New-York tribune., 1872-10-12
Il GOVERNMENT PAPER RING.
ONE OF THE CONTRACTS IN THE TREASURY Dr.
PARTMENT-A PRoBLEMATIC PHASE OF RE-
TRENCHMENr.

ONE OF THE CONTRACTS IN THE TREASURY Dr.
PARTMENT-A PRoBLEMATIC PHASE OF RE-
TRENCHMENT.
Previous to Mr.. Boutwels appointment AZ
Secretary OF the Treasury. all the paper used by the
Government for printing bonds aud bank notes was
made by certain dealers owning large mills IN New
England. These persons furnished superior article OF
paper delivered free in NewYork, at So 30 per fo0
sheets This paper is always delivered Ia contain
ing 600 sheets. These dealers had made specially OK
manufacturing this paper, and obtained q very good
profit these low figures They were urnlshngtas
the rate 100000 sheets per week Upto Mr. Bout
Wells appointment the demand for this paper had been
comparatively small, but national banks tprang up
all over the country and bonds were issued ant
new varieties Of fractional currency were printed tlo
quantity used increased, until nearly 10000 sheets
per day required. This, Of course, attracted tho
attention OF paper manufacturers and others VINO DE-
sired to deal with the Government AT this time Con
gress passed law in order 70 guard against counterfeit
ing requiring that special paper should be selected for
the use Of the Government and imposing penalties for
its manufacture by others Mr. Wilcox OF Pbia-
dephia had just procured patent FOR certain variety
Of paper, or process for making it, and wished 10
get the Government contract. Mr. Wilcox was knsman
OF Mr. Bore President Grants first Secretary OF the Navy
The result Of President Grants mediation soon ap-
reared and the contract for paper, which Others ca
furnish identical in quality, and at good profit at $40
per 1000 sheets was awarded TO Wilcox Co.. at nom
SIS to s7 per 1000 sheets advance in price Of IS to @
There has been no increase In the cost Of material to
warrant t. The patent obtained by Mr.. Wilcox should
not advance the price, paper which the most expc-
rlenced experts could distinguish from that now
furnished was made five years before his patent Was
| obtained and is 70 be seen in New-York.
Mr. Wilcox, to show his gratitude appointed brother
or brothern-law Of Mr.. Boutwell, foreman OF one OF
his mills This man received salary exoritant even
for an experienced paper-maker which he was not Iho
| Government was put to the additional expense OF
placing two or three inspectors, with large salares at
Wilcox & Co.'s mills that none OF the paper passed
into the hands OF unauthorized PERSONS ana u row s
TO pay cost Of sending the paper TO "uei"
| il was formerly delivered free. 49, 49,,
| III this paper can be made at proht by respohsp'c
dealers at $40 per 1000 sheets, and wilcox Co nave
the contract at SIS more, they make prout OF os
S. as they furnish 10000 sheets Per day. Ihls wod
amount to $50 per day. about s2500O annually hr
Boutwell, has received applications, since tins c0niracs
was given to Mr.. Wilcox, from dealers who were desif-
GUS OF furnishing the paper at very much lower
price but he has neglected 10 avail himself OF tins opr-
tuny of reducing the expenses Of the Government Ia
peculiar paper, also. has not prevented the issue oI
fraudulent notes. FOR It only recently thlt h's
was broken up in New York who had been printing t'r
notes ou paper which could not be distinguished rOih
| the genuine article.