Evening star., 1895-05-28
MILLIONS IN A BOX
How Government Bonds Are Taken
to England.
MIR. UPTON TELLS His EXPERIENCE
Dogged From Liverpool to London
by a Customs Officer.
IN ROTHSCHILDS' VAULT

IN ROTH sc H1LDS' VAULT
Considerable interest Is evinced in to-
morrows shipment of 100000 zoo per cent
bonds. per steamer Paris, for delivery to
members of the Morgan-Belmont syndicate
in London. but as told in yesterdays Star.
the details of the transaction will be with
held from the public for the present.
There is not the same difficulty in getting
Information concerning former shipments
of bonds to foreign countries. Mr.. J. K.
Upton, formerly assistant secretary of the
treasury, and now assistant superintendent
of tho life-saving service is thoroughly
conversant with the history of government
loans, and has taken a leading part in the
placing of them abroad.
The government sold none of its bonds
issued during the war to parties outside
of the country" said Mr.. Upton to a Star
reporter today. They were all taken by
our own people, but in time a large portion
Of them found their way to Europe through
the ordinary commercial channels. The
question OF the bonds being payable in
coin being settled by the act of March Is,
1869. the credit of the country rapidly
improved. and in July, 1870, Congress au-
not less than par in coin, the proceeds to
be applied to the payment of like number
Of q per cents. on which the government
had an option of redemption.
Negotiating in London.
I'm the spring of 1871 Assistant Secre-
tary Richardson, now one of the Court Of
Claims judges. and Gen. Spinner, then
United States treasurer, were sent to Lon
don to see if any of the new bonds could
be placed there. In July report was re-
ceived that syndicate, represented by Jay
nHn x, No t,tya ,t,At
two hundred million authorized was not
subscribed for in this country. contract
to that effect was entered into with that
firm, and in August, l think, the first ship
ment of bonds was made. John p. Bigelow,
chief Of the loan division. went over to re-
main until the bonds were disposed of. He
never returned to this country, except on
brief visits, and died in London a year or
two ago. MIR. Richardson remained for
some time, and the refunding of the 6 per
cents into SIS was a success. Subsequently,
under Mr.. Richardson as Secretary. and
under all his successors to and including
Secretary Window, bonds for refundlng
purposes were sent to syndicates abroad,
and payments therefor made in Cancelled
bonds and coupons received from them.
Cash balances were paid by the syndicate
direct into the treasury, at least after the
transaction under the first contract.
Without exception I think all the con-
tracts provided that the bonds subscribed
for should be delivered in London at the
Treasury officials accompanying the
bonds drew no pay from the treasury dur
Ing their absence on this duty. The syndi-
cate usually allowed them the same nay as
they were drawing at the treasury and
fair per diem for subsistence, in addition
to the cost of transportation of themselves
and bonds. This plan was much cheaper
than to have shipped the bonds as public
securities; for the bonds usually bore in
tereSt coupons. payable to bearer, and were
complete in form, ready for issue, and their
loss would have greatly embarrassed the
treasury.
THE largest shipment, so far as can re-
member, was made in 1875, and consisted
OF twenty million coupon AS. 1t was
made under my charge. and I presume my
experience was about the same as that of
others serving in like capacity.
MIR. Uptcn'x Trip.
1.-The bonds were in five steel boxes,
weighing, when packed, about 400 pounds
each. all fastened by combination locks, of
which we had no key. We rode with the
boxes to New York in postal car. At the
Jersey City station We were met by the
superintendent of the subtreasury of New
York, who had secured for the neces-
sary transportation to the boat, where the
bonds were deposited in the specie vault,
Under the immediate control of the purser,
but until the boat left the pier some one
of ou1 party kept an eye on the boxes.
Once at sea, however, we relaxed our vigil
lance and renewed 1t only when again ap-
preaching land. At Liverpool, where We
arrived after pleasant passage. 1 had
some trouble in getting the boxes through
the custom house. not being able to declare
under oath that l personally knew their
contents, and there being no way to open
them. A compromise was finally effected
by my taking with me customs official.
who should see that the boxes reached
the conSignees undisturbed and when OPEN
ed contained the bonds as alleged, his ex-
penses to be paid by the syndicate. This
liverpool. We had the boxes taken to our
rooms, and there we took turns In watch
ing them through the night-the English
official, however. had no relief from his
vigils. In the morning, through a little
British gold, 1 obtained the practical con-
troll of a passenger car, into which we put
our personal baggage and the five boxes,
for which we paid as for eXtra-weight ba q
gage Inc exclusive use of the ear was
deemed important the bonds representing
such an enormous amount of wealth.
In the Rothschilds' Strong Room,
"At London We were met by other treas
ury officials temporarily employed at the
headquarters of the syndicate Messrs.
Rothschflds e. Sons, in scheduling and
counting bonds and coupons received in
payment Of the new bonds. We went with
our boxes to the office of the firm men
toned, and in its money vaults our bonds
were counted, found correct and q recent
given showing that our duty had been per-
formed, much to my relief.
This money vault as 1 remember 1t, OPEN
ed only at the top, through the floor of the
room above and We descended by a little
lift 1t was not an imposing sight but
it contained an enormous amount of Sc
curities issued by nearly every nation in
Europe. Two men were employed there all
the time receiving and sending out securi-
ties. or in cutting off the maturing cou-
pons: We were permitted to remain in
London about ten days at the expense of
the syndicate, unless there was work for
them to do, when the time was prolonged,
There were so many of these parties
during the refunding period that nearly
every prominent treasury official, and a
great number not so prominent, who wish
ed had an opportunity to go to London in
charge OF bond shipments. There was no
money in 1t, but of course there was con-
siderable experience for those going into
foreign country for the first time