The New York herald. [volume] (New York, N.Y.) 1920-1924, 1922-04-27
CHARGES MILLIONS
OF bogus j. s. BONDS
. ARE in CIRCULATION
Representative JOhnsOn's
Statement in House De-
MED by Treasury.
HE PROMISES PROOF
Asserts Former Assistant
Registrar in Wilson Re-
gime Made Discovery.
HUSH ORDER REPORTED
Watts's Attack on Attorney
General Spread OH Records
Of Chamber.
HUSH ORDER REPORTED

WASHINGTON. April 26 ASSOCIATED
Press) The statement was made on
the floor of the House to-day by Rep
resentative Johnson (Rep., lid that 1t
will later be shown by official docu-
ments that there are probably hun
dreds of millions of dollars of duplicate
bonds in the United States"
Prompt denial of the statement was
made by high Treasury officials, who
declared an investigation by Secretary
Mellon of the Bureau of Engraving
had disclosed there was no truth in
reports of the circulation on a large
scale of counterfeit Government Sc
curities.
Representative Wingo (Ark.), Demo-
cratic member of the House Banking
Committee, declared it was calculated
to cause uneasiness in the country and
that he did not believe Mr.. Johnson
ought to make 1t. unless he can back
it up as the truth"
Mr.. Wingo expressed belief that an
investigation would show that Secre-
tary Mellon, in denying RECKLESS
charges" about the existence of dupli-
cate bonds did not lie to the people
OF the country
Gives Basis for Charge.
As a basis for his charge as to al
legged circulation OF spurious securities,
Mr.. Johnson said that J. W. McCarter.
Assistant Registrar of the Treasury
during the Wilson Administration. "se-
cured information in the course OF his
duties which convinced him that there
had been enormous duplication Of Gov
crnment bonds which had been printed
by the Bureau of Engraving and Print
ing and had gone through the office
Of the Registrar of the Treasury"
II think Mr.. McCarter took the right
attitude when he presented the mat
ter first to distinguished Democratic
Senator from my State and very prop
crly presented the matter TO the AS
sistant 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 inves-
tigation. and Mr. McCarter. who had
developed the fact, as will later be
shown by official documents. that there
arc probably hundreds OF millions of
dollars of duplicate bonds in the United
States. was discharged from service
by his Administration for presenting
those facts TO members Of Congress.
! think man that took that attitude
in the former Administration was III
advised In what he had done"
Does the gentleman say that DEM
ocrat from his State called the matter
to the Senator's attention." asked Mr.
Wingo.
Matter OF Public Record.
Il will say that that is all a matter
OF public record" Mr.. Johnson replied
II took personally all OF this data
down to the Department of Justice
myself carly In the year 1921 after we
had tried In every way to secure action
from the former Administration. These
letters were written by Mr.. Leffingwell.
at that time an Assistant Secretary of
the Treasury, and arc easily procurable.
have them in my files. and will be
glad to insert them at this point"
There was objection.
Mr.. Wngo then said his question
was the date on which this gentleman
brought this information to YOU"
Mr.. Johnson THE gentleman sent the
information to me in its real definite
form In the fall of 1920"
Mr.. Wingo: You did not bring IL TO
the attention OF Secretary Mellon?'
Mr.. Johnson II did not. brought II
10 the attention OF the Department OF
Justice, where think 1t ought to have
gone"
Mr.. Wingo: Does the gentleman have
information upon which he can pass a
conclusion that there are millions Of
duplicate bonds prlntcd?"
Mr. Johnson: II will say that took
down seven typewritten sheets. single
space. or numbers OF duplicate bonds
and some bonds running 100000 higher
than the bonds issued. There Is no man
who can tell how many were Issued
Mr.. wingo THE gentleman was fur
nished list OF them; has not the gem
tlcman conducted an investigation, or
Continued on Page SIX.