The Washington times., 1924-02-14
Mellon Claims Brewer
Charges of Frauds at
Bureau Are UnfOunded

Secretary of the Treasury Mellon
today reiterated his denial Cf
charges Of fraudulent duplication
Of Federal securities, in a letter
to President Coolidge, made public
in behalf Of the Chief Eecutive,
today.
Acting on the request Of Charles
B. Brewer, Department of Justice
agent investigating the Bureau of
Engraving and Printing, Secretary
Mellon conducted an independent
probe Of every Treasury agency en-
trusted with the handling Of bonds
and other Government paper.
II am satisfied that the charges
are ,unfounded." the letter read"
that there has been no fraudulent
duplication or overissue Of the
public debt, and that there 10 no
OCCASION for any public uneasinass
as to the integrity Of either the
(Iocernment's outstanding obliga.
tions or those branches Of the
Treasury service which have been
engaged in the handling Of the
public debt securities"
Secretary Melons letter stated
that the securities to which the
charges principally relate are the
sO-called temporary Liberty bonds,
issued in 1917 and 1918 with only
the first few interest coupons at
tached, and the 1919 Victory bonds.
THE Victory notes have since ma
tured and been paid off in 1898"
Mellon reported. '"The temporary
Liberty bonds became exchanEoable
for permanent bonds, with all cou-
pons to maturity attached, in 1919
and 1920, and the exchanges Of tenn
porary for permanent bonds arc now
practically complete"
Approximately $37,000,000 in tenn.
porary bonds remain out Of q total
issue outstanding Of almost $16,-
600 ,O00, 900.
"The Liberty bonds now In the
hands Of the public" it was pointed
out, "are practically all permanent
bonds. which are not in any way
affected by the charges, 30 that
there is no occasion for any public
uneasiness in this regard.
"The exchange Of temporary for
an excellent check upon the integ.
rity of the issue OF temporary
bonds, and 1t furnishes a conclu.
sive answer to the charges Of dupE-
cation in the public debt"
Secretary Mellon stated that the
adults of the paper accounts OF the
Bureau since the beginning Of the
war show only petty discrepancies.
Imperfectly printed and numbered
bonds have probably reached the
public, according to the letter, .''but
only against payment therefor in
regular course, so that there was
no duplication or over-iasu0 Of the
public debt on this account" Re-
gtstered az well Rs coupon bonds
have been 80 affected, It was said.
The Secretary's letter reviews the
bureau affair since It's inception In
1920, when J. w. McCarter, dNpOsOd
assistant register Of the Trea9uEy,
charged duplication Of bonds.
"No case which the Treasury
has yet Investigated in the coureo
of the bureau report" said Mellon,
throws any doubts on these conclu-
sions, or Indicates any duplication
or over.issue Of the public debt.
MANY Of the specific cases
mentioned, in, fact, had already
been. fully explained to Brewer, and
had no proper place in the report.
The examination win be finished to
completion as rapidly as possible,
and / will advise you further a
to the final results
IT think, In the meantime, the
public can rest assured that there
has been no Over-issue Of Govern.
ment securities and that the In.
tegrity of the public debt cannot ho
attacked"