The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1922-04-29
FLOOD OF
BOGUS BONDS
Washington Officials Disturb
de by Report of Duplication
of Bonds

Johnson Republican) OF Soutf
Dakota that it will later be shown
by official documents that there
are probably hundreds of millions
of dollars of duplicate bonds in the
Cnited States
Promp, denial of the statement
was made by high treasury Off
cials. who declared investigation by
Secretary Mellon OF the bureau OF
engraving had disclosed there was
no truth in reports of the circula-
ton on n large scale Of counterfeit
government securities.
Challenging the johnson state
ment. Representative Wingo Of
Arkansas, Democratic member OF
the house banking committee, de-
clared il was calculated to cause
uneasiness in The country and that
he did NOT believe Mr.. Johnson
ought To make it unless he can
back il up rs the truth
Mr. Wingo expressed belief that
an investigation would show that
Mellon in denying creek
less charges about the existence of
bonds did not lie to the
people of The country"
Case Of NcCarter.
AS basis for his charges as to
circulation Of spurious Sc
Mr. johnson said that j.
~. McCarter. assistant registrar Of
the treasm.y during the Wilson ad-
secured information
in. the course of his duties which
convinced him that there had been
enormous applications Of govern
ment. bonds which had been print
ed by the bureau Of engraving and
printing and had gone through the
Office OF the registrar Of the treas
n'y
Il think Mr. McCarter took the
right attitude when he presented
the matter first to distinguished
Democratic senator and very pro-
perly presented the matter TO the
secretary of the treasury,
Mr.. Johnson continued He was
very quickly informed at that time
by the former administration that
nothing was wrong, that there
should be no investigation and that
he should keep his mouth shut or
lose his position. and Mr.. McCarter,
who had developed the fact that
will later be shown by official doc
that there are probably
of millions of dollars Of
duplicate bonds in the United
States. was discharged from service
BY his administration for present
ing those facts 10 members OF con-
gress. ! think a man who took
that attitude in the former admin
istraiion was, III advised IN what
he had done
Mr.. Johnson added:
Il Will say that that is all a
matter Of public record. I took
personally all Of this data down 70
the department. of justice myself
early in the year 1921 after We had
tried in every way to secure action
from the former administration
Mr.. Wingo asked: Does the gem
tleman have information upon
which he can pass conclusion that
there are millions Of duplicate
bonds printed? %
i will say TO. the gentleman that
l took down seven typewriter
sheets. single space of numbers OF
duplicate bonds and some bonds
running 100000 higher than the
bonds issued Mr.. Johnson replied.
There is no man who can tell how
many were issued.
Tayicab Drive~ Arrested.
II Will say I am satisfied there
is truth in it. because ] remember
1T one time it was shown conclu-
sively that a negro taXicab driver
in Washington was discovered down
in front of the New Willard with
81 $1,000 duplicate Ionds. and he
was. discharged from custody in
iour days l will say to the gentle
man that l submitted seven pages
of duplicate bonds
Mr. Johnson was asked if he had
any information as 10 what the
check up at the bureau of ensrav
I, ~ y
vulged.
Il have no information as to
that" he replied. That has not
been a part Of my duties. will
say that my investigation. which
was Of an independent character
and which produced some OF the
facts which no one denied, came 10
another branch Of the government.
and the exact part in details which
have had in this, l ana
not able to tell.
High treasury officials declared,
in commenting on the case today.
that the charges by former Assist
ant Registrar McCarter We're denied
by former Secretary Of the Treas
ury Houston at the time as base
lass and. in the opinion Of the
treasury. effectively disposed Of. a
taXicab driver was arrested at the
time. they added. with Liberty
bonds which We're found to have
been stolen but not duplicated.
Washington. April 2c.-Charges
that the country is flooded with
millions Of dollars worth OF coun-
terfeit currency. federal notes. gov
rrnmcnt securities and stamps ar.
wholly without foundation. Sec
lctary Mellon declared tonight in a
Hnln,1o1n alif n