Aarons, M. and J. Loftus 147, 199, 200
ABSS
as central bank 200
consolidation of financial administration under, failure xv
definition xv
ad limina visits, financial role 113, 188–9
administrative sclerosis 1815–69 26
absence of budgets/balance sheets (1833–46) 27
cost of 49
economic decline and 26, 38
European Powers, demands for reform 26–7
political instability and 26–7
Roman concurrence in 28–9
see also curia; financial reforms
Alexander, S. 201
Alvarez, D. 44–5, 186
Alvarez, D. and R. Graham 18
‘Americanism’ 73–5
definition xv
Testem Benevolentiae (1899) xv, 74
Amministrazione per le Opere di Religione see IOR; Opera per Pias Causas, Commissione/Amministrazione
Amministrazione Speciale per la Santa Sede see Nogara, Bernardino; Special Administration of the Holy See
anti-Judaism, papal distrust of capitalist/commercial investment and 211
anti-Protestantism, papal distrust of capitalist/commercial investment and 212
Antonelli, Cardinal Giacomo (1808–76)
debasement of the coinage 38–9
financial reforms under 29
see also financial reforms (Cardinal Antonelli)
investment policy see investment policy (Pius IX/Antonelli)
Latin Monetary Union (1866) and 38–9
Law of Papal Guarantees (1871) and 45
life and career 27–8
Pius IX, influence on 28
public relations and 49–50
railway-building and 29
Antonelli, F. 28–9
Aquinas, St Thomas
Leo XIII and 75–6
Rerum Novarum (1891) and 75–6
Associazioni Cattoliche Lavoratori Italiani 218
Assumption of the BVM, proclamation (1950) 3–4, 183, 208–9
Aubert, G. 88
Ayrinhac, A. D. 166
Balkans/Ottoman Empire see also Libya; Tunisia
Banca Commerciale and 101, 103–4
Banco di Roma and 103–6
Banca Artistica Operaio 62–3, 77–8
Banca Cattolica Vicentina/del Veneto 100–1
Ambrosiana/Marcinkus/Calvi and 207
IOR and
Banca Commerciale
association with Vatican 143–5, 168–70
foreign exchange transactions 170
domestic strength 101–2
international connections 168, 169
(Illustration 13)
Balkans/Ottoman Empire and 101, 103–4, 143–5, 168
Italian emigration and 103, 168
Latin/South America 168
Libya/Libyan War (1911) 105–6
Tunisia 104
Nogara and
even-handed dealings 214–15
use of his inside knowledge 172
rescue efforts
Industrial Reconstruction Institute 172
SOFINDIT 172
as rival to Banco di Roma 101, 143–5
see also Banca della Svizzera Italiana, association with Vatican; Nogara, Bernardino; Paribas; Sudameris
Banca d’America e d’Italia, Jesuit holdings 207
Banca della Svizzera Italiana
association with Vatican 169
Nogara and 193
Second World War and 193
Banca Romana 28–9
banche popolari/casse di risparmio 77–8
Banco De Credito De Peru 170
Banco di Napoli, Italian emigration and 103
Banco di Roma
Balkans/Ottoman Empire and 103–6
black aristocracy and 65, 213
‘confessionalisation’ 116
constraints on growth 65, 101–2
de-Catholicisation 133, 221–2
economic recession and 131–2
in Egypt 104
First World War and 105, 131–2
in France 102–3
investment policy, riskiness 65, 67–8
Italian government and 105–6, 115–17
in Latin/South America 103
in Libya 104–5, 216
Middle East losses 131–2
rescue efforts
Industrial Reconstruction Institute (IRI) 172, 173–4
Vatican 115–17
rivals to 101–2
see also Banca Commerciale
Roman Question (dissidio) and 220–1
share certificate 98
(Illustration 7)
in USA 103
Vatican attempts to rescue
1914–15 115–17
Mussolini, deal with 131–3, 221–2
Vatican investments in 99–101
advantages to Bank 72, 100–1
black aristocracy/members of Papal Court, dominance in Bank 213
difficulties with, reasons for 2–3, 213
Leo XIII/Folchi 65–7, 213–14
losses
Nogara, and 143
over-exposure 72, 106–7
protection following IRI rescue 173–4
severing of relationship 148–9, 214
survival of unsatisfactory relationship, reasons
better the devil you know 214
black aristocracy/members of Papal Court, dominance in Bank 213
fear of loss of face 214
lack of financial professionalism of Vatican staff 213–14
see also Pacelli, Ernesto; Spada, Massimo
Banco Italiano di Sconto 121, 131–2
Banque Française et Italienne per l’Amérique du Sud (Sudameris) see Sudameris
Barraclough, G. 22–3
Barry, R. 75–6
beatifications and canonisations, Pius IX and 13–14
Belardelli, G. 145 n. 90, 180–1
Bell, D., Howard 77
Benedict XIV, Vix Pervenit 24–6
Benedict XV 109
(Illustration 8)
Banco di Roma and 115–17, 214
canon law, codification (1917) 12, 108–10, 164–5
Catechism of the Catholic Church 13
curia, reform 83
Congregation of the Clergy 111
Eastern Rite Churches and 108–10
economies, predilection for 111
election 108–10
career prior to 108–10
financial competence
allegations against 110–11
evidence of (UEI affair) 119–21
financial legacy 121–6
conclave expenses 124–5
Germany and
alleged influence of 113
‘le Pape Boche’ 112–13
humanitarian relief and 115
investment policy see investment policy (Benedict XV)
Italian state, Vatican relations with 157
(Illustration 12)
Merry Del Val and 108, 224
missionary activities of Church 6, 108–10
modernism and 108–10
Nogara and 146
papal diplomacy and 108–10
papal ceremonies, expenditure on 114–15
‘keeping up appearances’, importance 46–8
peace policy 108–10, 112
France and 112–13
Peter’s Pence and 111–14
public relations/press, views on 120–1
Roman Question and 138
Società Editoriale Romana (SER) and 118–21, 213–14
see also First World War
Binchy, D. A. 44, 65–7, 129, 178
bishops, appointment by Rome 134
code of canons (1917) 12–13
bishops, appointment of in Italy
Law of Papal Guarantees (1871) xix, 43, 50
state’s right of veto xix, 50, 93
effect on income 50
black aristocracy 48
Banco di Roma and 65, 213
building boom and 63
curia reform, resistance to 83
ecclesiastical land, purchase (1873) 52
investment practices 51–2
Leo XIII and 62–3
loans to 62–3
Pius X and 92
Blackbourn, D. 13
Blouin, G. 15–16
Bontoux, Eugène (founder/director of Union Générale) 61
Bonzano, Cardinal Giovanni (1867–1927) 118–19, 122–3, 124–5, 139–40
Brady, Patrick (Edison Electricity), underwriting Conciliazione financial settlement 139–40
Britain
appointment of apostolic delegate (1936) 179
Vatican attempts to build alliances against Hitler 179
British Grolux 160
board members 160–1
diplomatic channels/transfer to Morgan’s Bank (Second World War) 189–90
Pius XI and 222
Profima ownership 190
profitability 170–1
Broderick, Bishop Bonaventure (1868–1943) 85–6
building boom
black aristocracy and 63
collapse 67–8
Vatican investment in 62–4, 210–11
building projects (Pius XI) 134, 152
(Illustration 11)
as consolidation of Vatican City’s sovereign status
as counter to Mussolini’s public works projects 135, 153
cuts following Wall Street Crash 159
as demonstration of papal supremacy 153
expense 135, 150
in extra-territorial areas 153
management of
escalating costs 155–6
monopoly tendering 156
new churches 153
building projects (Pius XII), rebuilding the Borgo 208
Buoncompagni Ludovisi
and the Rome building boom 63
support for Fascism 133
Burgess, A. 110–11
Byrne, H. 165
Calvi, Roberto (1920–82) (Banco Ambrosiano) 2–3
Cameron, R. E. 24–6, 27–8, 29–32, 35, 36–7
Canada
and Cardinal Spellman 208
divisions in hierarchy 73
Canali, Cardinal Nicola (president, Pontifical Commission for Vatican City, 1939–61)
career 208
Special Commission, appointment to 208
Nogara, investigation into competence and 208
as ruling force in Vatican 208
canon law
codification (1917) 70, 108–10, 164–5
bishops, appointment by Rome 12–13
Pius XII and 12–13
Romanisation and 12, 227
Holy See, applicability to 166
investment policy, applicability to 164–6
usury and 211
canonical prebend, Pius X and 85
