LOOPHOLE PROVIDES EASY MONEY

Chronicle (Levin), 10 July 1946, Page 5

LOOPHOLE PROVIDES EASY MONEY

Received Tuesday, 7 p.m. ■ ?. - :N E W, Y aRlL July 3. Post' offices in Detroit whq.,h is over the horder from Canada, did roaring business todav as a loophole in American-Canadian financial relations provided a Avay to easy money. The Bonanza, hoAvever, was shortlived. United Ktates postal authorities, after an estimated 100,000 dollars worth of business was done in a fexv hours, clamped down on saies of Canadian money orders. The boom liegan Avlien word spread that such money orders could still be bought at nine per cent. discount despite Canada 's restorajion of the Canadian dollar to parity with the American dollar. One Detroit resident alone bought 22, '000 dollars worth of 100 dollar money orders at the usual deduction in exehange. The Canadian post office, Avhich also banks at Windsor, Ontario, just acvoss the river from Detroit, reported a similar rusli to cash money orders at par value. On normal da.ys Canadian money onler business at Detroit 's main [iost office is 350 dollars. The reason for the buyers' rush was the failure of Washington authorities to give instructions to post offices to deal in Canadian money orders at par.