Dark Mysteries of the Vatican

CHAPTER 3

Vatican Treasures

Standing on the left bank of the Tiber River in Rome, adjacent to the ancient Circus of Nero, where tradition holds that “St. Peter, the first pope and the apostle to whom Christ entrusted his ministry, was martyred in A.D. 67. The seat of the Holy See and the pope’s principal place of residence, it is the smallest independent state in the world.” But is it the richest?

“In A.D. 320-27, the emperor Constantine built a five-aisled basilica” on what is believed to be the site of St. Peter’s grave, “with a shrine in the apse of the church to mark the location of Peter’s tomb. By the fifteenth century, the building was in disrepair and more space was needed, and plans were made to repair and expand the church.” In the reign of Pope Julius II (1503-13), known as the Warrior Pope because he “donned armor to lead troops in defense of papal lands,” work was commenced on a tomb for Julius, an enormous freestanding monument designed by Michelangelo. Julius then decided to tear down the Constantinian basilica and rebuild St. Peter’s entirely.

“At the same time, Julius commissioned frescoes for the interior of the Vatican palace. He asked Raphael to paint four rooms for use as papal offices and reception spaces.” While Raphael worked, Michelangelo was painting the ceiling of the papal chapel known as the Cappella Sistina, or Sistine Chapel (1508-12). “Michelangelo painted the vault with scenes from the book of Genesis: the Creation of the world and of Adam and Eve, the Fall and Expulsion from the Garden of Eden, and God’s destruction of the world by the flood…

“In 1546, Michelangelo, now seventy-one years old, was named the architect of St. Peter’s and dismantled some construction” and began work on “the first great dome to be raised on a colonnade. Designed by Michelangelo, but not completed until after his death, it crowns the church.”

The geographical center of the Roman Catholic Church, the Vatican possesses many of the world’s most precious works of art, and it is believed by many to be the world’s wealthiest organization.

In a book on Vatican treasures, The Vatican Billions, Avro Manhattan noted, “The Catholic church is the biggest financial power, wealth accumulator and property owner in existence. She is a greater possessor of material riches than any other single institution, corporation, bank, giant trust, government or state of the whole globe. The pope, as the visible ruler of this immense amassment of wealth, is consequently the richest individual of the twentieth century. No one can realistically assess how much he is worth in terms of billions of dollars.”

According to the author, the Holy See maintained large investments with the Rothschilds of Britain, France and America, the Hambros Bank, and Credit Suisse in London and Zurich. In the United States, it has holdings with the Morgan Bank, the Chase-Manhattan Bank, First National Bank of New York, the Bankers Trust Company, and others. Among its investments are billions of shares in the most powerful international corporations. such as Gulf Oil, Shell, General Motors, General Electric, IBM, and others. A conservative estimate set the amount of investments at more than $500 million in the United States alone.

In a recent statement published in connection with a bond prospectus, the Boston archdiocese listed its assets at $635,891,004, which was 9.9 times its liabilities. This left a net worth of $571,704,953. “It is not difficult to discover the truly astonishing wealth of the church,” said Manhattan, “once we add the riches of the twenty-eight archdioceses and 122 dioceses of the U.S.A., some of which are even wealthier than that of Boston. Some idea of the real estate and other forms of wealth controlled by the Catholic Church may be gathered by the remark of a member of the New York Catholic Conference, that his church ‘probably ranks second only to the United States government in total annual purchase.’”

These statistics indicated that the Roman Catholic Church, once all its assets have been calculated, was the most formidable stockbroker in the world. The Holy See, independently of each successive pope, was increasingly orientated toward the United States. An article in The Wall Street Journal said that the Vatican’s financial deals in the United States alone were so big that very often it sold or bought gold in lots of a million or more dollars at one time.

The Vatican ’s treasure of solid gold had been estimated by the United Nations World Magazine to amount to several billion dollars. A large bulk of this was stored in gold ingots with the U.S. Federal Reserve Bank, while banks in Switzerland and England held the rest. The wealth of the Vatican in the United States alone was greater than that of the five wealthiest giant corporations of the country.

But in 1987, Fortune magazine reported, “For all its splendor, the Vatican is nearly broke.” The article noted, “Having survived barbarian invasions, persecutions, countless plagues, and occasional schisms, the papacy now faces a modern-day problem: a deep financial squeeze. The costs of the Vatican ’s growing bureaucracy far exceed its means.”