capitalism/commercial investment, papal distrust
association with Jews and 211
as impediment to economic development 24, 37–8, 39, 93–4, 100
investment policy, relevance 76–7, 210
location of papacy
in Italy 212–13
outside industrial triangle 213
Rerum Novarum (1891) and 76
capitalist liberal bourgeoisie, papal difficulties with 212
capitalist power, Vatican as
Americanisation of Vatican 216
independence of action, effect on 205, 216
making of modern papacy and 1, 3
a multinational 216
a no-win situation 215–16
‘one of the greatest financial trusts in the world’ 205
Soviet press accusations 205
as stato assistenziale 219
see also investment policy (Nogara); social doctrine, investment policy and
Caracciolo, A. 51, 52, 63, 64, 65–8
Caravale, M. and A. Caracciolo 23–4, 27–9
Caritate Christi Compulsit (1932) 164
Carlen, C. 13, 24–6, 42, 55–6, 75, 129 n. 3, 134
Caroleo, A. 100, 131–2, 133, 154
Cassa del Clero di Firenze 100–1, 117
Castelgandolfo, rental income 61–2
Castelli, L. 134, 150–1
Casti Connubi (1930) 8, 129
Catechism of the Catholic Church
Benedict XV 13
Romanisation and 13
Catholic Action
1948 elections 204
as apolitical organisation 133
financing 204–5
global aspirations 134, 228–9
independence under Mussolini 177
Pius XI’s preference for 133
see also Catholic movement (including economic and social organizations)
Catholic co-operative movement, difficulties under Pius XI and Mussolini 131–3
Catholic Electoral Commission 205
Catholic movement (including economic and social organisations)
Associazioni Cattoliche Lavoratori Italiani 218
Catholic youth organisations and Conciliazione (1929) 139
expenditure under Pius X 88–90
lay capitalism and 78
Opera dei Congressi, dissolution 88
Peter’s Pence and 32–4, 228
Rerum Novarum (1891) and 77
as response to industrialisation in Italy 77
Romanisation and 228–9
Società della Gioventù Italiana di Azione Cattolica 49–50
see also Catholic Action
Centesimus Annus (1981) 75
centralisation of Church see Romanisation
Cereti, G. 155
Cerretti, Cardinal Bonaventura (1872–1933) 122–3
Roman Question and 123–4, 138
Chabod, F. 196
Chadwick, O. 6–7, 10–11, 34–6, 41, 55, 56–8, 79, 185, 186, 187
charitable work
elemosineria 90–1
expenditure 46, 90–1
Pacelli, Ernesto and 91
Pius X and 46, 90–1
see also humanitarian relief
Chernow, R. 60, 147, 170
Chiari, A. 94–5
Chimielewski, P. J. 163
China, bishops (1926) 127
Ciampani, A. 64
Ciano, Count Galeazzo (Italian foreign minister, 1936–43) 186
Cipolla, A. 18, 142–3, 154–5, 156
Cippico affair (1948) 2–3, 206
Civardi, L. 228–9
Cold War
Pius XII and 183, 225–6
US influence on Vatican and 225–6
Commissario del Borgo 16, 69, 117–18, 131, 135
Conciliazione (1929)
Benedict XV and 138
Catholic youth organisations 139
Concordat (1929) 11–12, 129
Financial Convention
balance sheet 141–3
Italian gains from work in Vatican City 142–3
compensation for territorial and fiscal losses 19
Law of Guarantees, foregone payments as measure 141
Mussolini’s difficulties 139–42
fudging the issue 142
negotiating difficulties 139–41
Nogara and 140–1, 146–7
as solution to Vatican’s financial difficulties 138, 148–9
tax exemption 141, 193–4
underwriting by
public loan 140
US banks 139–40
Vatican investment in Italy and 171
see also Special Administration of the Holy See
instruments constituting xviii, 139
marriage issues 139
overtures (Pius XI) 138–9
Pacelli, Francesco and 70
sovereign status of Pope/Vatican City 139, 148
as turning point in Vatican affairs 20, 148, 221–2
see also Italian state, Vatican relations with; Law of Papal Guarantees (1871); legal status of Holy See; Roman Question
concordats
Conciliazione (1929) and 11–12, 148
Napoleonic (1804) 4–5
Pius IX and 12–13
Pius XI and 127–9
Reichskonkordat (1933) see Germany, Reichskonkordat (1933)
see also Conciliazione (1929); diplomatic relations/papal diplomacy
Confederazione Italiana del Lavoro 133
Congregation of the Clergy, reform 111
Congregation of the Council of Trent, financial independence 83
Consalvi, Cardinal Ercoli (1757–1824) 23–4
Cooney, J. 137, 224–5
Coppa, F. 21, 27–8, 55
Cornwell, J. 12–13
Cornwell, R. 2–3, 12–13, 19, 70, 183, 197
Credito Centrale del Lazio, surrender of Vatican shares 117–18
Cretoni, Msgr S. 60
Crispi, F. 65–7
economic crisis and 67–8, 70–1
foreign policy 67–8
Crispolti, Marquis Crispolto, SER and 118–19
Croatia see Ustasha gold and the IOR (1945–6)
Crocella, C. 17, 31–4, 35, 36–7, 38, 39, 51
Crofts, A. M. 228–9
curia
administrative chaos following loss of temporal power 82–3
administrative sclerosis 1815–69, concurrence in 28–9
expense(s) 46, 49
purchase of accommodation (1906) 87
internationalisation 15, 225
American representation 15, 225
Reform
Benedict XV 83
black aristocracy resistance 83
Leo XIII 59–60
Paul VI 1–2, 83, 155, 226
Pius X 82–3
see also financial reforms entries
Sapienti Consiglio 83
Dal Gal, G. 82
D’Azeglio, M. 27
De Felice, R. 178–9
De Leonardis, M. 31–2
De Rosa, L. 17, 18, 65, 99, 101, 102–4, 105–6, 116, 117–18
debasement of the coinage 38–9
Della Cava, R. 1–2, 22–3
Delumeau, J. 22–4
Demarco, D. 24
Di Nolfo, E. 192, 196
Di Quirico, R. 103, 104
diplomatic relations/papal diplomacy
apostolic delegate to Britain, appointment 179
funding 227–8
on behalf of Sudameris 191–2
Benedict XV 108–10
British Grolux and 189–90
false allegations about (Scatolini) 204–5
financial support to Church as lever 113–14
Gregory XVI 10–11
Hitler/National Socialism, attempt to build alliances against 179–80
international organisations and 11–12
Japan (1942) 183–5
John XXIII 11–12
Leo XIII 6, 55
nuncios/apostolic delegates
appointment as means of encouraging/recognising newly independent states 10–11
cost 46, 227–8
responsibility of local church for 74, 227–8
subsidisation by Vatican 227–8
expansion 10–11, 183–5, 227
decolonisation and 227
as interference with local church 10–11
internationalisation 225
increase in American contingent 15, 225
Romanisation of Church and 227
Paul VI 11–12
Pius IX 6
Pius XI 11–12
Pius XII 11–12
as Secretary of State 183–5
post-1815 6
USA see United States of America
Vatican as a major player 11–12
see also concordats; Italo-Ethiopian War and the Vatican; Second World War
Divini Redemptoris (1937) 129
Duffy, E. 14, 79, 81
Eastern Rite Churches 12, 56, 108–10
definition xv
Pius XI and 127
ecclesiastical administration in Italy 82
ecclesiastical property
capitalisation of land, proposals for (1860s) 37–8
Italian government’s interference with 65–7
charitable trusts, management of 66
liquidation (1860s) 36, 42
liquidation of property in Rome and Lazio (1873) 66
Propaganda Fide, sequestration (1884) 66
tithe, abolition (1887) 66
purchase by black aristocracy (1873) 52
rental income 61–2, 121
see also investment policy (Nogara), property ventures; Opera per Pias Causas, Commissione/ Amministrazione
economic development, administrative sclerosis and 26, 38
see also capitalism/commercial investment, papal distrust
economic relations between Vatican and Italian state
common interests 106
crisis in Italy 67–8
banks, threatened collapse 172
Conciliazione financial arrangements and 139–42
Vatican contribution to crisis 67
Vatican efforts to avoid exacerbating 139–41, 146–7
government stock holdings 61, 67, 100, 146–7, 166, 174
Vatican loans 122
Vatican penetration of Italian economy 168
agricultural/food sectors as target 207
support for Christian Democrats and 207
benefits to Italian economy 142–3, 222
Catholic–Fascist condominium 175–6
the Church triumphant and 222
Conciliazione (1929), relevance 171
