Republican farmer., 1920-07-30
P0NZI IS PAYING
 BILLS
Boston Wizard Gives
 Out a Million Dollars in a Day to Those With
 Claims Story of His Life Reads Like a Book of Fiction-Tells How He Got His Great Idea.


 tions of the foreign exchange "wiz- ardry'' which has enabled Charles Ponzi to have $13,0O0,0OO in banks, if his. story is true, were under way today.
 Governor Coolidge directed the state attorney general, to investigate in conjunction with the federal and county district attorneys, Ponzfs sys- tenn of changing American money into Appreciated foreign money, buying in- iternational reply coupons and re- deeming them in stamps. It is this process, Ponzi says. that has enabled him to double investors money in 90 Aays.
 His stream of money from invest OTIS having been interrupted pending inquiry into his methods, Ponzi con tinued to repay clients todaq. Yes torday he paid out more than $1,- 100000 and served coffee and sand wiches besides. He claims he is solvent and points with pride to the fact that he left Italy 13 years ago with $2.50 and until a year or so aga was earning $16 a week
 This Is Ponzfs story of how 1t hap pened:
 For the time being" he said, "I ,have ceased operations. Whether I shall continue. to be sure, remains to be seen There is no law forbidding my continuing. The United States government may make a ruling that will hurt my business. but if I can not go on as I am I shall go on in the usual manner of the ordinary banker, and broker. At the outside I towe $3,0O0,000. I could meet three times that anfount this minute. But Jet me explain myself.
 '"The idea which you refer to as the f'great idea and which really is not great, came to me last August. It came because was thoroughly awake and on the lookout for the p1nain chance. Are not you also doing just that. what. I had scheme to start an export publication, a pamph- let or periodical dealing with the most ordinary export and import trade. I wrote to a man in Madrid asking him certain things that I had to know about exports. and in reply IT received an international coupon which was to exchange here in the United States for United States post Fage stamps and these stamps I was te rnail to the man in Madrid a. copy o1 5Iny magazine.
 Perhaps you do not know about these coupons. They are simply in. yternational postal reply coupons. Ons buys them for 6 cents in ones owr rcountry and sends them to a core. epondent in another country. You dc this If you desire to render the cour- ,tesy of prepaying the postage of ths letter of correspondence you hope tt receive. They are redeemable ir stamps at cents each. The sixth cent goes to the government to pay Fthe expenses of getting them out. Un yderstand?
 Well, that coupon I received iron Spain cost. in Spain, the equivalent O one cent here in America. The rat' of currency exchange differs, ye, know. in these times. Do you see? took that coupon to the United State post office and there I received tn value of five cents for 1t. That mean the stamp had yielded 400 per cent profit.
 ''I said to myself that I might bu. hundreds, thousands millions o these stamps In Spain, France, Italy Switzerland and all the new countr1e in south and southeast Europe. Thel planned further. ' investigated an' studied foreign exchange.
 "I bought small amount of tn stamps abroad I made neat turn over. I had little money of my ow and figured that it was best to mak money in this way while the possi bility was here. So went ou among the few men I knew and beg ged them to let me have their wage their earnings and what they coul obtain in loans. I worked. It wa hard work. It almost drove me mat Here I had an opportunity to mak a legitimate fortune, and I was goin to fail because there would not | time and I'd have to do 1t like pill CT unless someone helped me.
 worked all day and all night Me laughed at me They warned me tht I'd go to jail. I knew I was rigi and kept looking for a man wf would take a chance or let me tak a chance with his money. I had nor of my own.
 "I took one room at 27 School s found a man who said he'd D, money in my scheme if I'd prove i worth. I had a couple Of tnousar dollars and I decided to let it go il to advertising and office rent. I sh the roll, as they say, and the re came home I really got under wa s in December.
 T got few investors, many
 them my own countrymen. To eac of them I issued a promissory not - as I do now, saying they could co s Iect in ninety days. Why I pay
 forty-five days shall explain pre- ently.
 Within a month the few thousa1 E dollars increased to fifteen thousan
 Persons who had received 40 or
 per cent. on their money in tv
 months naturally told their frient And their friends came and it's ii
 the story that the wise peasant to
 the Caliph who threatened to behe;
 the poor peasant if he failed to t,
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