New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1871-07-08
The story Of Counterfeit Bonds.
From the New York Times. /

WASHINGTON, July 3.-The story that re-
deemed bonds. lying in the treasury unde-
.stroyed, have been distracted, and counter
feits substituted, has been started again,
and an insinuatiOn adrOitly worked INTO II
that the investigation recently had was Tor
the purpose OF concealing the truth instead
of discovering it. The story was never en-
titled to any credit on account of the source
from which it originated, and statement
of the manipulations which these redeemed
bonds undergo shows that 1t is utterly az
surd to think such an operation could have
succeeded.
In the first place. when the bonds are
purchased, there is immediately stamped
upon them in New York, with the same
ink used originally in making the seals,
the words, TO be held by the Secretary OF
the Treasury, in trust for the tinted
States" They are immediately sent here,
and 90 into the loan division OF the treas
arer's Office where the numbers are regis.
tered and compared with an account OF
the numbers taken at the time OF purchase
in New York. A substituted counterfeit
up to this time, would De ueUecteu unless S
of the same number as the genuine bond,
by the checking of the numbers simply.
There is also. at the same time. an eXaml-
nation bv experts to detect countertelts.
and if any were found they would be
charged against the Assistant Treasurer IN
New York.
These bonds I'm lie, g a SINH ar exa nina
ton in the loan branch OF the secretary S
Office the numbers being checked Oft vii h
the two former accounts. Ii there are no
errors or conterteits discovered the bonds
are then used as vouchers for the treas
urer's account and are credited TO him, lie
having been of course. charged with them
when thew came into the office. If any Of
the counterfeits were discovered up to this
time the treasurer would suffer by their
amounts remaining charged TO him. AT this
stage they are Cancelled by punch which
cuts large pieces from the body of the bond
and from each coupon remaining attached.
After this is done they are not worth the
stealing, for one would not care TO be found
offering a bond for sale with large holes
punched through it. They are, how
ever still twice or three times more
examined and twice more punched before
they get into the condition where this story
quoted places them when they are stolen.
1t would require the COLLISION of almost all
the large number of persons who handle
the bonds from the time they are purcha. ed
with several persons outside the Treasury
TO get bond substituted as charged with
out immediate detection, and the removal
of the canceling mark made in New York.
Detection would infallibly occur finally,
when the coupons of the genuine bond
came in for payment. This brief account
shows not more than half the difficulties to
encountered in carrying On fraud of
this kind Highway robbery would be
more easily accomplished and with less
risk. The Secretary might well have
laughed when the story was told him, but
the tests were applied and the absolute
proofs of its falsity established. Com
meDts here are numerous and not compl-
mentary to the authors of the publication,
who will have to invent something more
plausible before they impeach the integrity
of the Secretary.