Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-02-15
MELLON ANSWERS
BREWER CHARGES
BOND DUPLICATION

Washington, Feb. 14.-ChargeS
brought by Charles Is. Brewer. depart
ment of justice attorney, of bond du
plication in the bureau Of engraving,
were answered "once and for all" today
10y Secretary Mellon, who, in a letter to
the president, asserted the accusations
were unfounded and the integrity of
the public debt undisturbed. The let
ter to the chief executive was "a clear
statement of facts" the secretary said,
that any public uneasiness MAJ be dis
sipated.
In making public the letter to Mr..
Coolidge. che treasury secretary also
announced that Major Wallace w.
Kirby of the army engineer corps
would take charge as acting director of
the bureau Immediately, relieving
Louis \. Hill. the director named when
President Harding ouSted James l..
Wilmeth and ~ other officials of the
plant in 1922. Hills resignation was
rendered some weeks ago. upon an
nouncement by the treasury of de-
cision to restore the ousted employees
to their places. but acceptance was
withheld until his successor could be
selected.
In making known the selection of the
new acting director. Mr.. Mellon made
public statement by the president
which explained that Major Kirby
would retain his commission in the
army and that when the bureau is put
once more in good working order
permanent director will be appointed"
Mr.. Melons letter to the president
dealing with conditions in the bureau
related to details of the investigation
conducted by the treasury in running
down each charge presented by Mr..
Brewer. Most of these, the secretary
said, concerned affairs of the lureau
under previous admins rationS, and
related to the great wartime issues
of federal securities. But these treas
ury agents went back to check over
these also, Mr.. Mellon said. ana added
that the treasury's record of guarding
against fraud in the handling of Sc
curitics Invites the fullest inspec-
ton
He recalled that Secretary Houston
expressed similar view of charges
made by j. w. McCarter of South |
Dakota, in 1920, after an inquiry into !
bureau affairs. The charges then. as !
now. in Mr.. Wellon's opinion, were !
based largely on Characterization ard !
misunderstanding" and the secretary |
declared emphatically there was no !
evidence at any time to subStantiate |
the charge of fraudulent issue of fed !,
eral bonds.
Mr.. Mellon said the Brewer charges, =
in fact, related principally to the
temporary issues of securities, nearly
all of which were exchanged into per-
M Inent bonds as rapidly as condi-
tons permitted. That exchange, in
the secrctary's opinion, provided
good check upon the integrity of the
issue of the temporary bonds and lit
furnishes a conclusive answer to the
charges of duplication" There are
now only about thirty seven million
dollars in temporary bonds still out
standing out of a total of mare than
fifteen billions issued, the secretary
asserted.
I'm other words" the latter said,
'the liberty bonds now in the hands
of the public are practically all per-
bonds. which are not in any
way affected by the charges, so that
there is no occasion for any public
in this regard"
Beyond all this, Mr. Mellon assert
ID. there have been periodical audits
Of the accounts of paper stocks held
by the bureau and on which the Sc
curities are printed. These audits. he
explained, have covered the entire pc
rod since the beginning of the war
md no discrepancies were found. he
asserted, beyond the petty discrep- :
ancies ha would naturally be expeced
in several hundred million piecs of
paper" |:
Mr.. Mellon sal he treasury's inves-
legation was not lie only one conduc-
I'd into the charges made by Brewer.
The department of Justice detailed
another committee to study the cahr-
yes made by Brewer. he said. and Il
had found no apparent irregularities.