"General Print Mint" For

FOR ESTABLISIUWO, BY ACT OF CONOREBS,NOTA OWN 'MD4T, FOR THERE IS ONE ALREADY, BUT A

W.3LUHOTON FOR THE EMISM9N OF PArkE MO r TO THE AMOUNT flRHAP& OF.

- H TO 3Z SOUnDED UPON A ROCH, Afl UPON A CRfl)IT OF TLSYEAR$ATS !tVnYq: WHIOD WILL It PRODUCTIVIorARItOF PXOPEWET ILP -: - 10, 15, rztaa,. 20PZR CZRT., aflOflmflafl asx.t - E' -- :.

BY EDWAn 0. OQflctLL,

Title page of an early pamphlet in the collection of the Library of Congress proposing a "General Print Mint" for the United States.The author shipped a quantity of his treatise to the Postmaster General at Washington requesting that official to distribute the copies to the Members of Congress. HISTORY of the BUREAU of ENGRAVING and PRINTING

1862-1962

TREASURY DEPARTMENT Washington, D.C.

For sale by the Superintendent of Documents, U.S. Government Printing Office Washington, D.C.20402.Price $7.00 CENTENNIAL HISTORY STAFF

MICHAEL L. PLANT Office of the Controller

ARTHUR BARON LOUISE S. BROWN Office of Office of Plant Currency and Stamp Manufacturing Facilities and Industrial Procurement

JOHN J. DRISCOLL MICHAEL J. EVANS Internal Audit Staff Internal Audit Staff

The Introduction, giving a brief history of the art of engraving and its application in American colonial and early Federal days, was prepared by Robert L. Miller of the Bureau's Designing Staff, Office of Engraving and Plate Manufacturing.

II Foreword

RE IDEA of publishing ahistory of the Bureau of Engraving and Printing to commemorate the centennialanniversary of its establishment was nurtured in the knowledge that a recitalof its accom- plishments was a story that well deserved the telling.It is not a subject that has been dealt with widely.Much of what has already appeared inprint concerning the Bureau is in the nature of guidebookmaterial or relates to its products, especially currency notes and stamps, ratherthan to the agency itself. The purpose of this volume is to fill that gapto tell the storyof the hap- penings and conditions that have had an intrinsic bearing onthe printing of our Government's securities. Throughout the events recounted here will be found a definiteconsistency in one common endeavor, and that is the constantstriving for excellence of the printed products and the timeliness in meetingthe monetary and security needs of the Nation at peace and at war.These engravings, touched with an artistic eloquence that portrays the strength, the integrity,and the dignity of the sovereign state, have earned an unswerving respectthrough their character and perfection. This enduring excellence is a magnificent tribute to thosepublic servants who plodded faithfully through the century and peopled this story.

III Hurm EnVrnvil & PrIImIi

)'(iNAL HOME 1882 - 1880

tHF Li- !'-'!!JJh!'!j--f 0-sn :rIflT1VtTu.i.., r IJ!! miup111W nfl i ii, IDS$'aUui nuu...,lp In-1- __=r ---_-...... - -

FIRST BUILDING 1880 - 1914 of Ofl4Yanig/ (Yand iniih1

MAIN BUILDING 1914 !!!tEilIA b I I 2)4 L//N9%J7t; YI

OUREAU OF ENGRAViNG AND PRINTING ANNEX 1938 Acknowleci gment

HIS HISTORY of the Bureau of Engraving and Print- ing is the product of many persons' efforts.Regretfully, it is impractical to cite all those who have had a part in the preparation of the volume, for their names are legion.Innumerable Bureau employees, both those now on the rolls and those who have joined the ranks of the retired, gave invaluable suggestions concerning points warranting coverage in this story and contributed their recollections of those events. Many persons, in other Govern- ment agencies and in private life as well, willingly gave their time and advice.Each has the deep gratitude of the history staff. Appreciation for their help is accorded the staffs of the Bureau Issues Association Columbia Historical Society Library of Congress: Information and Publications Office Manuscripts Division Prints and Photographs Division National Archives and Records Service: Diplomatic, Legal, and Fiscal Branch Legislative Branch Social and Economic Branch Treasury Department: Office of the Assistant to the Secretary (Public Affairs) Library Division of Retired Securities, Bureau of the Public Debt U.S. National Museum: Division of Numismatics, Department of Civil History Division of Philately and Postal History, Department of Civil History U.S. Patent Office: Examining Division Handling the Printing Art Scientific Library

V A special note of thanks is tendered Hope K. Holdcamper and Philip R. Ward of the Diplomatic, Legal, and Fiscal Branch, National Archives and Records Service, George P. Perros of the Legislative Branch of that Service, and William E. Lind of the Social and Economic Branch, for their patient and unstinting assistance in locating historical and legislative material pertaining to the Bureau and the Treasury Department; Edith R. Saul, Chief, and C. Frances Manwaring, Assistant, Washingtoniana Division, District of Columbia Public Library, for help in securing data concerning the Bureau in the community life of the Capital; and Geneva H. Penley, Documents Li- brarian, National Archives Library, who so graciously gave her time, talents, and advice in locating and making available legislative background material for this history.Her insight and encouragement did much to bring this volume to fruition.

VI Contents Page Centennial History Staff II Foreword III Acknowledgment V Contents VII Introduction XI An Ancient Art XI Copperplate Printing of Securities XIII A New American Industry XIV Mechanical Steel Plate Engraving XVI Banknote Printing Becomes of Age XVII The Need for Federal Paper Currency XVIII

CHAPTER I.The Early Years (1862-1867) 1 Foundation Stones 2 The Bureau's Charter 3 Printing at the Department 5 Original Engraving Staff 7 Fractional Currency 8 Other Early Production 13 The 1864 Investigation 13 The Green in "Greenbacks" 17 Hydrostatic Printing 18 CHAPTER II.Growing Painsa name of its own (1868-1879). . 21 First International Award 24 Internal Revenue Stamps 27 Power Plate Printing Presses 30 Distinctive Currency Paper 35 CHAPTER III.The Bureau Comes of Agea home of its own (1880-1893) 40 The 1880 Rule Book 49 The Civil Service and Servants 52 Division of Work 57 CHAPTER IV.Production Expandednew horizons in a new century (1894-1913) 60 Philippine Currency and Postage Stamps 65 Coiled Postage Stamps 67 Savings from Improved Methods 71 VU! CONTENTS

