The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1891-07-09
True Story Concerning the Recent Spec
ulatiOns with the Vatican Funds.
Custodian F0lchi Went in with Prince Buon.
compagni and Baron Lazzaroni to Bolster Up
the Banco di Roma with 5000, 900 Lire.
London Continues to 0utdo Herself in
the Homage Paid oKaiser Wilhelm.
The Imperial Party Visits the Royal Mausoleum
at FrOgmore, Takes In the Races and 0ccu-
pies q Box at the Italian Opera.
MGR. FOLCHI,S sPECULATIONs.

MGR FOLCHI'S SPECULATIONS.
How the Peters Pence Fund Was Used by Its
Custodian without the Pope's knowledge.
ROME, July S.-Some additional and i'm
portant communications from an unusual
and reliable source in regard to the crisis in
st. Peters Pence have just come to hand. 1t
has already been announced that the Pope
has dismissed Mgr. Folchi and the old adj
ministration and that he has appointed in
their place q commission. consisting of
Mgrs. Apolloni, Di Ruggiero and Aloise
Nazella. to whom he has given full powers.
No one. however, has yet been able to find
out the exact motive-the real secret of the
affair-which has brought about this i'm
portant change. 1t was known that Mgr.
Folchi's dismissal was decided upon OH &C
count of the losses sustained by ST. Peters
Pence. and because of the i%mprudent invest
ments and loans which had been made un-
der his administration. but that was all.
1t has now become known that Mgr. Fol
Chi. last winter, supported by Prince Buon-
compagnl and Baron LazZaroni. resolved.
in order to save the BancO Di Roma, In
which the Vatican held 10,000 out of 1000
shares, besides other securities, to estab-
lish, first in Paris and London, and after
wards in Rome, Berlin and New York.
syndicate of Catholic banks with the OBJ
ject of absorbing the financial societies OF
Rome, which were known to be in a disas-
trOus 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 entirely reconstruct 1t. The BancO Di
Roma was created with a nominal capital
of cocoon 0 lire Isl. 200, 000l,. divided, as al
ready stated, into 1900 shares. But the
real working capital consisted of S.Ooo.-
0OO lire tS6OO.OOOl. Mgr: Folchi having
taken on account of the Vatican
10000 shares, the administration of st.
Peters Pence found itself involved nomi-
nally to the extent of 5.O0O.000 lire. although
really only to the extent o&s2. SOC, 600: Mgr.
Folchi had, moreover. deposited In this
bank the sum of 100000 lire.
ATTEMPT TO FOUND CATHOLIC BANKS.
At that time financial circles in Rome
were interested in supporting the creation
of these Catholic banks, and they were de-
siious OF helping this financial movement
in order to put the deprecated securities
on a firmer footing. Consequently, Mgr.
FOlchl proposed to the commission of oardi-
mails. then q purely consultative body, that
the Vatican should enter into the combine
ton to the extent of 100000 lire. He
warmly Supported the project, urging that
the Roman securities of the Vatican and
the millions of lire invested in the Banco
Di Roma could not be saved in any other
way. Cardinal Di RuggierO, however,
strongly opposed the proposition
such success that the commission finally
rallied to his support. However. as the
commission was merely consultative and
had no authority to veto the plan. Mgr.
FOlchi ignored the cardinals and car
ried out. in conjunction with Lazzaroni
and Baron Buoncompagni. the financial
project which had been submitted 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 specula-
tiOD, and as the commission was only in
formed of it when it had taken place, Mgr.
FOlchl was called to order, was after
wards dismissed. and the commission,
hitherto purely consul ative, became a
deliberative body.
Three years have elapsed since an effort
was first made to found a Catholic bank in
New York. and then the Archbishop of
New York was compelled to intervene and
disenRage the responsibilities of the Holy
See. Last winter. however. another en-
deavor IN this direction was made. The
combination again did not succeed. But.
A. 4 AooS ttAhOs oo "a a ~
banker and Mgr. Folchi, with the supposed
support of the Vatican. were the promoters
of the old idea, it was believed that sue
cess was assured. Now, however, the fall
of Mgr. FOlchi has put everything in peril.
The Pope. 1t should be added, has never
entered into and never will enter into q
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 1900 coo lire
was made.
Summed up briefly. the situation Is about
as follows: When : Mgr. Folcni took
over the administration of the Vatican
inances he had under his control about
25.OO0.0M lire. He left. after eight years
administration, about 81, 900, 900 lire, of
which, however, 5000. 900 are still in danger,
as it consists of loans made to Roman
ciated securities. At the same time
Mgr. Folchi has paid ever each year to
the Pope the sum of $4,000 to cover the
extraordinary pen of the Vatican.
Consequently Mgr. Folchi's adversaries
can only reproach him with making
i%mprudent investments and with the affair
of the Catholic banks. A reaction. conse-
quently. Is already beginning to be noticed
In his favor. and many Roman groups are
beginning to think that Mgr. Folchi's
rival acted too violently. In any case the
Pope has been kept in ignorance of these
speculations and it is known that he dis
approves and has always disapproved Of ali
kinds of Catholic banks.