Ogden Standard-Examiner | 1920-07-27 | Page 6 | Citizens Rush to Make Money

CITIZENS RUSH TO RUKE MONEY Man in Boston Promises and Pays 50 Per Cent Profit in 45 Days i BOETTON, July 2 7. A bar was placed on the rush of people to K've their money to Charles Ponzl, head I of the Securities Exchange company on his promise to repay with CO per I cent profit in 4 6 days. I After a conference with District At-I At-I torney Felleller, Ponzl vh03e busl-' busl-' ness Is described as exchanging Inter-I Inter-I national reply coupons from one country coun-try to another, agreed to accept no i further deposits until an auditor sc-! sc-! lasted by the district attorney has cx-I cx-I amlned his accounts, which are salf to total millions. The district attorney said the action ac-tion was taken ' In no sense a final closing down of the huslness." For several weeks crowds have florked to Ponzl'fl offices and given their savings In exchange for notes of the company for the principal plus 50 per cent payable In 90 days. In-I In-I variably, Ponzl la said to have paid j off lh notes in 4! days and there has been no complaint that any person ' bus failed to receive money when due. Ponzl describes his exchange sys-i sys-i tern as belux bused on the use of the International reply coupon authorized under the International postal agreement agree-ment as the medium for taking advantage advan-tage of t hi' difference In rate of exchange. ex-change. With the deposits. Ponzl said he converts American dollars Into Itul-lan Itul-lan lire, or other foreign money. Then through agents abroad. International reply coupons are purchased, redeem-j redeem-j able at the normal and not the prevailing pre-vailing rate of exchange. The coupons cou-pons ore then transmitted from ono European country to another, gathering gather-ing profits through succeeding differences differ-ences In rates of exchange, with as-nur as-nur d normal payment for redemption, redemp-tion, until the transaction la completed complet-ed and the proceeds reconverted into American dollars. This usually takes 4 F. days, according to Ponzl, who says 1 his profits have reached -100 per cent In some transactions. Ponzl In a statement said the conferences con-ferences with the officials were at his suggestion and were due to his desire to prove his operations were lcglti-, lcglti-, mate and his business solvent He set his Indebtedness "at three million I dollars at the most." and said he had several million dollars more thanl enough to cover It, on deposit.