CHAPTER IV.Production ExpandedContinued Page Currency Laundering Machines 76 Rotary Web-Fed Postage Stamp Press 79 CHAPTER V. A Bigger Homean expanded workload (1914- 1928) 84 Supply Problems 90 Liberty Loan Bonds 92 Photolithographic Offset Printing 95 Offset Printed Postage Stamps 97 Space at a Premium 98 Wartime Personal Effort 99 A Bit of Nostalgia 101 Postwar Years 102 The Dismissal Fiasco 103 Power Presses Vindicated. 106 Electrolytic Plates 108 CHAPTER VI. A Smaller Productthe depression and national recovery (1929-1940) 110 The End of an Era 114 Extensive Furlough Plan 115 "Emergency Currency" 116 A Big Check Job 117 "Baby Bonds" and Other Securities 119 New Currency Designs 121 Printing of Foreign Currencies 123 Development of Electric-Eye Perforating Equip- ment 125 The Annex Building 128 Expanded Research and Development Program 130 Two Notable Sets of Postage Stamps 131 Food and Cotton Order Stamps 134 CHAPTERVII. World War II Yearsthe Bureau on the homefront (1941-1948) 137 War Savings Bonds 138 A Dime at a Time 140 Money as a Weapon 141 Military Postage Stamps 147 Cloaks and Daggers and Currency 148 "Overrun Countries" Stamps 149 "R" and "S" Notes 149 Personal Effort 150 CONTENTS IX

CHAPTER VII. World War II YearsContinued Page The Bureau as a Tourist Attraction 151 The Case of the Russian Plates 153 CHAPTER VIII. Technological Advancementnew ways for old (1949-1962) 156 Nonoffset Inks 157 18-Subject Currency 159 Flatbed Plate Printing Press Improvements. 159 New Designs for Federal Reserve Notes 163 Business-Type Budget 165 Payment for Lost Sheets 166 High-Speed Stamp Presses 167 The "Big" Robbery 169 Sheet-Fed Dry Printing 172 "In God We Trust" 176 Job Security 178 Multicolor Postage Stamps 179 Project Mercury Stamp 181 Fini3 183 Bibliography 186 Index 189 THE COAT OF ARMS OF THE UNITED STATES OF AMERICA Introduction

HE PRINCIPAL means of printing at the Bureauof Engraving and Printing is from intaglio plates made from hand-engraved dies.Typographic and lithographic methods of printing are also employed here, but these and other methods like gravure printing are all absolutely reliant on photographic processes for pictorial reproduction.Consequently, they lack the fidelity of fine line inherent in steel engraving and do not possess the distinctive third-dimensional effect of ink deposited on paper. These features have long been the principal means for legitimate producers of paper securities to deter counterfeiting.Today as a further protection, distinctive paper and secretly formulated inks are used in the printing of U.S. securities, but the last bastion of defense lies in the exactness of the myriad of lines that must be plate printed to reproduce the image engraved on the steel die.It is this challenge that makes a good counterfeit rare and a perfect one virtually impossible.

An Ancient Art Aborigines of every culture utilized cut or scratched lines for decorating the surfaces of their most cherished possessions.The extension of this practice through several ages led to excellent achievements in the decoration of metals.By the time of the Renaissance, the burin or graver had become a familiar tool in the skilled hands of goldsmiths and other workers in non- ferrous metals.Also, the techniques of etching lines with acid were highly developed in the art of decorating arms and armor. A particular metal decorative art called niello, an Italian word that can be loosely translated as "a little black line," was to become a direct link to plate printing.Originally developed by the Romans and known to all the civilized world up through the Middle Ages, it consisted of engraving metallic surfaces with fine lines and filling the cuts with a hard dark amalgam.Some clever craftsmen found that in the production of certain small flat pieces XII HISTORY OF BUREAU OF ENGRAVING AND PRINTING

an image could be retained as a memorial or guide for future work by first smoking the piece, then wiping off the surface with oil, and applying damp paper under pressure through rubbing or boning.The oily, sooty substance remaining in the engraved lines would then transfer to the paper, revealing the effect of a pen sketch.Vasari, the early Florentine artist, credits the master Italian niello worker, Maso Finiguerra, with discovery of this process in the mid-l5th century.Evidence now exists that earlier German and Italian workers may have employed this principle, but only for purposes of record.In the surviving impressions of all this work the figures are shown to be left handed, whereas if they had been intended as finished prints the figures would be right handed.It does seem proper, however, to credit Finiguerra with the earliest use of the hand roller in making impressions, a first step toward the invention of the roller printing press for intaglio plates. The initial use of this system as a conscious means of printing is obscure, but it is known that several early engravers employed this method of reproduction. These seem to start with another Italian, Baccio Baldini, which would place the effort nearly contemporary with Finiguerra.Baldini's work was, of course, engraved in reverse to print correctly and heavy ink wasused. One of the first artists to engrave in ferrous metal for printing was the German, Albrecht Dürer.His finest work, however, was engraved in copper. Although a copy of Euclid's Principles had diagrams printed from copper in 1482, they must have been produced by hand rollers, since the copperplate printing press is not known to have been invented until 1545.The construction principles of this press still survive for all hand plate printing presses. Many fine artists were attracted to this new graphic art and its practitioners form a roster of famous names.Plates made for book illustration seem in a general sense to have formed the traditions of security printing.The aim was to make each impression from a plate like its predecessor; consequently, the intaglio line had to be kept clean and free from undercuts and burs, or raised metal.The printer had to carefully hand-polish the plate to remove all ink other than that deposited in the cut or etched lines.By contrast, the fine soft prints of Rembrandt are often distinguished by the burs of dry-point work and carefully developed effects in the wiping of the inks.These techniques were highly effective for the result desired, but created such variations induced by wear of the plate and the individual styles of wiping that they could not be employed for even the small editions of his day. The production of copperplate book illustrations and title pages throughout a long period undoubtedly developed the disciplines for styles of engraving first used in plate printed currency. INTRODUCTION Copperplate Printing of Securities

The techniques of copperplate printing for book illustration seem to have been earliest applied to printing of paper money of the best quality in mid- 17th- century England.With the ever-present scarcity of coin in the American colonies, paper specie from England had. some use as a medium of exchange from the earliest days of settlement on our shores.Much of this, however, was produced by typographic printing with some woodcut design after the custom of the Chinese hundreds of years earlier. The first government paper currency in America was issued by the Massa- chusetts Bay Colony in 1690 to pay the soldiers fortunate enough to have returned from an unsuccessful and therefore bootyless campaign in Canada. These bills of credit were printed from crudely engraved copper plates and became debased not only by early counterfeiters but by the established habit of discounting paper money in exchange for coin.Money of a more attractive appearance was issued in the mid-l8th century by several colonies.In spite of more artistic engraving, the deficiencies of copper for security printing prevented effectual stops to counterfeiting.In addition, the ranks of illegal artists were growing, because many who had served an "apprentice- ship" in the old country came to the colonies to escape the severe consequences of their acts.Imitation was made easy by the fact that the best cut copper plates were limited to about 5,000 impressions before it was necessary to recut the plate or make an entirely new engraving.The best trained hands could not produce faithful copies and there was no transfer process available to make printing plates bearing two identical designs; thus, hand-engraved two-subject plates showed variants in lining. A prouder note is that Benjamin Franklin in the late 1720's was engaged in printing notes for the colony of New Jersey.He wrote in reference to the contract, "I contriv'd a copperplate press for it [carrying out the contract], the first that had been seen in the country; I cut several ornaments and checks for the bills.We went together to Burlington [New Jersey], where I executed the whole to satisfaction;.. . ."Paul Revere was another eminent American in this field.He engraved and printed the notes issued by the Provincial Congress of Massachusetts in 1775, the first paper money issued by any of the revolutionary governments that eventually formed the United States. An unfortunate chapter in our monetary history is reflected by the sur- vival of the well-known cliche, "not worth a Continental."The facts behind the severe debasement of the currency issued by the Continental Congress are several fold.An unchallengeable major cause was that the legitimate production of the currency far outstripped the financial resources of the revolu- XIV HISTORY OF BUREAU OF ENGRAVING AND PRINTING

