Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-08-06
GIGANTIC FRAUDS
Perpetrated on One of the Big
Banking Houses in Berlin.
A LARGE AMOUNT INVOLVED.
One of the SwindIers Arrested the Other
at Large. BerIin's suicide Record
Attributed to Bad Beer
and Whisky.
German Financial World Stirred Up.

Copyrighted by the Associated Press
BERLIN Aug The shares of theDeutsch
bank whichSaturday last We're quoted at 10,
closed to-day nj 40, The frauds on the
oank perpetrated by its clerk Franck and
Broker Schweiger have excited the whole
German financial world 10 d degree IN
known since the enlightenment Of the two
directors of the LEIPZIG bank. The full eX-
tent Of the frauds on the DeutSch
bank has not been disclosed. The
admission made by Schweiger. who
is under arrest, covers only the operations
carried on by himself and F'ranck in paper
roubles during the month Of July. Both Of
the men were qualified to effect the swim
die. Schwiger, who is an eX-membcr of
the Berliner Handel Gesselschaft has great
connection as 4 stock broker. Eranck has
been for fifteen years in the service Of the
DeutSch bank. He was intrUs ed with the
duty of revising and stamping brokers'
memoranda sent 20 the bank
The manager of the Deutsch bank was away
on prolonged leave of absence when
SChwelger & k'ranck arranged a plan to
buy rOubelS for rise for July settlement,
and By means of forged memoranda pre-
scented purchases is made on account of the
bank Eranck falsitied the bank entries TO
enab.e him 70 carry over his engagements.
covered contracts falling due later,
some of which are now known
as having been carried month after month.
These will swell the total amount involved
in the frauds to an enormous sum. F'rarck
dealt largely in lottery speculations and
carried on a general speculative game under
the very noses of the bank officials
for years with an adroitness
suggesting that Schweiger is right
in his statement that F'rauck
originated the frauds and used him as d
tool. The bank has offered reward for
Franck's capture He has been tracked 20
Bremen, but there ne was lost sight of.
The immediate effect OF the swindles
threaten for the moment to produce
grave financial crisis. The
position Of several banks involved in
the South American collapse, and weakened
through the existing bourse embarrasS-
ment is so delicate that any sudden strain
may lead TO z break down. Luckily the
press and public accepted the statement of
a reassuring character issued by the various
banks II was also seen that isolated
frauds, however gigantic. did not warrant
a panic 4 committee of Reich's bank was
appealed to and urged TO ease the position
BY reduction Of the Official rate OF discount.
The recent influx Of gold TO Reichs' bank
from America, France and England was so
large that hope OF a reduction in the dis
count rate was justified. The directors
of Reichs' bank considered the request, but
after elaboration decided against making
any alteration in the rate because, says q
semi-oficial communication tonight, though
the bank holds large stock of bullion, the
international gold displacements would in
convenience the large central banks and the
general position eqdires cautious policy.