control of/major share-holding in Italian banks 207
investment in Roman institutions 51–2, 62, 100, 171–2
Milan (PARFINCO) 172
nationalisation of banks and bank holdings 173–4
Nogara and 171–7, 222
packing the boards 172, 176
see also Conciliazione (1929), Financial Convention
educational institutions/training of priests
in cause of Romanisation 9, 14, 134
modernism and 14
Egypt, Banco di Roma and 104
Einaudi, L. 38–9
Eizenstat, S. E. and W. Z. Slany (Slany Report) 201–2
‘eldest daughter of the Church’
France 32, 102–3
USA 223–4
encyclicals, increase in 8
see also individual encyclicals
Enlightenment
autonomy of local churches 4
sources of income pre-1870 and 23
Epstein, K. xi, 113–14
Erzberger papers (Bachem Memorandum) 113–14
exchange rates
expenditure
apostolic delegations and nunciatures 46, 227–8
bishops in Italy following rejection of Law of Guarantees 50
building projects (Pius XI) see building projects (Pius XI)
College of Cardinals 46
conclave (1878) 56–8
conclave (1903) 69, 81–2
conclave (1922) 124–5
curia 46, 49
diocesan administrations, seminaries and religious orders 154
First World War 114–15
see also First World War
major basilicas and papal palaces 46
military 30–2, 46, 83
new churches 46, 87–8, 153
offset from fees and offerings 45, 46
papal ceremonies 46
Papal Court and Household including Apostolic Palaces 45, 46, 47
(Table 2) 60–1
reform (Pius XI) 130
public relations/press 49–50, 89–90, 106–7
rescuing Catholic banks 154
see also Banco di Roma, Vatican attempts to rescue
Second World War 188
see also Second World War
Vatican City, extensions to 86–7
Vatican Museums 46
Vatican/papal pensions 30–1, 46, 49
Vatican salaries 154–5, 157–8
see also charitable work; humanitarian relief
extra-territoriality 96
building projects (Pius XI) 153
Law of Papal Guarantees (1871) 42–3
Falconi, C. 27–8, 43, 45, 50, 52, 79, 81, 127 n. 1, 181, 183
Farinacci, Roberto (1892–1945) (Fascist ras) 186
Fascism see Mussolini/Fascism
favouritism under Pius XI 143
Febronianism 4
Felisini, D. 17, 29, 35
Ferguson, N. 24–6, 27–8, 29, 36
financial arrangements
in 1933 157
(Illustration 12)
absence of effective budgeting/accounting system 155
US protests 155
changes post-Conciliazione 148–9
institutional effect 1, 3
Vatican’s lack of independent advice 117–18, 125–6, 148–9
financial difficulties (1815–69) 24–6
attempts to resolve see sources of income pre-1870
Leo XIII 68
military expenses and 30–1
pensions to former papal servants under Italian rule and 30–1
Pius IX’s legacy 56–8
unification of Italy (1859–61) and 30–1
financial difficulties (post-First World War/Benedict XIII) 121–6, 129–31
see also Conciliazione (1929)
financial reforms (Cardinal Antonelli) 29
a balanced budget 29
debt rescheduling 29
Leuchtenberg operation 29
separation of papal and state finances 29
see also curia, reform
financial reforms (Pius XI/Nogara) 214–15
audit (1928) 129–31
building projects and 135
commission of cardinals for administration of Apostolic Palace 130
concerns 155–6
economies 131
limited success 156
financial support to Church as lever 113–14, 136–8
First Communion 14
First Council of the Vatican 6–7, 21, 42
First World War
breaches of Vatican status 44–5
Società Editoriale Romana (SER) and 118
Vatican expenditure and 114–15
humanitarian relief 115
Vatican income and 111–14, 121–2
inflation and 114, 122
Peter’s Pence (Obolo), decline 112–13, 129
pilgrimages, decline 113
Fischer, Cardinal A. H. 84
Fogarty, G. P. 10–11, 73–5, 85–6, 179–80, 185
Folchi, Enrico (Vatican financial administrator, 1878-91) 56–8
Banco di Roma and 65–7, 213–14
career 59–60
dismissal 67–8
investment policy 61
building development 62–4
loans to black aristocracy 62–3
as a success story 68
Union Générale affair 61
Leo X’s departure from Rome, preparations for 67
relations with Leo XIII 60–1
Fondo per il Culto 111
Formigoni, G. 92
France
Banco di Roma and 102–3
Benedict XV’s peace policy and 112–13
Civil Constitution of the Clergy (1790)
papal finances, effect on 23
Pius VII, rejection by 4
Gallican privileges 4
Hitler/National Socialism, Vatican attempts to build alliances against 179
loans by laity (1860–4) 36–7
Napoleonic Concordat (1804), augmentation of papal power under 4–5
Nogara’s property ventures 159–60
board members 160–1
profitability 170–1
Peter’s Pence and 32, 112–13, 122, 223
Ralliement 8, 58, 84–5
Vatican relations with
breach under Pius X 81, 102–4
financial institutions, boycott 102–3
Wall Street Crash and 170–1
see also French Revolution; Ultramontanism
French Revolution
nationalisation/secularisation 4
rights and freedoms, papal response to 4
Ultramontanism and 5–6
Gallagher, C. 201
Gambasin, A. 76
Gannon, R. I. 85–6, 136, 179–80, 185, 224
Gasparri, Cardinal Pietro (1852–1934)
Banco di Roma negotiations 133, 221–2
canon law, codification (1917) 70, 164–5
charitable work and 90–1
Credito Centrale del Lazio 117–18
financial management 121–6
death of Benedict XIII and 124–5
nepotism 72
Pius XI and 127–9
Società Editoriale Romana (SER) and 118–19
taxation, exemption, efforts to secure 121–2
Vatican City, views on 86–7, 153
Gerlach, Rudolph 90, 112
Germany
investment in, avoidance 147
Leo XIII and 55
Peter’s Pence and 112, 122, 156–8, 223
Reichskonkordat (1933) 11–12, 70, 127–9, 148
breach 179
territorial changes post-Napoleon, effect on Church 5
see also First World War; Second World War
Gibbons, Cardinal James (1834–1921)
‘Americanism’ and 73–5
Knights of Labour and 73
as primate 73
Rerum Novarum (1891) and 73
Ginsborg, P. 218
Gioberti, Vincenzo (1801–52) (Piedmont statesman and philosopher) 219–20
Giolitti, Giovanni (1842–1928) 70–1, 91, 132
Giordani, I. 133
Giovagnoli, P. 203
globalisation of Vatican finances 1
gold reserves
holding banks 170, 190
transfer to following Wall Street Crash 159
transfer to US Federal Reserve (1940) 187
Gollin, J. 18, 110–11, 124 n. 94, 163, 165, 166, 190, 196, 223
Graves de Communi Re 8, 55–6
Gregory XVI 4
diplomatic relations/papal diplomacy 10–11
encyclicals 8
political instability under 26–7
progressive policies
international affairs 6
usury, relaxation of prohibition 62–3, 210
Grilli, G. 17, 18, 56–8, 62–3, 171, 175–6, 207, 222
Grissel, H. De La Garde 49
Grosoli, Count Giovanni (1859–1937) 78
Società Editoriale Romana (SER) and 118, 120–1
support for Fascism 133
Guanno, G. and G. Toniolo 154
Guarino, M. 19
Hachey, E. 18, 112, 134, 135, 137–8, 143, 147, 150–1, 156–8, 179–80
Hales, E. E. Y. 4–6, 23–4, 27
Harrison, George 2
Header, H. 25, 26, 27–8
Hebblethwaite, P. 108–10, 153, 183, 200, 208–9, 225–6
Hitler/National Socialism
alliances against, France/Britain 179
Mundelein, Cardinal, and 224
Nogara’s US visit to explore alternative investment opportunities 180–1
Pius XI and 179
Mit Brennender Sorge (1937) 8, 129
Pius XII and 216
Hochhuth, R. 216
Hoffman, P. 131 n. 11
Holy See see legal status of Holy See
Horaist, B. 31–2, 34
Humani Generis Unitas (1939) 129
humanitarian relief 46, 90–1, 115, 129
First World War 115
Pius XI 129
Pontifical Relief Organisation 203–4
post-Second World War 203–4
devaluation of lira, effect 203
as drain on Vatican resources 203
political motivation 204
Save the Children Fund 115
Second World War 188, 195–7
Nogara and 195–6
US contributions 196
see also charitable work
Immaculate Conception (1854) 6–7
industrial capitalism, papal distrust see capitalism/commercial investment, papal distrust
Industrial Reconstruction Institute (IRI) 172
nationalisation of banks and bank holdings 173–4
Vatican bond holdings 173–4
Insolera, I. 135