ONE $EXTH =:DOLLAR, WpnofCox.z-' 'dRPS,paf-- IP4 edat!hi-Q\7 ladeiphia, etrnary 17, 1776.

Two examples of Continental currency.

tionary government.Most of these hastily produced bills of credit were printed typographically, being ornamented with decorative blockwork cut in wooden or leaden blocks, but whether made typographically or cut in copperplate they were diligently counterfeited.Not only did the counterfeiter exercise his skill for private gain, but he often found employment and comparative safety by making Congress Bills for the British Army.This rather effective and somewhat modern means of warfare was calculated to cripple the economy of the colonies.The postrevolutionary and early Federal era saw most States return to copperplate printing for security purposes; although its production took more time, experience had shown that the counterfeiting of copperplate printing was easier to detect. Naturally a distrust of all paper money lingered long after the disuse of Continental currency.

A JV'ew American Industry The end of the 18th century would seem to mark the beginning of the modern banknote printing industry in America.It was in 1799 that a system was first patented by which paper currency could be produced bearing several identical intaglio printed units.These were then referred to as stereotype checkpoints. INTRODUCTION company withothersuchdiesbearingpunchmarksorhandengraving. soft steeldies,which,afterhardening, face throughaheatprocess. were thenengraveddirectlyontheplate. the platesmultipleintaglioimpressionsofexactfidelitywhich other work,thedesignwasrolledintocopperplates. After thesurroundingsurfaceofrollwascuttosamedepthas and crossingthemwithengravedintersectinglinesfromtwodirections. designs intothewallsofannealedsteelcylinders(hereinaftercalledrolls) duced about1804,therollswerehardenedbysupplyingcarbon to theworkonroll. Mass., thesystemwasacumbersomemethodofpunchingletteringand As initiallypracticedbyits One oftheoriginalbanknotes madebythePerkinssiderographic Courtesy ofMr.WilliamH.Dillistin, FederalReserveBank,NewYork. The nameofthebankandothernecessarylettering This permittedthedesigntoberolledinto inventor, JacobPerkinsofNewburyport, BACK were assembledinametalframe :-. w In afurtherdevelopmentintro- This impartedto were inreverse process. to thesur- It HISTORY OF BUREAU OF ENGRAVING AND PRINTING created an ingenious intaglio printing plate having interchangeable dies for the different banks subscribing to the system.For denominations of $5 and above, Perkins devised a stereotype check plate for printing backs.These plates were composed by rolling designs on pieces of steel tightly clamped together which were than taken apart and interspersed with blank metal strips.This grouping when reclamped was used as the printing medium. The resultant blank portions of a printed back provided a means whereby a questionable bill could be folded and compared with its counterpart on a specimen note.These major innovations plus the durability of steel over copper led to quick adoption of steel plate printing of securities.The State of Maine early required its use by all banks, and Massachusetts made its use by State banks mandatory in 1809. Perkins was a very versatile man. He not only excelled as a die sinker (his original trade) but he was to make his mark in many other fields of invention.His inventiveness and practical knowledge of mechanics and metallurgy soon breeched a gap to perfect the technique of utilizing rolls to nearly present-day standards.He developed larger presses of greater power so that longer rolls could be used to transfer more work at a timeand the process described above became somewhat reversed.From this point on, all engraving was done on flat dies and the use of lettering and ornamental punches was abandoned. From completed units in the formof engraved dies, rolls were taken.These, of course, had the work in relief on their surfaces.A variety of intaglio designs were thereby transferred in desired combinations on a master die. By alternate annealing and hardening of the dies and rolls, the method was carried forward to the point that the note- sized master die had its entire design impressed into one or more printing plates as many times as the size of the plates allowed.The plates were generally limited to four notes.The flexibility of this perfected method prompted Perkins and his associates to coin the word "siderography," or iron writing, from Greek word roots and the name survives today in reference to transfer press operations.This development of a new process in a burgeoning business in the then young United States soon came to the attention of the Old World where it became known as the "American System."

Mechanical Steel Plate Engraving

In 1812 an American clockmaker, Asa Spencer of Connecticut,patented a clever engine-turning device to ornament watches.It consisted of cams and gears which exerted a series of eccentric circular motions to adie clamped to a bed on the machine. A stationary point thereby traced or cut an endless design of such exceptional regularity that it became recognized as INTRODUCTION

an effective further means of foiling ever-existent and sometimes all too clever counterfeiters.In 1815 Perkins purchased the patent rights to this machine, then greatly improved, and introduced Spencer and his invention to the banknote business.The method was so completely adaptable to the earlier described transfer press that both white line and black line effects could be achieved and repeat patterns could be made into borders and cartouches or "counters."This mechanical ornamentation is difficult to counterfeit by hand engraving.Its modern value, as such a deterrent, is the difficulty encountered in reproducing it by photography.The fine white lines thus produced tend to close when the camera tries to capture on film the delicate engraving of black lines in other parts of the design. A further tax on the counterfeiter's skill is the retention of these extremes throughout his plate making and printing processes.For these reasons, money of all nations has long presented a certain generic appearance reaching back to the first use of Asa Spencer's invention. Steel plate printing began to supplant the use of copper plates for illustration as engravers found that more delicate gradations of tone were made possible through greater durability of steel.Book publishers also found the medium profitable for illustrative purposes, as it not only permitted larger editions but required less of the printer's time.As a graphic art form, steel engraving soon gained immense popularity and attained such .prestige that it became a mark of quality when used for book illustration or other purposes. Many homes of the Victorian era had large steel engraved prints as treasured decorations in their parlors.In those days such prints were the nearest approach that could be made to photographic copies of original paintings and portraits.The men who engraved them shared equal honors with the original artists because the ultimate results depended so directly upon the engravers' skill in interpreting the artists' works with attractive line.

