New-York tribune., 1921-12-30
Causes Stir in ItaIy

kOME, UeC. ~ tBy Inc ASSoC1aCed
Press).-The closing. of the Banca
siderable stir in Italian financial cir
cles. The bank includes in its holdings
shares in the Ansaldo and Iva groups,
which are among the great Italian in
dustrial concerns. The suspension of
payment did not cause any runs on
other institutions.
The Stefani agency says that the
italian government has taken steps to
guarantee the creditors Of the bank
against losses and eventually to place
the bank in more favorable position.
No efforts were made until the
eleventh hour to save the institution
from closing its doors by consortium
of other banks. The sum required was
200,000,000 lire, but not all the banks
met the appeal for aid and the Banca
ltaliana di Sconto closed its doors.
LONDON, Dec. ga dispatch to the
Central News from Rome says a syn
dicatc of banks there has collected
10000 900 lire to restore The Banca
ltaliana di Sconto. The dispatch adds
that "El Epoca" announces that an
agreement has been reached with the
current creditors of the bank.
WASHINGTON, Dec. 20 (By The AS
sociated Press).-The failure of the
Banca ltaliana di Sconto has a political
connection. it was stated in Italian
ctflcial circles here, since it was started
and controlled by ex-Premier signor
Nitti and his friends, especially Sen
ator Marconi, The wireless expert, and
Marquis Medici, former Deputy of
Rome. The affairs Of the bank may
also affect the existence of several
newspapers subsidized by it, prominent
Italians said, but will not have serious
consequences on the standing of the
other Italian banks.
News of financial crisis in Rome
and the closing Of the Banca Itaiana
al Sconto caused excitement in Italian
quarters when it reached New York
yesterday. A large crowd of Italians
| gathered about offices of the Italian
Discount and Trust Company, at 299
broadway and 2242 Fit Avenue. No
Ilces posted on windows of each branch
OF the Banca Italiana di Sconto notified
depositors that the New York State
Superintendent of Banks had taken
| charge.
1t was later announced that George
v. McLoughlin, State Superintendent
or Banks, had been requested by the
pranch managers to assume control. 1t
was said the doors would remain closed
penang investigation of the situation
involving the parent institution.
Police Reserves Called
Police reserves were sent to the cor
ner OF Broadway and Walker Street
where several thousands of the bank IS
customers congregated, demanding tt
Know the meaning Of its suspension
Inc crowd was constantly augmented
on rumors that other financial in.
stitutions were involved and difficulty
was experienced in dispensing the
gathering. Announcement was made
later by patrolmen from the Beach
Street station. who were posted at the
doors of the Broadway branch, that il
would reopen to-day.
The Harlem branch is situated in
the heart Of a district known as "Lit-
tie Italy" Here practically the entire
population gathered in excited dis
cussion OF the situation.
The effect in the money market was
immediate. Italian exchange, already
weakest Of Allied remittanceb fos the
aocal field, dropped 10 points, to ,423
when the news was received. Other
European exchanges reacted in SYM
pathy.
Guglielmo Marconi, wireless inventor
is president Of the board of directors
of the Banca Italiana di Sconto, which
was formed in 1916 by consolidation of
several older financial institutions. 1t
was said by officials last night that
the bank had more than $50 branches
in Italy, as we'll as many in France
Spain, Turkey, Brazil and the French
colonies. The institution had paid
up capital Of 100000 lire, reserve
Of 68,0O0,O00 and cash deposits OF about
3,540, 100000 lire. Pamphlets giving
this and other information were in
circulation in the Harlem Italian quar-
ter yesterday.
The Harlem Branch Of the Banca
Italiana di Sconto does heavy busi-
ness in remittances to Italy and in
savings accounts. Savings depositors
in thousands shouted demands for ex-
planation Of closed doors and police
reserves from the Eost 104th Street
police station under Captain Loonan
had their hands full in maintaining
order. H. ]. Connolly. secretary and
treasurer of the bank, issued this
| statement:
| lowing to reported closing of the
Banca Italiana di Sconto in Rome
with which the Italian Discount and
Trust Company has large deposits, the
board of directors of the latter di-
rected suspension of the trust COM
pany's operations and requested the
State Superintendent of Banks to take