swellsd enormously, and along with them
swelled the directors pride. Now he wanted
imperial decorations and a title, and he
went about obtaining them In his own
fashion. The governor, the vice governor,
the attorney, the judges, and other officers Of
the province became debtors to the Skopin
l-wI nu-w. f.-.. A. IA
the city of Rlazan, Ivan Rykoff vent to the
capital of the empire, AMI here, too, he
found a hearty Welcome. Even the third
section OF his majestyls own chancellery took
an interest in the provincial financier. Soon
' Rykoff was made counsellor of com
merce, and one imperial decoration after
another was granted to him for his service.
II the newspapers made Ivan Rykof
known and famous, the newspapers also
threatened him with a great danger. A
resident Of Skopin published in a provincial
paper an account of the management OF the
Skopin bank, alleging that all the bank re-
ports were mere fabrications, and the bank
was empty. Rykoff FASTENED to silence the au-
thor. He paid him 80, 900 roubles. Then he
invited the city authorities to examine the
bank, hat is to sign q statement prepared
by himself, and made the author Of the let
ter publish it in the Newspaper where the
original letter appeared. Thus the deposit
OTIS were pacihed
Meanwhile the deposits Increased to mill
ions. As Rykof could not invest the capt.
tai advantageously enough to pay 8 per
cent interest, he made false reports, and
thus continued TO preserve his own and his
banks reputation. Among his debtors there
appeared generals, b%arons, counts n
princes. He gave princely donations to the
charitable institutions OF his town and In the
Skopin churches, which also shared in the
directors generosity, daily prayers were
offered "for the health, prosperity and saliva
ton OF Gods servant, Ivan" He was a
little czar. They fattered him n feared
him. and kissed his hands, which were ever
full OF money. Thus he went on fully
twenty years. During this long period be
was several times cornered by the officers OF
the ministry OF finance, but each time,
owing TO his high connections, he came dry
out Of the water.
In Russia there are about 600 periodical
publications, and van Rykoff could not buy
every one Of them Thus the truth about
his bank was at last told and could not be
d~isregarded by the provincial authorities.
tn court OF Riazan undertook to investi
gate the affairs OF the Skopin bank. There
upon the depositors made a furious rush
upon the bank They wanted their money
b8Chr Which, hltoultcu " Alrooot ooO, anu Tue
bank did not contain a single million. The
crowd Of veteran officers, priests, monks,
and aged widows cried like children. They
besieged the house of the director, but a
strong iron door baffied all their efforts to
break In. Church capital, convent funds,
the money OF orphans, and the savings OF
old men and women-an was swept away.
By order OF the Rinzan court the Skopin
bank was closed, and WAR Rykoff. with his
subordinates and the city officers, twenty
six men all told, were thrown into prison.
The receivers worked on the books for over
a year. At last the case was hadded to the
Moscow court
Even on the trial war Rykoff remained
true to his nature His insolence and AFRO
Rance knew no bounds. He shoutsd at the
witnesses and interrupted the court so much
that several times It was necessary to put
him out OF the court After reviewing the
conduct OF a long list of officials, beginning
with post carriers and ending with the gov
ernor OF the province, the attorney ex-
claimed: There, in hat bank, these men
pawned their oath OF Office, their honor, hon
esty and c~onscienceip
Rykof said In his defense; II would
gladly ascend a pile and light IL myself II
by so doing i could satisfy my creditors. Ny
mist ortune was that the government let me
alone. II you viii give me my freedom l
will 60 TO some convent and pray for the
forgiveness of my sins The government
ought TO pay my crsditors.n