Banlcnote Printing Becomes of Age

With the recognition of steel engraving as a prime security method of great prestige, every bank in the land sought to issue its own currency based to a varied degree on the bank's assets.This increasing interest led to a great growth of banknote houses to do their printing.Some of these firms had large sample sheets from which bank representatives could compose a note to their liking.Unfortunately there was little governmental supervision at the State level and less at the Federal.Obvious abuses resulted and some notes were even issued in the name of nonexistent banks. Fraudulent issues can also be attributed to the failure of some banknote companies and the subsequent sale of their assets, which often included stock bed pieces that 648-001 O-04-2 XVIII HISTORY OF BUREAU OF ENGRAVING AND PRINTING

had been used in preparing genuine notes.In an effort to combat such a contingency, the style of tying together the transfers from stock bed pieces with hand-engraved foliate forms was developed and remains in use today. From that time on the appearance of notes changed.The easily assembled blocks of transferred work with their rectilinear design gave way to more complex designs necessitating costly hand engraving on master dies for each note.More and more reliance was also placed on the use of portraits, as it was found that their imitation was more readily detectable by faulty lining which altered the expression of the subject.

The Xeed for Federal Paper Currency

From our earliest days as a Nation, coins had been the only money issued by the Government. Although monetary wealth could be accumulated and business transacted through such means as interest-bearing banknotes, the shortage of U.S. coins for day-to-day expenditures brought about many make- shifts. A bucolic means of exchange involved the keeping of scrupulous accounts and balancing off the prices of goods received against labor and services rendered.The differences were thereby resolved with a minimum use of coin.In many communities of the early frontier, out-and-out trading of such assets as livestock established currency systems akin to those of abo- riginal civilizations.Tokens had long been a frequent substitute for coin in urban areas and along post roads, and a similar system prevailed in many cities of the United States up until the Civil War.These conditions and the failure of many banks in 1857 contributed to the need for issuance of Federal paper currency.

CHAPTER I The Early Years 1862-1867

HE BURZAU OF ENGRAVING AND PRINTING is an indirect consequence of the Civil War. It is primarily the result of the self-confidence, courage, ingenuity, and patriotism of one man, Spencer Morton Clark.It is, as well, the result of the foresight of Salmon P Chase, President Lincoln's first Secretary of the Treasury, his confidence in Clark's ability, and his recognition of Clark's accomplish- ments. Actually, the Bureau did not come into exigencies of the times did he make the existence until August29, 1862.But the latter proposal, urging great care "to pre- groundwork for its establishment was laid vent the degradation of such issues ... a year previously. There was a doubt in the minds of many With the firing on Fort Sumter and people as to the constitutional authority of the President's call for volunteers to quell the Government to issue paper money. the ensuing state of rebellion, the Na- Congress adopted Chase's plan in an act tionalready on the fringe of bank- of July 17,1861 (12Stat.259). As a ruptcywas sadly pressed to finance a result the first paper money issued by the war.This and other war matters caused U.S. Government caine into existence. the President to call Congress into extra These notes became popularly known as session on July 4,1861.During this ses- "demand notes," a title brought about by sion, Secretary Chase recommended to certain provisions of their issuance. They Congress both a system of taxation and were produced by the "New York bank one of floating loans. His scheme for bor- note companies"; i.e., the American Bank rowing included the issuance of non- Note Co. and the National Bank Note interest-bearing notes which would cir- Co., under contract with the Govern- culate as money.Only because of the ment.

1 2 HISTORY OF BUREAU OF ENGRAVING AND PRINTING Foundation Stones Secretary Chase that the notes be imprinted with the facsimile signatures of The total amount of money authorized the required officers.He also proposed to be borrowed by the original currency that the notes be imprinted with a copy act was $250 million, of which $50 mil- of the Treasury seal as additional evi- lion could be in the form of non-interest- dence of lawful issue.Further, he sug- bearing notes of less than $50 denomina- gested that this processing be done in the tions but not lower than $10. One of the Treasury building.The Secretary ap- provisions of this law specified that the proved Clark's proposal and appealed to authorized securities should be "signed Congress for authority to execute the by the First or Second Comptroller, or ideas.This authorization was given in the Register of the Treasury, and coun- an act approved February 25, 1862 (12 tersigned by such other officer or officers Stat. 346).Clark was then instructed to of the Treasury as the Secretary of the design a seal for use on the notes and to Treasury may designate;...." The im- procure the necessary machinery for the practicability of such a procedure was imprinting.Clark carried out these in- soon evident.If the designated officers structions, and the Treasury thus began were to perform duties other than sign its first work in connection with the print- their names to securities, they would have ing of currency. to be relieved of that task.Corrective A variationofthesealoriginally actionwas immediately forthcoming designed by Clark isstill used on the Just 19 days after the enactment of the Nation'ssecurities.He described his original law, President Lincoln signed original design as having for "its interior a bill on August 5, 1861, that changed a facsimile of the seal adopted by the the signature requirements to those of Treasury Department for its documents the Treasurer of the United States and on a ground of geometric lathe work, the the Register of the Treasury (12 Stat. exterior being composed of thirty-four 313). The new legislation also provided points, similarly executed.These points that the Secretary might designate other were designed to be typical of the thirty- personnel to sign the notes for these of- four States, and to simulate the appear- ficers. Ultimately a force of 70 clerks ance of the seals ordinarily affixed to were assigned to the Loan Branch of the public documents."Loyal to the Gov- Secretary's office for this purpose at an ernment, Clark gave no recognition to the annual salary of $1,200 each. These per- rebellion then in progress and included a sons signed their own names to the notes. point in his design for each of the 11 Experience proved that a plan which States then in secession.He was espe- embodied a variety of signatureson the cially proud of his product.To quote notes afforded little security to the issues. his words, "It [the seal design] was diffi- Spencer Clark, the chief clerk of the Bu- cult of execution, and it was believed that reau of Construction in the Department, counterfeiters could not readily make a who at that time was Acting Engineer successful imitation of it.So far [1864] in Charge of that Bureau, suggested to the belief has seemed well founded, for it THE EARLY YEARS 1862-186 7 3 has not, that I am aware of, been success- order.He directed Clark to submit a fully imitated." plan for performing the work on ma- In urging his plan upon the Secretary, chines propelled by steam, to be oper- Clark believed that it would be both ated under Clark's immediate charge. proper and economical to print the signatures "by a peculiar process and with peculiar ink."Arrangements were made The Bureau's Charter to secure two presses for overprinting the Clark's plan was submitted in the spring signatures on the notes.This operation of1862but was not acted upon until the was commenced in March1862.It is not following August.At that time he was clear from the early records how long the directed to prepare a letter of instruction practice was continued.The earliest for his guidance in carrying out the proj- plate proof impressions of currency notes ect, for submission to the Secretary for now on file in the Bureau ($10 Compound review. Interest Treasury notes and $10 Interest That letter, as approved by the Secre- Bearing notes, issued under an act of tary, is in essence the Bureau's charter. March 3,1863)show that the signatures It was as follows: were engraved in the plates. TREASURY DEPARTMENT The notes as printed in sheets of four August 22, 1862 subjects by the banknote companies were Sm: You are hereby instructed to take delivered to the Treasury for final proc- charge of the preparation for the issue of essing and issuance.Originally the sheets the one and two dollar Treasury Notes, were trimmed and separated manually in accordance, as near as practicable, with by the use of shears.Some 70 women your programme, now on file, of the 10th were employed at this task at a monthly of April,1862. This order is not issued as a perma- salary of $50.Clark, as supervisor of nency.It is my intention to give the the Bureau of Construction, gave con- experiment of machinery a full and fair siderable thought to the tediousness and trial, and this order is issued for that expense of this hand labor. He was au- purpose. thorized to construct two machines on a A reasonably sufficient time will be given for a fair trial, and my future orders trial basisone for trimming the four- will depend on the result of that trial. subject sheets and the other for separating If it is not more economical and better and trimming the individual notes. The than the present method, its use will not machines were constructed to be operated be continued. by a hand crank and were placed under You will, therefore, on and after Mon- day next, receive from the mail the one the charge of the Loan Branch.The and two dollar notes, making the cus- trials were reported as a failure to the tomary receipt therefor, and after sealing Secretary, who ordered removal of the and trimming deliver them to the Treas- machines.However, at Clark's request urer, and take his receipt.You will keep the Secretary made a personal inspec- a perfect record at every step, using all the checks and guards now used in the tion of the machinery.Convinced of organization for larger notes, with such their effectiveness, Chase rescinded his additional checks as you may deem proper HISTORY OF BUREAU OF ENGRAVING AND PRINTING that do not involve additional cost, and The sealing press in the hall, which may seem to you additional security. has been ordered up stairs, you will now You will make a daily report of the remove below, together with the new amount of notes on hand, amount re- counter shafts and pullies designed for the ceived from the engraver, the amount new presses, and place them with the two deliveredtotheTreasurer, and the presses ordered, in the room below, adja- amount in your hands at the close of cent to the cutters. work on each day, showing under each Very respectfully, head the respective quantity of ones and S. P. CHASE twos, and also aggregating thetotal Secretary of the Treasury. amounts of all bills received from the en- S. M. CLitx, Esq., gravers up to the date of the report, with Chief Clerk Bureau of Construc- respective amounts of ones and twos. tion. You will also keep a daily record, in a book prepared for that purpose, of each Within 7 days, a steam engine and day's work, and its cost, for which you will boiler were procured and set up with the render a weekly statement, or if hereafter necessary auxiliary equipment inthe ordered, a daily statement. southwest room of the south wing of the