international organisations, diplomatic relations/papal diplomacy 11–12
internationalisation of Church 15, 35, 223–4
as counterpoint to Romanisation 1, 226–7
see also diplomatic relations/papal diplomacy
investment policy (Benedict XV)
Austrian investments 113 n. 27, 122
Banco di Roma and 115–17, 214
sensitivity to political implications 213–14
investment policy (Leo XIII)
capitalism/commercial investment, papal distrust and 76–7
Italian government stock 61
loans to black aristocracy 62–3, 210–11
naïvety 213–14
non-Italian institutions and 61
papal interference 59–60
Roman institutions 62
Union Générale affair 61
writing off of securities/loans 60
investment policy (Benedict XV)
First World War, effect 114, 121–2
inflation and 114, 122
value (1919) 121–2
investment policy (Nogara)
canon law and 164–6
capitalism/commercial investment, papal distrust and 163–4
‘Christian restoration’ programme and 164, 222
changes following Wall Street Crash
cuts to building programme 159
gold reserves, transfer to 159
property ventures 159–61
see also property ventures below
foreign exchange transactions
Banca Commerciale 170
spreading the risk 170
Germany, avoidance of 147
globalisation 168
Hitler/National Socialism and 180–1
Italian government stock 146–7, 166, 174
Italian institutions as target 171–7, 222
Milan (PARFINCO) 172
Nogara’s inside knowledge, use of 172
Roman/national institutions 171–2
see also economic relations between Vatican and the Italian State, Vatican penetration of the Italian economy
methods
change of practice see property ventures below
direct involvement in commercial operations, avoidance 159
property ventures 159–61
British Grolux 160–1, 170–1
see also British Grolux
France 159–61, 170–1
Luxembourg as base 161, 189
‘one of the greatest financial trusts in the world’ 205
profitability 170–1
Switzerland 160–1, 170–1, 189–90
see also Profima
Second World War and
British Grolux, diplomatic channels/transfer to Morgan’s Bank 189–90
Luxembourg Grolux, closure (1939–40) 189
Profima see Profima
Sudameris see Sudameris
suspicion attaching to Nogara’s activities 193
transfer of operations to Switzerland 189–90
transfer of reserves to US Federal Reserve 187
social doctrine and 162–4, 216–18
alleged exemption from 163
speculation/arbitrage 165–6
spreading the risk 143–5, 147–8
transfer of reserves to US Federal Reserve (1940) 187
sterling investments 147, 156–8, 158 n. 44
US investments (1937–42) 180–1
Wall Street Crash, effectiveness of strategy in light of 166–7
see also changes following Wall Street Crash above
‘wind from the North’ 214–15
see also investment policy (post-Conciliazione); Wall Street Crash
investment policy (Pius X)
capitalism/commercial investment, papal distrust 93–4, 100
Italian government stock 100
investment policy (Pius XI), capitalism/commercial investment, papal distrust 211
investment policy (Pius IX/Antonelli)
capitalist liberal bourgeoisie and 212
methods 51
direct involvement in commercial operations, avoidance 52–3, 159
non-Italian institutions and 51
Peter’s Pence (Obolo) 50–3
Roman institutions 51–2
venture capital, avoidance of 52–3
investment policy (Pius X) 99–101
Banco di Roma see Banco di Roma
Cines 100, 116
Pacelli, Ernesto and 100–1
Società Automobile La Roma 100
spreading the risk 100
investment policy (post-Conciliazione) 20
internationalisation 116, 168
professionalisation 116
see also investment policy (Nogara); Wall Street Crash
investment policy (Spada) 206–7
control of/majority share-holding in Italian banks 207
Italian agricultural/food sectors as target 207
IOR
establishment xviii
financial independence 200
funding during Second World War 188
as legal entity 200
as merchant bank 199
Paul VI and 199–200
as successor to Amministrazione per Pias Causas 199–200
weakness vis-à-vis other institutions 200
see also Ustasha gold and the IOR (1945–6)
Istituto Centrale di Credito 154
Istituto per le Opere di Religione (IOR) see IOR
Italian Church, answerability to Vatican 12
see also bishops, appointment of in Italy
Italian Communist Party
press attacks on Vatican
as capitalist power 205
Cippico affair and 206
Italian state, Vatican relations with
1948 elections 202, 204–6
Catholic Action 204
Catholic Electoral Commission 205
humanitarian aid and 204
Benedict XV 109
(Illustration 8)
casse diocesane 93–4
Christian Democrats, Vatican support for 200–1
investment in agricultural/food processing sectors and 207
Pius XII’s slush fund 200–1
stato assistenziale 219
età giolittiana 91
Leo XIII and 56
Graves de Communi Re 8, 55–6
Opera per Pias Causas, Commissione/Amministrazione and 65–7
threats to leave Rome 65–7
Vatican loans to 122
papacy as Italian institution 219–20
resulting conservatism 220
Parliament, voting/election of Catholics to 92
Non Expedit 63–4
political power post-1879 63–4
Penal Code, changes to (1889) 66
Peter’s Pence 223
First World War and 112–13
Pius X and 91–5, 106
anxieties 92–3
Pius XI and 129
taxation, exemption see taxation, exemption
see also bishops, appointment of in Italy; Conciliazione (1929); ecclesiastical administration in Italy; ecclesiastical property, Italian government’s interference with; economic relations between Vatican and Italian state; First World War; Italo-Ethiopian War and the Vatican; Law of Papal Guarantees (1871); Mussolini/Fascism; Roman Question dissidio; Rome; unification of Italy (1859–61); Second World War
Italo-Ethiopian War and the Vatican 177–9
allegations relating to
independence of Vatican 216
supply of munitions 177–8, 216
war loans 178
indirect support 178
peace efforts (Nogara) 178–9, 193
Jacobini, Cardinal Lodovico (1832–87) 61
Jacquemyns, G. 37–8
Jankowiak, K. 115
Jemolo, A. C. 42, 43, 50, 65–7, 92–3, 123–4
Jewish bankers, papal dependence on 24–6
see also Rothschild loans
John XXIII, diplomatic relations/papal diplomacy 11–12
John Paul I
alleged murder 19
Sister Vincenza 131 n. 11
John Paul II
capitalism/commercial investment, papal distrust 219
Catechism of the Catholic Church 13
Sister Teodolina 131 n. 11
social doctrine, investment policy and 219
Jones, A. 167
Jorio, Cardinal Alberto di Jorio (1880–1979) (Pro-President of Vatican City) 206 n. 124
Josephism 4
jubilees/Holy Years 59, 135
see also pilgrimages
Jung, Guido (finance minister 1932–5) 172
Kantowicz, E. R. 136–7, 224
Kent, P. C. 177, 179, 225–6
Keogh, D. 10–11, 200–1
Kersevan, A. and P. Visintin 146
Kertzer, D. 35–6, 211
Kindleberger, C. P. 158 n. 44
Knights of Columbus 122–3
Knights of Malta 208
Knox, M. 194
Kreuger and Toll collapse 158
Lai, B. 17
and passim thereafter
Lamentabili see modernism
Lammenais, F. R. de 4
Langrand-Dumonceau, G. 37–8
Lateran Pacts (1929) see Conciliazione (1929)
Latin Monetary Union (1866) 38–9
Latin/South America
Banca Commerciale and 168
Banco di Roma and 103
diplomatic relations with 10–11
Italian emigration and 103, 168
Peter’s Pence (Obolo) during Second World War 188–9
Law of Papal Guarantees (1871)
acceptance by Left 65–7
ambiguities 44
bishops, appointment of in Italy xix, 43, 50
breaches
interception of Vatican communications 44–5
Palazzo Venezia incident (1916) 44–5
definition xviii
extra-territoriality and 42–3
financial provisions 43
papal refusal to accept subsidy 11, 19, 45
as measure of Conciliazione indemnity 141
public works, provision by Italian state 141
Roman Question and 123–4
taxation, exemption 43
observance of terms 45
opposition of the Left 43
papal reliance on 44
rejection by Pius IX 41–2
sovereign status of pope 11, 42–3
territorial sovereignty distinguished 43
