Oakes weekly Republican. (Oakes, Dickey County, D.T. [i.e. N.D.]) 1883-1898, 1891-08-07
ALMOST A PANIC.
The Financial World of Germany Great-
ly Excited By Frauds Just
Uncarthcd.
The Emperor of Germany is Alarmed
Over an Alleged Conspiracy to
Overthrow Prussia.
The Prince of Naples Badly Snubbed on
HIS Recent Visit to
England.

The shares OF the Deutsch bank of
Berlin, which on Saturday last were
quoted at los, closed Aug. at 1O4.
The frauds on the bank perpetrated
by its clerk Franck and the broker,
schwieger, have excited the whole Ger
man financial world to degree un-
known since the embezzlements of the
two directors of the Leipsic Dieconto
Goessellschaft.
The full extent of the frauds on the
Deutsche bank has not been disclosed.
The admission made by Schwieger,
who ls under arrest, covers only the
operations carried on by himself and
Franck in paper roubles during the
month OF July. Both of the men were
well qualified to effect the swindle.
schwieger, who is an ex. manager 9th
Berliner Handelaesellschaft, had a
good connection as a stock broker,
Franck had been for fifteen years in
the service of the Deutsche bank. He
was entrusted with the duty of revis-
ing and stamping brokers' memoran-
da sent into the bank.
The manager OF the Deutsche bank
was away on q prolonged leave OF alb:
sence when Schweiger ana Franck ar
ranged the plan to buy roubles for a
rise OF the July settlement, and by
means of forged memoranda represent
the purchases as made on account of
the bank. Franck falsifed the bank
entries to enable him to carry over
his engagements. Among these the
July purchases were discovered. But
the contracts falling due later, some
OF which are now known as having
been Carried over month after month,
will swell the total amount involved
IN the frauds to an enormous sum,
Franck dealt largely in lottery specu-
lations, and carried on general spec
ulatlve game under the very noses of
the bank directors for years with an
adroitness suggesting that Schwieger
is right in his statement that Franck
originated the frauds and used him as
a tool. The bank has offered q re-
ward for Franck's capture. He was
tracked to Bremen, but there he was
lost sight OF.
The immediate effect OF the swindles
threatened for moment to create q
grave financial crisis. The position
several banks involved in the South
American collapse and weakened
through the existing bourse embar-
easements, is so delicate that any
sudden strain may lead to break.
down. Luckily the press and public ac-
cept the statements OF reassuring
character made by the various banks.
1t was also seen that isolated frauds,
however gigantic, did not warrant q
panic.
The committee OF the reichsbank
was appealed to and urged to ease the
position by a reduction OF the official
rate of discount. The recent influx OF
gold to the relchsbank from America,
France and England was SO large that
the hope OF q reduction III the discount
rate was justified. The directors of
the reichsbank considered thereuuest,
but after deliberation decided against
making any alteration in the rate, be.
cause, says semi official communica.
ton though the bank holds
a large stock of bullion, international
gold displacements would inconven-
ience the large central banks, and the
general position requires q cautious
policy.