The title of this picture, which appeared in Ellis' "Sights and Secrets of the National Capital" the "inside story" of its day (1869)is -a misnomer.This is a view of the bronzing or sealing operation, rather than the pressroom, where the notes were plate printed.The shortage of workspace probably necessitated the erection of the gallery shown on the right. The ladies seated there were examiners. THE EARLY YEARS 1862-1867 5 basement of the main Treasury building. banknote companies for printing the Presses for sealing, trimmers, and separa- notes.After carefully investigating the tors were likewise installed.Little was various ramifications, Clark reported that foretold of the gigantic scope of operation he felt he could produce the work in the to be performed over the next 100 years Department "for a comparatively small in the terse statement contained in Clark's outlay, at a great saving of cost in the first formal report written in November issues."The Secretary had introduced 1864, relative to the establishing of the in Congress a proposal, based on this re- Bureau: port,authorizingthe engraving and On the 29th day of August, 1862, I com- printing of the notes at the Treasury in menced the work with one male assist- Washington.That authority was given ant and four female operatives. under an act approved July 11, 1862 (12 The work progressed well under Clark. Stat. 532). Secretary Chase, in a diary entry for Thus, at the same time that Clark was September13,1862, wrote:"Visited in the throes of firmly establishing the Mr. Clark's Sealing and trimming ma- currency-finishing operations, it fell to chines for the ones and twos and found him to arrange for engraving and print- them a perfect success; and the ones and ing securities at the Department.This twos are sealed and trimmed by machin- he accomplished with his usual zeal and ery, attended for the most part by women, efficiency.In August 1862, a little more with such prodigious advantage to the than a month after passage of the law Government that it seems difficult to authorizing such work to be done in the imagine that coining, except in large Treasury, he reported to Secretary Chase masses, can be of much utility hereafter." that the first engraver hired was progress- The success of the experiment is attested ing satisfactorily.That engraver was by the assignment of the processing of all James Duthie who was engaged on a denominations of notes to Clark's charge temporary basis at $1,600 a year, with the in January 1863. understanding that he would "be advanced to fair engravers wages, if the work should be continued." At the time Printing at the Department of Clark's letter, Duthie had already etched on steel the design for a new $1 Meanwhile, gratified by the economies Treasury note and was preparing to etch achieved through the use of Clark's trim- the design for a $2 denominationThese ming and separating machines, Secretary designs were never used.The demand Chase had requested him to look for for more immediately needed work corn- further possibilities relating to the propelled the suspension of the project. duction of Government securities.In Clark expressed the hope in his 1864 re- carrying out this assignment, Clark stated port that they would be used for a new that his "attention was thus called for series then being considered as a replace- the first time" to the enormous prices ment of the 1862 series of U.S. notes, but charged the Government by the private that idea did not materialize. HISTORY OF BUREAU OF ENGRAVING AND PRINTING

The currency pressroom located in the attic of the Main Treasury Building.This photograph, from the National Archives' Matthew Brady collection, is believed to have been taken during the mid-1860's.

