The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1891-07-09
Reported to Be in Pretty Way.
Owing to lmprudent In
veStments.
Mgr. Folchi Dismissed From Office
as Administrator of Vati-
can Finances.
Project to Establish u Chain of Grant
Catholic Banks-Why the Plan
Has Failed.

ROME, July 8.-Additional important
communications from an unusual but re-
liable source III regard to the crisis in St.
Peters pence has just come to hand, It
has already been announced that the pope
has dismissed Mgr. Folchi and the old ad-
mlnlstratlon, appointing i'll their place
commission consisting of Mrgs. Appolini,
Druggiore and Aloise Massella, to whom
given full powers. No one, however, has
yet been able to find out the exact motive
or real secret of the affair which brought
about this important change. 1t was
known that Mgr. Folch's dismissal was de-
cided upon on account Of losses sustained
by Peters pence, and because of imprudent
Investments and loans which had been
made eunder his administration, but that was
all. 1t ia now known that Folchi last
winter, supported by Prince Buoncompagnl
and Baron Lazzaroni resolved, in order to
save the Banco di Roma, in which the Vati-
can held 10000 out of 10000 shares, besides
other securities, to establish, first in Paris
and London and afterwards in Rome, Ber-
lin and New York, syndicate of Catholic
banks, with the object of absorbing the
financial societies of Rome, which were
known to be in disastrous condition, and
restore them to vitality. VIII lie at the same
time raising the value of the deprecated
securities above all they wanted to save the
Banco di Roma, intending, as they eventu-
ally did, to entirely reconstruct it.
This Banco di Roma was created with a
nominal capital of 5000, 900 lires Isl zoe, ,0O0)
but the real working capital WAS only half
that amount. Mgr. Folchi, having taken
on account five.sixth of all shares, the ad-
m n of Data Sc "a
self involved really to the extent of $780,
600 lires, or 100000. Folchi, had, more
over, deposited in the bank 100000 liros.
At that time Rome financial circles were in
terssttd in supporting the creation of the
Catholic banks in order to put deprecated
securities on ahrmer footing. Folchi there
fore proposed that the vatican enter combi-
nationHto extend 100000 lires, urging that
the millions invested in the Banco di Roma
could not be saved in any other way. Car
dlnal Ruggierfo opposed the project, and a
commission OF cardinals finally supported
him.
But as the committee was merely consult
ntlve Fochi ignored them and in conjunc-
tlon with Lazzaroni and BuoncompaRni,
carried out his project. Folchi commenced
by sending part of the money to Paris,
where the first of the proposed banks was
founded. Bat as the pope had not been in
formed OF this arbitrary speculation. Folchi
was called to order, afterwards dismissed,
consultative. became a deliberating body.
Three years have elapsed since the effort |
was made to found Catholic bank in New
York, and then the archbishop of New York
was compelled to intervene and disensaQe |
the responsibilities of the holy see. Last |
winter, however, another endeavor in this
direction was made. The combination AGAR
did not succeed, but as Lazzaroni and
Folchi with the supposed support of the
vatlcan) were the promoters, it was believed |
success was assured. Now, however. the
fall of Folchi has put everything in peril,
The pope never has and never will enter in
to combination of this sort. AS Folchi
had placed part Of Peter's pence money
brought good returns and only lately de-
creased in value, the actual losses are not
great.
Briefly, the situation is about as follows:
When Mgr. Folchl took the administration
of vatican finances, he had under his con-
troll about %, 100000 lire, left after eight
years of administration of about 81 100000
lire. of which, however, 5000, 600 are still in
danger, as they consist of loans made to
Roman princes and of large number of
depreciated securities. At the same time,
Folchl has paid over each year to the pope
the sum of S12O.O00 to cover the e1traordi-
nary expenses of the vatican. Consequently
his adyersaries can only reproaoh him with
making imprudent investments and with
the Catholic bank affair. Reaction conse-
quently, .s already beginning to be noticed
IN MS favor and many Roman groups are
beginning to think his rivals acted too vio-
aently. In any case the pope was kept in
ignorance Of these speculations and it is
EnoWn that he dlsapproves and always has
dlsapproyed all kinds of Catholic banks.