The evening world. [volume] (New York, N.Y.) 1887-1931, 1920-12-31
Money Exchange Game SO
Profitable 1t Attracts Out
side Sharks to New York.
WARE SOVIET RUBLES.
Absolutely Worthless, but
Sold to Victims for All
That Can Be Got.
BIZ Martin Green.


language hnanciers elsewhere. The
manager Of a downtown Office build
ing received to-day from the cashier
of a suburban state bank in Chicago
the following letter:
Gentlemen: We are DESTROYS OF
obtaining one. or two fair-sized
rooms adjacent, TO be occupied
around Jan. 10, 1921.
We propose to open a New York
agency OF our banking institution
for the purpose OF accepting or
ders for transmission Of foreign
exchange.
Kindly advise US by return mail
what you have available, together
with the prices and details, and IL
the terms are satisfactory we
shall be pleased to sign a contract
with you at once.
The manager Of the building wrote
in reply that he had no office space
available for a foreign exchange in
stitution. 1t will be noted that the
Chicago people want to get here in a
hurry. Undoubtedly they have had a
man on the ground studying the stu
alton, and he has advised the home
office to get in with an agency while
the getting is good.
Since the Federal Reserve Board
and the Federal Reserve Bank Of this
city have opened the way, with the
approval Of the State and Treasury
Departments, to trading in Soviet
Russian rubles, New York, with its
immense Russian Jew and large
Russian population, has become the
field of the ambition of numerous
financial gentlemen throughout the
country who desire to deal in these
rubles. 1t is the most promising
prospect since the days when hicks
from the interior were met in New
York by suave strangers who guided
them to an old hotel in. Exchange
Place, Jersey City, where the satchels
were switched. That operation was
part Of what was called the green
goods game.
Russian Jews and Russians de-
sirous Of aiding their relatives in
the old country should take heed
Of the warning printed recently
in The Evening World that it is
extremely unlikely that they will
be able to transmit money of any
kind. This warning comes from
the United States Government
from the same branch Of the
United States Government which
has given permission for dealing
in Soviet rubles.
The Soviet ruble has absolutely
no value in this country. Not long
ago a man went all through the
financial district with paper Soviet
rubles which, if they were worth
their face value, would have amount
cd to $1,OOO,OOO in American money.
He tried to sell the rubles to all the
big banks and trust companies. Not
one of them would touch them. No
reputable bank would give him 8
cents for the lot
United States Government officials
advise Russian Jews and Russians
who may be importuned to send Sow
let rubles to relatives IN Russia to
consult with some American banker
before risklng their dollars in an I'M
dertakng which promises loss and
disappointment. They should bear in
mind that no bank or dealer in money
under the supervision Of the New
York State Department OF Banking
has authority to sell Soviet rubles.
AnW nj Aaa la4s -,
money who are not under the control
OF the State Department OF Banking
may sell worthless soviet rubles to
such gullible persons as are willing
TO buy them. The Chicago concern
which is about to rent offices in this
city probably could operate through
an agent and avoid the supervisory
powers OF the New York Supefintend-
ent Of Banks. Inasmuch as Soviet
rubles in this country are not worth
a penny a carload as money, and
their value in Russia is problematiCal
It is not remarkable that persons hun
CRY for great profits can smell a
chance TO get into the business OF
dealing in them at a distance of 9OC
miles.
The Evening World exposed, yes
terday, without mentioning the
names OF the transactions
which amounted to downright rob-
berry in the selling OF foreign ex-
change. These cases and numerous
Others have been placed in the hands
OF the proper authorities. There are
circumstances connected with some
OF them which may warrant Grim
inal prosecutions.
But, in general, dealers in foreign
exchange appear TO be licensed "a
steal. In this highly important
branch OF banking, involving trans
actions running into hundreds OF
millions of dollars a year, there Is
no law regulating the rate at which
foreign money shall be sold.
True, there is a standard rate OF
exchange, promulgated daily, but
there is no authority in this State
which can compel dealer in ex-
change to stick to the rate. Foreign
exchange is rated as a commodity
but II is the only commodity that
can be legally sold at any price the
purchaser can be persuaded to pay,
aHaH arH IN Of A.. n