By October 1862 the engraving and The date of the first printing in the plate printing units were beginning to Department is in question.In July 1862 take definite form.Duthie was sent to Charles Neale, a plate printer, had been New York in an endeavor to persuade brought into the Department as a clerk Joseph P. Ourdan, one of the country's in anticipation of authority to print cur- better known portraitengravers, and rency at the Treasury. On October 11, Archibald McLees, a letter engraver, to 1862, he was appointed to superintend come to Washington. A memorandum the plate printing operation and was as- history, prepared in 1880 by 0. H. Irish, signed the tasks of securing presses, ink, then Chief of the Bureau, gives Novem- and paper, and recruiting workmen. ber 20, 1862, as the date that the nucleus Evidently, Neale had difficulty inducing of the engraving staff, comprising two printers to come to the Department. engravers and a transferrer, began its Paper money issued by the Government work. was novel.There were misgivings as to THE EARLY YEARS 1862-1867 7

the success of the proposed printing ven- duty. Ourdan was to be followed into the ture, and even if it should be successful, service by his father, Joseph James P. many persons were doubtful of its per- Ourdan.Theirs was a case of a switch manency. Neale was instructed to have in the usual father-son relationship. The the men he hired report for duty any elder Ourdan had been instructed in the time after November 1, 1862. A con- art of engraving by his son and became an gressional report of 1864 states, "In the expert letter engraver. autumn of 1862, the printing of some of The Bureau's firstengraver, James the public moneys was begun in the Duthie, was a skilled etcher.He served treasury."However, on December 13, as Superintendent of Engraving until 1862, Clark wrote Secretary Chase, "No about 1865.Duthie left the service to printers are yet employed."According go into business with a Mr. Idlitz,who to Irish's account, plate printing in the had conducted experiments at the Bureau Treasury did not commence until Jan- to perfect an electrotype plate for printing uary 1863. partsofsecurities.One of Duthie's famous works was the dock scene that was Original Engraving Staff used on all denominations of the first issue of fractional currency.This vig- One of Spencer Clark's executive talents nette depicted steamboats at the water's was the knack of selecting skilled artists edge, with gangplanks down, cargo piled and tradesmen and securing their services. high on the wharf, a horse-drawn dray This was particularly true in his choice awaitingunloading,andasmoking of engravers.With his aforementioned steam engine in the distance. letter of August 22, 1862, reporting on the Another early craftsman was Elisha progress of engraving plates for Treasury Hobart, who had been trained as an notes in the Department, Clark submitted engraver but who later became a trans- a list of American engravers of known ferrer.He was employed at the Depart- reputation, with his comments on their ment in the latter capacity.Hobart is abilities and backgrounds.His notations noted for his earlier engraving of Sar- pertaining to those whom he preferred gent's painting, "Landing of thePil- to hire are indicative of his desire to grims," on which he had worked for 2 secure only the best in the field.Two of years.His Bureau career was cut short those named, Joseph P. Ourdan and by his death when he was returning from John F. E. Prud'homme, eventually came an excursion with some other Department to work for the Department and he was employees to Harper's Ferry, W. Va. He successful in contracting for the service was an organizer and captain of Com- of some of the others on a piece basis pany B, 93d N.Y. Volunteer Infantry. Charles Burt, Louis Delnoce, and Alfred An official history of that group gives a Sealey.James Duthie succeeded in his biography of Hobart, partially quoted recruitingassignment.McLees was here: hired on October 20, 1862, and later that After leaving the service, his inventive same year Joseph P. Ourdan reported for genius came to his aid, and a transfer 8 HISTORY OF BUREAU OF ENGRAVING AND PRINTING

reau.Originally hired as an engraver, he was soon afterward appointed the Cus- todian of Dies and Rolls in recognition of his administrative ability.Later, he was promoted to the position of Superin- tendent of Engraving and served in that capacity, except during President Cleve- land's first administration, until mid-Oc- tober 1893.Casilear was noted both as an engraver and as a landscape artist. While serving as Custodian, he had little time left to give to his craft during regular work hours. Testifying before a congressional committee in March 1869 relative to overtime expense in the Bureau, Clark stated that Casilear had been paid for extra work as an etcher. He described Casilear as a "very skillful etcher, and to some extent a toner."Casilear was par- ticularlyadeptindoing matchwork, where two or more designs had been laid Elisha Hobart. down from separate rolls and had to be brought together by handwork to form press of his construction was adopted for a consolidated unit. printing [sic] fractional currency, and he Another early engraver was Henry obtained employment in the Treasury Department at Washington, where he Gugler, who was hired on January 15, remained until his death, July 4, 1864, 1863.Gugler was a native of Germany when he, with other employees in the and had been in this country only 10 department, went on an excursion up years at the time of his appointment. One the canal to Harper's Ferry. On their of his most important works was a life- return, at Point of Rocks, they were fired upon by Mosby's guerillas, and Hobart, sized steel engraving of President Lin- standing bravely at his post, fell, while coln. He later founded the lithographic endeavoring to save the boat and protect firm of H. Gugler & Son, in Milwaukee, the escape of his comrades.I have never Wis., which is in existence today as the been able to get the full details of that Gugler Lithographic Co. disastrous excursion, but from what I can learn, if obtained, they would reflect more credit upon him than some of those with Fractional Currency him, and to show that his death was unnecessary. One of the very first products produced In December 1862, Clark employed by the Bureau, and certainly among the George W. Casilear, who was to spend unique, was fractional currency.These the greater part of his career at the Bu- were the miniature notes issued by the THE EARLY YEARS 1862-1867 9

Government in place of coins during the violation of the Constitution of the United Civil War and for some 10 years after- States; and I think Congress, at the last ward.It can truly be said that they session, passed a bill prohibiting all issues came into existence by a "spin of the below one dollar, and provided a species of currency called "post-office currency", wheel of fortune."They were the re- which will soon supplant the worthless placements for postage notes which, in trash which now is a disgrace to the name retrospect, were of doubtful legal origin. of money. As soon as possible, enough The optimism of quick suppression of of the post-office money will come here, and suffice for the wants of the people. the Rebellion, expressed inPresident Lincoln's first call for volunteers to the *** Why do you not use cotton for money? number of only 75,000 for a 90-day en- It has a very convenient pricefifty cents listment, quickly faded with the initial a pound.Put it up in pounds and frac- defeats suffered by the Union forces. tions, and it will form a far better currency Hoarding of coins by the timorous and than the miserable shinpiasters you propose. avaricious soon followed. A case in point *** was the instance where a house in New If it be my last act, I wish to spare the York City collapsed from the weight of people of Memphis from the curse of any the coin cached there.Thousands of more bad money. dollars in coin were secreted each day. Yours in haste, Into this vacuum flowed privately is- W. T. SHERMAN sued tokens and scrip.The idea was Major-General Commanding certainly not new."Shinplaster" had The circulation of such a variety of become a derisive term applied to scrip, items intended as substitutecoins, in an outgrowth of public reaction to the Secretary Chase's words, "created a mani- worthless notes issued by private banks fest necessity for a fractional currency during the depression of 1837.General authorized by the national government." Sherman's contemporary excoriation of He proposed alternative remedies: one, scrip as a medium of exchange and his reduce the weight of small coins; the other, proposed alternative give a particularly use revenue or postage stamps in place acid evaluation of this paper during the of coins.Congress preferred the latter early years of the war: and by an act aproved July 17, 1862 (12 Stat. 592), provided that postage or other HEADQUARTERS, DI5T. OF MEMPHIS Memphis, Nov. 26, 1862 U.S. stamps be receivable in payments To the Mayor and Common Council of due to the Government.The same act the City of Memphis: made the use of any items intended to GENTLEMEN: I regret to notice that circulate as money in amounts of less than you propose to issue a species of currency $1 unlawful. of denominations as low as ten cents- Realizing that the glue on stamps would "shinpiaster" to swell the amount of bad make them inconvenient for the purpose, money with which your community is already afflicted. the Secretary requested the Postmaster The issuing of bills of credit by way General to supply stocks without adhe- of money is, in my judgment, in direct sive.The suggestion resulted in an ar- 10 HISTORY OF BUREAU OF ENGRAVING AND PRINTING

