Daily Ohio statesman. [volume] (Columbus, Ohio) 1855-1870, 1867-10-25

The, So-called, s.3O Counterfeit
Bonds.
The large amount of counterfeit 7-30
bonds in circulation, so well executed as to
almost, if not entirely to defy detection,
has led to much speculation as to their or
igin. The money article of the Philadelphia
Daily Ne,os has this statement of facts,
from which it draws an inference not at all
creditable to one of the officials of the
Treasury Department: - -
~ The discussion in regard to the so-called
counterfeit seven thirty bonds is still con-
tinued, Notwithstanding the fact that the
Secretary of the Treasury has caused de-
mand to be made on the parties from which
they were received for retundment. The
opinion seems to gain ground that the So
called counterfeits are duplicates of the
genuine issue, and that they were prepared
in the Currency Bureau of the Treasury
Department, but, whether this be so or not
the discussion OF the subject, which is in
evitable, is causing much uneasiness.
IT it should turn out that these bonds are
duplicates, the effect on the credit of the
Government must be extremely disastrous,
as in that case no one can imagine to what
extent the fraud has been carried. The
bureau from which they issue is under the
almost exclusive control of Spencer w.
Clark, a man of feariully bad reputation,
whom it would seem the Secretary of the
Treasury dare not remove. That the read
er may understand the insecurity of the
public against fraud both in the currency
and bond department, we quote the follow
ing extract from the testimony given by
MIR. Nj. b. Field, formerly Assistant Secre.
tary of the Treasury, before Congression-
al investigating committee, by which it
will be seen that there is absolutely no
check whatever on this man Clark, who, as
is disclosed by the evidence before the
committee, defies the Government. Mr..
Field was asked the following questions:
"Have you had any occasion Co examine
Cne present laws to ascertain whether any
legislation is necessary in order to carry
out your ideas in reference to this SUBJ
ject?'' ..l-,
To which answer was made as follows:
"Amendment of the law requiring that
in all cases in which the seal of the Govern
rnent is required to be fixed to its Obliga-
tions, it shall be done in the Secretary's
office, would, in my judgment, be proper.
have had occasion to examine all these
laws, and the law authorizing the engrav-
ing and printing to be done in the Treas
ury Department does not, to the best of my
recollection, re-enact provision for affiX-
ing seal which was in a previous law, and
which existed at the time the notes were
manufactured by the bank note companies
In New York. Twill give you an eXplana-
tiOn of the manner in which these things
are done. Here, as an instance, is one
year interest note of fifty dollars. The pa
per on which it is printed is. as UNDER
stand, contracted for by Mr.. Clark. The
paper is delivered to him; the printing is
done under his direction; the numberingsis
done under his direction, and the fac-simi-
lies of the signatures of the Register of the
Treasury and of tine Treasurer are affixed
under his direction; and the seal is i'm
pressed under his direction; so that this
which comes to him as blank paper, con-
tracted for by him, leaves his hands with
all the attributes OF money in the form of
perfected and perfect obligations of the
Government. The engraving OF the l,lates
is also done under his direction"
This statement discloses the fact that an
immense power is vested in the hands of
this man Clark, and when we consider the
uprefuted charges that have been made
against him, and his notoriously bad char
acter, we may very well doubt if the Secre-
tary OF the Treasury or any other living
man is able to tell the real truth as to the
amount of currency or Government bonds
outstanding to-day. 1t may be that the
monthly statement which is made to the
public by the Secretary is correct, and that
dition of the Government, but we confess
that, under all the circumstances, consider
ing the gross immortality OF the times, and
the facts as disclosed by investigations
had in regard to the conduct of the
Currency Bureau, there is great, very great,
reason to believe that the bonds which
are now in controversy were issued in
fraud from the Treasury Department. If
these particular bonds aoere so issued, and
there is 10 record of them, who shall say
what Others, and how many others, that
are now in the hands of the public, were
not issued alike in fraud? And in this
case who can compute the extent of the
fraud, or estimate the actual amount of
spurious bonds now in possession of the
people and the banks of the country? The
circumstances which have given rise to the
present discussion of this subject are
fraught with interest, and go to show how
great is the necessity for the closing up of
the Currency and Bond Bureau of the
Government at the earliest practicable
period.
The bonds, said to be counterfeit, are
so nearly like those pronounced good, that
a banking house in Boston forwarded to
the Treasury at Washington $4,000 in
bonds, which the Department, after several
days. delay, pronounced counterfeit, and in
sible for the amount. An investigation
proved that the bonds sent, were original
Government bonds, sold by Jay Cooke &
Co. The Government finally concluded
they were genuine.
These facts add to the suspicion that they
AS to the liability of the Government for
spurious Seven-Thirties, detected and re-
turned to the remitters, it is claimed by the
Treasury to be the distinct understanding
in all cases that the bonds are only receiv-
ed by the Assistant Treasurers for trans
mission and conversion, while on the other
hand, the bankers claim that the payment
made by the officer on receiving the notes,
is complete transaction, and that the Gov
becomes responsible for the notes
after that time, just as fully as the bankers
would become responsible for a counterfeit
received over their own counters.
were printed on the same plate, the same
paper, and on the same presses with the
originals. The only way that discovery
was made was by the fact that more than
one bond bore the same number, which
fact led to the conviction that something
was wrong. If counterfeits, and prepared
from new paper and new plates, they are
the finest imitation ever produced.
EIecfion-ls,55S Demo
cratic Minority.
The municipal and judicial election in
Baltimore passed off very quietly on We'd
nesday. The entire Democratic ticket for
Mayor, both branches of the City Council
and judges, was elected. The vote for
Mayor was: ROBERT BANKS, Democrat,
1889; ANDREW w. DENNIsoN, Republi-