The Washington times., 1922-04-08

ORDERS
INQUIRY.
CONTINUED from First Page.)


bond. There are 5000 900 of
these receipts to be checked.
The greatest difficulty in check
! ing the alleged duplication Of bonds.
1t is pointed out, 10 in the fact that
the bonds that are alleged to have
been duplicated, never passed
through the Treasury Department,
but were circulated through out
side agencies. 1t Is alleged, without
any available means Of checking
them, as they were issued.
These can be checked, 1t Is believed,
from the numbered. return coupons.
which were clipped and sent into the
Treasury for redemption.
According to the charges, which
Were made in the threatened expose,
galley proofs of which were sub
mitted to Treasury officials a week
ago Thursday, prior 10 the wholesale
dismissal of the employees. the follow.
ing Saturday, there is evidence of as
many as seven Implications Of one
bond. 1t is alleged seven coupons
bearing the same number were re-
turned to the Treasury Department
on the same day for redemption.
The manner OF duplication of the
bonds, according to engravers In the
bureau, is simple" The numbering
machines number automatically from
to 81 and then are "hand-set" to the
next number.
Duplication Declared Easy.
Officials admit that 1t would be
possible to turn the machine back
ninety-nine numbers, instead Of turn
ing 1t up one number to the new
series.
Because Of the fact that 1t IL pos
sible to duplicate bond number
once, 1t is admitted the same number
could be repeated ten or twenty
times. and because of this possibility,
the losses, II is said, might involve
hundreds of millions of dollars on
bonds issued without compensating
reserve.
Billions in Federal reserve notes
have been issued by the bureau, 4.
which at the present time. it is said,
has on hand a billion and a half of
these bills.
The method of distributing these
bank notes to the Federal reserve
boards made II necessary to keep a
double check on them, and receipts
Cor billions of these notes, already
distributed, must be checked.
1t was charged in the threatened
expose, that in the distribution of
these notes to the Federal reserve
banks. sent in packages of large de-
nominations, that bills Of small de-
nominations were substituted.
In many of these Instances the
ERROR" II Is alleged. was not caught
by the reserve bank, who receipted
Tor the notes in sealed bundles, and
were forced to charge the discrep-
ancy. II it was ever found, off to
profit and loss account.
In the distribution OF stamps,
which 1t Is also alleged, shows In.
,regularities, the reauesition on the
bureau was made direct from the
Postoffice Department, and the
stamps were sent direct to the post
office at which they were needed.
Millions OF dollars worth Of stamps
are constantly kept on hand in the
Bureau. none Of these being sent to
the Treasury Department.
=. The order to close the bureau will
affect 4,200 employees. Approximate
1000 women counters will be re-
aimed to assist in the work OF count
ng the notes, and stamps and check
ng the 1876, ,000, 900 receipts for bonds,
:urned over to the Treasury Depart
nent during the war.
Division chiefs were notified last
aight that employees Of the bureau,
who have leave of absence due them,
will be granted leave with pay dur
ng the period OF the idleness Of the
bureau
o. Employees furloughed, who have no
,nnual leave due. will be compen-
lated, 1t was stated, by deducting
The time lost, from the furlough |
ystem. now in force in the bureau,
forcing each employe to take ons
day off without pay, out Of every |
light. |