BONDS MYSTERY

Hokitika Guardian, 27 June 1922, Page 1

BONDS MYSTERY

NEW YORK, May 1

The prospect that American taxpayers may he called upon to furnish hundreds of millions of dollars to redeem Government bonds which in some mysterious manner were issued in duplicate is raised by charges made in the House of Representatives yesterday by one of the members for South Dakato, All, Roval C. Johnson. . V His charges, if true, would involve such carelessness or worse on the part ( , r Treasury officials as would bo almost incredible in a Government department of the first rank. Mr Johnson, who is the chairman ot the committee engaged in investigating w«,r expenditure declared that ho know nositivelv that duplicate and uncancel]cd bonds to tbo amount of £100,000.000 had liecn issued by the Treasury in the last few years. “The Government w iH have to pay for these duplicate bonds,” he said. .. Interest on the bond* has been paid for years and was still being paid, he added Neither Mr Johnson nor any < f ids supporters attempted to prove whether the alleged duplication was the result of carelessness or h deliberate criminal act. Since there is under stood to be no question of repudiation of the alleged duplicated bonds, public! .interest is centred in Mr Johnson s suggestion of a great hidden scandal. What lends the matter most of its interest is the fact that Mr Johnson’s revelations follow by less than a month the discharge by the President at almost a moment’s notice of 28 chief officials of the Government bureau of engraving an,l printing. This action wrfs taken in circumstances which, m spite of vigorous protests by the Press ahd in Congress, were never cxplamcd beyond a brief statement by the President that the discharges were foi. the good of the service.” . The fact that they were clear violations of the Civil Service law and the foa r that they portended a return on the part of the Administration to the bid discredited system under winch the greater part of Government offices were.

filled by political nominees caused President I larding to he severely criticised even by newspapers most friendly to the Administration. But the President steadfastly declined to amplify his statement. , - i A fortnight ago the Treasury denied rumours then current that the dismissal of the officials was in consequence of the discovery of facts of a kind alleged by Mr Johnson.