St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1891-07-09
Interesting Developments as
to the Finances OF the
Vatican.
The Pope Has Established a
New Order For Hand
ling Funds.
Schemes For Catholic Banks
Have Never Received His
Approval.
Mgr. Folehi's Management
Was Faithful but I'M
prudent.

W
prudent.
ROME. July 6.-Some additional and
important communications from an un-
usual and reliable source iG regard to the
crisis in st. Peters pence have just
come to hand. 1t has already been an
nounced that the pope has dismissed
Mgr. Folchi and the old administration,
and that he has appointed in their place
a commission consisting of Mgrs. APP
ollonl, di Ruggieroe and Aloise Ma
sella, to whom he has given full pow
ers. No one, however, has yet been
able to find out the exact motive, the
real secret of the affair which has
brought about this important change.
1t was known that Mgr. Folchi's dis
missal was decided upon on account of
the losses sustained by st. Peters
pence, and because of the impru-
dent investments and loans which
had been made under his admiuistra-
ton; but that was all. 1t has now be-
come known that Mgr. FolchI last win
ter, supported by Prince Buoncom-
pagni and Baron Lazzaroni, resolved,
In order to save the Banco di Roma, in
which the Vatican held 10000 out of
1900 shares, besides other securities,
to establish, first in Paris and London,
and afterwards in Rome, Berlin and
New York, a
Syndicate of Catholic Banks,
with the object of absorbing the finan-
cial societies of Rome, which were
known to be in disastrous condition,
and to 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 en-
tirely reconstructit. The Banco di Roma
was created with a nominal capital
of 100000 lire Isl, ,2OO. .0O0) divided, as al
ready stated, into 1900 shares. But
the real working capital consisted of
100000 lire (S600,000). Mgr. FOlchi
having taken. on account of the Vat
lean. 10000 shares, the administration
of st. Peters pence found itself in
volved nOminally to the extent of 5,000,-
600 lire, although really only to the ex-
tent Of 2,500,OOO. Mgr. Folchi had,
moreover. deposited in this bank the
sum of 5000, 900 lire. At that time fnan-
cial circles in Rome were interested III
supporting the creation of these Cath
olic banks, and they were desirous of
helping this financial movement in
order to put the deprecated securities
on frmer footing. Conse-
quently Mgr. Folchi proposed
to the commission of cardinals
(then purely consultative body
that the Vatican should enter into the
combination to the extent of 100000
lire. He warmly supported the project,
urging that the Roman securities of the
Vatican and the millions of lire invest
ed in the Banco di Roma could not be
saved in any other way. Cardinal di
Ruggiero, however. strongly
Opposed the Proposition,
and protested against it with such sue
cess that the commission finally rallied
to his support. However, as the COM
mission was merely consultative, and
had no authority to veto the plan, Mgr.
Folchi ignored them and carried out, in
conjunction with LazzaronI and Prince
Buoncompagni, the financial project
which had been submitted to and re-
jected by the commission. Mgr.
Folchi commenced by sending a part
of the money to Paris, where the
first of the proposed banks, named
LIE Credit, was founded. But, as the
pope had not been informed of this
arbitrary speculation, and as the COM
mission was only informed of it when it
had taken place, Mgr. Fochi was called
to order. was afterwards dismissed, and
the commission, hitherto purely con-
sultatiYe, became a deliberative body.
Three years have elapsed since an effort
was first made to found Catholic bank
in New York, and then the archbishop
of New York was compelled inter
vene and disengage the responsibilities
of the Holy See. Last winter, however,
another endeavor in this direction was
made. The combination again did not
succeed. But this last time, as Baron
LazZaroni, rich banker, and Mgr.
Folchi, with the supposed support of
the Vatican, were the promoters of the
idea, 1t was believed that success was
assured. Now, however. the fall of
Mgr. Fochi has put everything in peril.
The pope, it should be added, has
never entered into and
Never VIII Enter Into
a combination of this sort. The money
Mgr. Folchi sent to Paris was withdrawn
when his speculation became known.
AS Mgr. Folchi had placed the Peters
pence money. or a part of it, in Roman
| speculations, which had at first brought
in good returns and which only lately
decreased in value, the actual losses
have not been great, In fact, at first a
profit of about 100000 lire was made.
Summed up briefly. the situation is
about as follows: When Mgr. Folchi
took over the administration of the
Vatican finances he had under his con-
troll about 25,000.000 lire. He left,
after eight years. administration,
about 3l,000,00O lire, of which,
however, 100000 are still in
danger, as it consists of loans made
to Roman princes, and of large num-
Der of deprecated securities. At the
same time Mgr. Folchi has paid over
each year to the pope the sum of $780,
900 to cover the extraordinary expenses
of the Vatican. Consequently Mgr.
Folchi's adversaries can only reproach
him with making imprudent invest
ments and with the affair of the Catho-
lie banks. A reaction, consequently,
is already beginning to be noticed in his
favor, and many Roman groups are be-
ginnineto think that Mgr. Folchi's RI
walls acted too violently. In any case
the pope has been kept in ignorance of
these speculations. and it is known that
| he disappfoves and has always disap-
proved of all kinds of Catholic banks.
Bismarck May Fight.