The morning call., 1894-02-04

Manhattan Institution. and they lost moth
| ing. Hope was q ally captured, and the
story Of his burglary and punishment is
one of the most Interesting chapters in the
history of bank detectives.
Can bonds be coun terfeted?
Yes; and there have been many attempts
of this kind. The only really successful
one. however, was in connection with Jay
Cooke & Company. These bankers once
! bought $4,000 worth of coupon bonds of
the denomination known as -thirtles.
They were pronounced cOun terfeits by the
Treasury Department, and although the
banking company sued the Government tor
! the value they represented they lost the
case. The counterfeit was made with the
aid of lead impression taken from the
genuine plate in the bureau OF engraving
and printing at Washington BY an untalth-
ful employe, which accounted for the won
derful likeness of the spurious article TO
the genuine.
The most extensive attempt at whole
sale cOunterfeiting of Government coupon
bonds was undertaken in 1880 and nlpped
in the bud by the secret service officials OF
the Treasury Department. The officials
were on the track of the cOunterfelters Tor
long time. but allowed them to perfect
their plans 10 the point Of execution, when
they were stopped On October 81, 1880,
James b. Doyle was arrested in Chicago as
na was allghting from New Y ork train.
He carried in his satchel counterfeit Gov
ernment bonds to the amount of S204. 600.
| They were of the denomin alton of $1,000
and were excellent liBenesses of genuine
Government obligations of that class. AT
the same time other secret service officers
ralded the house of William Z. BrOckway
in Brooklyn. BE was known as a counter
feiter and was suspected of completely in
the deal. He turned states evidence and
| confe ssed to having made them. He guided
the officers to a spot in the woods where
they dug up twenty-five steel and COPPER
plates, about $500 0 in counterfeit rational
bank notes ami plate for a $1,000 per
cent bond which bad not yet been used.
Two or three years later he was again
rounded up through the efforts of secret
service officers aud caught in the act of
making plates for coun erfeit railway
bonds. This man Brockw way was one of
the most noted counterfeiters In the United
States, andiis now alive, and, while in des-
titute circumstances, is said to be leading
an honest life. His partners and assO-
ciates have also been made to suffer for
their crimes, and are now aged and broken.
There are luts of interesting things about
these valuable bits OF paper Uncle Sam
issues. If any reader OF this article could
have the biggest bond given out by the
Treasury Department he would be rich
beyond the dreams of avarice. The bond
is now in the Register's Office of the treas
urY at Washington. 1t has been redeemed
and Cancelled by the Government. 1t is
the only one of the kind ever Issued, and
IL was engroSsed bv hand. IL represents
the enormous sum of Sl5,500. 900. and it was
given out.
When the Geneva award compelled
Great Britain to pay this country S15.-
100000 on what was known as the Ala-
bama claims, the money was paid to Ham,
iiton Fish, then Secretary of Stale.
Congress had made no provision for the
disbursement of this sum, and pending
legislation upon the subject Secretary
Fish invested the money III Government
o per cents. receiving one bond Of the face
value of his investment.
The oldest bond now eXta1t is also in
the possession of the treasury. 1t is a
faded document about the size of S5 bill,
dated February 6. 1777, by which the Gov
eminent ackuO Wedges the receipt of $500
from John B0ntield. which 1t agrees TO re-
pay on February g. 1880. with per cent
interest. A cancellation mark on the face
shows that Uncle Sam redeemed his prom
ise to Mr.. B nfield.
The largest denomination Of bonds now
outstanding are those of $4,000 The
fortunate possessOr of one of these draws
$500 interest every year and his original
investment has increased in value about
$1,000 This denomination Of bond is held
hy trust companies and mllliOnalres.
There are a great many bonds outstand-
ing of the denomination of $4,000. The
holders of these draw 500 interest every
three months upon each bond.
The largest issue OF bonds ever made by
this Government al one time was in 1877,
when a total of S741, ,000,000 was Issued.
OF course the pubic debt was not in
creased 10 that extent, as portion of the
| bonds redeemed Others outstanding at the
time. They had fallen due and Uncle
Sam was not prepared TO meet the obliga-
tion with ready cash. so he did what you
would try to do if your note in bank
should fall due and you had no money to
lake 1t up-you would give another note
in its place. This was very popular loan,
drawing per cent interest, and was ne
gotiated without trouble.
Uncle Sam has, however, had his money
troubles in times past. His credit was
once quite low, and just before and during
the war the money-ienders were not so
greedy for the Government cribs. The
first bonds that were sent out were sold
with some difficulty and the financal
skies looked dark. Many of the banks
had little faith in the future of the Gov
eTnment and the treasury had to call upon
bankers and capitalists to help them in
placing their bonds. 1t was the faith
which Jay Cooke had in the Government
th at M ade his great fortune Jaw Cooke
& Co. at the beginning of The war did a
great deal for the United States Treasury.
The firm had the confidence of Salmon
=. Chase. who was then Secretary of the
Treasury, and they made great deal of
money Dv tax 'DR the OonuS from the Gov
ernment in big blocks and dealing them
out in smaller lots to purchasers.
At times of great financial depression
throughout the country, caused by down.
right scarcity of money, the Treasury De-
partment may come to the relief of ca pital
by anticipating the REDEMPTION of bonds.
That is, If a bond has not yet reached Its
maturity and the owner has thereby no
legal right to call upon the Government for
payment. yet would like the money, the
Secretary of the Treasury may waive the
techncalities and take up the pledge, CIV
ing the owner his equivalent in cash. The
department sometimes anticipates the pay
ment of interest also to relieve q tenl-
porary stringency in the money market.
This has been done in several notable in
stances. and has never failed, it is said, to
have good effect Immediately upon the
money market. The alternative of such
action is left largely to the discretion of
Secretary of the Treasury, but as this Off
cial is presumed to be the leading financier
of the country. and to be in sympathy
with the promotion Of the financial inter-
ests of the whole nation, his acts are sell
dom questioned. except for mere political
effecl.
&c tl,o