The Savannah morning news., 1904-12-04

ming, aggregating an amount of 49,
zoe, 1888. 81. AS an instance of how per-
sons retain checks made payable to
them for interest, and do not cash
them in until years after the payment
is made, one of the checks under the
funded loan of 1881 for Sc. 25 was turn
ed in just sixteen years after, while
four aggregating 1894 under the con-
tinued loan of 1881 and sixteen aggre-
eating $9.875 under the loan of 1882,
were received seventeen and sixteen
years, respectively. after they were
sent out by the treasurer's office.
There have not been any checks under
the first four loans received at the reg
ister's office for some time.
Defrauding Uncle Sam.
There are more ways than the one
outlined in the beginning of this ar
ticle to which persons resort to de-
fraud the government in the matter
of bonds and checks. Half bonds are
received at times, the other half, it is
alleged having been destroyed by fire
or some other destructive means.
Then during the course of years
comes along the other half, the send
er-often the same in both cases-al-
leging that the other half, previously
redeemed at the department, had
OCCl QCSlIOy0Q ny DuI Il6
trick always falls fiat and the decep-
ton is always found out so COM
plete is the system now in use.
1t is practically impossible to pass
forged check through the depart
ment. 1t is often the case that checks
come in with signatures that are i'm
mediately questioned or with imper-
feet Endorsements, or, perhaps, with
forged Endorsements. Then they are
Immediately held up and sent to the
registers office and a comparison is
made with the check issued under the
last previous quarterly payment.
Should, however, the check be mad
vertently passed by the treasurer's Of
flee it rarely and it may be said new
er, gets through the auditors office,
through which it has to pass in rou-
tine on its way to it's final resting
place in the file room of the registers
office. When a check is caught in
this way, payment is Immediately
suspended and the paper is sent back
to the bank that paid out the money
on it. This, of course, is all connect
ed with registered bonds, the holder of
a coupon bond handling the coupons
that have matured just the same as
he would so many treasury notes.
A Lucky Individual.
With all the precautions, however,
the government was caught mapping
once. When bond is certified as haV-
ing been destroyed by its holder the
government requires bond of indem-
nifty to protect itself from paying the
same twice. In the sixties, three
bonds for $500 each, issued under the
act of Feb. 25, 1862, a per cent. loan,
were reported as having been destroy
ed, and affidavits substantiating this
al tn 1nI rn4tf1
The bonds. of course. were made good
by the government, and the substitutes
were in due time cashed in. Shortly
after they matured. or were presented
for redemption, however. the original
bonds, which had never been destroyed
at all as sworn. turned up and the
substitute bonds having been destroy
ed, and not saved as they now are,
the amount was paid a second time.
The treasurer of the United States was,
of course, required to pay the amount
from his own pocket, but a special act
was passed by Congress reimbursing
him. This is the only instance on rec
ord where the government ever made
mistake of this character, or where
any individual got ahead of Uncle
Sam by this method. This record is
truly remarkable, when it is consid-
cred that sometimes a score OF at
temDts of this character are made
every day by men who are the smart
est and shrewdest in the world in this
line of defrauding, and 1t is probable
that this one case would not have oc-
cured had the bonds been kept on file
then as thew now are.
When an issue of bonds is called in
at the maturity of the loan now the
securities are carefully tagged and filed
In much the same manner as the
checks, and this precludes any possi-
bility OF "A forged bond or one that has
been certified as having been destroyed
being paid the second time as IN the
case quoted.
VIII lie Cleared Ont In Time.
In the course OF time the file rooms
will be cleared out. but not, In all
probability until every check that
could possibly stir up a controversy
had been turned I'm and the account
closed. The bonds Will probably be
kept much longer than the checks.
The work of registering and nlinR
the checks ~ not 10 complicated now
as n used % be-, ns the only active
loans ~ the government on which IN
forest IN being paid quarterly are the
consols ~ 1907, isas-is 1895 and 1870.
thus entailinG the work on but four