Evening star., 1924-08-07
BERLIN WAR BONDS
|BR|NG BIG PROFITS
Advance From So to $1,4OO
F: a Million in Less Than
! One Year.
By Consolidated Press.

By Consolidated Press.
NEW YORK, August PROFITS of
1856 per cent in less than a year
ITS a shame to break. this story
just as Charles PonZi,, Boston's
first four years in durance vile and
is. facing further years in Jail. all
because he failed to make good on
his promises of 100 per cent in three
months.
But this story, unlike Mr.. Ponzi's
promises. is based on fact And it
must not be held IN, despite the fact
that it will make Portland his
dupeS-green with envy.
Thousands of Americans and Cana
dians, who had more faith in the
ultimate recovery OF Germany than
Germany had herself. today are
cashing in at the rate Of 1,4oo per
million marks, on imperial German
g6Vernment war bonds. which they
purchased as low as SO per million.
That's just ,566 per cent profit
figure it out for yourself
Total Face Value.
William Franz. of the bond depart
msnt of Robert c. Mayer & CO., Broad
way bankers and dealers in foreign
exchange, today estimated the total
faSe value of such bonds held in the
United States and Canada roughly at
5000, 10000 600 marks. The figures, he
said, might run as high as 10000
100000
These scraps of paper" then. are
today worth somewhere between
S7,000,0o0 and s14,000,000:
Not all the holders of the bends
bought them as low as So per million
Marks. They have sold as high as
i5,b00 per million. But relatively few
we're bought in at that price. At least
IS per cent of the outstanding supply,
Ht. Franz estimated, was bought at
cached last September and October,
when the world became convinced
hat Germany as a nation was desa
ined for the scrap heap.
Today, Germany is clamoring to get
hem back. 1t is rumored that the
German government itself is in the
market for them, though this has not
Iean confirmed 1t is certain, how
Wer, that somebody in Germany
Vahts them, and wants them bad
Like Paper Money.
The history of the old German gov
srAment bonds parallels that of Ger
save that it now appears to have
happy ending for the spectators
tho took a long flier in them
Real buying of these issues started
the United States and Canada in
9N. At first they brought as much
IS $4,000 per million. BY degrees the
'rice slumped to $1,000.
Finally, year ago, when it appeared
hat Germany must either be- broken
~ into separate states or swallowed
Up in bolshevfsm, the bottom dropped
ut of the market for the bonds. The
o So
The recovery began with first indi-
:aGons of the possible success of the
Dawes committee and resultant
oan to Germany. German citizens
lgpred that before the government
:oVld get a loan, it would have to
AXE up the old bonds at some figure,
ust as German industrial concerns,
eeking capital. valorized their old
obligations at Is per cent of their
'aper mark value. .
BS March the old government bonds
lad climbed painfully back to $50 per
niQion marks. A month ago the price
vas 800. With. the announcement
hat the plan had finally been accept
d tby the allies and that Germany
vas ready to accept it, the bonds sky
ocketed.
Today great stream of the once
Torthless securities are flowing in to
has various bond brokers here, to be
old in Germany. Profits of all the
az from 700 to 1856 per cent are
eipg reaped.
Man, oh man. wouldn't some future
onzi like to get hold of sucker
st" containing the names of the
5,566 per cent boys? There ought to
some easy pickings in it for deal
s in Wildcat preferred