In the previous year, the Holy See took in $57.3 million from sources as diverse as fees for ceremonies; income from publications, newspaper ads, and the sale of videocassettes; and modest investment earnings of $18 million. With investments of some $500 million, the Vatican commanded fewer financial resources than many U.S. universities.

In the spring of 2008, the Vatican reported that its accountants had recorded a loss in its annual accounts for the first time in four years. The report said the Holy See lost nearly ten million euros after investing in dollars before the U.S. currency fell sharply against the euro. “And the hole in the budget would have been even worse,” said one source, “if the Church had not raised rents on its Rome properties, on which the Church does not pay property taxes to the Italian state.”

Rent hikes reportedly caused controversy in Rome where it was alleged that the Church had threatened to evict tenants who didn’t pay up. The loss was also attributed to poor performances by the Vatican ’s media operations, which included a newspaper and radio station. They lost approximately fifteen million euros in the pervious year. In 2007, the Vatican reported an overall income of 236.7 million euros, while expenses totaled 245.8 million euros.

Much of the Vatican ’s income comes from donations from church members around the world. American Catholics give about $80 million. Experts estimated that the Vatican ’s total wealth in 2008 was in excess of five billion euros ($5 billion).

Exactly how much wealth the Vatican has in banks and stock portfolios is a matter of debate, and the Holy See does not say. But money and investments do not constitute the total measure of the wealth of Vatican City. The Holy See owns the world’s greatest collection of art treasures. In museums, public displays, private chambers, marble corridors, churches, chapels, and St. Peter’s Basilica can be found paintings, frescoes, drawings, sculptures, and stained-glass windows created by the world’s greatest artists through centuries from the years before Christ to today.

“The first collection of antiquities in the world was made by Popes Julius II, Leo X, Clement VII, Paul III, and Pius V. Among these were the Torso of Heracles, the Belvedere Apollo, and the Laocoön. Clement XIV’s activity in collecting antiquities was continued by Pius VI with such great success that their combined collections…were united in one large museum…the Museo Pio-Clementino. It contains eleven separate rooms filled with celebrated antiquities.”

“The founding of the Vatican Museums can be traced back to 1503 when the newly-elected Pope Julius II della Rovere, placed a statue of Apollo in the internal courtyard of the Belvedere Palace built by Innocent VIII… Scores of artifacts were added throughout the centuries and the collections were eventually reorganized under Benedict XIV (1740-1758) and Pope Clement XIII (1758-1769). They founded the Apostolic Library Museums: the Sacred (Museo Sacro, 1756) and Profane (Museo Profano, 1767). The Christian Museum, comprising finds from the catacombs that could not be conserved in situ, was founded by Pius IX in 1854 in the Lateran Palace and was moved to the Vatican Museums by Pope John XXIII. Pope Pius XI inaugurated in 1932…the Vatican Picture Gallery (the Pinacoteca).”

Much of the Vatican ’s collection of treasures is open to the public in its many museums and within the Vatican in the form of art and sculpture. The most famous and popular are the ceilings of the Sistine Chapel, painted by Michelangelo, and his sculpture, the Pietà, depicting the Virgin Mary holding his crucified body, on display in the Pietà Chapel in St. Peter’s Basilica. Described by the Vatican as “probably the world’s most famous sculpture of a religious subject, it was carved when Michelangelo was twenty-four years old, and it is the only one he ever signed.

“With this magnificent statue Michelangelo has given us a highly spiritual and Christian view of human suffering,” noted a Vatican publication. “Artists before and after Michelangelo always depicted the Virgin with the dead Christ in her arms as grief stricken, almost on the verge of desperation. Michelangelo, on the other hand, created a highly supernatural feeling. As she holds Jesus’s lifeless body on her lap, the Virgin’s face emanates sweetness, serenity and a majestic acceptance of this immense sorrow, combined with her faith in the Redeemer. It seems almost as if Jesus is about to reawaken from a tranquil sleep and that after so much suffering and thorns, the rose of resurrection is about to bloom.”

