New-York tribune., 1922-08-10
Expert Asserts
u. 5. Is Easy for
Cor1nterfeiters
Burgess Smith Says Bogus
Money Ring Ousnumbers
Bootleg Gentry: ssAIini-
ing Methods Antiquated''
No Change in 40 Years
Washington Issues Sharp
Defense, Saying Old Ways
Are Kept Because Best

Methods Of the United States Bureau
Of Engraving are so antiquated shat
thousands Of dollars in undetectabie
counterfeit bills may be in circulation,
according to Burgess Smith, formerly
inspector of technical work in the bu
reau. Mr.. Smith. who now is chief of
the laboratories Of the Todd Protecto-
graph Company in Rochester, n. Y, is
ct the Hotel McAlpin and is to sail for
England to-day.
He has spent twenty-five years in the
study OF engraving processes used in
the manufacture of bank notes. The
United States, he said yesterday, was
using the same process it used forty
years ago. In the forty years, he said,
counterfeiters had made great strides
lie himself could manufacture bank
note exactly like a genuine one, he
said, "and there are others" he added
About the only change in recent
years in the authorized manufacture of
bank notes, said Mr.. Smith, was the
substitution of mercerized cotton for
linen. 1t was due to this substitution,
ne said, that bills become soiled and
crumpled so soon. 1t was high time, he
said, that the government introduced
new methods of manufacture to foil
counterfeiters.
Although more progress has been
made in the protection of checks and
other documentary paper against for
gerry, said Mr.. Smith, the forgers have
not Jagged behind in the march Of
events. They have systematized their
ha fo ~ NJ !,
was on most efficient basis and addi-
tional protection for documentary pa
per was necessary. 1t is to study Eng
lish methods in this direction that he
is going abroad.
The British are unusually cautious
and painstaking in the handling of
documentary paper" said Mr.. Smith,
"and that, and the preventative
mechanical devices which are available,
aids them in keeping down losses from
the most scientific Of crimes--check
and document forgery and manipula
ton. The types of criminals who alter
and forge checks, raise drafts and dis
guise stolen securities are distinct
from all other types. Besides possess
ing great daring they are organizers
OF no mean skill, with a finely de-
yeloped business sense.
"The manipulation of documentary
paper in this country has reached
startling proportions and is conducted
on business basis almost as extensive
as bootlegging. In fact, the changing,
selling and trading in forged and al
tered documentary paper equals in vol
ume the bootlegging industry. 1t is as
we'll or better organized with a higher
type of criminal in control. The pen
man who does the actual manipulation
is only the technical expert of an or
ganization which includes the rough
necks,' who steal the checks or other
documents, the varied types of pass
ers, who distribute them when altered,
and the angels who finance the opera
tions, and supply bail bonds for any
member of the band who is under
arrest"
From The Tribune's Washington Burecu
WASHINGTON, Aug. 9.-Comment-
ing on the statement of Burgess Smith,
Louis A Hill, director of the bureau,
tonight said:
"Mr Smith was employed in the bu-
reau for number of years as tech
nical expert and he is a very competent
man, but | am very much surprised
that he would make such a statement
as that attributed to him. He should
apply Immediately to the Secret Serv-
ace II he knows OF SO many counter
feits in circulation.
"The last big counterfeiting case
known to the government was in 1898,
when d genuine steel plate engraving
had been developed and bank notes
spread broadcast. That counterfeiting
gang was broken up, however, and
since then counterfeiters have resorted
20 Photographic reproductions on zinc
or copper and these bills have been
easily detected.
GAS to the Anticipated methods of the
government employees, | may say that
antiquated methods are the only ones
that have any element of security
The fact that it is antiquated makes
the plates very difficult to counterfeit.
Our methods have not been changed
for the past fifty years for the reason
that in their antiquity is the greatest
element of security against frauds"