The times. [volume] (Richmond, Va.) 1890-1903, 1891-04-05
EXCHEQUER FORGERY.
STRANGE STOHY.
II. VI. CHISHOLM. II TEMPLE BAR.

The city that something was wrong about TX
cheauer Bills Two brokers, Mr.. w Morgan
and Mr.. +. dc Berckhem. were trying to get
loans to large amount on Exchequer Bills,
md offering high rate Of interest Neither
OF these brokers was in much repute.
There was a stockjoDber Of the name OF
David Haas, with whom | subsequently be-
came well acquainted, as we were both MEM
bers Of the Social Whist Club. From him l
learned the following particulars:
Hans was talking 20 friend. another stock
iobber: as they we're standing near the bank,
DE Rerckhem passed and spoke to his friend.
Haas said. DO Won know that fellow" Yes.
said the other che came 10 me this morning
and wanted TO borrow on exchequer bills, Of
fering me per cent. and on my demurring,
be.added that he was not particular about
another oDe-half per cent. but refused, as
did not like my customer" Haas replied,
depend upon il, there's something smoky
here: bad a transaction with him last year,
and determined then to have nothing more
to do with him"
Hans then went TO his counting-ho and
examined his books, and took note OF the
date and numbers of some $1,000 Exchsquer
Bills on which he had advanced money 10
De Berckhem. He next called on Matthew
Marshall the chief cashier or the Bank Of
England, 10 consult MIN hDoNb lilt Hlhlb.is
when Marshall heard the numbers Of the bills.
he said: you could not have held those
bills. for we had them at the bank at that
very time" But Haas was quite certain that
he had noted correctly the numbers and date,
and his suspicious were confirmed
Haas's next step was to 90 to Downing
street and see Mr. GOulburn, the Chancellor
of the Exchequer. 30 whom he related the cir
cumstance, and expressed his suspicion of
there being something wrong. Mr. Goulburn
listened to him. but said he could hardly mag
inc anything wrong about EXchequer bills;
and after little more conversation, he pulled
out his watch and said; Can you wait here
for n short time have an appointment with
Sir Robert Peel" (the Prime Minister but
will soon be back" Haas waited, and when
Mr.. Goulbun came back lie thanked him for
his information. took n note of the details,
and asked for Haas address.
At the whist club that evening Hass men
toned that he had been with Mr.. Goulburn.
and one of his friends asked: AT what hour!'
AT 3 O'clock" he replied His friend ex-
claimed impossible. for was passing down
Whitehall as the Horse Guards clock struck
8. and overlook Mr. Goulburn walking with
Sir Robert Peel. and ! heard him say: i tell
you never net with man so positive IN all
my life" No doubt MIR. Goulburn had been
80 report the matter 10 Sir Robert Peel. Mr..
Goulburn immediately took steps FOR investl
eating the affair. He ascortained from his
own bankers that they had advanced money
on Fxchequer Bills TO Morgan. and these
bills they placed at Mr.. Goulburn's disposal
He sent his private secretary to the bank
with these bills. and Matthew Marshall found
that duplicates of them were then held by the
bank Both sets of bills were handed over TO
Mr.. Mauie, the treasury solicitor that he
might trace out the matter
On the morning of October nth Ar. Maule
came to the Issuing Office and asked Beau
mont Smith TO explain how there could be
duplicate bills All this time there was no
suspicion of forgery The test of the genuine
ness of an Exchequcr bill, apart from the pc
culiar paper printing, signature and seal, v'ns
Its comparison with the counterfeit. The
book OF couDterfOs was produced, and the
bills from the bank fitted accurately to their
cCunterfOils. while those from the private
bankers did not fit at all First, Beau
mont Smith said there must be a
mistake IN the numbers. winch NJ that
time were IN Whiting, and In beaumont
Smiths own handwriting (our custom being
that the junior clerk. Blake numbered the
counterfoils-the bills for $780, 500 and
fl00 were numbered by me, while Beaumont
Smith numbered the 81 600 bills himself;
then he tried to make the bills fiji the counter
foils Of nearly corresponding numbers. but in
vain. At length he turned to Maule and sad:
ITS no use trying any more it's all my do
ing" Good God" exclaimed Maule what
do you mean"
beaumont Smith then told him that he had
taken surplus printed copies of $1,000 bills
and filed them up with number and date.
sealed them and signed 'Monteagle' 10 them.
and that he had circulated them through an
Italian jew named Rapallo. clerk to jew
stockbroker OF the name of SOLAR. Upon this
Maule said he had only one course to pursue,
and called in q policeman. who took Smith
jnto custody. He was at once taken to Bow
street and examined before the magistrate,
who remanded him after hearing Maules evil
dence
The matter no1v becor,,e nuhlic md as II wac
known that u large amount of eXchequer
bills had been deposited as securities by the
two brokers. money having been raised on
them. the alarm was very general. After
consultation with Goulburn. the Controller
General issued notice calling IN oil outStand-
ing bills for examination. those agreeing
with the cOuntertoils to bo declared genuine.
and those not agreeing to be detained. TO be
dealt with os might hereafter be determined. "
On my arrival at the Office ! found the OK
animation Of bills in full progress, and a num-
Der of persons waiting TO have theirs exam
lned. The total number of bills dated in
March and June, 1871, exceeded $4,000, and
their amount was more than $50 900 600. The
books OF counterfoils were divided into SIX
parcels and intTusted to six sets Of two clerks
each, who Jointly compared the bills. took
the direction of this work and the counter
toils of $1,000 duplicate bills were among
those compared by myself aud Edward Wclch.
Beaumont Smith stated the fraudulent bills
would be found to be all IL 900 bills of the
highest numbers, as he knew that such bills
were always held by the Bank Of England and
never came into the public market the result
proved this 10 be the truth. Bills to an amount
exceeding tiOO 900 had been forged by him. and
on these bills nearly $500 600 had been actual
ly advanced by different persons
The fraudulent bills all bore the signature
Monteagle' apparently in the handwriting
OF the Assistant Controller" Mr. Dudley Per-
cival, who had taken Mr. Eden's place for
Twelve months, with the sanction of the
treasury. Mr.. Eden having gone abroad for
the sake OF his health. The signature wa,
very good imitation of Mr.. Perciyals writing
One person who brought in a bill for eS-
animation went with into the room of Mr.
Bully, the chief clerk, when Mr.. Percival
happened to be there. Mr.. Perciyal was Of
rather an impetuous nature; he took up the
ON and most incautiouAy said OH ri
swear that's my handwriting" The bill
was handed TO mo for examination
accompanied by printed notice Of
OF particulars signed by the holder. Ii did
not Ill the counterfeit; and as by that time |
nad seen large number of the forged bills
perceived al once that the signature was
beaumont smiths. and not Mr. Perciyal's
ne holder was furious al the bill being de-
FAMED after Mr.. Percival's own admission of
tne slgnature being his. But il turned ONT
that tnis person had advanced money upon
the OIL 70 one of the two brokers who were
Known 10 have 1a.lt ,,-stl