After St. Peter’s Tomb, the Pietà Chapel is the most frequently visited and silent place in the entire basilica. The sculpture is protected by bulletproof glass to prevent a repeat of an attack upon it by a deranged man. In 1972, a thirty-three-year-old, Hungarian-born Australian, Laszlo Toth, leaped over a guardrail in St. Peter’s crying, “I’m Jesus Christ!” and attacked the statue with a hammer. The left arm of the Virgin was shattered and the nose, left eye, and veil were chipped. The attack was the first major damage suffered by a work of art in St. Peter’s since a German broke two fingers off the statue of a kneeling Pope Pius VI in 1970.

The museums of the Vatican are filled with artwork by Giotto, Caravaggio, Michelangelo, Leonardo da Vinci, and Raphael, among many others. The libraries of the Vatican hold ancient manuscripts of the Bible and other literature, in some cases the only copy of a certain work. The buildings of the Vatican, especially St. Peter’s Basilica, are ornamented with gold, silver, precious stones, and the finest marble. “To understand why the Pope has such collections,” explained the Vatican ’s expert in charge of maintaining them, Maurizio de Luca, “one must think about what the Church and the pope have meant over the centuries. The popes and their court at the time were the greatest supporters of culture. This is the place where the popes put some of the greatest artists to work and these have now become collections.”

In 2001, “two former senior officials at the Vatican were charged in Rome in connection with an alleged art fraud. Monsignor Michele Basso, an ex-administrator of the chapter of St. Peter’s, and Monsignor Mario Giordana, a former counselor in the Vatican’s Italian embassy, were accused of trying to sell works of art falsely attributed to artists such as Michelangelo, Guercino and Giambologna, to art institutions such as the Metropolitan Museum in New York and the National Gallery in Washington… The most remarkable works were a marble bust, the Young St. Johnthe Baptist, attributed to Michelangelo, and an antique Greek vase attributed to Euphronius. The officials allegedly used headed Vatican notepaper to authenticate the works and enhance their value.”

Because the Vatican is both a city and a state (both within the city of Rome), it runs in the same manner as governments, with a need to account for all its wealth, but it also operates like a worldwide corporation. Author Karl Keating recently noted that the Vatican ’s annual budget was about the size of that of the Archdiocese of Chicago. The funds went partly for the upkeep of the Vatican itself and partly for the Church’s missionary and other work around the world.

“I suppose we could ask why the Vatican has trouble balancing its rather small annual budget,” Keating wrote. “The wealth of the Church is almost entirely in church buildings, hospitals, schools, and missions, plus artworks. You could sell off the artworks, but the proceeds wouldn’t feed the poor of the world for even a day.

“If the Vatican sold all its artworks, they would bring in hundreds of millions of dollars-but only once. Then they would be gone, and that money wouldn’t go very far… The popes are custodians, not owners. They have a responsibility to preserve its artistic treasures for posterity, not to sell them off to private collections.”

It has been calculated that “it costs about $250 million a year to operate the Vatican. The money comes from…contributions from bishops’ conferences, dioceses, religious orders, individual lay donors, and ‘other entities.’ For 2004, that total came to $89 million. Of this amount, roughly $27.2 million came from individual dioceses under the terms of canon 1271 of the Code of Canon Law, which obligated dioceses to contribute to the financial support of the Holy See. This means that the 2,883 ecclesiastical jurisdictions in the world gave an average of $10,000 each in 2004… Wealthy archdioceses gave much more, a lot of smaller dioceses gave little or nothing.”

The Vatican also garners “earnings on real estate, which refers principally to roughly 30 buildings and 1,700 apartments owned by the Holy See in Rome, which produced revenue of $64.5 million in 2004. Earnings [also come] from investments and other financial activities, with the Vatican ’s portfolio divided into 80 percent bonds and 20 percent stocks. In 2004, the Vatican ’s financial statement did not provide a comprehensive total,” but experts said the “earnings must have been in the range of $100 million. The statement noted that this was an improvement of $21.5 million, attributed to an improved situation in the world financial markets in 2004.”

“[A 2004] statement from the Vatican indicated that contributions to Peter’s Pence, a fund to support papal charities that are not part of the regular Vatican budget, totaled $52 million,…a decline of 7.4 percent.”

