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No doubt there are certain advantages in living close to the border, perhaps more so to the north than to the south, as the young man in this story discovered.

Syracuse Journal

Rochester Man Defies Ponzi
Schemes or Wallingford Plots
Bostonian Wizard Landed in Jail, and J. Rufus Never Got
Outside Book Covers, But Real Yank Wiser Than Either

ROCHESTER, Jan. 19 – Mr. Ponzi of Boston was a riot, until they caught him, and Mr. Wallingford is a fiction. But Rochester has a financial wizard who is real, and who, so long as his operations are no more illegal than they have been in the last few months, will remain free and opulent.

Since the middle of last summer this young man has in his quiet, unassuming way been making between $50 and $60 every day or two. His little “racket” as the pair of envious detectives who unearthed his money-making scheme described it, is sweet simplicity itself – and absolutely within the law.

Several days ago the detectives were standing in a bank, wishing they owned it, when one of the tellers stepped over to them and pointed out a rather seedy-looking young man who carried a satchel and who was busy unloading a package after package of dimes for the receiving teller.

“Get a good look at that fellow,” said the bank man. “I can’t figure him out. He comes in here every day or so and deposits $200 or $300 worth of dimes in a personal account. I should like to know where he is getting all of the money.”

After the man left the bank the detectives follow him along Main Street and into another bank. Here he again went to the receiving teller’s window and unloaded a large quantity of wrapped dimes. Then he left the bank, the detectives still shadowing him. At the Four Corners one of the detectives decided to “brace” the young man.

“What’s your racket?” he asked. “Where do you get all those dimes?”

The young man smiled upon the detective, reached over and patted him on the shoulder.

“Racket?” he asked. “What do you mean racket, brother?”

The detectives explained their curiosity about the large quantity of dimes that they had learned he had been depositing each day in the banks, and he finally agreed to tell them where he was getting the money. Here is his story:

Every other day the young man, who is of Yankee descent, has been going to Buffalo and purchasing $200 or $300 worth of Canadian bills. At the current discount he was paying $88 in American money for $100 in Canadian bills. At times the discount has been even greater than that.

Taking the Canadian bills to a bank, he would convert them into Canadian dimes, upon which there is no discount. These he would carefully wrap in $5 packages, mixing them freely with American dimes. He would return to Rochester and desposit the dimes in the two banks in which he had been seen on the day the detective investigated his money making scheme.

On the day that the detectives talked with the young man, the two banks in which he had been making his deposits had concluded that they no longer cared for the embryonic Ponzi’s accounts. They were going to tell him, when next he called, that his dime packages contained too much Canadian silver and, because they were being flooded with coins from the Dominion, they could no longer do business with him.

Since his talk with the detectives, who subsequently enlightened the bankers on the practice of the young man, the banks closed his accounts.

The young man said that he has been purchasing his money steadily since summer and that during that time he had made many thousands of dollars by this “high finance.”

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