The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1891-07-09
ST. PETERS PENCE
The Fund Has Been Depleted by
Speculation.
MGR. FOLCHPS WILD SCHEMES
The Pope Kept in Ignoronce Of Them-Cathou
Bank Establishments Disapproved by His
Holiness-The Banco di Roma.

munlcatlons from an unusual but reliable
source in regard to the crisis in ST. Peters
pence have just come to hand. 1t has
already been announced that the Pope dis
missed Mgr. Folchi of the old administra-
ton, appointing in his place a commission
consisting of Mgrs. Appoloni, Druggiere
Aloise Massella, to whom are 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
Mgr. Folchi's dismissal was decided upo on
on account of the loss sustained by Peters
pence and because of the imprudent invest
ments and loans which had been made
under his administration, but that was all.
1t Is now known that Folchi last winter,
supported by Prince Buancompagni and
Baron Lazzoroni, 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, Ber-
lin and New York, syndicate OF Catholic
banks, with the object of absorbing the
financial societies of Rome, which are
known TO be In disastrous condition, and
restore them TO vitality, while at the same
time raising the value of deprecated Sc
curltles. Above all they wanted TO save
the Banco di Roma, intending las they
eventually did entirely TO reconstruct il.
inns Banco oil Roma was created with a
nominal capital of {, zoo, 600 lire Isl 20O, 600,
but the real working capital was only half
that amount Manager E'olchi having taken
on account five-sixths OF all shares the
administration OF st. Peters pence found
itself involved TO the extent OF $500, 900
lire, or S5OO,00 Folchi had. more
over, deposited IN the bank 5000, 900
lire. AT that time Rome financial circles
were Interested in supporting the creation
of Catholic banks in order to put the de-
preclated securities on firmer footing.
toichl therefore proposed that the Vatican
enter the combination to the extent of
100000 lire, urging that the millions in
vested in the Banco di Roma could not be
saved in any other way. Cardinal di Rug
giero opposed the project, and the commits
sion OF cardinals finally supported him.
But as the commission was merely consul
tative, Folchi ignored them, and in
conjunction with Lazzorni and Buoncom-
pagnl, carried out his project. Folchi COM
menced 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 arbitrary specula-
ton, Folchi was called TO order, afterwards
hitherto purely consultative became de-
hberating body.
Three years have elapsed since an eff
fort was first made to found a Catholic
bank in New York, and then the Arch
bishop of New York was compelled to in
tervene and disengage the responsibilities
OF the Holy see. Last winter, however.
another endeavor in this direction was
made. The combination again did rot sue
coed, but as Lazzorni and F'olchi with the
supposed support of the Vatican) were the
promoters, 1t was believed success was as
sured. Now, however, the tall of Folchi
has put everything in peril The Pope
never mas and never will enter into a com
biDation of this sort.
As Folchi had placed part of Peters
pence money in Roman speculations, which
at first brought good returns and only
lately decreased in value, the actual losses
are not great. Briefly, the situation is
about as follows: When Manager Folchi
took the administration Of the Vatican
finances he had under his control about
q, DOC, 900 lire, and left, after eight years
administration, about 31,000,000 lire. of
which, however, 6,000, 900 are still in
danger, as this consists of loans made to
Roman princes and of large number of
deprecated securities. AT the same
time Folchi has paid over each
year to the Pope the sum
of $40, 600 to cover the extraordinary ex-
pense Of the vatican. Consequently his
adversaries can only reproach him with
making imprudent investments and with
the Catholic banks affair. A reaction con-
sequently is already beginning to be no
ticed in his favor and many Roman groups
are beginning to think his rivals acted too
violently. In any case the Pope was kept
in ignorance OF these speculations, and il is
known he disapproves and always disap-
proved all kinds of Catholic banks