The best-selling author and Chicago priest, Father Andrew Greeley, wrote, “There was perhaps a time when the Church was truly rich (and that is another story), but the Reformation and the French Revolution ended that. Catholicism is property poor. What, for example, is the replacement value of St. Peter’s [Basilica] in the Vatican? Who would buy it? How much income does it produce a year? In fact, the votive candle offerings-its only source of income-barely pay for maintenance. And what would someone do with it if they purchased it, especially once they discovered it was a loss leader? Build condos over it? What would one do with the Vatican museum? Maybe the Italian government could buy it as a station on the unfinished Roman metro line. The Vatican ’s endowment is less than that of a mid-level American Catholic university. It necessarily lives a hand-to-mouth financial existence. It puts on a great show with its splendors and its ceremonies, but the wealth that paid for its splendors vanished long ago and it can barely pay for the ceremonies.”

“The Vatican ’s assets [have always been] a well-kept secret but one which is the topic of much speculation. Estimates range from $1.5 billion to $15 billion and more. They include works of art and buildings, which for the most part cannot be sold. Large parts of the Vatican ’s assets are in securities and gold reserves. Additional assets are in rental revenues, the sale of coins, stamps and souvenirs.” Like palaces, royal residences, historic stately homes and manors in Great Britain, the Vatican has become a tourist attraction and money raiser.

Financial experts note that despite its wealth, the Vatican ’s budget has shown a deficit of several million dollars since 2001, but its debt is secured by assets. The largest include the Vatican ’s properties in and around Rome, the papacy’s summer residence in Castel Gandolfo, office buildings, palaces and cathedrals. Vatican City, with fortress walls dating back to the sixteenth century, gained independent status in 1929 after the conclusion of “Lateran Pacts” with Italy. On February 11 of that year, Pope Pius XI and Benito Mussolini created the Vatican in its current dimensions and secured additional sovereignty rights and buildings.

According to Ivan Ruggiero, the Holy See’s chief accountant, Vatican real estate is worth about $1.21 billion, not including its priceless art treasures. “The value of the real estate holding was calculated without taking into account its real value on the market,” said Ruggiero. “And of course, the vast artistic holding of the Holy See was not taken into account, since it is a priceless and non-commercial holding. (Because of it being ‘priceless,’ the value of the art treasures has been listed as ‘One Euro.’)” St. Peter’s Basilica is categorized “beyond market values.”

In July 2008, the Associated Press reported that the Vatican ran a deficit in 2007, which the Holy See attributed to “the weak dollar in the generous collection baskets from the U.S. faithful,” and steep costs of running the Vatican ’s media (a newspaper and radio station). “The Vatican issued financial figures showing a nearly $13.5 million deficit. It cited the sharp drop in the exchange rate for the U.S. dollar. The Vatican in Rome pays many of its expenses in euros, a currency that had soared in value against the U.S. dollar. The financial report, released by the Holy See’s press office, listed 2007 revenue of $371.97 million against expenses of $386.27 million.

“The Vatican said its financial investments were hurt ‘principally by the sharp and rather marked inversion in exchange rates, above all for the U.S. dollar.’ The Vatican said rents and other income from its vast real estate holdings helped its finances. The Vatican Museums, which include the Sistine Chapel, a top tourist attraction, also helped the Holy See’s finances.”

“The Vatican ’s annual Peter’s Pence collection worldwide found that the U.S. faithful were the most generous in absolute terms of the amount donated, more than $18.7 million.”

“No nation of Catholics gives more than Americans. A cardinals’ advisory committee on Holy See finances released a report in 2008 that showed the U.S. was the top contributor nation ($19 million, or 29% of the total) to the Holy See’s charitable spending in 2007, and came in second (after Germany) in contributions to the support of the Holy See itself.”

In 2007, the Vatican decided to “give financial rewards to employees who were doing a good job.” “It said it would take into account employee ‘dedication, professionalism, productivity and correctitude’ when awarding a pay rise… More than 4,000 people, from cardinals to cleaners,” were employed by the Holy See in the Vatican. “Base pay across a broad spectrum of jobs reportedly ranged from 1,100 euros ($1,634) to 2,200 euros ($3,268) a month.” A recent account gave the number of employees at 2,659, of which 744 were diocesan priests, 351 men and women in religious orders, and 1,564 laity.

When Pope John XIII was asked how many people worked in the Vatican, he quipped, “About half.”