New-York tribune., 1920-08-11
Boston Wizard Explains
How He Obtains Three
Dollars Here for Italian
Exchange Bought at ST.
Undaunted, He Says,
BY Temporary Halt
Declares His Money i'm
Europe is Still Working
Despite Drawbacks Here

SpcCiut DtSpdtCh to The Tribune
BOSTON, Aug. 10.-Charles Ponzi
was the guest at luncheon given bv
the Kiwanis Club to-day and in talk
given there he told of his accidental
discovery "that reply coupons were be-
ing sold in foreign countries for the
equivalent of six cents and ucould be
converted into postage stamps" and
Of his decision thercupon to enter the
business Of trading in these coupons
on large scale. He said that shortly
after he opened his small office post
Office inspector visited him.
II asked him if it was legal to buy
an international reply coupon abroad
and change it into stamps" said Ponzi
"He said Yes I asked him if it was
legal to redeem millions of the cou-
rons and he said No He would have
to decide whether they were stolen or
where they came.
"However, l decided that if I re-
deemed the stamps in the United States
the Federal government might decide
that it came within its jurisdiction,
though there was no Federal or state
law against it. But the exchange rate
was the same in Switzerland and Nor
way and some other countries. So
decided to redeem them there.
Bankers Grow Uneasy
Everything went smoothly from the
first. Then the bankers began to get
uneasy. If my business proved to be
Legitimate and | proved solvent there
wouldn't be much business for the
banks.
Il an not going to disclose my asso-
detrimental to me but because | had
promised to keep their identity conf
Dental. | intend to open again Fri
day BY that time l expect the officials
to have declared me solvent"
Somebody asked him why the postal
authorities had been unable to find any
evidenc of such large dealings in in
ternational reply coupons. 1t was then
that he inferred that his dealings
might have been handled direct with
foreign governments.
"These governments" he said, care not
going to disclose to other governments
how many coupons they have issued.
And the International Postal Union at
it."
Asked if foreign governments have
not stopped this. he replied: eyes,
they are stopping they have stopped
the sale of coupons for public use. But
that doesn't stop my business. My
money in Europe is working to-day,
even if it isn't here"
Nobody Suffers Loss
In the transaction, he insisted, no.
body suffers loss.
Il buy to-day" he said, "a dollars
worth of Italian exchange. At the
present rate l get eighteen Italian lire.
would get five under normal exchange.
With the eighteen lire | buy sixty in
ternational reply coupons. These cou-
pons can be sold for So in American
money"
He maintained that no government
need lose, because transactions be-
tween governments may be delayed until
exchange is normal, and pointed out
that there has been delay in the pay
ment of interest on American loans
to the Allies.
81 haven't found anybody who will
have to make it good" he asserted
when somebody wanted to know who
would stand the loss.
Then he challenged the patriotism
of certain banking groups, alleging
that the par value of Liberty bonds
had been debated so they could buy
and will be raised so they can sell
again, thus realizing profit.
"That's the Americanism they
! showed" declared PonZi,