Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1920-08-11
Charles Ponzi Describes How
He Amassed Huge Fortune
BY Buying International
Postal Coupons.
QUESTION OF NUMBER OF
, NICKELS IN MILLION
Secret Of Success Lies in Big
Difference in Exchange
Rate - Says Government
Cannot Stop Business.

Boston, Aug. 10.-Charles Ponzi.
who claims to have made quick
jump from comparative poverty to
a multimi!lionaire's estate through
dealings in international postal
coupons, told members of the XII
wants club today some steps by
which he claims to have amassed
his fortune. >-.
Pcnzi, making his first appearance
as an afternoon dinner speaker, was
a guest of the club. He was invited
some time ago, before he was COM
pelled to cease payment in his 80
per cent in IS days" proposition be-
cause Of the orders issued by the
state bank commissioner to the
Hanover Trust company yesterday
10 pay no more of his checks.
Ponzi reiterated his claim that he
was solvent and expressed conf
dence tina. this would be substan-
tiated by the Investigations and that
he soon would resume business.
He relate how he hired small
office, used his small capital in
business schemes and then, with an
internationally reply coupon always
in front Of him. began to do some
thinking" He obtained financial as
sistance, he said. and spent thou
sands of dollars in foreign corre-
spondence.
II found out" he said, that the
postal coupons were being sold in
foreign countries for the equivalent
Of s cents and could be converted
into postage stamps. Then all l had
to Go was to figure how many
niclsels make 100000,
Used Coupons as Collateral.
II got in tonic with men who
wer cable to secure large amounts of
, coupons. They bought them with
our money and used them as col
lateral to be redeemed later.
When conditions were right, j
offered to borrow money from the
public. l Offered so per cent in 90
days and would act promise to re-
deem notes in As, though though,
tlrec weeks WIS about tie right
tune to bank the moncy hc:e. send
It abroad, get the stamps aid con-
vert them into CASH.
Il started the Securities Exchange
company. Wa; everything from
president to office boy. The second
day after | opened. a gentleman
from the char,bcr of commerce
came. He was convinced my scheme
was possible.
Then postoffice Inspector came.
i asked him if i! was legal to buy
All lr.H national r:p!y coupon abroad
.!ad ~tsange it - stamps. He said
yes. ] asked hin If it was legal
% ic' eem milrcrc OF the coupons
lono hs said no He would have 10
decide whether they were stolen or
where ,tey came from.
Redeemed Coupons Abroad.
lit.yever, l dc :;dcd that if 1 re-
deemed the stunD: in the United
States the gov.rl aen: might decide
i cam within it.: iuris diction, though
tlcr: vas no law aga,nst it. But the
cxrhai ge rate was the same in
Swfyt: and and Norway and other
ccLn" les. S o !! decided - redeem
s'i' III thSIc.
Some one asked why postal author
tiles had been unable to find any evi-
dence of such large dealings in reply
coupons. Ponzi replied that foreign
governments realized a profit on the
postal certificates and ARE not going
to disclose how many coupons they
have issued"
Asked if foreign governments had
not stopped their sale, he replied:
Yes, they are stopping-they have
stopped the sale of coupons for pub
lie use. But that doesn't stop my
business. My money is in Europe
working today"
In the transactions, he insisted, no.
body loses.
Il buy today" he said, "a dollars
worth of Italian exchange. get 18
lire. l would get five under normal
exchange. With the l8 lire l buy 80
international reply coupons. These
coupons can be sold for $3"
Il haven't found anybody>who will
have to make il good" he asserted,
when somebody wanted to know who
4