as unilateral act 43
treaty status, proposals for 44
see also Conciliazione (1929)
Lazzarini, L. 131
legal status of Holy See
abolition of right of veto in papal elections (1903) and 11
Italian courts, Vatican refusal to recognise 95
as legal person (ente morale) 96–7
Patriarca’s study of 96–7
sleeping partners (commandites/ commenda), Vatican use of 63, 72, 96
sovereign status of pope/Vatican City 11, 42–3, 139
uncertainty 53, 95–7
termination of practice
see also Conciliazione (1929); extra-territoriality; Law of Papal Guarantees (1871); Vatican City
Leo XII, Marian cult 13
Leo XIII 57
(Illustration 4)
Aquinas and 75–6
Banco di Roma and 65–7, 213–14
beatifications and canonisations 13–14
biblical studies and 56
black aristocracy and 62–3, 210–11, 213
castrati, abolition 56
conclave expenditure 56–8
curia, reform 59–60
Eastern Rite Churches and 56
economies, predilection for 56–8
encyclicals 8
financial difficulties of Vatican, contribution to 68
Germany and 55
jubilees/Holy Years 59
‘keeping up appearances’, importance 46–8
papal diplomacy and 55
personal control of finances 60–1
Peter’s Pence
decline 58
investment in Roman institutions/building 62–4, 210–11
personal control of 60
public relations/press 61
Ralliement 8, 58, 84–5
social doctrine
investment policy and 76–7, 210–11
see also Rerum Novarum (1891)
threats to leave Rome 65–7
usury, relaxation of prohibition 210–11
Vatican archives and 9–10, 56
Leonardi, R. and D. A. Wertmann 219
Leonine City, occupation (1870) 41
Levillain, P. 7, 13–14, 48–9, 79, 81, 127 n. 1
Levillain, P. and F.-C. Uginet 51, 61, 68
Libya/Libyan War (1911)
Banco di Roma and 104–5, 216
independence of Vatican and 216
Pacelli, Ernesto and 104–5
Peter’s Pence and 105
Pius X and 105
public relations/press and 104–5
L’Osservatore Romano 105
Vannutelli, Cardinal 105
liturgical and devotional reforms, Pius X 14, 81
Lo Bello, N. 110–12, 123, 124–5, 129–31, 135, 145, 181 n. 64, 223
caveats 18
loans
by French laity (1860–4) 36–7
Italo-Ethiopian War and 178
Knights of Columbus 122–3
USA, attempt to raise (1919) 118–19, 122–3, 124–5
see also Rothschild loans
Logan, O. 42, 91, 196
lottery, proposals for (1860s) 37
Luxembourg as base for management of Nogara’s property ventures 161
closure of operations (1939–40) 189
Luxmoore, J. and J. Babuich 10–11
McAvoy, T. T. 32
Mack Smith, D. 219–20
McKnight, J. P. 137
MacNutt, F. A. 49
magisterium, development of 6–7
Maglione, Cardinal Luigi (1877–1944), Nogara and 191–2
Maillardoz, Henri de, as head of ASSS 146, 194–5
Malagodi, Giovanni (Banca Commerciale/ Sudameris) 169, 190–2
Malta 101
Manfroni, G. 56–8, 59, 66–7, 68, 94
Manuzi, M. 207
Marcinkus, Archbishop Paul (president, IOR, 1967–90) 2–3, 207, 226
Marian cult 13
see also Assumption of the BVM, proclamation (1950); Immaculate Conception (1854)
Martina, G. 21, 41, 49–50, 146 n. 93
Martini, F. 82
Martinucci Case (1882) 44
Marzolini, Mons. N.
Banco di Roma and 213
Leo XIII and 59–60, 81–2
Pius X and 83, 97, 103
Mater et Magistra (1961) 75
Mattioli, Raffaele (President Banca Commerciale 1926–72) 191
Mazzini, G., papal finances and 27–8
Mazzonis, F. 12–13, 41, 212
measure of Vatican wealth, unrealisable assets 2, 25
Merode, Mons. S. de 30–1
Merry Del Val, Cardinal Rafael (1865–1930)
Benedict XV and 108, 208, 224
intransigence 81
misjudgement of American Catholic world 85–6
Meyer, Cardinal Albert (1903–65) 225–6
Mill, J. S. 24
Miller, A. 163–4
Misner, P. 75, 76, 77
missionary activities of Church
Benedict XV and 6, 108–10
Pius IX and 6
Pius XI and 6, 127
see also Propaganda Fide
Mit Brennender Sorge (1937) 8, 129
Mocenni, Cardinal Mario (1823–1904) 68–9, 213
economies 69
modern papacy
French Revolution and 4–5
Pius IX and 3–4
Pius XII and 3–4
see also French Revolution
modernism 81
definition xviii
educational institutions/training of priests and 14
Peter’s Pence and 84
Pius X xx, 81, 84
Mollat, P. 22–3
Moloney, T. 10–11
Molony, J. N. 110–11, 115, 123–4, 134, 179, 221–2
Montalembert, C. R. F. 4
Monti, Carlo 16, 112, 113–14, 115, 121–2
Moretti, V. 151
Mortara affair 35–6
Muhlen, E. 161
Mundelein, Cardinal George (1872–1939) 136–8
borrowing low, lending high 136
Hitler/National Socialism and 224
influence/leverage over Vatican 136–7, 224
Nogara’s visit to the US (1937) and 180 n. 57
Wall Street Crash and 157–8, 162
Murphy, P. 131 n. 11, 178, 181 n. 64, 215
Mussolini/Fascism 177
Catholic Action and
Charter of Labour (1927) 216–18
collapse (1943) 196, 221–2
courting of the Church 132–3
Matteotti Crisis (1924) 221–2
nationalisation under 173–4
Pius XI and 132–3, 138–9, 176–7
condominium over Italian economy 175–6
Non Abbiamo Bisogno (1931) 8, 129
Pius XII and 186
eclipse of Il Duce 196
public morality, convergence on 176–7
public works projects 135
support of Catholic bankers 133
Vatican dependence on 177
Vatican links with Latin American/Iberian peninsula regimes 205–6
Vatican support for 221–2
see also Conciliazione (1929); Italo- Ethiopian War and the Vatican; Second World War
Natalini, T. 131
Nathan, Ernesto (mayor of Rome) 84, 90, 93, 99
nationalisation of banks and bank holdings in Italy 173–4
Nava, Cesare 78
New Deal, US bishops’ support for 218
Noble Guard, cost 46
Nogara, Bernardino 103–4, 105–6, 144
(Illustration 10)
Banca della Svizzera Italiana and 169
Banco De Credito De Peru and 170
Benedict XV and 146
career 145–6
Conciliazione financial arrangements 140–1, 146–7
Treaty of Ouchy 106, 145, 161
the Church triumphant and 208–9, 222
competence, investigation into (1939) 181, 215
Canali and 208
conflicts of interest 191–2
diary, value as source of information 17
family connections 146
financial competence and experience 214–15
financial contacts 145–6, 160–1
financial reforms see financial reforms (Pius XI/Nogara)
as ‘in-house’ financial adviser 143, 214–15
outside advice, distancing from 224
investment policy see investment policy (Nogara)
Italo-Ethiopian War and 178–9, 193
Mussolini, alleged dealings with 146–7, 173–4
Pius XI, importance to 148
Pius XII and 146, 181–2, 214–15
reacquisition of the Borgo 208
Second World War and 215
and humanitarian relief and 195–6
as member of the Resistance 196
as potential go-between 193
see also investment policy (Nogara)
Sudameris and 103, 169
taxation, efforts to secure Vatican exemption from 193–4
travelling habit 160–1
US visits
1937 (to explore alternative investment opportunities) 180–1, 223–4
1942 (proposed for purpose of investigating economic situation and resolving Sudameris problems) 194–5
as ‘wind from the north’ 214–15
see also Banca Commerciale; Special Administration of the Holy See
Non Abbiamo Bisogno (1931) 8, 129
Non Expedit 63–4
definition xix
Nova Impendit (1931) 164
O’Brien, A. C. 132–3
O’Connell, Cardinal William 136
career, as rector of the American College 224
Merry Del Val and 86, 224
Romanisation of US Church and 9, 224, 226–7
openness, moves towards
Opera dei Congressi 77–8
definition xix
dissolution xix, 88
see also secretiveness of Vatican; Tardini, Cardinal Domenico 1–2
Opera per Pias Causas, Commissione/ Amministrazione
establishment xv, 65–7
financial independence 83
investment in Banco di Roma 65
secrecy 66–7
Oriental Churches see Eastern Rite Churches
Osborne, Sir Francis D’Arcy (British Minister to the Holy See, 1936–47), Nogara and 191–2, 203–4, 205–6
Ottoman Public Debt, Board of 101, 105–6
Pacelli, Ernesto 71
(Illustration 5)
Banca Romana scandal and 70–1
Benedict XV and 115–17
Catholic press and 89–90, 221
charitable work and 91
‘confessionalisation’ of Banco di Roma and 116
