Los Angeles herald., 1891-07-09
THE FALL OF POLCHI.
How He Mismanaged the
Vatican Finances.
st. Peters Pence Invested in
Bad Securities.
Chimerical Schemes to Establish
System of Catholic Banks.
His Plans Discountenanced by Com nit
tee OF Cardinals and by the Pope
Himself-Folchfs Final
Removal.
Associated Press Dispatches.

1bOhES Os-au doulblOAdl lLAROi-
tant communication from an unusual
but reliable source, in regard to the
crisis in st. Peters pence, has just come
to hand. 1t has already been announced
that the pope has dismissed Monsigneur
Folchi and the old administration, ap-
pointing in their places commission
consisting of Monsigneurs Appoloni, Di-
ruggier and Aloise Masella, to whom
are given full powers. No one, howev-
er, has yet been able to find out
the exact motive, or the real
secret OF the affair which
brought about this important change.
1t was known that Monsigneur Folchi's
dismissal had been decided upon on ac-
count OF losses sustained by st. Peters
pence, and because of imprudent invest
ments and loans which had been made
under his administration, but that was
all.
1t is now known that Folchi last win
ter, supported by Prince Buoncompagni
and Baron I.azzaroni, resolved, in order
to save the Banco di Roma, in which
the vatican held 10000 out of $4,000
shares, besides other securities, to es-
tablish first in Paris and London, and
afterward in Rome, Berlin and New
York, syndicate of Catholic banks
with the object of absorbing the fnan-
cial securities of Rome, which were
known to 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 Gas they
eventually did) to entirely reconstruct
it. This Banco di Roma was created
with nominal capital of 100000 lire
Isl, 200, ,000), but the real working capi-
tai was only half that amount. Mon
signeur Folchi having taken on account
five-sixths of all the shares, the admin
istrati0n Of st. Peters pence found itself
involved really to the extent of $500 900
lire, or $500,000. Folchi had, moreover,
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 de-
precfated securities on frmer footing.
Folchi, therefore, proposed that the vat
lean enter the combination to the ex-
tent of 3,00O,00O lire, urging that
Luc mlIllOuo hVcSJcu III IIio TsDduCO
di Roma could not be saved in any other
way. Cardinal di Ruggiero opposed the
project. and a commission of cardinals
finally supported him. But as the
commission was mostly consultative,
Folchi ignored them, and, in conjunc-
ton with Lazzaroni and Buoncompagni,
carried out his project.
Folchi commenced by sending q part
>f f1,a fo Do r,o xry1 ha Grok -
the proposed banks was founded. But
this arbitrary speculation, Folchi was
missed. and the commission of cardinals,
deliberative body.
effort was first made to found Catho-
archbishop of New York was compelled
to intervene and disengage the response
bilities of the holy see. Last winter,
ton was made. The combination again
Folchi with the supposed support of
the vatican) were the promoters, it was
believed success was assured. Now,
lOWoNcI3 tuC ldll VI IOlCul HAS pun
everything in peril. The pope never
has and never will enter into a combi-
nation of this sort.
AS Folchi had placed part of the
Peters pence money in Roman specula-
tions, which at first brought good re-
turns, and only lately decreased in
value, the actual losses are not great.
Briefly, the situation is about as fol-
lows: When Monsigneur Folchi took
the administration of the vatican
finances, he had under his control about
%, 100000 lire, but after eight years
administration about 81 100000 million
lire, of which, however, 100000 are
still in danger, as they consist 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 100000 to cover the extraordinary
expenses of the vatican. consequently
his adversaries can only reproach him
with making imprudent investments,
and with the Catholic bank affair. Re
action is consequently already begin
ming to be noticed in his favor, and
many Roman groups are beginning to
think that his rivals acted too violently.
In any case the pope was kept in ignor-
ance OF these speculations, and it is
known he disapproves and always dis
approved all kinds of Catholic banks.