Evening star., 1924-02-14

sMcClurc Newspaper Syndil
the differences in the 3Is per cent
first liberty loan paper accounts
could not involve a money value of
over $500, while the differences in
the first 4 per cent and second 4 per
cent paper could not involve, a money
these shortages there are, as stated.
averages in the Az per cent bond
paper and in the victory note paper
accounts The conclusions OF this
report were substantiated by the re-
port of the auditors of the Depart
ment of Justice. which made an in
dependent examination al OF the same
date and found substantially the
same discrepancies.
Overlsxue Is NeEatived.
"The check which has thus been made
in the paper accounts of the bureau OF
engraving and printing concluslTeIy
mega tives the possibility OF any ma
terial duplication or over-lSsue OF any
of the liberty loans or other public
securities since the beginning of the
war. AS a matter of fact, the audits
show that the bureau of engraving
and printing printed and delivered. in
connection with the war issues, over
G15 100000 pieces Of securities, with
an aggregate face value exceeding
nv
differences in relation to these totals
is insignificant and certainly not more
tthan would be expected in operations
of this magnitude.
After printing and delivery by the
bureau of engraving and printing the
bonds and other securities all received
critical examination, the seal of the
Treasury was affixed, and they were
initiated by examiners. In the
various processes the securities were
l.. v,fn <@y
and adequate checks were imposed at
the Treasury and the federal reserve
banks TO insure that no deliveries
would be made except against pay
ment therefor in proper form.
During the course OF examination.
and before issue, thousands of i'm
perfectly printed bonds. including
many bonds and notes with imperfect
or incorrect serial numbers. were de-
tected by the examiners and returned
the 6ureau Of engraving and Print
some imperfectly printed and some
imperfectly numbered bonds were not
detected and ultimately reached the
public, but only against payment
therefor in regular course. 80 that
there was no duplication or over
issue Of the public debt on this ac-
count.
Treats OF DuplicatiOns.
Undoubtedly, also, there have ben
bonds and other securities with du-
plicate serial numbers. and contrary
to Mr.. Brewers assertions. there have
been such Implications of numbers
with registered as we'll as coupon
bonds. Even now duplica tfons oc-
casionally occur in printing, through
variations in the numbering machin-
cry. All the duplicate serial numbers
discovered by the Treasury are check
ed up as promptly as possible, and
none has yet been found to involve
any duplication whatever in the pub
lie debt.
"For the most part, the duplicate
numbers have been found, on investi-
cation, to result from mechanical
errors in numbering, either through
a alterations in the machinery or
aHetn MAKEUP bonds. or to o be only ape
parent Implications. resulting from
errors in recordation. In many other
cases, it appears that the numbers
have been altered while the bonds
apparent duplication in numbering
when returned to the Treasury. When
it is remembered that there were
over 100.00O.000 pieces Of temporary
liberty bonds alone issued by the
Treasury. each with a serial num-
ber, it is not surprising that dUpH-
cate numbers should occasionally ap-
pear, the total up to date being only
about three thousand. When it is
remembered also that In the ordi-
nary course of business United States
coupon bonds and other bearer Sc
curities are handled by the public
without regard to their serial num-
bers, and that even in the Treasury
the serial numbers are important only
for purposes of original issue and
again on final audit when received
for retirement, it will hf appreciated
how little significance for practicai
purposes attaches to the applications
in serial number which have been
discovered.
vet investigated in the course OF its
examination Of - Brewers report
throws any doubts on these conclu-
sions or indicates any duplication or
overissue of the public debt. Many
of the specific cases mentioned: in
fact, had already been fully explained
to Mr.. Brewer, and had no proper
place in the report. The examination
will be finished to completion as
rapidly as possible. and will advise
YOU further as to the final results.
Il think in the meantime the public
can rest assured that there has been
no overissue of government securf-
ties and that the integrity OF the
public debt cannot be attacked. =
Faithfully yours. o>,
(Signed) IA. W. MELLON,
Secretary Of the Treasury"
Hill Is Silent.
r.