difficulties relating to 2–3, 105, 115–17
family 69
favours to papal entourage 72
Holy See third party transactions and 96
Leo XIII and 70–2
sleeping partner relationship 72
Libya/Libyan War (1911) and 104–5
as negotiator with Italian authorities 87, 92, 97–9, 101, 220–1
personal honour 72
Pius X and 83, 87, 89–90, 97–101
breach 105
Roman Question (dissidio) and 220–1
Società Proprietà Fondiaria 93
South America and 103
USA, reluctance to invest in 103
see also Banco di Roma
Pacelli, Eugenio see Pius XII
Pacelli, Francesco 70
Conciliazione (1929) and 139–42
diary 17
Pacelli, Marcantonio 69–70
Palazzo Venezia incident (1916) 44–5
Pallenberg, C. 2–3, 18, 69–70, 111, 142, 171, 181–2, 193–4
papal ceremonies
the Church triumphant 208–9, 229–30
expenditure on 46, 114–15
‘keeping up appearances’, importance 46–8
see also beatifications and canonisations; Marian cult
papal chamberlain, non-Italians as 34, 48–9
Papal Court
expenditure 45, 46
laity at 48–9
papal honours 34, 47
membership of boards of Italian companies and 175
US citizens and 48–9, 137–8
papal Infallibility (1870) 6–7, 21, 42
as means of preserving unity 7
as response to threats to Roman Catholicism 7
Romanisation and 9
as source of moral and spiritual authority 8
Papal States 25
(Illustration 2)
Austrian troops, use of (1831) 26–7
economic decline 23–4
loss of territories
1859–61 29–31
fall of Rome (1870) and 41
as papal opportunity 41
political instability (1815–1849) 26–7
as source of finance pre-1870 22–3
see also Rome
PARFINCO 172
taxation of 193–4
Paribas
as arm of Banca Commerciale 103, 169
Second World War and, collaboration with the enemy, allegations of 190–1
Partito Popolare Italiano, cutting of support for 132–3, 138–9, 221–2
Pascendi see modernism
Passalecq, G. and B. Suchecky 129 n. 3
Patriarca, C. 96–7
Paul VI
curia, reform 1–2, 83, 155, 226
diplomatic relations/papal diplomacy 11–12
IOR and 199–200
social doctrine
investment policy and 218–19
tiara, sale of 218–19
Pavelic, Ante see Ustasha gold and the IOR (1945–6)
pensions, as cause of financial difficulties 30–1, 46, 49
Perin, R. 10–11
personalisation of the papacy 14–15, 35, 58–9, 229–30
Peter’s Pence (Obolo)
1878–87 69
Anglo-Saxon origin xix, 31–2
as ‘Catholic action’ 32–4
Catholic movement and 32–4, 228
as collateral for loans 35–6
decline: death of Pius IX and 58
First World War and 112–13, 129
Pius XI and 135
Ralliement 58, 84–5
Second World War and 188
as funding for normal expenses 35, 122
intransigence towards secular governments, effect on 58, 84–5
investment policy (1870s) 50–3
investment in Roman economy 62–4, 210–11
Libya/Libyan War (1911) and 105
military expenditure and 31–2
modernism and 84
pope–faithful relationship, effect on 35, 229
source and amount 33
France 32, 122, 223
Germany 112, 122, 156–8
Italy 112–13, 223
Latin/South America 188–9
Spain 223
USA 32, 74, 85–6, 103, 136–7, 156–8, 188–9, 223
spontaneous revival (1860) 31–2
Wall Street Crash and 156–8
Petriccioli, M. 105
Philippines 103
Piccolo Credito di Ferrara 78, 117
pilgrimages
personalisation of the papacy and 58–9
‘Full in the panting heart of Rome’ 229–30
railways, role 34, 59, 229
as source of income 58–9
First World War and 113
under Pius XI 135
see also jubilees/Holy Years
pious fraud 93
Pius VII
Civil Constitution of the Clergy (1790), rejection 4
Papal States see Papal States
Pius IX 22
(Illustration 1)
Antonelli, Cardinal G. and 28
beatifications and canonisations 13–14
concordats 12–13
diplomatic relations/papal diplomacy 6
encyclicals 8
see also Assumption of the BVM, proclamation (1950); Immaculate Conception (1854); papal Infallibility; Syllabus of Errors (1864)
family quarrels 53, 95
financial legacy 56–8
flight from Rome (1849) 27
intransigence towards Italian state 11, 41–2
investment policy see investment policy (Pius IX/Antonelli)
life and career 21
liking for railways 29
missionary activities of Church 6
modern papacy and 3–4, 6
Mortara affair 35–6
papal Infallibility and 6–7, 21
reforms under 27
Syllabus of Errors (1864) 4, 21
testamentary disposal of estate, problems relating to 53, 95
unification of Italy (1859–61) and 29–31
as victim-pope-prisoner of the Vatican 9–10, 34–5, 41, 42, 228
Pius X 80
(Illustration 6)
black aristocracy and 92
canonical prebend and 85
Catholic action: expenditure on 88–90
Opera dei Congressi, dissolution 88
charisma 85
charitable work 46, 90–1
curia: purchase of accommodation (1906) 87
reform 82–3
see also curia, Reform
economies, predilection for 83–4, 86
election 79
career prior to 79
financial difficulties arising from conclave 69, 81–2
financial legacy 106–7, 111–12, 113–14
First Communion and 14
investment policy see investment policy (Pius X)
Italian state, relations with 91–5
anxieties 92–3
‘keeping up appearances’, importance 46–8
Libya/Libyan War (1911) and 105
liturgical and devotional reforms 14, 81
micromanagement by 82, 83
modernism and xx, 81, 84
new churches 87–8
Pacelli, Ernesto and 83, 87, 89–90, 97–101
breach 105
Pontifical Biblical Institute 86
public relations/press and: expenditure on 89–90
rationalisation proposals 90
views on 120–1
secular governments, intransigence towards: abolition of right of veto in papal elections (1903) and 11
France, breach of relations with 81, 102–4
response of laity 84–5
Vatican City, extensions to 61–2, 86–7
‘visitors’ xx, 14
Pius XI 128
(Illustration 9)
administrative abilities 155
authoritarianism 143
British Grolux 222
building projects see building projects (Pius XI)
career prior to election 127
Catholic Action 228–9
Catholic economic and social movement, distrust of 133
see also Catholic Action
‘Christian restoration’ programme 134, 164, 222
conclave expenditure 124–5
concordats 127–9
diplomatic relations/papal diplomacy 11–12
Eastern Rite Churches 127
encyclicals 8, 129, 163–4
see also individual encyclicals
financial competence/management: criticisms of (Tardini) 154–5, 156, 164–5
dissipation of Conciliazione windfall 150
economies, predilection for 131, 154
pre-election experience 214–15
rescuing Catholic banks 154
Vatican staff, increase in 154–5
see also Wall Street Crash
financial hand-wringing 157–8, 164
financial reforms see financial reforms (Pius XI/Nogara)
Hitler/National Socialism, alliances to counter: France/Britain 179
United States 179–80
Holy Years/pilgrimages 135
humanitarian relief 129
investment policy see investment policy (Nogara); investment policy (post-Conciliazione); Wall Street Crash
Italian state, Vatican relations with 129
Italo-Ethiopian War, attitude towards 178–9
see also Italo-Ethiopian War and the Vatican
Milanese favouritism 143, 156
‘Fuori i Milanesi’ 181–2
missionary activities of Church 127
Mussolini/Fascism and 132–3, 138–9, 176–7
see also Conciliazione (1929); Mussolini/Fascism
Nogara, importance to 148, 214–15
see also Nogara, Bernardino
Protestant peril and 153
Roman Question see Conciliazione (1929)
Signora Linda (Teodolinda Banfi) 131
social doctrine, investment policy and 162–4, 216–18
Uniates 127
Pius XII 184
(Illustration 14)
Assumption of the BVM, proclamation (1950) 3–4, 183, 208–9
building projects 208
career prior to election 70
canon law, codification (1917) 70, 164–5
visits (1936) as designated successor to Pius XI, France 179
United States 179–80, 185, 223–4
as ‘chaplain of NATO’ 200
Cold War and 183, 225–6
as Defensor Urbis/Salvator Civitatis 196
diplomatic relations/papal diplomacy 11–12
as Secretary of State 183–5
encyclicals 8
Hitler/National Socialism and 216
