New Britain herald., 1920-08-04
FOREIGN GOVTS.
 SUFFER ANY LOSSES?
Postal Authorities Say POnzi is
 FleeCins Other Countries
By Harry B. Hunt).


 Ponzi? Who foots the bill for the ss.Soo.ooo the young Boston financial wizard claims to have made in eight months hy manipulations in foreign exchange and International Postal Re- ply Coupons Do any of Ponzi's profits come out of Uncle Sam's pockets?
 Who always pays in any transac- ton between individuals or nations when the paper or currency of one Is depreciated in value?" countered John Miller of the post office depart whose paper Is below par. of course" Tn other words. the war-burdened taxpayers of European nations.
 Uncle sam hasn't lost cent. Neither has he made anything. But on any coupons exchanged here which were purchased abroad by the ex- change or American money for French or Italian money at current exchanges rates, there will he loss to the country issuing tho coupons when the annual postal balance with the United States is struck
 ttoN " ""hN
 Let us take Italian exchange as an example An International Postal Reply Coupon. costing six cents. is cxchangeabIc in any country belong ing to the international postal union for stamp which will carry let ter .betweeh countries belonging to tho union. Tn America that is five cont stamp. ..-..
 Under normal rates of exchange. upon which international postal ac- counts are based. a dollar. when ex- changed into Italian lira. would pur- chase only t6 or r. coupons.
 Under exchange rates recently pre- vaiiing. however, dollar Of Ameri- can money could he exchanged into enough Ira to purchase about T5 cou- pous.
 By sending these coupons to the United States. redecminE them in cent stamps. any person carrying on such transactions. could get sS.I5 cents Tn Tinted States stamps for his original dollar. He cannot redeem them through the post office depart nent for cash. Any conversion into cash has tu he bv selling the stamps outside post officc channels.
 "Tn tho balancing or international postal accounts. the United States
 
 by which they were sold. where they arc figured at the rate fixed under tho postal convention. Any loss that Is sustained. therefore. would be by the issuing country"
 Postal Chiefs SkrptscaI.
 Postal authorities. although ad- hitting that Theoretically Ponzi might have been able to make 25o 10 300 per cent by transactions in postal coupons. confess their scep- ticism us 10 any profits running into millions. The total coupons redeemed in the United States since the inter national postal union was formed. they say. amounts to only about H. 225.o .o0o. with a value of only ss1.- 125.
 X suggestion has been sent to the headquarters of the union. at Geneva, Switzerland. that figures covering the total coupons issued to each coun- tcrmine whether PonziS transactions could have been on tho scale neces- ga ry to pile m eight millions in profit.
 Figuring the possibility that he could make s3 profit. on the aver age. for each ss invested. he would have had to handle some 2so. 900 coupons.
 And postal authorities here deciar re they do not believe that many Cou- pons have been issued since the pos tnl union was formed. Anyhow. they sny they're going to lind out.