St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1892-08-24
CARDINAL DISMISSED.
Pope Leo Deals Summarily With
Hitherto Hidden CuIprit
in His Household.
Mgr. Folchi Suffered for Another's
Sin-Vatican Financial
Tangle.

ROME, Aug. 23.-Great excitement
has been caused by the dismissal of
Cardinal Ruggiero, project of financial
affairs of the propaganda, and who has
been looked upon by many as the prob
able successor of Pope Leo XIII. 1t is
said that the pope himself ordered Rug
| gierO's dismissal. being convinced, as a
result of inquiry, that RuggierO, and
not Mgr. FOlchi, was the really guilty
party in connection with the misinvest-
ments, to use mild term, for which
Mgr. FOlchi was dismissed from the
papal service about one year ago. The
dismissal of Folchi was brought about,
it is said, by Cardinal Ruggiero.
Folchi was vice chamberlain to the
pope, and had control of the papal
funds. 1t was alleged that in the win
ter of 1S90'9l MonsignOr FOlchi, sup
ported by Prince Buoncompagni and
Baron LaZZarOni, resolved. in order to
save the Banco di Roma. in which the
Vatican held 10000 out of IL, 1000 shares,
besides other securities, to establish
first in Paris and London, and after
wards in Rome, Berlin and New York,
object of absorbing the financial So
cieties of Rome that were known to be.
in a 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, entirely to recon
Struct it.
The Banco di Roma was created with
nominal capital of 100000 lire(S1. 2OO,-
OO0) divided as already stated, into 1900
shares. But the real working capital
consisted of 100000 lire. AS Mgr.
Folchi had taken Oh account of the Vati-
can 10000 shares, the administration of
nally to the extent of 100000 lire,
although really to the extent of $500, goo.
Mgr. FOlchi had, moreover, deposited in
the bank the sum of 100000 lire.
At that time financial circles in Rome
were interested In supporting the crea-
ton of these Catholic banks. and they
were DESTROYS of helping this financial
movement in order to put the depre-
ciated securities on a firmer footing.
Consequently Mgr. Folchi proposed to
he commission OF cardinals then
purely consultlve body that the Vati-
can should enter in to the combinations 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 RuggierO,it was claimed,
strongly opposed the proposition and
protested against it with such success
that the commission soon rallied to his
support.
However, as the committee was
merely cOnSultive and had no authority
to vote on the plan, Mgr. FOlchi ignored
| them and carried out, in conjunction
with LaZZarOni and Prince BuOncOm-
| pagni. the financial project which had
| been submitted to and rejected by the
commission. Mgr. Folchi commenced
by sending part of the money to Paris,
where the first of the proposed banks,
| named LIE Credit, was started. AS the
| pope had not been informed of this ar
| bitrary speculation, and as the comis-
sion was only informed of it when it
had taken place, Mgr. Folchi was after
wards dismissed and the commission,
which was hitherto purely consultive,
became deliberative body. Such was
the story made public at the time OF
Folchi's dismissal. A later investiga-
ton. however, that has been quietly
going on appears to nave eXOnerated
FOlchi and implicated Ruggiero. There
| is great excitement in church circles,
and It is generally believed that a tire.
mendOus scandal iS awaiting disclosure.