f 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 siz