Evening journal., 1920-08-09
EUROPE MAKES
j. PONZI RICH
Postal Chiefs Still Doubt
Though, That He Has
Made Millions
UNCLE SAM HAS
NOT LOST CENT
RY HARRY r. HINT

n u. A. Siaf Correspondent.
WASHINGTON, Aug 5.-WhO pays
Ponzt7 Who fOOts the bill for the
Ss5OO00 the young Boston financial
wizard claims 10 have made IN eight
months by manipuLatiOns i'm forei n
exchange and International Postal
Reply Coupons? Do any Of Ponzi's
prohts come out OF Uncle sans
pockets
who always pays in any transac-
ton between individuals or nations
when the paper or currency OF one
Is deprecated IN value?" cOuntered
John Miller, Of the PostOfllce Depart
ment. Why the man or the natien
whose paper Is below par, OF course. -
In other words, the war-burdened
Taxpayers OF European nations.
"unole sam hasn't lost a cent.
Neither has he made anything But on
any coupons exchanged here. which
were purch ased abroad By the eX-
change Of American money at current
exchange rates, there will be a loss
10 the country issuing the coupons
when The annual postal balance with
the United States Is struck
let rs take Italian exchange AZ
an example. An International Postal
Reply Coupon. costing six ents.c Is
exnhangeable in any country belong
ing 10 the International postal union
for a stamp which will carry a letter
between countries belonging 20 the
union. In America that is a five-ceni
stamp.
"Uuder normal raies Of exhcange
upon which international postal ac-
counts are based. a dollar. when ex-
changed into I3alfsn lire, would pur-
chase only coupons.
"Under-exchanee nates reoently pre-.
vaillng, however. a dollar of Ameri-
can money could be exchanged ini6
enough lira 70 purchase about x
coupons.
by sending these oOapOns n th'
United STATES, redeeming them II
scent stamps, any person oarryinf
on sum transactions. oouid eet 8 x
in United Statss stamps for his orig
inal dollar be cannot redeem then
through The PoSpfiire Department
for Dash Any conversion into cast
has to be by Sellfng the stamps out
side pOstofilne cfla1neS
In the baianOing OF fnternatiOna
postal accounts, the United State
presents the coupons b the cOuntr!
by which thay are sold. Where the!
are figured al the rate fixed unde
the postal convention. Any loss tha
IS sustained therefore, would be d.
the issuing country
Postal authorities, although admit
ting that theoretically POnZi nigh
have heen able TO make 30 10 300 Pc
cent. by transactions In postal con
pons, confess their skepticism as &
any profits running into millions
The total coupons redeemed IN tn
United States since ne nternatiOna
postal union was formed. they say
amounts 10 only about f.225,O00 Wit
a value Of only S6i,f25.
A suggestion has been sent 70 N
headquarters n the union. al Genev;
Switzerland. that figures covering tn
total coupons issued IN et6h cOuntr
be compiled in an effort 10 deiermin
whether POnzfs transactions cOul
have been on the scale necessary 1
pile up eight millions IN profit.
Figuring the possibility nlat n
could make 81 profit. on the averag
f0r each - invested. he wOuld nav
had 10 handle some 560.O00OO0 cou
pons.
And postal authorities here drolar
they do not believe that many cor
p0ns have been issuel since the post
union was formed Anyhow, the
say they're going 90 ind out