The evening world., 1920-07-30

all pupii and with a dark FIRE in their
depths which seldom reflect his
mouths easy smile.
He speaks excellent, low-voiced
English. and gestures chiefly with a
pair OF expressive eyebrows shaped
like circumnex accents.
Suppose give you FIRST his own
simple, seemingly straightforward eA-
PLANTATION OF how he can pay 90 per
cent. on money lent him for ninety
days.
'If I give you SO" ! said, "whot
do you do with it 80 that you can
give me Si5 at the end II three
months"
Il give you my personal note for
SIS, payable in ninety days, and your
$40 goes into a Boston bank ha re-
pied. zone OF my European agents
takes $40 on' OF my funds IN Europe
end buys with u 50 many francs. 80
many lire, so much Serbian or But
garian moncy-m short, $40 worth or
any country's cheap money.
"-rhen that agent goes 10 the near
est Post Ohice in the country whose
coins have been purchased by your
$40 He buys with this native com
age international reply coupons. Nhth
coupon costs 4 cents, on n universal
gold basis That Is. with 81 I'm this
country sixteen coupons can be
bought But when the 81 has been
changed into three or four times That
amount in italian money clearly
three or four times as many pterna-
tional reply coupons can he bought
in Italy. In short, the dollar earns
500 or 900 per cent.
The coupons once bought Lue sum
ply transferred to other agents In
countries where money has not &c
preciatcd so badly--to Switzerland,
FOR example. or to Holland There
the coupons are presented at the Post
Ofice and redeemed at fare value in
postage stamps. The stamps are dis
posed Of TO large users Of them. and
tho $40 taken from my European
fund Is back again, having earned be-
tween 200 and 400 per cert. intercst.
according to the condition of the
coinage In the countries whe.e the
deal Was worked.
"Since my $40 abroad has carmel
that much. its SHmese twin--the $40
Won lent me IN Boston may be
credited with 50 per cent. accr1tcd IN
,erest. and atill I snail be 1T least
u
can afford 10 give you back your
$40 plus so per cent interest make
on all my notes the term OF ninety
DAYS rs an outside time allowance on
the transaction. But often II ~ COM
pleted in forty-ive days. In that
case I send "A card TO my deposltor
and ask him 10 call at my ONCE ~
soon as possible. since his principal
and interest await him" concluded
~ (.
urbane smile
Doesn't 81 sound simnle7 ~ hc
really did IL ~ 10 says the thing is
aa simple ns that quarter-inch twist
of wire called % pest which some
body inventcl TO use with hooks on
women's clothes. and out Of which
somebody made million. But only
ONE person thought OF It. AnI there
has heen only ONE PonN
"Of course" Mr. PonZi added. 'T do
not take each seDara te sum deposited
with me and put II through the trans
action I have detailed. That would
be a waste OF time and effort, NY
bnsir ress at present Is on what might
he cad a double entry basis. have
iust rbout eight millions in Europe
bud practically the same amount in
his country I keep my European
funds In a quick, continuous turnover.
he date Of Its coming due in
card catalogue, and from my funds
IN American banks I check out to
each investor when my note to him
natures - or sometimes forty-f five
days earlier, as ] have said / have
paid every note In full. No investor
has lost or will lose n cent.
Naturally, ! transfer from my
EUROPEAN 20 my American account
n.
int I save many bank commissions
by having millions on each Of the
Two continents. 7 have far moro
than enough money in this country at
present to discharge all outstanding
obligations.
"T have large sums IN at least
thirty banks In and about Boston.
have banked with the fremont Trust
Company, the Hanover thrust Com
pany the First National Bank and
many others"
lust then Mrs. Ponh came in
with a lightly spoken message. She
is a pretty, dark-eyed young woman,
and In her dainty summer frock, NOV
ing about the sun parlOr, with its
white walls, Chinese seagrass fur
niture, ga cretonne at the windows
and over the cushions, tall cages OF
canaries and love birds. she lent tho
louNH 70 lllt Long lSlunNl
country house effect
Yet there are simplcities in the
Ponzi menage. My host still wore
instead OF coat, the long. richly
hued dressing gown In which ht
himself had opened the door to me-
an hour earlier, looking rump,cd
sleepy and bit cross--small blame
g. him, at the ungJdly hour OF 7.2C
A. NJ.
Now please toll me-" said, some.
thing of your machinery for making
millions out OF postage stamps. AND
how did you come TO think OF thC
idea?''
Fifty Per Cent. Ponzi answered m,
last question first.
The idea came 10 me just about
year ago" he said simply. "a
that time was in the fruit business
with my father n-law--the store II
the name Of GneccQ Brothers, on Full
-On Street, Boston, But just hefor,
that / had been one of the agents o
the j. B. Poole Company, exporter
and imDOrters OF macaroni and othc
merchandise. IL was In their cmplo,
hat / learned a good deal about IN
rates Of foreign exchange, and that
made certain connections abroad.
"But since 1 have relatives scat