‘Hitler’s Pope’ 70, 183, 197
investment policy see investment policy (Nogara)
Italian elections (1948) and 42
modern papacy and 3–4
Mother Pasqualina Lehnert 131 n. 11, 181 n. 64
Mussolini/Fascism and 186
eclipse of Il Duce 196
nepotism 175, 182
Nogara 146, 181–2, 214–15
delegation of financial management to 215
papal ceremonies: the Church triumphant 208–9
expenditure on 208–9
as Pastor Angelicus 196
Roman favouritism 181–2
Rome, attempt to prevent bombing of 196
social doctrine, investment policy and 218
Special Administration of the Holy See and 181–2
Ustasha, support for 200–2
see also Ustasha gold and the IOR (1945–6)
see also Second World War
Poland, resistance to Vatican’s Ostpolitik 10–11
Pontifical Biblical Institute 86
Popolorum Progressio (1967) 75
Prefecture of Economic Affairs, creation 1–2
press see public relations/press
Profima
Second World War and: British Grolux and 190
British suspicions of operations in occupied France 190
commercial dealings with Axis powers, allegations of 190
Sudameris and see Sudameris
as Swiss holding company 169, 170
Propaganda Fide
financial independence 45, 83, 121
financing of building projects 136
proposals for concentration of printing at 90
sequestration of property (1884) 66
sequestration and sale of assets
see also missionary activities of Church
property acquisition see ecclesiastical property; investment policy (Nogara), property ventures
Protestant peril 153
public relations/press
Acta Apostolicae Sedis 8–9
Benedict XV’s views on 120–1
expenditure on 49–50, 89–90, 106–7
Il Bastone 90
Il Corriere d’Italia 89–90, 104–5
Il Messaggero Toscano 89–90
Il Momento 89–90, 104–5
La Civiltà Cattolica 8–9, 49–50
La Frusta 89
La Sicilia Cattolica 89–90
La Vera Roma 89–90
L’Avvenire d’Italia 89–90, 104–5
Leo XIII and 61
Libya/Libyan War (1911) and 104–5
L’Osservatore Romano 8–9, 49–50, 89–90
censorship/attacks on (Second World War) 186
Cerretti’s visit to USA (1919) 123
Libya/Libyan War (1911) 105
L’Unità Cattolica 89–90
Pacelli, Ernesto and 89–90, 221
papal authority and 8–9
rationalisation proposals (Pius X) 90
Società Editoriale Romana (SER) see Società Editoriale Romana (SER)
Società Tipografica Editrice Romana 90
Quadragesimo Anno (1931) 75, 129, 163–4
authorship 163
capitalism/commercial investment, papal distrust and 8, 20, 163–4, 216–18
railways, role
Nogara’s use of permanent sleeping car during Second World War 194
pilgrimages 34, 59, 229
Pius XI’s liking for 29
Vatican investment in 65, 100, 147, 158, 171
Vatican railway station and link to Italian railway system (1929) 141, 143, 150
Ralliement 8, 58, 84–5
Rampolla, Cardinal Mariano 68, 72
Rappresentanti in Terra (1929) 129
Raw, C. 2–3, 226
Rees, T. J. 2, 83, 218–19, 223, 226
Reichskonkordat (1933) see Germany, Reichskonkordat (1933)
religious orders
abuse of children 93
case generalizie, income from 94–5
property and 93
Renda, F. 76
Rerum Novarum (1891) 8, 55–6, 73, 75–8
Aquinas and 75–6
capitalism/commercial investment, papal distrust and 8, 20, 76
Catholic movement and 77
genesis 75–6
USA and 73
Rhodes, A. 73, 186–7
Roman Question (dissidio) 41
Banco di Roma and 220–1
Benedict XV and 138
financial dimension 123–4
Pacelli, Ernesto and 220–1
see also Conciliazione (1929); Law of Papal Guarantees (1871)
Romanisation 3–4, 223
authoritarian/centralised control of Church 3–4, 12, 143
Italian Church 12
bishop’s authority in own diocese and 14
Catechism of the Catholic Church and 13
Catholic movement and 228–9
Code of Canon Law (1917) and 12, 227
as counterpoint to internationalisation 1, 226–7
educational institutions/training of priests and 9, 134
nuncios/apostolic delegates, role 227
papal Infallibility and 9
‘pope as victim’ and 9–10
scholarship post-Pius IX and 9–10
US Church 9, 224–5
‘visitors’ (Pius X) xx, 14
see also Ultramontanism
Romano, G. 196
Rome
economic decline 24
Republic (1849) 27
seizure by Italian forces (1870) 21, 41
occupation of the Leonine City 41
Roosevelt, President Franklin D. (1882–1945)
motivation for financial support for Vatican relief work 203
Nogara and 178–9
Pius XII and 179–80, 185, 188
see also Taylor, Myron (1874–1959) (Roosevelt’s personal representative to Pius XII)
Roosevelt, President Theodore (1858–1919), refusal of audience by Pius X 84–5
Rossi, M. G. 78
Rossi, P.
murder of 27
papal financial problems and 27–8
Rota, financing 45
Rothschild loans 24–6, 29
anti-Judaism and 211
on death of Benedict XIII 124–5
improved treatment of Jews, failure to achieve 26, 29, 35–6
Peter’s Pence as collateral 35–6
to Piedmont-Sardinia/Italy 36
Russia 84–5
see also Soviet Union
Rychlak, R. R. 197
Salvemini, G. 112–14, 135
Santucci, Count Carlo 116, 133
Sapienti Consiglio 83
Save the Children Fund 115
Scatolini, Virgilio 204–5
Scoppola, P. 204
Second Council of the Vatican 225–6
Second World War
breaches of Vatican status 186
Germany and: German assumption of Vatican dependence on US financial support 186–7
occupation of Italy (1943) 186–7
supply of wolfram/ tungsten by Vatican-owned financial institutions 190 n. 32, 216
Italy and: declaration of war 185–6
L’Osservatore Romano, censorship/ attacks on 186
Mussolini’s courting (1942–3) 193–5
Nogara’s proposed visit to US 194–5
Nogara’s use of permanent sleeping car 194
taxation, exemption 193–4
neutrality/ non-belligerence 185
peace treaty, possibility of 193
Nogara’s potential as go-between 193
pressure on Vatican to align policy with Italy 186
taxation policy 194
Vatican at the mercy of 187
Vatican expenditure and: humanitarian relief 188, 195–7
see also humanitarian relief; Vatican City services 188
Vatican income and: Peter’s Pence (Obolo), decline: Latin/South America 188–9
occupied countries 188
US 188–9
transfer of reserves to US Federal Reserve 187
see also investment policy (Nogara), Second World War and; Profima; Sudameris
see also Hitler/National Socialism; Mussolini/Fascism; Pius XII
secretiveness of Vatican 1–2
see also openness, moves towards
Seldes, G. 18, 24, 48–9, 110–11, 122–3, 124–5, 129–31, 136–7, 141, 142–3, 146–7, 154–5
SER see Società Editoriale Romana (SER)
Seton-Watson, C. 61, 67–8, 91, 104–5
Sindona, Michele 2–3
Sire, H. J. A. 208
Slany Report 201–2
sleeping partners (commandites/commenda), Vatican use of 63, 72, 96, 159
definition xvi
see also investment policy (Nogara), property ventures
Snider, C. 81, 86
social doctrine 8, 20
Caritate Christi Compulsit (1932) 164
Centesimus Annus (1981) 75
Graves de Communi Re 8, 55–6
investment policy and: conflict, papal failure to appreciate 216–18
ethical policy, absence prior to 1970s 216–18
John Paul II 219
Leo XIII 76–7
Nogara’s alleged exemption from 163
Paul VI 218–19
Pius XI 162–4, 216–18
Pius XII and 218
usury, prohibition and 163–4, 210
Mater et Magistra (1961) 75
New Deal, US bishops’ support for 218
Nova Impendit (1931) 164
Popolorum Progressio (1967) 75
Quadragesimo Anno (1931) 8, 20, 75, 129, 163–4, 216–18
Rerum Novarum (1891) see Rerum Novarum (1891)
stato assistenziale and 219
see also capitalist power, Vatican as
Società della Gioventù Italiana di Azione Cattolica 49–50
Società Editoriale Romana (SER)
American bishops’ refusal to help 118–19
Benedict XV and 118–21, 213–14
establishment 89–90
First World War and 118
propriety of relationship with Vatican 117–18
Unione Editoriale Italiana, replacement by 119
Vatican attempts to rescue (1914–18) 118–21
Società Generale Immobiliare 64, 67–8, 171
Second World War humanitarian relief and 196
Società Proprietà Fondiaria 93
Soderini, E. 58, 60, 74–5, 78
SOFINDIT 172
