The Birmingham age-herald., 1924-02-15
MELLON HOLDS
 BREWER BOND
 CHARGES FALSE
In A Letter To President Asserts The Accusations
 Are UnfOunded
MAJOR w. w. KIRBY IS
 HEAD OF ENGRAVING
Relieves Louis A. Hill AS Direc- tor, Who Resigned Upon Re
 instatement Of Old Men

WASHINGTON. Feb. 14.-(By As sociated Press. )-Charges brought by Charles B. Brewer, department Uf jus tice attorney of bond duplication in the bureau of engraving, were answered ''once and for alp today by Secretary Mellon, who, in a letter to the Presi- dent, asserted the accusations were un- founded and the integrity of the pub lie debt undisturbed. The letter to the chief executive was "clear statement of facts" the secretary said, that any public uneasiness may be dissipated.
 In making public the letter to Mir. Coolidge, the treasury secretary also announced that Major Wallace w. Kir- by of the army engineer corps, would take charge as acting director of the bureau immediately, relieving Louis A. Hill, the director named when Presi- dent Harding busted James l.. Will meth and 27 other officials of tAe plant in 1922. Hills resignation was tend cred some weeks ago, upon announce ment by the treasury of decision to restore the busted employees to their places but acceptance was withheld until his successor could be selected.
 Kirby Retains Commission
 In making known the selection of the new acting director, Mir. Mellon made public statement by the Presi- dent which explained that Major Kir- by would retain his commission in the army and that when the bureau lis put once more in good working order a permanent director will be appointed"
 Mir. 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 Mir. Brewer.
 These related to wartime securities. But the treasury agents went back to check over these also, Mir. Mellon said, and added that the treasury's record of guarding against fraud in the hand ling of the securities, invited the full est inspection.
 He recalled that Secretary Houston expressed similar view of charges made by J. W. McCarty after an in- quiry into bureau affairs. The charges then as now, in Mir. Mellon's opinion, were based largely on 'misinforma- tion and misunderstanding, and the secretary declared there was no eyi- dence at any time to substantiate the charges of fraudulent issue of federal bOnds.2
 Holds Charges Answered
 Mir. Mellon said the Brewer charges, in fact, related principally to the temporary issues of securities. nearly all of which were exchanged into per manent bonds as rapidly as conditions permitted. That exchange, in the sec retary's opinion, provided. good cheek Iii, on the integrity. of the issue of the temporary bonds, and it furnish es conclusive answer to the charges of duplication" There are now only abOut$37 100000 in temporary bonds still outstanding out of total of more than fifteen billion issued, the secretary, asserted.
 Tn other words,' the letter said, ''the Liberty bonds now in the hands of sthe public are practically all per- manent bonds, which are not in any way affected by the charges so that there is no occasion for any public uneasi- ness in this regard"
 Beyond all this, Mir. Mellon, asserted there had been periodical audits of the accounts of paper stocks held by the bureau and on which the securities are printed. These audits, he explained, have covered the entire priod since the beginning of the war and no discrepan- cies were found, he asserted beyond the petty discrepancies that would na- turally be expected in transactions in- volvins several hundred million pieces Of paper" -\
 Mir. Mellon said the treasury's in- vestigation was not the only one con- ducted into the charges made by Brewer. The department of justice de- tailed another committee to study the charges made by Brewer, he said, and has found no apparent irregularities.