FRANCISCO MIRANDA

Evening Star, Issue 19723, 25 November 1927, Page 4

FRANCISCO MIRANDA

A MASTERLY SWINDLE SYDNEY BANK RELIEVED OF £20,003 Wliile sympathising with his victims it is impossible not to feel admiration for the misdirected talent by which Francisco Miranda relieved the Joint Stock Bank of Sydney of £20,000 in gold. It would be impossible to-day to repeat Miranda’s success (says the ‘ Argus’), because of cable communication with the outside world; but in 1858, when the fraud was , committed, the plan was masterly in conception and faultless in execution, and it stood alone as a brilliant swindling coup. It required education, good address, perfect acting, and a comprehensive knowledge of banking arid commercial practice. All these the man who called himself Francisco Miranda possessed. His real name was never known. He was first heard of in London in June, 1857, when as Francisco Miranda, ho stayed for a. while at the Charing Gross Hotel, where he made - many friends and carried on an extensive correspondence with commercial houses. In September of that year the manager of r the Joint. Stock Bank in Sydney received a letter purporting to come from the great banking firm of Baring Brothers, in London. The letter contained enclosures for Miranda The letter to the manager informed him that Baring Brothers had been recommended by a firm mentioned to negotiate with the Joint Stock Bank on behalf of Mr Miranda, who was the head of a Portuguese trading firm, and who was about to visit Australia on important commercial business. They had been instructed by a Portuguese bank to send Miranda a letter of credit for £15,000, together with bills for £5,000 drawn on a house-in Hongkong. Mr Miranda’s'movements were uncertain, as it was not known whether he would land in Melbourne or Sydney, but it was hoped that tbo bank would keep a look out for him and inform him that the letters • enclosed were awaiting him. The letter from Baring Brothers appeared to be above suspicion, and it was accepted without reserve by the manager of the Joint Stock Bank. The manager communicated with the Spanish Consul-General in Sydney (Don A. Arrom do Ayala) and requested him to write to the consulates in the other colonies to let Miranda kno.iv should bo call on any of the consuls that important letters awaited him in Sydney, in October a well-dressed stranger of middle age called on Don de Ayala, arid finding him busy left his card. Later in the day the consul noticed the card and the name Francisco Miranda, to which had been added the address of Petty’s Hotel, and bo recalled the letter which ho had received from the bank. Ho verified the name, and next morning he called at Petty’s and made the acquaintance of the stranger, who easily established his identity. Thereupon Don de Ayala took him to the Joint Stock Bank and intro-1 duced him to the manager. As a result of Miranda’s intimate knowledge of the contents of the letter from Baring Brothers the manager had no hesitation in handing over the letters, one of which contained the letter of credit for £13,000, and another hills on Hongkong for £5,000. These and the fact that Miranda had been introduced by the Spanish Consul completely won ihe confidence of the bank manager. On the other hand the reception of Miranda by the banker established the entire confidence of the Consul, who gave, him the attention due to an important visitor. CREATING CONFIDENCE. Having created the right atmosphere Miranda let it bo known that he was authorised by the Portuguese Government to purchase gold in Australia for the Portuguese mint. He produced a letter from the Portuguese Minister of Finance, who, he said, was his brother-in-law. He also had authority to purchase land in New South Wales or elsewhere on which to settle Portuguese vinedressers, and ho wished to procure samples of Australian produce with a view to establishing extensive business relatione. Having spread Ins bait, Miranda carried out his plans with studied deliberation. His main object was to inspire unshakable confidence. He showed no symptoms of haste, and ho subtly took the Consul and the bank into his confidence. He continued to live at Petty’s Hotel, and he spent money lavishly, making hosts of friends. He was a brilliant conversationalist, and ho had a store of interesting reminiscence. lie wrote often to important foreign firms ami to distinguished people abroad, who must have been somewhat astonished to receive his communications. It was his am an- 1 ing attention to detail, that made Miranda’s position unassailable. He remarked that it was possible that the ecclesiastical authorities in Portugal would object 4 to vinedressers leaving the country on religious grounds, and bo obtained an introduction to the Roman Catholic .Bishop of Sydney, explained the difficulty, and induced him to write a letter to the highest religious authority in Portugal, giving assurance of the wide tolerance, in matters of religion which existed in the colonies. Ho spent a great amount of time and £4OO in collecting samples of Australian produce, which he ostentatiously shipped to Miranda Brothers in Portugal. That firm had no idea of the use to which he was putting its blameless name, and the arrival of this shipment must have been the cause of no little speculation and surprise. Meanwhile .Miranda was negotiating for the purchase of a largo property. So as to. make a reasonable excuse for the transfer of his funds, ho selected one belonging to a Mr Cohen, of-Port Phillip. He had drawn slightly on his letter of credit from Barings, and he expressed regret that his own bank and Barings -should have blundered in regard to the drafts on Hongkong. Ho had no intention of going there. Even if ho bads,’the Conversion of the sterling bills into dollars would prove troublesome Ho decided to forward the bills to Barings through the Joint Stock Bank. This was done, and the transfer increased his credit to £20,000, plus £2OO for exchange, which was in his favor. At Melbourne he had previously presented a letter of credit on Courts for £2,500, but he drew only £6OO against this for his expenses in Sydney. He transferred the balance to the Joint Stock Bank. THE FINAL TOUCHES. Miranda had now carried the negotiations for the purchase of the property iu Port Philip to a stage that demanded his personal attention. Explaining that he would want all ins funds in Melbourne, 'ho transferred Ins letter of credit from the Joint Stock Bank to a bank in Melbourne, and by drawing also the balance from the Coutts’s letter of credit, he concentrated the entire amount in Melbourne. At this point he was favored by an amazing stroke,of luck. - He was laced with the difficulty of drawing die entire amount iu gold. Ju ordinary circumstances this would have been a very difficult transaction to complete without rousing suspicion. At the time of his arrival Melbourne was undergoing a financial crisis, and, there was a talk of a run on the banks. Miranda seized the opportunity, and, pretending to be nervous, withdrew the whole amount in gold, and had it removed to his hotel, bearing with a smile the chaffing of his friends. Only one step more was required for safety, This was taken with consumate ease. He said that he was leaving for Castleinaine to buy gold for the Portuguese mint, and he had his boxes and the gold sent to the coach office, where he booked his seat for the following day, January 30. 1858. Next day be' arrived alter the coach had gone, and deplored his ■ misfortune in missing it. i\c felt his luggage, ami said that he would send

for it, and would go to Ballarat’ instead. Next day the luggage was called for as agreed, and that was the last that was' ever seen of Francisco Miranda; It was afterwards found that lie had left £1,700 in the hands of Don’ do Ayala,, anti had written to him saying that he would bo back in Sydney at a certain date. The consul was greatly perturbed at Ins non-appearance. Violence was rife on the diggings, and lie was afraid that Miranda had mol with foul play. He became so uneasy as time wont on that he went'to Melbourne on an unsuccessful search tor the missing innocent. Meanwhile tlio Joint Stock Bank had become uneasy for' other reasons, and, -it- quietly despatched a detective to Melbourne. This man discovered that on January 31 a man who was undoubtedly Miranda had' taken a passage for Callao in the ship Good Intent, which had sailed the same day, and had stipulated that a large supply of choice wines bo placed on board for his use. He gave tho name of M. le Prairie. Needless to say the letters of credit proved to bo forgeries. It 1 was found afterwards that Miranda had victimised merchants in Australia for large sums upon ingenious pretexts.