SOPRIDEX
establishment 159–60
Second World War and 189–90
sources of income post-1870
1878–1887 69
(Table 3)
ecclesiastical property rentals 61–2
papal refusal to accept subsidy under Law of Guarantees (1871) 11, 19, 45
see also investment policy entries; Peter’s Pence (Obolo); pilgrimages; United States of America, Vatican’s financial dependence on
sources of income pre-1870
Church as a whole 22–3
ecclesiastical land: capitalisation, proposals for (1860s) 37–8
income from 22–3, 52–3
Enlightenment, effect 23
lottery, proposals for (1860s) 37
Papal States 22–3
decline post-1815 23–4
see also Peter’s Pence (Obolo)
South America see Latin/South America
Soviet Union, press attacks on Vatican, as capitalist power 205
Spada, Massimo
career 206–7
financial contacts 206–7
see also investment policy (Spada)
Spadolini, G. 86–7, 90–1
Spain, Peter’s Pence and 223
Special Administration of the Holy See
answerability to pope 143, 148, 166
canon law, applicability to 166
Pius XII and 181–2
see also Nogara, Bernardino
speculation, prohibition 164–6
Spellman, Cardinal Francis J. (1889–1967) 85–6, 136, 139–40
the ‘American pope’ 224–5
Canali and 208
career 224–5
Hitler/National Socialism, visit of Cardinal Pacelli (1936) and 179–80
making curia friends 224–5
Paul VI and, purchase of tiara 218–19
Pius XI and 224–5
Pius XII and 185
Second World War, humanitarian relief and 196
Vatican, influence on 224–5
Wall Street Crash and 158–9
Spinosa, A. 3–4
stato assistenziale, Christian Democrats and 219
Stepinac, Alojzije (archbishop of Zagreb 1934–60) 201
Stringher, Bonaldo (Bank of Italy) 140–1
Sturzo, Fr. Luigi (1871–1959) 133
Sudameris 103, 169
Nogara and 191, 192, 194–5
Second World War and: closure and confiscation in Brazil (1943) 191–2
collaboration with enemy, allegations of 190–1
diplomatic efforts on behalf of Sudameris 191–2
enemy status 190–1
Maillardoz’s visit to US (1942) 194–5
as means of transferring Fascist property out of Italy 205–6
Profima’s acquisition of controlling share 191
Profima’s transfer of shares to Morgan and Co. 192
Switzerland
Bank Secrecy Act 1934 170–1
Nogara’s property ventures 160–1
board members 160–1
Profima see Profima; profitability 170–1
Second World War and 189–90
Syllabus of Errors (1864) 4, 21
Szoka, Cardinal Edmund (1927–) 226
Tardini, Cardinal Domenico (1888–1961)
openness, moves towards 1–2
financial management under Pius XI, criticisms 154–5, 156, 164–5
Vatican City, views on 154–5
taxation, exemption
1943 legislation 193–4
Nogara’s motivation in pressing for 194
Conciliazione (1929) and 141
concordat 193–4
Law of Papal Guarantees (1871) 43
Taylor, Myron (1874–1959) (Roosevelt’s personal representative to Pius XII) 185, 192
temporal power
administrative chaos following 82–3
Law of Papal Guarantees (1871) and 43
spiritual authority, dependence on 43
see also Papal States
Tesoro di Dongo 206
Theodoli, A. 100–1, 103
Board of Ottoman Debt and 101, 105–6
Tindaro, Cardinal Rampolla del (1843–1913) 55, 108
Tittman, Harold (US Chargé d’Affaires) 192
Tittoni, R. 97–9, 101
Tittoni, T. 97–9, 101, 103–4
Toniolo, G. 172
trade unionism 73
training see educational institutions/training of priests
Traniello, F. and G. Campanini 100
Trieste 202
Tunisia
Banco Commerciale and 104
Italian communities in 104
Ubi Arcano dei Consilio (1922) 134
Uginet, F.-C. 110–11, 155
Ultramontanism 5–6, 59, 229–30
see also Romanisation
unemployment
Caritate Christi Compulsit (1932) 164
Nova Impendit (1931) 164
Uniates, Pius XI 127
unification of Italy (1859-61) 29–31
Union Générale affair 61
Unione Editoriale Italiana
dissolution 120–1
establishment 119
Vatican salvage efforts 119–21
Unione Romana 63–4
United States of America
Americanisation of Vatican 216
‘Americanism’ 73–5
Testem Benevolentiae (1899) 74
Banco di Roma and 103
conclaves, changes to rules to accommodate 138
diplomatic relations/papal diplomacy; apostolic delegation, proposal for 74
funding 74, 227–8
appointment by Roosevelt of personal representative (Myron Taylor) (1939-50) 185
Pius XII and 185, 223–4
First World War and 113–14
growth of Church post-1789 73, 223
Hitler/National Socialism, Vatican attempts to build alliances against 179–81, 185
Hitler/National Socialism and 180–1
investment practices, effect on Vatican policy 211
Knights of Columbus 122–3
Knights of Labour 73
as mission territory 74
New Deal, US bishops’ support for 218
Pacelli, Ernesto and 103
papal honours and 48–9, 137–8
Peter’s Pence and 32, 74, 85–6, 103, 113–14, 136–7, 156–8, 188–9, 223
Romanisation of Church 9, 224–5
Società Editoriale Romana (SER), refusal to help 118–19
Vatican failures of understanding 73–5, 137
Pius XI 162
Pius X 85–6
Vatican recognition of importance 15, 179–80, 223–4
Cold War and 225–6
curia representation 225
as ‘eldest daughter of the Church’ 32, 223–4
Iraq War (2003) and 226
lack of influence in 1920s/30s 224
number of cardinals 223–4
nuncios/apostolic delegates, Americans as 225
Second Council of the Vatican and 225–6
Vatican’s financial dependence on 125–6
Conciliazione financial settlement and 139–40
humanitarian relief, post-Second World War 203
Second World War 196
as lever 136–8
loans, attempt to raise 118–19, 122–3, 124–5, 158–9
paedophile priest scandals and 226
Pius XI and 136–8, 162
alleged concern 138 n. 47
Second World War, German assumptions 186–7
humanitarian relief 196
transfer of reserves to US Federal Reserve 187
see also Gibbons, Cardinal James (1834–1921); Marcinkus, Archbishop Paul (president, IOR, 1967–90); Meyer, Cardinal Albert (1903–65); Mundelein, Cardinal George (1872–1939); O’Connell, Cardinal William; Roosevelt, President Franklin D. (1882–1945); Spellman, Cardinal Francis J. (1889–1967); Szoka, Cardinal Edmund (1927–)
Ustasha gold and the IOR (1945–6)
Alperin indictment 197–8
evidence of Vatican involvement 198
counter-evidence 199
flaws in story, status of IOR 199–200
see also IOR, sums allegedly involved 199
the ‘ratlines’: funding them 200–2
giving refuge to Pavelic et al. 201
Slany Report 201–2
usury, prohibition 24–6
American experience, relevance 211
Catholic social doctrine and: nineteenth century 210
twentieth century 163–4
relaxation 210–11
Canon Law, Code (1917) 211
Gregory XVI and 62–3, 210
Leo XIII 210–11
Vix Pervenit 24–6
Vannutelli, Cardinal Vincenzo (1836–1930)
Libya/Libyan War (1911) 105
USA and 103
Vatican Archives 9–10, 56
limitations
Vatican Bank see IOR
Vatican City 40
(Illustration 3)
adequacy for need of Holy See 43, 86–7
as centre of scholarship 9–10
as ‘city-state shrine’ 229–30
expenditure on during Second World War 188
extensions to 61–2, 86–7
reacquisition of the Borgo 208
Zecca 87
as stato assistenziale 219
see also building projects (Pius XI); legal status of the Holy See
Vaughan, Cardinal Herbert 58
Vecchi, A. 34
Viaene, V. 36–7
Vicariato di Roma, accommodation 87
‘visitors’ (Pius X) xx, 14
Vix Pervenit 24–6
Volpi, G. 105–6
Von Aretin, K.-O. 4, 23
Wall Street Crash
devaluation of currencies 158–9
France and 170–1
Kreuger and Toll collapse 158
losses to Vatican 158–9
Missouri-Pacific Railroad Company collapse 158
Nogara’s strategy in light of 166–7
Peter’s Pence and 156–8
Vatican salary reductions 157–8
see also investment policy (Nogara)
Walsh, M. 200
Weber, M. 212–13
Webster, R. A. 49–50, 88, 106, 145–6
Willey, D. 219
Wiseman, Cardinal Nicholas (1802–65) 229–30
Woolf, S. J. 26–7
Woywood, S. 166
Yallop, D. 19
Zamagni, V. 24, 65, 114, 172, 188, 203
Zambarbieri, A. 8, 9–10, 84, 112, 122, 228, 229
Zanardelli, G. 65–7
Zecca 87
Zivojinovic, D. 113–14