Reminiscences of Sixty Years in Public Affairs, Vol. 2

by George S. Boutwell

His power was unlimited as there were no checks upon him. He once said to me when a committee of Congress was investigating his bureau, during Mr. McCulloch's administration:

"They will never find a five cent piece out of the way."

After the discharge of Clark, I ordered an account of stock to be taken. I appointed a custodian of the plates after a full inventory had been made, whose duty it was to deliver the plates each morning to the printers, to charge them to the printers, to receive them at the close of the day, and to settle the account of each man. A special paper was designated and public notice was given under the statute by which it was made a crime for any person to make, use or have in his possession any paper so designated. The paper was manufactured under the supervision of an agent of the department, who was authorized to count and receive all the paper at the mills and to answer the orders for its delivery to the printers. The paper making machine was equipped with a register which numbered the sheets of paper. That record was compared daily with the number of sheets received by the agent, and thus the Government was protected against any fraudulent or erroneous issue of paper. Registers were also placed upon each printing press. Each morning one thousand sheets of paper were delivered to each plate printer, and at the close of work his printed sheets were counted and the number compared with the register before the printer was allowed to leave the office. In like manner there was an accounting with each counter. The same system was extended to the managers of the machines used for numbering bonds and bank notes. The registering machine was made by an employee, under my direction, and at the cost of the Government.

Books of account were opened upon the new system. During my administration, as far as I know, there was never the loss of a sheet of paper nor was there a fraud committed in connection with the business of the bureau. For further security, I made arrangements by which two bank note companies in the City of New York prepared sets of plates for a single printing on each security, the red seal being imprinted in the Treasury Bureau. By this arrangement collusion was impossible. The expense of printing was increased by this arrangement, but it seemed to be more important to attain absolute security against fraud than to save money. My successors have thought otherwise and the printing is now done in the Treasury.

During my term I ascertained that a man in New York who had once been employed to print certain securities, had in his possession the plates which he had used and which he claimed as his property. The printing had been done in Mr. Chase's administration and there was no agreement that the plates were to be delivered to the Government. The plates were obtained, finally, by the payment of a sum of money. The person who had the plates was an old man, and there was danger that they might fall into the hands of dishonest parties.

When I was in charge of the Treasury I had an understanding with Colonel Whiteley, the Chief of the Secret Service that I should have an interview with any expert professional criminals who might fall into his hands. I recall an interview with one such criminal. A man of forty years and a gentleman in appearance, and a professional gentleman, as well as a criminal by profession.

Upon the suggestion of Colonel Whiteley I gave the prisoner a fresh one dollar green-back note. He took a phial of liquid from his pocket, wet one half of the paper with the liquid and in my presence the colors disappeared from the paper. Time and exposure have given a dark tinge to the paper which was a pure white when the experiment was ended. By the use of the liquid the counterfeiter was able to obtain a piece of fibre paper on which a bill of large denomination might be printed, given only the engraving.

The revenue marine service was impaired by the incompetency of many of the officers, and its efficiency was also impaired by the size and quality of the ships. Some of them were sailing vessels, most of them were of wood, and the modern ones were unnecessarily large in size. I created a commission and all the officers except a few who were too old for active service were subjected to an examination and those who were found incompetent were discharged from the service. Their places were filled by young, active and well qualified men.

A commission was appointed to consider and report upon the size of the vessels that were best adapted to the service. Three reports from successive commissions were made before a satisfactory result was reached. Finally, a report was made by Captain Carlisle Patterson, that was approved by me and by a committee of Congress. The recommendations of that report have been followed, as far as I know.

At that time the Mint Service was without organization. Each mint and assay office was in charge of an officer called superintendent, but there was no head unless the Secretary of the Treasury could be so considered, as all the business came to him. Upon my recommendation Congress authorized the appointment of a Director of the Mint, and upon my recommendation the President appointed Dr. Linderman, a Philadelphia Democrat, but a gentleman familiar with the service. Under him the service was organized and made systematic.