The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1920-08-11
PoNZI IN CANADA.
Continued FROM Page 1)

was solvent and expressed confidence that
this would be substantiated by the fed
eral and state investigations now in pro
gress and that he would be able to re-
sumo business Ill a few days
he related how he had hired a small
office, used his small capital in various
business schemes, and then with an in
ternational reply coupon always in front
of him on his desk began to do some
thinking" He finally obtained financial
assistance, he said, to develop his idea,
and spent thousands of dollars in foreign
correspondence.
Il found out he said, that the pos
tai coupons were being sold in foreign
countries for the equivalent of cents and
could be converted into postage stamps
Then all had to do was figure how many
nickels make a million
Il got in touch with men-that's as
far as I'll go-men in different countries,
and they were able to secure for me large
amounts of coupons. They bought them
with our money and used them as col
lateral to be redeemed later
When conditions were right / offered
to borrow money from the public | of
fered so per cent in 90 days and would
not promise to redeem notes in 40, though
] thought that three weeks was about
the right time to bank the money here
and send it abroad get the stamps and
convert them into cash
II started the Securities Exchange COM
pany. / was everything from president
to office boy
''The second day after | opened, a gen
tleman from the chamber of commerce
came to my Office to investigate. He
was convinced that my scheme was pos
sihe Ninety per cent OF the people
didn't know about the international re-
ply coupons.
''Then a poetoffiee INSPECTOR came. !
asked him if it was legal to buy an in
tcrnational reply coupon abroad and
change it to stamps He said yes
asked him if it was legal to redeem mil
lions of the coupons. and he said. no He
would have to decide whether they were
stolen or where they came from.
However. | decided that if redeemed
the stamps in the United States the fed
eial government might decide that it
came within its jurisdiction, though there
was no federal or state law against it.
Bat the exchange rate was the same in
Switzerland and Norway and some other
countries. So / decided to redeem them
there
Some one in the audience asked why
the postal authorities had been unable
to find any evidence of such large deal
ings in reply coupons. Ponzi replied that
foreign governments realized profit on
the issue of these postal certificates and
are not going to disclose to other govern
msnts how many coupons they have Is
sued
And the international postal union Is
not going to do it." he added.
Asked if foreign governments had not
stonped this, he replied
Yes. they are stopping-thev hive
stopped the sale CT coupons for public use.
But that does not stop my business. My
money in Europe is working today, even
if it is not here
In the transactions in coupons, he in
sisted, nobody suffers loss.
II buy TODAY" he said. ga dollars worth
af Italian exchange. At the present rate
get Is lire / would get five under nor
nal exchange. With the Is lire ] buy
GO international reply coupons. These
coupons can be sold for So in American
money.
He maintained that no government need
lose. because transactions between gov
ernmens may be delayed until exchange
IS normal and pointed out that there
has been DELAY in the payment Of inter
est on American loans to the allies.
II haven't found anybody who will
AVE to make it good, he asserted wnet'
somebody wanted to know VINO would
have to stand the loss.