The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1890-12-29
BANK OF ENGLAND.
Some Of the Attempts Made to
Defraud the Institution.
skillful Work Done by Bold Forgers Who Went
to the Gallows-Enormous Losses
Sustained.

Founded IN 1864, II was not until 1853 that
forgery upon the Bank of England was at.
tempted. Then Richard Vaughan, young
weaver of good character, became engaged
to pretty girl who would not marry poor
man. and accordingly he attempted to re-
cruit his finances by forging some 95C00
bank notes. Richard was married, but his
speedy execution left his young bride to
some serious reflections as widow.
Multitudes OF imitators followed in the
steps OF Vaughan. until, in 1873, the bank
found itself in possession of counterfe its so
perfect that they could only be detected by
the duplicate numbers. For months the
operators in these counteTfeits eluded dis
covery, until at last mere accident led to
the arrest of Charles Price. who had manu-
featured his own materials, and had been
aided by an accomplished woman in dis
tributlng his wares. Soon afterward Price
committed suicide, and was buried. after
the then approved fashion, with stake
through his body and at the crossing of four
reads.
The next candidate for felon's honors
was John MathesoD, Scottish engraver,
who reaped harvest of half million dol
lars before going to the gall0ws. At the
same time one of the bank CLERKS had ma
chine IN operation which could pare Off a
very thin rlu from sovereign, leaving the
edge notched just as before. He had made
several thousand pounds by the operation,
when he unfortunately found himself one
Monday morning dancing in mid-air at Ty-
burn. Another clerk had a very narrow es-
cape from unmerited disgrace just at this
period l17S0).
The counterfeiting Of Bank of England
notes had increased to an alarming extent
at the opening Of the present century. The
cities and large towns had become
THE CHIEF VICTIMS
And foreign countries also suffered largely.
In 1908 the trouble was met partially by a
change IN the character of notes Of issue.
Early in 1914 the bank and Stock Ex-
change were victimized by fraud that
rivals any operation ever attempted in Wall
street. Exhausted by her long war with
Napoleon, England was on the verge of
financial ruin. The funds were depressed
to an alarming extent Suddenly they
rallied. COnsois rose with bound. and the
transactions on Change were greater in a
single day than they had been for month
preyiouS.
There was good cause for this sudden ex-
element. On the 21st Of February, about /
O'Clock in the morning, violent knocking
was heard at the door of the Snip inn,
Dover. The intruder announced himself as
aforementioned Dubourg, Aid-de-Camp
Of Lord Cath art.
His richly embroidered uniform, his stars.
orders, gold lace, etc., supported the asser-
tluu anu INC SAIL spray WHICH WeLteu MIN
confirmed his story that he had bribed a
French smuegler to bring him across the
strait. His news was important. Napoleon
had been slain in battle. and the allied
armies were in Paris. The widest excite
ment was produced. The news was for
warded TO London and spread like wiidfire
Stocks and conSOis rose
WITH TREMENDOUS RAPIDITY.
And securities which had been bought by
the perpetrators of the job on Saturday for
sumo So, 000, 900 sold on Monday for fully
SIS, 100000 The crash followed speedily,
and the banks and exchanges awoke 10 the
fact that they had been "bulled" ont of
over G., Cox. COO. Investigation implicated in
the fraud some of THE leading nobility, III
GLIDING Lord Cochrane. one of Epglaud'S
most gallant naval officers.
Close upon this gigantic fraud followed
series of forgeries of powers OF attorney, eX-
ecuted by MI. Henry Fauntleroy, the head
of banking-house of some standing, and
upon which he had sold stocks to the amount
OF many millions. involving the Bank OF En-
gland alone to the extent Of E360, 600. Upon
his arrest there was found in his private
rcom a bt ok cen taiuing complete list of
his forgeries. with the following exiraor-
binary Endorsement.
in order 10 keep up the credit of the house 1
have forged powers " attorney. and have there
for sold out all these sums without the know-
edge OF any OF my partners. have given credit
in The accounts Tor The interest when IL became
due. HENRY FAUNTLERoY.
Great exertions were made to secure the
pardon OF the guilty man on account of his
high standing. but without success. He
died before the debtors door at Newgaie
amid the yaSteSt coDcourse of spectators
that an English criminal of late years has
ever called forth. About this time the En-
giisn people concluded that the game of
hanging counterfeiters did not pay. The
criminals were hanged at the rate of
SIXTY DAY
But eounterfeiting went ON in as liyelya
manner as ever. Men were hung III
strings" says John Francis. While the
corpse of William Weller lay in state, an
hour after execution, his aceompliees passed
81 counterfeit notes on the attendants. The
press first touk up the war ana forced Sir
Robert, in 1890. to discontinue the punish
ment of death in all cases Of forgery, except
wills and powers of attorney. In the course
of debate it was proved that the British Gov
eminent had issued forged American and
French money in its wars with those coun-
tries"
The famous ExcheQuer forgeries Of 1887
1872 close the long black list. Bills OF ex-
chequer are among the most popular securi-
ties OF England, and money is borrowed on
them as readily as upon United States
bonds. During the five years mentioned,
Edward Branment Smith, chief clerk of the
issuing department of the Excheqaer, with
the assistance of two confederates, Dor
rowrd and wasted on stock speculations up
ward OF $5,coO,000 ON forged Exchequer
bills. The method OF operation was this:
Smith took the genuine blanks of the de-
partment, forged the signatures, and. with
the assistance of his confederates, negoti-
ated short-time loans on them at per cent,
contracting, as was quito customary, that
the individual bills should be held for re-
demption.
With the money thus obtained he would
speculate in stocks, and if successful would
take up and destroy the forged securities;
If unsuccessful would take them up with
money borrowed upon others like them.
When the crash of discovery came upward
of 100000 of these forged bills were in cir
culation. After much hesitation the de-
partment concluded to redeem some
f3G9, 00O Of them. The reason for refusing
payment on the others was startling enough.
II was conclusiyely proved that their hold
ers, who had lent money to Smiths confed-
crates upon them, suspected. IL they did not
know, that The bills were forged, hut be-
lieyed that the certainty Of redemption was