The face and back of the 5-cent note of the original issue of fractional currency showing the bronzed oval and skeleton-type denominational numeral. THE EARLY YEARS1862-1867 11

rangement by the Post Office Department issue of fractional currency 1 were iden- with private banknote companies for tical in design for all denominations. printing small notes comprising in their Unique to this series were a bronzed oval design reproductions of postage stamps. encircling the face portrait and large They were printed in denominations of 5, skeleton-type denominational numerals 10, 25, and 50 cents. The legend appear- on the backs.The process was the in- ing on the reverse of these notes implies vention of Spencer M. Clark.It was also that they were issued under' the act of used for the early bonds produced in the July 17, 1862.However, that act does Department. not make any mention of postage cur- Little of the essential details of bronz- rency whatsoever. ing is now available.It is known that In Chase's opinion, postage currency the feature was placed on the paper prior "lacked some important requisites to pro- to printing.Apparently, it was a pro- tectit against counterfeiting."There tective device against counterfeiting.In was a need for speedy printing and proc- the duplication of a note by photography essing.Then too, the cost "was believed the bronzed area would appear in black to be unwarrantably great."As a result, and any attempt to simulate the metallic the Secretary was authorized by an act coloring would hide the engraved detail. of March 3, 1863, to issue fractional notes, Clark was more than pleased with the and, if he saw fit, to have them engraved success of the process. He described the and printed "in the treasury department bronzing feature as having "defied all the building" (12 Stat. 711).In providing attempts of the scientific commission 2 to for fractional currency this law took cog- successfully remove it, although they had nizance of the existence of postage notes. the advantage of being informed of what Any doubt as to the "legality" of the materials it was composed." He further latter was erased by the second law stated that he had "never seen a piece of relative to fractional currency signed on paper from which it has been removed, June 30, 1864 (13 Stat. 220), which pro- without also removing the engraving." vided that it would "apply equally and Use of this feature on fractional currency with like force to all the fractional notes was confined to the first issue and the rea- heretofore authorized, whether known as son for its discontinuance is unknown. postage currency, or otherwise..... In all, there were four issues of frac- With the passage of the enabling legis- tional currency.The firsttwo were lation, the engraving staff was imrnedi- printed wholly at the Department; the ately assigned to prepare the necessary 'Many numismaticpublicationsregard dies and plates, paper was procured, a postage notes as the first issue of fractional protective bronzing process was devel- currency, consequently, accounting for a total oped, arid the work was printed.The of five issues.References made in this history first issuance of the notes occurred on are based on the early records of the Treasury October 10, 1863. Department which refer to those notes issued beginning Oct. 10, 1863, as the first issue. Except for the valuation numerals on 2 information could be found about the the faces and backs, the notes of the first commission to which Clark refers. 12 HISTORY OF BUREAU OF ENGRAVING AND PRINTING

The controversial 5-cent note of the second issue of fractional currency bearing the portrait of Spencer Morton Clark, first chief of the First Division of the National Currency Bureau, now the Bureau of Engraving and Printing. greater part of the notes of the third issue ter was the subject of a running con- were produced by private banknote com- troversy in the columns of the New-York panies but were sealed by the plate print- Times of the day and a topic of editorial ing process at the Bureau.There were comment by that newspaper.It reached three different 50-cent notes in the third the floor of Congress and resulted in the issue.The faces of two of these were passage of the law that remains in effect printed at the Bureau. The faces of the today prohibiting the use of a portrait of fourth issue were done at the Bureau and any living person on a security of the the work on the backs was done by a United States (14 Stat. 25).Clark bore private banknote company. the sole brunt of criticism in the situation. The second issue of fractional currency The fact that the likeness of Francis E. proved to be the most controversial.It Spinner, the then very much alive Treas- was in this issue that a new denomination urer of the United States, appeared on of 3 cents was introduced.Doubt was the 50-cent note was ignored. expressed as to the actual need for it. It was originally planned to include a (This was the lowest denomination of 15-cent note in the second issue.Work fractional currency and was peculiar to on these notes had progressed to a stage the second issue.)There was an outcry just short of printing productionin fact, because the portrait of Spencer M. Clark one-sided printings had been issued as was used on the 5-cent note.This mat- specimenswhen the non-living-person- THE EARLY YEARS 1862-1867 13

age portrait law became effective.Since found that in a little over 2 years the work the design for the note included the por- accomplishedat the Department in- traits of Generals Grant and Sherman, cludedtheengraving,printing,and both of whom were then alive, the proj- processing of securities having a face ect was abandoned.The third issue of value in excess of $1 '/2 billion.The first fractional currency, however, did include paper money produced in the Treasury notes of this denomination. establishment, other than fractional notes, Fractional currency continued to be was the Compound Interest notes of 1863 issued until February 23,1876.The and 1864 and the 5-percent Treasury amount authorized was $50 million; how- notes of 1863. ever, the total quantity placed in circu- A review of a list of the equipment lation, including reissues, exceeded $368,- Clark reported in use as of November 720,000.Today, itisestimated that 1864 gives a good picture of the magni- more than $1,965,000 of these notes re- tude of the then-current production pro- main outstanding. gram-15 transfer machines, 72 hydraulic and 96 hand presses, 14 sealing presses, 6 ink mills, and 22 numbering machines. Other Early Production The work force at that time comprised 237 men and 288 women. As has already been mentioned, the first security work undertaken at the Treasury Department was that of engraving de- The 1864 Investigation signs for new Treasury notes.However, the project was not completed.Clark It was natural that there would be op- gave as the reason, that the demand for position to the printing by the Govern- other "more immediately needed issues" ment of its paper money at the Treasury. compelled the suspension of the job. The system, as well as Spencer Clark who Just what work was so pressing is not clear. was regarded as its progenitor, had its It could have well been fractionalcur- detractors in private business, among the rency.In 1899, telling of his roleas an newspapers, among various employees engraver with the Bureau, George Casi- and officers of -the Department, and in the halls of Congress. The private bank- lear recalled that, immediatelyupon com- note companies which heretofore had en- ing to work in December of 1862, he was joyed a monopoly stood to lose profitable assigned to prepare designs for fractional contracts;theissuanceof circulating currency.This work was undertaken in notes, regardless of the source of their anticipation of the authority to issue such production, was in itself repugnant to notes which was not actually granted un- many people; it was felt that the use of til the following March. so much machinery, as proposed, would In piecing together data contained in deprive many deserving persons of em- a congressional report of 1864 and in ployment; there were disgruntled em- Clark's special report of that year, it is ployees; and there was intraservice rivalry 14 HISTORY OF BUREAU OF ENGRAVING AND PRINTING

