New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-02-12
ITALY'S FINANCIAL SCANDALS
THE KINGDOM STARTLED BY THE PERT. IN
THE NATIONAL FINANCES


governments OF Europe as that OF Iso,.os
In Lisbon last summer one Of the LEADING stats.
men Of the country was deprived of his Offices ana
honors and committed to prison Tor frauds Gov.
mitted in connection with the railroad ,eoartu.u.
during his term OF office as Cabinet Minister +.
France there have been several ministerial c,;..
in connection with the Panama Canal Comn,n.
| revelations. At Berlin the sense of sccur;tv ~
| by the German nation in the organization ..s
| above ALL in the armament Of IL, army. Las h..
| shaken to ts foundation by the frauds brouph, ).
| light by the Anti-SemItc leader Rector Ahwa,a.
in connection yith the testing Of the rifles mann
| featured for the Government by the Loewe Sinai,
Arms Company; and now we have here iuanc.,
scandal Of such magnitude. and compromsin. !.
many OF the principal statesmen of the Kngt.,
that il is regarded by many of the shrewdest Az
most far-sighcd Of observers as cndancerino n.
throne The scandal here seems TO be even M,
| far-rpaching and disgraceful than that OF par.u.
| AT Paris 1t shows that many of the most nowo,,r,
| Ministers have made use OF their position n SIM.
ton fraudulent operations on the part Of tho min
cipal banking institutions of the country in re,n,
for large brides. Indeed the situation ber. ma.
be described far more serious than thai ..
France. since the revelations made there how,,..-
damaging to the reputation of the official ana ~
| Iiamcntary classes. dc not directly affect tho =.
tiona credit. do those on this side Of tho A.,
The history Of the present series of scandals c,o.
back TO tho great financial crisis OF 1889 wb.,
Signor Giolitti. now Prime Minister was Minis,o.
OF the Treasury in the CIIspi Cabinet Inc I,,..,
ina Bank deeply involved in the building sue,u,
tion here. being then on the verge of bankrun,o,
invoked tho assistance Of tho Government In >.
spOnsc TO this Mcssrs Crspi and Giolitti put n,,.
sure on the National Bank TO advance il SlOOoo
900. which has never been refunded and a,
which no interest has been paid A. the sam.
time a secret Government inquiry was ma 10 inn.
the affairs OF the leading Italian banks the resu,
Of which, embodied in an elaborate and dsrnagins
report drawn mp by the late Senator Alyisi w,s
pgeOn-hocd and kept secret by the Governmen.
which apprchcndcd that the National credit wouM
be greatly injured by its publication
A few weeks ago the Government submitted n
the Legislature a proposal for six years e.
tension of the Banking law which has hitherto
hcon in force. and which is now about to expirs
Great was the CONSERVATION of the Ministers when
they found that the measure was opposed by Sici.
liam Radical Deputy named Napoeone Colaanni
who has played in the Italian Parliament the
same role as that enacted by Deputy De la Have
in the Palais Bourbon at Paris Almost at tho
very outset Of his speech against fhe projected
bill he confronted the Ministers with the damag.
ing report OF Senator Alvsi above referred to as
having been kept secret by the Government
No one knows how it has come into his
hands. His charges, founded on tho paper in his
hands. were directed principally against the great
3anca Romano and consisted, among other things
Of an assertion that it kept duplicate series Of
notes each set bearing the same numbers in circu.
lation, thus fraudulently exceeding its legal issue
by 100 per cent. II is calculated that by this
means the bank has an Illegal circulation Of
S6.o0O,000. This state Of things repeated in
smaller degree by the other banks Of emission, had
become known during the last two or three years,
and has led to tho institutions in question being
blackmailed by various statesmen. Government :
officials and politicians under threats Of exposure
Ii is asserted by Deputy Colaiann, who bases his
statements on documentary PROOF, that not crig-
the Banca Romano, but also the other banks In.
volved, hold in their portfolios an immense number
Of prOmissory notes signed by various peTsonage
Of prominence and influence. These have until
now been termed patriotic notes. and have been
renewed from time TO time, without either sigma
tories or indorscrs being called upon to pay theu-
Deputy Colaianni showed that $4,000, 900 in the
current accounts Of the Banca Romano had been
opened abusively, and that the same institution
had divided 81, 100000 among friends worthy Of
special consideration. Considering that some $50
Senators and Deputies compromised by these
revelations it is not surprising that such eA-
traordinary latitude has been allowed to tho
bank in its operations.
The sensation caused by the speech Of Deputy
Coaiani throughout Italy can only be compared
10 that caused by the address Of NJ De la Hayr
in the French Chamber at the outset OF the recent
Panama Company crisis, and tho public at once
began 20 clamor for a full and rigid investiga-
ton. The latter was at inauguratai BY
order Of the Minister Of the Interior. and the
inquiry thus instituted has already resulted in
the discovery that some 5000 600 is myster-
Ously missing from the deposits entrusted to the
great Bank Of Rome, and in the arrest Of Senators
Tanlongo, president Of the bank, and Of Baron
Lazzaroni. chief cashier of the establishment
Baron Cucinello president of tie great Bank Oh
Naples, has likewise been lodged in Jail charge
Of having embezzled q sum Of 100000 francs
Numerous arrests. including thar Of Signor Non
Sili, principal Government Supervisor Of Banks.
have already taken place, and many more are
hourly expected, the names Of those alleged 10
be ncriminated comprising that OF Baron Nicotera'
Minister Of the Interior in the Crsp Cabinet
and Of Commander Ratazzi. Minister of the
Royal Household All the persons arrested until
now are incarceratcd in the great Carcere Move
prison, excepting Sienor Tanlongo. man OF
seventy years of age, who is too Ill TO BE- moved
being confined to his own house under the care
full watch of the police. He is a very remark.
able man. and has for thirty years been REGARDED
NJ the greatest authority in the Kingdom in az
financial questions besides being credited WIN
the possession of a vast fortune. There are onle
q considerable number of presidents and msnagen
81 banks IN various parts of the country who arc
now. in the hope probably Of saving themselves
by turning States evidence. coming forward WIN
startling revelations concerning the extent 10
which they have been backmaiIed Of late yean
by Government officials and politicians. ana
those who are acquainted with the extraordinary
number OF crimes OF violence in Italy. and win