The New York herald., 1921-12-30
ITALIAN Big FOUR
BANK SUSPENDS
Banca di ScOntO, Powerful In
stitutiOn in Rome, Closes
It's Doors.
DEPOSITORS PROTECTED
Directed by Signor Marconi,
Ex-Premier Nitti and Mar
quis di Medici.

Special Gable to THE NEw York HpRALp.
! Copyright, 1891 by THE New York HERALp.
ROME. Dec. 29.-That Italy is in the
throes of serious financial crisis was
emphasized to-day when the Banca
Italiana di Sconto, the second largest
of the so-called free banks and
with capital stock of 300,000,000 lire.
closed it's doors, taking advantage of
the modified moratorium which the
Government declared in it's behalf yes
| terday. 1t is reported on semi-official
authority tonight that the Govern
ment has taken steps to protect the
banks depositors and creditors against
losses.
The present crisis follows the boom
which swept over Italy after the war,
when the four biggest banks-the
Banca Commerciale, the Banca Italiana
di Sconto, the Credit Italiana and the
Banca di Roma, known as the big
Four'-greatly increased their capital
stock to expand italian trade all over
the world, taking into partnership
shipping and industrial concerns of
all kinds.
! At that time the Banca di Sconto
! tied itself up with the great Ansaldo
armament firm here. This alliance
brought success to the bank from the
first and it enabled the Ansaldos to
develop their business to the utmost
limit The Banca di Sconto and the
Ansaldos came to be regarded as one
/ and indivisible, and Il was declared
that disaster to either OF them YOU'D
prove national disaster in Italy.
situation Becomes Acute.
The situation became acute month
ago. Since then the Government has
been making desperate efforts TO avert
crisis and save the big credit institu-
tiors. Following a conference between
Premier Bonomi with Signori Giolitti,
Luzatti and Nitti. one time Premiers,
the latter one OF the founders OF the
bank, a few days ago, royal decree
was issued forbidding dealing on the
Italian bourses except for cash and au-
trorizing a modified moratorium for
those institutions which applied for II,
subject to approval by the tribunals. IL
is regarded as likely that the Govern
ment will now reestablish it's control
over foreign exchange dealings.
Underlying the present crisis lis the
effort made recently by certain banks
and SPECTATORS to take advantage OF
the general depression from which all
countries are suffering. but which is
severest in Italy. and capture the big
credit institutions and affiliated buSi-
ness in the interests of one group. The
responsibility for the closing of the
Banca Italiana di Sconto to-day Is
largely placed upon these parties
Seeing the impending crisis. the Gov
ernment a month ago established a con-
sortium to aid the Banca dt Sconto TO
free itself from heavy credits whfch IL
held against the Ansaldo concern. Al
though the consortium OF banks was
said TO have subscribed 6o0.000,OOo lire,
1t is now known that this was largely
provided through fresh issues of notes
OF the Bank of Italy
The closing of the bank caused great
inconvenience to hundreds of Americans
here who patronize its chief branch In
the Piazza di Spagna, as they are now
unable to get money.
II Is reported here that another ltanan
bank has sustained heavy losses through
various companies connected with the
grain. cotton and metal Industries. some
OF which are now subject to judicial
Inquiry. The price OF shares OF many
companies listed on the Bourse have
dropped several hundred points during
the last month. Efforts to save the
situation are hampered by the rise in
exchange against Italy.
IL is reported that a new consortium
has been formed with capital or
1000. 100000 lire IN case IL is neces-
sary to intervene to support other credit
institutions here and save 30.000,000.-
900 lire in deposits belonging to small
depositors.
Had I5,OOO,OOO Lire Capital.
The Banca Italiana dl Sconto was
established I'm 1915 with capital OF
100000 lire. It came into great
prominence In italy during the war as
result of It's efforts against foreign
intrigue In Italy. One of the primary
objects Of its founders. including Sena-
tor Marconi of wireless fame, EXPIRE
mier Nitti and the Marquis di Medici,
was to establish purely italian bank,
as against the other so-called free
banks" which had been founded largely
with foreign capital and were suspected
or being foreign financial agents. This
was especially true of the Banca Com
merciale OF Milan and the Credito Ital-
lana. the former having been organized
with German money and the latter with
Swiss funds, while both were allied
with the Deutsche Bank in Berlin.
The alliance between the al Sconto
and the Ansado interests followed soon
afterward. This In turn led TO fight
within the circle OF the banking Big
Four"
These four banks, Of which the Banca
di sconto was only second TO the Com
merciale in importance. possessed a
tremendous political power In Italy and