The Forest Republican. [volume] (Tionesta, Pa.) 1869-1952, 1888-06-20
THE GOVERNMENT BONDS.
HOW THEY ARE HANDLED IN A
SUB TREASURY.
The Absolute Safety of Registered
United States Bonds-Cleverly
Executed Counterfeits


United States Bonds-Cleverly
Executed CounterGeits.
In the southeast corner Of the Sub
Treasury building, says the New York
CommtrciaJ Advertiser, is a quiet, cozy
little room that might almost be taken
for the private office of city lawyer
with its two desks, leather cushioned
chairs, and large bookcase. There is
little about it suggestive of money or
great wealth, except the heavy wire
screen or partition which separates the
two employees from contact with the out
side public. In the screen are two small
window-like openings through which all
business is transacted. Currency seldom
finds its way into this Office, yet un-
counted millions in government securi-
ties are passed back and forth through
the windows in the screen, for the office
is the bond department of the Sub
Treasury. Here subscriptions to gov
ernment loans are taken, called bonds
redeemed and registered bonds ex.
changed. There are other offices
throughout the United States where the
same work is done, but as New York is
the inancialjcentre of the country, the
greater proportion of the bond business
is done here.
NJ. L. Muhieman, the head of the
bond department, in describing the
method employed in transferring regis
tered bond from one holder to another,
or in changing a coupon bond for a
registered bond, said:
THE whole matter of changing
coupon to registered bonds and of trans
ferring registered bonds is simple
enough. A person, for example, owns
a so, 900 four per cent, 1907, coupon
bond, and desires to have a registered
bond in its stead. He brings his bonds
here, and makes out his application on Il
blank, which we have prepared for that
purpose, in which he gives his name
and address. The application and
coupon bond are forwarded to the bond
department at Washington. The gov
ernment opens an individual account on
its books with the bondholder. The
| bond is then sent here and delivered by
us TO the owner. That bond is only
transferable by the holder upon his PER
sonal signature TO the assignment on the
back of the bond, duly acknowledged
before q Judge of the United States
Court, or the clerk of such court, or be-
fore me. The government will issue
several bon's instead of one if desired
aggregating the amount of the original
bond. The largest registered bond is
for $50, 900.
Lost or stolen registered bonds cannot
be negotiated in the hands of third
party, and almost all large investors,
MI
individuals prefer them TO the coupon
form. The change is made without cX
pense to the holder.
The largest individual holders ot
registered bonds ae the Nanderbilts
Among the New York banks the Eow
cry Savings Bank ald the Bleeckel
Street Bank for savings are the largest
There are between 80, 600 and 40,
separate holders of United States regis
tered bonds and every three months
just previous to the time the interest be
comes due, full list of the holders il
made out and sent to the different au.
thOTized agents Of the Government. TIL,
list fills three large volumes. The Gov
ernment makes out the checks for thu
accruing interest every ninety days ana
these checks are sent directly to the
owners of the bond.
The bond department at the sub
treasury is the conduit for the subscrip
tion of the new Government loans, ant
for the redemption of called bonds. II
the case of a bond call, the department
is notified of the number and kind oi
bond to be redeemed, and, as the hold
ers bring them in, checks for the amount
of the bonds are made to the holders fol
! presentation to the sub-trea5ury teller in
the main room, by which the cash is
paid, the bond being returned to Wash
ington.
There are but few counterfeit bonds
at present in existence. A number Of
attempts have been made to initiate
! Government bonds and for a time Will
some success, but such counterfeits have
| always been detected in the sub-treasury
though in some instances they wer,
executed with the utmost cleverne;s IS
The counterfeit $1,000 bond executed by
! Smith, who was engaged in the worl
with Brockway and Doyle, was the mos
| dangerous counterfeit of this class eve
issued. Smith had been in the Govern
ment employ and engraved the plates 70
the original bonds. The consequence,
was that when he executed the counter
felt plates he improved on his first anC
Legitimate work, and the counterfeit wa
really better than the original to al
appearance. These $1,000 bonds wer
the largest bonds that have been counter
feited But this dangerous gang o
counterfeitcrs have long since beer
broken up by the secret service officer
of the United States, its members i'm
prisoned and most of the spurious issue
] If not all Of it, has been seized and sup