The New York herald., 1922-03-03


Mr.. Wilson is reflected also in the rec
has been instrumental in investi-
eating many Of these swindles and
in numerous instances in recovering
part If not all the money thus lost
by the victims.
The foreign exchange field has
proved peculiarly lucrative to the
financial sharp, because it presents
several extraordinary aspects which
provide ripe and ready victims in large
numbers.
Rise in Exchange Seems Sure.
+ In the first place the money of vir-
tually every country on the face OF the
earth has SO deprecated in value n
comparison with the currency OF tie
United States that it does not seem
possible that it could go lower. 1t is
hard for the average person not samil-
lar with foreign exchange or with
European conditions to conceive that
the currency of countries which be-
fore tie war was sound and substan-
tial can long remain below normal.
Those conditions have placed the
mind of the average man of this coun-
| try, whether consciously or not. in an
attitude Of expecting the rate Of ex-
| change to go back to normal at al
most any time soon.
TIE average man, being ignorant of
1n ri ay;t iay rrrl,s or4< he
turn of normal rates, therefore, IS re-
garded by the foreign exchange shark
as being receptively inclined toward
gambling on the rate of exchange
A broker in tie financial district
the other day ventured the opinion
that there is hardly person with any
amount OF money whatsoever to in
vest or with which to speculate has
not considered the idea of taking a
f1ier in foreign exchange. The oppor-
tunity to gain appears SO obvious that
the thought is all but inevitable.
Thus the foreign exchange shark
has had virtually the uninitiated gam
bling proclivity OF the entire country
ripe for his activities nearly ever since
tie armistice.
Native Born Best Buyers.
Thousands who have never been
closer to Europe than Coney Island
have bought foreign exchange since
the war. Many have had to hold to
TIE purchases or lose, and others have
been fleeced outright. But the gold
mine Of the foreign exchange shark
is the average American whose life
and interests have been centered here
for series of generations.
The easiest victim to hook is the
foreign born citizen or the citizen or
foreign extraction.
The reasons for that are several. 1t is
especially difficult for a foreigner not
TO have faith that the country Of his
forefathers will not soon be on the
road TO it's old prestige and substantial
position in the world of commerce and
finance. Usually the foreign born has
numerous friends and relatives living
In foreign lands. with whom are his
sympathies. Added to that is the love
for fatherland which adoption into
new country could hardly be ex-
pected to obliterate overnight.
Bait I'm Foreign Language.
1t is on these elements that the for
eign exchange shark bases his cam
paign. Scrutiny OF foreign language
newspapers in New York will reveal
the utilization Of that situation over
and over again. A rather common
rf al
eign born persons in purchasing or
speculating in foreign exchange would
run about as follows:
Help your brothers across the sea
and at the same time make a good
investment for yourself and your fam
ily"
That is followed by an elaboration
OF the advantages OF Specializing in
foreign exchange; the possibilities Of
early rehabilitation, and the aid that
can be rendered to the former country
of the foreign born through such in
vestment
These OBSERVATION-DISCLOSURES some,
no doubt, arc inserted by reliable con-
cerns-are used in a highly specialized
way to lure the foreign born into part
ing with their money. The German
mark. Russian ruble, Italian lire.
French franc. &C, are advocated ac-
cording to the language OF the news
paper. The appeal. therefore, goes di-
rectly 10 the reader of German, Rus
sian, Italian, French or other extrac-
tion.
When the person thus attracted goes
to the "broker's' office TO inquire con-
cerning the propositions made in these
advertisements he is met. not by an
English speaking representative, but
by salesman who speaks his Ian
guage and is familiar with the tenn
permanent and mental processes OF the
nationality OF the prospect. In that
manner the tie Of two persons of the
same tongue far from their native
land is established instantly. From
that relationship 1t Is but a short step
to persuading the prospect to give up
his money.
Foreign exchange since the armis-
tice has been regarded generally as
~ - hac t.,,t ~,