The Washington times., 1922-08-16
BUREAU CHECK
FAILS To SHOW
. BOND GRAF TING
Certificates Were Duplicated
Due to careIsssness, Not Dis
honesty, Audit Reveals.

After a four.month rigid investi.
cation by Department of Justice
agents into charges and suspicious
that the Government had been de.
frauded out of perhaps millions OF
dollars by the duplication OF Liberty
bonds in the Bureau of Engraving
and Printing. II was revealed today
that there had been no criminality,
but rather carelessness, on the part
Of employees.
1t was disclosed in a report that
there had not been a single instance
of the duplication Of bonds. but there
had been about 1,400 duplicated mum.
bers. This situation. however, means
no loss to either the Government or
the bondholders, but II has created
confusion in the Treasury recor dis.
which apparently show discrep-
ancies.
General Shape-up Followed.
When the seeming duplication Of
bonds and other irregularities was
discovered last March there follow
ed a general upheaval in the person
mel Of the bureau. and there were
scores Of dismissals, demotions and
transfers. Director Wilmeth and the
chiefs of the important or "key" de-
partments were deposed, President
Harding taking summary action
when conditions were brought TO
his attention by the Treasury De-
partment. ~.
Louis A. Hill was named director
Of the bureau and the Department Of
Justice, succeeding the Treasury
Secret Service. was directed to make
a searching inquiry. Partial reports
have already been made, but the
final report to President Harding Is
now about ready for him.
The Department of Justice agents,
assisted by Treasury experts. under.
took a complete count Of all the ne
gotiable paper on hand and checked
against the records OF the Treasury
in an effort to determine the seem.
ing duplication Of bonds. Early In
the inquiry II was found that there
were numerous instances where num-
bers on the bonds had been duplica-
ted, so check-up on the numbers
was begun several months ago.
1t was explained today that all
bonds are wrapped up in bundles of
900 each, and that each bundle
was counted. and that duplication of
bonds was hardly possible under the
system. However, possible collusion
between bureau workers and -em-
ployes in the loans and currency d.
vision Of the Treasury was suspected,
but all such suspicion has now been
swept away and the Treasury wholly
exonerated from any blame or re-
sponsibility for the confusion.
Printing Defects Responsible.
The duplication Of the numbers on
the bonds, 1t was explained today,
was due to the stamping of bonds
put In the 1,000-bond bundles to re-
place those whoch were discovered
to have defects.
I'm counting the bonds for the
bundles each bond that rad a grease
spot. an ink stain or any other de-
feet was taken out and replaced by a
new bond" explained a Government
agent today. 1T was in the stamp
ing of the substitute bond that the
duplication occurred"
1t was said today by an official of
the Government that the final report
to President Harding will find the
bureau heads and employees affected
by the Presidents executive order
not guilty of any criminal acts, hut
will charge negligence. 1t Is expect.
ed that the report will be made pub.
lie before the first Of the month.