Evening journal., 1920-07-29
BRAIN MAGIC
Brings WEALTH
Italian PennilesS Two Years
Ago, Now Has SIS, 100000
Fortune
FOREIGN EXCHANGE
HIS ALADDIN LAMP

BOSTON, July % UNITED Press -
Aladdin, so tho story goes. rubbed
magic lamp and wished and NUT
tered something magic and the wish
came true That was long ago in the
ago OF fairies and magic.
Charles ponz. a young Italian, who
came to Boston Two years ago, all
most pennilcss. didn't have a magic
lamp to rub but he has a head and
ne rubbed ii thoughtfrllyl with a
calloused nanu and dreamed and
wished That was eight months ago
Today the dream and the wish he Get
heart upon had been realized Since
last December P0uzi has amasscd a
fortune computed at sSOOOOO0.
When Ponzi came TO America from
Parma, italy, where he was born, he
lad Just $3.50, SO he went TO work az
laborer in New Jersey. Later he
got job as a dish washer in res
taurant in Baltimore. Then he drifted
from state 70 state. doing odd iohs.
a year ago Ponzi and his wifa lived
u a small house In Somerville, where
ponzi had a small fruit store Today
eney reside in a $4,000 home in ex-
ltANi ~ AtN@tbNNt anu ne 1flAfS 10
and from business In a $4,000 auto
mobile. Ponzi figures that You don't
have TO have an Aladdin's lamp.
fherc's magic in the brain, he be-
licves
ponzl made his wealth, he saws
5aroueh the difference in value Of
money Of this country and the coin
OF European countries. The Young
Italian explained that the scheme by
which he made his millions IS carried
through the medium of postal reply
coupons He said he bought these
coupons mailed them to representa-
tiNes in European countries, chiefly
the Balkan countries, where they
we're cashed at a big pront. The
money mus gained was used To buy
postage stamps Of the countries. The
stamps were In turn taken TO other
countries where the rate Of ex-
change was favorable and sold to
business concerns at a huge pront
When Ponzi started his plan he did
not have enough money to carry him
along. He suggested thai his friends
invest They did The public heard
of il, although Ponzi never used a
line OF advertising, and soon hun
dreds OF men and women OF all walks
of life, werc literally flghting to give
Ittaf NNNA HAQHfl To iHAtNl
Then Ponzi opened a modest ofiice.
hired a staff and went into the busi-
ness In earnest. under The name or
The Securities Exchange Company II
one wished 10 invest, say 500 in the
business, Ponzi gave In return a 90
day noie for $780, a proflt Of $50 The
negotiations were usually completed
in less than IS days and the investor
presented the note and was paid $3.50
in cash on an investment OF SI00.
Realizing the tremendous extent OF
Fonzis business and the amount OF
money involved, United States Dis
srlct Attorney Gallagher talked With
Nonzi and requested him 10 suspend
business until an official audit of his
books could be made The legality
II Ponzls business was In no way
luestioned but Gallagher deemed Il
Misc TO make sure that The money was
being handled b. recognized business
methods.
When the suspension became pub
g. hundreds OF Ponzi's clients rushed
p his 0ffice and demanded the return
of their money. ponzi assured them
hey were welcome TO IL and in less
than ten hours he paid ont more than
one million dollars In cash. Thousands
who had invested, declared their
faith IN The mans enterprise and did
not withdraw their funds.
PREVIOUS to the agreement 10 sus-
pend temporarily, ponzI had engaged
luxurious oflces In a big building and
planned to transfer his headquarters
to II. The office Is ready and ponzl Is
awaiting the outcome OF the audit OF
he books With the utmost confidence,
ne said.