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From the marble columns of St. Peter's Square to the fabulous museum collections to the rumored trove of stocks it holds, the Vatican would seem to be the epitome of wealth. Last week, for the first time, the Holy See made a public accounting of its cash flow, in the form of a summary of expenses and income for 1986. The surprising news is that the ancient institution is gradually going broke...

Author: /time Magazine | Title: Religion: Going Broke? | 3/7/1988 | See Source »

...trouble stems from the swelling bureaucracy following the Second Vatican Council. When deficits began looming in 1981, Pope John Paul named a council of Cardinals to seek remedies. In issuing a public accounting now, the Cardinals say, they seek to "show the need for an effective financial contribution" from the faithful. An obvious target: the U.S., which provides more donations than any other nation...

Author: /time Magazine | Title: Religion: Going Broke? | 3/7/1988 | See Source »

...report reveals that in 1986 Rome had an income of $57.3 million and expenses of $114 million. The biggest cost was $50.6 million to pay 2,315 employees. Since there is no pension fund, $7.3 million of operating expenses went to 885 retirees. Vatican Radio and publishing added an additional $21.5 million worth of red ink, counting salaries...

Author: /time Magazine | Title: Religion: Going Broke? | 3/7/1988 | See Source »

...much of a nest egg is left? That is one of many intriguing questions left unanswered. Since gross income from investments is put at $29 million, however, the Vatican's holdings in stocks, real estate and other assets can be projected to be worth hundreds of millions of dollars. There are also substantial gold reserves, though their size may be exaggerated...

Author: /time Magazine | Title: Religion: Going Broke? | 3/7/1988 | See Source »

...report not only avoids details on investments but also leaves out entire sectors of finance. The most notable omission is the independent, secretive and scandal-tainted "Vatican bank," which holds sizable assets on behalf of ecclesiastical organizations in many nations. The Vatican's world-missionary agency also operates on a separate budget...

Author: /time Magazine | Title: Religion: Going Broke? | 3/7/1988 | See Source »

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