The Dillon herald. [volume] (Dillon, S.C.) 1894-????, 1920-08-12
POSZI TELLS HOW
HE MADE MONEY.
Boston Man DiscloSes Business Meth
odS in Speech to the kiwanis
Club.

Boston, Aug. 10-Charles Ponzi,
who claims 10 have jumped from
comparative poverty 10 multimilliOH-
aires estate in few months through
dealings in international postal cou-
pons, told members of the Kimania
Club today some of the steps in the
process by which he claims to have
amassed his fortune. PonZi, making
his first appearance as an after-din-
ner speaker since he became one OF
the most talked of men in the coun-
try, was luncheon guest of the club.
He was invited sometime ago, be
fore he was compelled TO cease pay
ment in his fifty per cent in As
days proposition because of the or
ders issued by the State Bank Com
missioner TO the Hanover Trust Co.
Yesterday to pay no more of Ponzrs
checks.
In opening his remarks, Ponzi re-
iterated his claim that he was solvent
and expressed confidence that this
would be substantiated by the Fedef-
al and State investigations now In
progress and that he would be able to
resume business in few days.
| He related how he had hired
small office, used his small capital In
various business schemes, and then.
with an international reply coupon
always in front of him on his desk,
,Sbegan TO do some thinking" He
finally obtained financial assistance,
he said, to develop his idea and spent
thousands of dollars in foreign cor
ireSpondence.
Il found out" he said, that the
postal coupons were being sold in
foreign countries for the equivalent
OF six cents and could be converted
into postage stamps. Then all had
TO do was figure how many nickies
made million.
Il got in touch with men-that's
as far as I'll go-who were able 10
secure for me large amounts of cou-
pons in different countries. They
bought them without money and used
them as collateral 10 be redeemed
later.
When conditions were right OF
fered TO borrow money from the pub
tic. l offered 80 per cent in 90 days
and would not promise 10 redeem
notes in 45, though | thought that
three weeks was about the right time
10 bank the money here, send it
abroad, get the stamps and convert
them into cash.
Il started the Securities Exchange
Company. was everything from pres,
ident to office boy.
Il decided that if / redeemed the
stamps in the United States the Fed
eral government might decide that ii
came within its jurisdiction, though
there was no Federal or State law
against it. But the exchange rate was
the same in Switzerland and Norway
and some other countries so de
clded 10 redeem them there" q.
| Some one in the audience asked
why the postal authorities had been
unable to find any evidence of such
large dealings in reply coupons Pom.
II replied that foreign governments
realized a profit on the issue OF these
postal certificates ''and are not going
TO disclose TO other governments how
many coupons they have issued"
And the international postal un-
ion is not going to do it," he added
Asked if foreign government bad
not stopped this, he replied: Yes.
they are Stopping-iney have stop
ped the sal" OF coupons for public
use. But that does not stop my busi
ness. My money in Europe is work-
inG today, even if it is not here"
In the transactions in coupons, nc
insisted. nobody suffers loss.
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