The record-union., 1891-07-09
Special to the RECoRD-UN1oS.


ROME, July S.-Additional important
communications from an unusual but
reliable source IN regard to the crisis in
the st. Peters pence fund have just come
to hand. 1t has been already announced
that the Pope has dismissed Manager
Folchi and the old administration, ap-
pointing in their place commission con-
sisting Of Monsignors Apholoni, Drug
giere and Aloise N1assella, to whom was
given full powers. No one however, has
yet been able to find out the exact motive,
the real secret of the affair, which
brought about this important change.
1t was known that Folchi's dismissal was
decided upon on account of losses sus-
tanned by st. Peters pence, and because
Of imprudent investments and loans
which have been made under his admins
tratiOn, but that was all. 1t is now known
that FOlchi last winter, supported by
Prince Buoncompagni and Baron IaZZa-
rOni, resolved, in order to save the Banco
di Roma, in which the Vatican held
10000 out 100000 shares, beside other
securities, to establish first in Paris and
London and afterward in Rome, Berlin
and New York syndicate of Catholic
banks with the object of absorbing the
might be in a disastrous condition
and restore them to vitality, while
at the same time raising the value Of
the deprecated securities. Above
all, they wanted to save the Banco
di Roma, intending (as they eventually
did to entirely reconstruct it.
This Banco di Roma was created with a
nominal capital Of 100000 lire 81, ,20O,-
COO, but the real working capital was
only half that amount. Manager Folchi,
having taken on account tive-siXths of
all the shares, the administration of st.
Peters pence fund itself involved really
an extent of 100000 lire, or 100000.
Folchi had, morever, deposited in the
bank 5000. 900 lire.
At that time financial circles were in
terested in supporting the creation of
Catholic banks in order to put the depre-
ciated securities on a frmer footing.
EOlchi therefore proposed that the Nati-
can enter the combination to the extent
of 100000 lire, urging that the millions
invested in the Banco di Roma could not
be saved in any other way. Cardinal di
Ruggiero opposed the project, and
commission of Cardinals finally sup
ported him. But as the commission was
merely consultative, Folchi ignored them,
and, in conjunction with Lazzarini and
Buonchampagni, carried out his project.
Eolchl commenced by sending part of
the money to Paris, where the first of the
proposed banks was founded. But as the
Pope had not been informed of this arbi-
trary speculation Folchi was called to
order and atterward dismissed, and the
Commission of Cardinals, hitherto purely
consultative, became deliberative BODY.
Three years have elapsed since the effort
was first made to found a Catholic bank
in New York, and then the Archbishop
of New York was compelled to intervene
and dlsengage the responsibilities of the
Holy See. Last winter, however, another
endeavor in this direction was made. The
ombination again did not succeed, but,
as LaZZarini and Folchi, with the sup
posed support of the Vatican, were the
promoters, it was believed that success
was assured. Now, however, the fall of
fOlchi has put everything in peril The
Pope never has and never will enter into
Il combination of this sort. AS Folchi
placed part of the Peters pence money in
the Roman speculation, which at first
brought good returns, and only lately de-
creased in value, the actual losses are not
great.
Briefly, the situation is as follows:
When Folchi took the administration of
the Vatican finances he had under his
control about twenty-five million lire.
He left after eight years administra-
ton, about thirty-one million lire, of
which, however, six million is still in
danger. 1t consists of loans made to
Roman Princes, and of large number
of deprecated securities, At the same
time folchi had paid over each year to
the Pope, the sum Of Sl20,000 to cover the
extraordinary expenses of the Vatican.
Consequently, his adversaries can only re-
proach him with making imprudent in
vestments, and with the Catholic banks
affair. 4 reaction, consequently, is be-
ginning to be noticed in his favor, and
many Roman groups are beginning to
think his rivals acted too violently. In
any case the. Pope is kept in ignorance of
these speculations, as it is known that he
disapproves, and always disapproved of
any kind of Catholic banks.