The Lancaster news. [volume] (Lancaster, S.C.) 1905-current, 1920-08-13
PONZI, MONEY KING
TELLS OF HIS RISE
Most Talked OF Man In Country
Reiterates Claim That He
Is Solvent.
FROM POVERTY TO WEALTH
All He Had To DO Was Figure
How Many Nickels Make u
Million and He Got Rich As
Quick Or Quicker Than }. Ru-
fus WallingfOrd.

BOSTON, Aug. 12.-Charles Pom
ii, who claims to have jumped from
comparative poverty to multi-mil-
honaire's estate in few months
through dealings in international pos
tai coupons. told members of the XII
wants 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-dinner speaker since he
became one of the most talked-of
men in the country. was a luncheon
guest OF the club. He was invited
some time ago. before he was COM
PEELED to cease payment in his fifty
per cent in As days proposition be-
cause OF the orders issued by the
state bank commission To the Hanov-
er Trust company yesterday TO pay no
more OF Ponzis checks.
In opening his remarks Ponzi re-
iterated hfs claim that he was sol
vent and expressed confidence that
this would be substantiated by the
federal and state investigations now
in progress. and that he would be
able to Resume business in a few
days.
PonZi related how ne hau ulred a
small office. used his small capital
N
then, with an international reply
coupon always in front OF him on his
desk, began to do some thinking"
He finally obtained financial aid to
develop his idea and spent thous-
ands OF. dollars in foreign correspon-
dence.
Il found out" he said. that the
postal coupons were being sold in
foreign cour tries for the equivalent
OF six cents and could be converted
into postage stamps. Then all had
to do was to figure how many nick
els make a million.
Il got in touch with men-thats $
as far as I'll go-who were able to
secure for me large amounts OF cou-
pons in different countries. They
bought them with our money and
used them as collateral TO be re-
deemed later.
when conditions were right Of
fered TO borrow money from the
public. offered so per cent. in 90
days and would not promise to re-
deem notes in As. though l thought
that was about the time to bank the
money here. send il abroad. get the
stamps and convert them into cash
Il started the Security Exchange
president To office boy.
Il decided that II I redeemed the
stamps III the United States. the fed
eral government might decide that il
came within its Jurisdiction. though
there was no federal or state law
against il. The exchange rate was
the same in Switzerland and Norway
and some other countries So de-
cided 10 redeem there"
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.
| ri replied that foreign governments
realized profit on the issue OF these
postal certificates "and are not 60
ing to disclose to other governments
how many coupons they have is
sued"
Asked IL foreign governments had
not stopped this. he replied:
Yes. they are stopping-they
have stopped the sale OF coupons for
public use. But that does not stop
my business.
My money in Europe is working
today. even If 1t is not here
In the transactions in coupons. he
insited. nobody suffers a loss.
Il buy today" he said. "a dollars
worth OF Italian exchange. At the
present rate I get Is lire. would
get five under normal exchange.
With the IS lire i buy 60 interna-
tional reply coupons. These coupons
can be sold for SO in American mon
ey"