Here's an interesting diversion. 100 years ago the empire of
Charles Ponzi began to unravel and his name appears in the paper for the first time locally.
The very first story was published in Salem
on July 29th, 1920. Interestingly, only the morning paper, the
Statesman, published stories and the
Capital Journal was silent in the afternoon, even after the story blew up the next day. They finally picked up the story on August 2nd.
That first story on July 29th is flat and neutral: "The accounts of Charles Ponzi, dealer in international postal coupons, who has obtained several million of dollars from the public on his promise to pay 50 per cent profits, will be audited by county and federal authorities."
By the next day, the stories about the "stamp juggler" were far more lively. From July 30th:
PONZI SAYS
IS OFFERED
10 MILLIONS
Italian Millionaire Stamp
Juggler Tells Pressmen
New York Banker Wants to
Buy His Business
SUSPENDS OPERATIONS
DURING INVESTIGATION
New York Postmaster States
That Such Fortune in
Stamps Impossible
BOSTON. July 29. A New York
banker offered him $10,000,000 today for his business, according to a
statement Ponzi made to newspapermen tonight. He added that he had
not decided whether to accept but
would hold another conference with
the banker.
Ponzi added that he intended to
resume his operations In Boston and
other cities where he has branch offices when the district attorney's
auditors have completed their investigation, if he did not accept the
banker's offer.
He [said] he had been informed by
his secretary that he had paid out to
customers today about $250,000.
The three-day run on the coffers
of Charles Ponzi by doubling investors ia his quick-rich scheme of international postal exchange, continued today while new believers in the
possibility of abnormal profit took
their money to a rival a few blocks
away.
Ponzi, having agreed with District
Attorney Pelletier to accept no further deposits until investigation of
his accounts had been made, stood
in his enlarged offices and saw every
thing going out, with no new funds
coming in; but although payments in
the last two days are estimated to
have exceeded a million dollars, he
was honoring every demand.
NEW YORK, July 29. Postmaster
Patten today declared that the entire
world's supply of international postal coupons is not large enough to
enable any person to accumulate the fortune which Charles Ponzi, the Boston financier [,] is said to have made through coupon transactions and foreign exchange.
In order to make $8,000,000, the
sum which Ponzi is credited with
having realized from his operations,
160,000,000 coupons would have
been required, according to Postmaster Patten.
"To have made his money in these
coupons would have oeen impossible," said Mr. Patten, "for the reason that enough have not [been] printed
to permit it. There are not enough coupons In the world. Here In New
York we keep not more than 27,000
on hand, the demand for them is so
small."
The records of the New York post office, Mr. Patten explained, show
that only $370.50 was paid to redeem
coupons during the three months
ending June 30 and only $360 worth
of coupons were sold here during that
period.
After nearly daily updates on the developing story, by the middle of August authorities had arrested Ponzi. We all know how the story ends!