The Emmett index. [volume] (Emmett, Idaho) 1893-1925, 1920-08-19
PONZI CREATOR
OF GOLD
A 10 Million Dollar Fortune Built
On \ Young Mans Idea.


When Charles Popzi, latest heir ap-
parent in the royal family Of Cash
founded by King Midas, stepped into
the spotlight week or 10 ago and it
became known he had made millions
for himself and Thousands for others
in = few months, everyone asked:
"Why couldn't l have done that :"
It's an old question.
Charles Ponzi was discovered by the
world in stuffy little office on
School street in Boston paying 100 per
cent on all the money the people
would lend him for ninety days and
so per cent on forty-fve-day loans.
Plainly, it wasn't philanthropy. That
isn't the way philanthropists usually
operate.
Upon being questioned Mr.. Ponzi
calmly admitted that he had made Is
million dollars in six months and was
still going strong!
Here is the formula that Charles
Ponzi beat you to: Way back thirty
years ago, at an international conven-
ton in Rome, the nations Of the world
sought = method that woald facilitate
postal communication between ma
tons. As result an international
reply coupon was established. By
this coupon a person in one coutry
who wanted to insure q reply to u
letter or an order, could purchase one
of these coupons, inclose it in letter1
and it would be accepted at = post
office Of any nation subject to the
agreement for face value. For years
persons have been doing business with
this coupon, which cost only 6 certs,
without the slightest idea that it was
anything but just method Of making
international dealings easier. Inn
port and export firms found them es-
pecially convenient. Then along came
the war and when barrage and smoke
screens had cleared and the world be-
gan to settle down again, the curren-
cy of European nations took a fright
full drop in value.
Along about that time Ponzi, a fruit
merchant in Boston, got letter from
a friend in Europe who wanted him
to send a book. He enclosed some re-
ply coupons. It was then that Ponzi
discovered that these coupons were
worth much more in some countries
than in others, sometimes six or sew
en- times as much. And that was all |
Mr.. Ponzi needed to know. He dis
covered it first. You could have
thought of it just as easily as he did.
But you didn't. Ponzi didn't have
any money, however. So he began
borrowing, promising so per cent in
terest in forty-fve days and twice
that amount in twice that time.
Needless to say, there were lenders
Within those periods the
money would make a trip to Europe
and back and in transit it became
six and seven times as valuable.
That sounds easy. It was. Ponzi's
business grew and grew. And so did
Ponzi's profits.
In a little "hole in the wall' on
School street Ponzi' set up the office
IF the Security Exchange Company.
His offer to pay tremendous interest
IN short time loans attracted little
notice at first. There were few in
,estors. Then when he really began
% pay off these notes the word spread !
lbout- The line at Ponzi's office be- i
gan to grow. Americans lose little 5
ime taking advantage of an opportu-
lity to make money.
1t wasn't long until there were hun
reds of investors storming his doors
very day, pleading with him to take n
heir money. They didn't know how i
e did it but they knew he could U
ouble their money for them. They
sked no questions. Soon Mr.. Ponzi
vas sending money to the banks in
ushel basketfuls. But under such =
onditions it was only natural that I
uestions should arise. Such high I
ates of interest are unusual And
UGH enormous profits always are sub 7 Z
sct to suspicion.
So shadows began to fall about the tt
tile office IN School street, where II
rowds were raining money upon Pom !,
and begging him to take it. His r
primer publicity man gave vent to 7
hat he called "the exposure of man d
no is money mad" He declared el
onzi to be hopelessly incolvent. !.
he district attorney began to look v
to things. Governor Coolige spar Il
! a moment from his presidential v
and cast an eye on Mr.. :: ::
onxi's affairs :,
The district attorney acted quickly. m
e ordered Ponzi to stop taking any
ore money until = commission Of
pert accountants could see what