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Bonds comprising the fourth issue of the class commonly referred to as the Five- Twenties of 1862 were among the first securities wholly engraved, printed, and numbered at the Treasury Department. The word "fifty" in a Victorian variant of spurred finish lettering, typical of the time, and the individual numbers of the coupons were printed in bronze prior to plate printing. to It is This back of the 3 648-0010 64 $100 bond of the Ten-Twenties of 1864 was produced typographically. unusual in that the design, approximately 11 inches square, was composed of a As an economy measure the backs of bonds were not engraved. medallion head of Washington in an elaborate, geometric-patterned frame. THE EARLY YEARS 1862-186 7 1862-186 EARLY YEARS THE 16 HISTORY 01' BUREAU OF ENGRAVING AND PRINTING fed by jealousy of Clark's accessibility to additional personnel.3The greater ma- Secretary Chase. jority were womenan innovation in Undoubtedly, there were those who Government service. A chronicler of the were sincere in their misgivings as to the period states that Francis E. Spinner, the propriety and practicability of the under- then Treasurer of the United States, re- taking. On the other hand, there were ferred to the first female employees as those whose hostility was based on nar- being "smuggled" into the Department. row, selfish interests.In retrospect, it is Women clerks in the business world were the force and tactics of this latter opposi- indeed a rarity.The unusual situation tion thatis astoundingcharacter as- caused the clucking of many tongues, sassination not being the least of its at- particularly because large forces were tributes. The exaggeration of the claims employed at night.Charges of fraud contained in an article in the New York and promiscuity within the Department World for December 5, 1862, is typical. grew numerous.In the latter part of Clark answered its allegations that an 1863, Chase borrowed Lafayette C. Baker, "extensive portion of the Treasury build- a War Department detective, toinvesti- ing" had been set apart as a printing gate what the Secretary regarded as false establishment by citing the use of one rumors of fraud in his department. Chase room each in the attic, basement, and was embarrassed when Baker reported cellar for the purpose; that the "costly incidents not only of fraud but of wanton purchases of machinery and materials" maladministration and misconduct.So at that time did not amount to $2,000, many of Baker's charges were found to exclusive of a steam engine and boiler; be baseless, and he exhibited such rash- and that the hiring of a "small army of ness in his investigation and conclusions, engravers and printers and other em- that his report was not given credence ployees" comprised but four engravers, by the Secretary. The recent revelation and no printers had been engaged up to that one of Baker's principal witnesses in that time.It is apparent that the World's his charges of immorality against Clark Washington correspondent was not as was later named as a beneficiaryin a vigilant as he thought himself to be. He codicil to Baker's will, wherein she was referred to as his "longtime friend," gives impugned himself with the statement, support tothe Secretary's doubts of "The strangest part of the business is Baker's veracity. that Mr. Chase's proceedings have no It was in this atmosphere, electrified warrant in law....." The reporter erred by the political undertones of Chase's by some 5 months, since the authority for presidential aspirations, that a select com- theDepartment'sactionshad been mittee of the House of Representatives granted in an act of the previous July (12 Stat. 532). 'When Chase came in as Secretary, in 1861, The multiple increase of duties which there were only 380 clerks employed in the Treasury.At the time of his resignation in fell to the Treasury Department because 1864, the number inthe Department was of the war necessitated the hiring of 2,000. THE EARLY YEARS 1862-1867 17 was appointedto investigate charges Clark as being unfit to preside over the against the Treasury Department.The printing bureau. group, consisting of nine members with There the matter rested. No further James A. Garfield as chairman, com- action was taken by the House.The menced operations on May 3, 1864.Be- bitterness which the hearing brought to cause of the impending close of the a head was to be long felt.Reputations congressional session, the committee con- had been smeared and honesty ques- fined itself to looking into only two facets tioned.The Bureau's opponents were of the charges which seemed most press- encouraged by the fact that they were ing: the manner of printing securities in strong enough to get their complaints the Treasury and the alleged immoralities aired before Congress.The very exist- of persons employed there.All eyes and ence of a printing bureau was to be a ears were trained on the Capitol hearings. political football for years to come; the They were the topic of the day. Leading 1864 investigation was the first of many newspapers in the country carried the to follow.Irish's 1880 history reports story.Would the rumors be sustained? that Clark's acts "were made the subjects The investigationlasted2 months. of three investigations by committees of Lafayette Baker was called; before the Congress as well as by several appointed committee to report on the results of his by different Secretaries of the Treasury." recent examination.Clark dubbed him He went ontosay,"Mr. Geo.B. "chief coadjutor" of the probe, claiming McCartee who succeeded Mr. Clark on Baker was active during the probe assist- March 11, 1869 also incurred the enmity ing Congressman James Brooks of New of the bank note companies and two Con- York in finding testimony to support the gressional Committees made searching latter's charges concerning fraud in the inquiry into his management of the affairs printing operations and misconduct on of the Bureau."But still the operations Clark's part.The committee presented of the printing bureau went forward. its findings at the end of June. Five members submitted a majority reportapprov- The Green in "Greenbacks" ing the principle of the Treasury's printing the money. They endorsed the care The reason for the selection of green as and generally correct manner in which the color for the backs of currency notes the work was conducted and found the has long been among the more popular charge of immoralities baseless. Only one questions put to the Bureau.It is known memler of the majority group was not that at the time of the introduction of persuaded that the private banknote com- small-sized notes in 1929, the use of green panies conspired to prevent the printing was continued because pigment of that of the securities at the Department and color was readily available in large quan- to discredit Clark.The minority's report tity, the color was relatively high in its re- favored a great number of procedural and sistance to chemical and physical changes, accounting changes in the system and and green was psychologically identified recommended, as well, the discharge of with the strong and stable credit of the 18 HISTORY OF BUREAU OF ENGRAVING AND PRINTING

Government. But no definite explanation therefore be conjectured that the backs can be made for the original choice.In of the early notes were printed in a darker the course of preparing this history much shade of ordinary green to make the tint attention was given to the matter.Ex- "strike through" less obvious. tensive research developed evidence in Since the transition to printing money support of the following explanation. exclusively at the Treasury was gradual, With the growing popularity of bank- it is logical to presume that the backs of notes and the development of photog- the notes produced there during the in- raphy in the mid-1800's. it was custom- tervening period were printed in green ary to print the bills in black combined for the sake of uniformity.Once the with colored tints as a deterrent to coun- Bureau was on full-scale production there terfeiting.The early camera saw every- was no reason to change the traditional thing in black.Features that were dis- color and the practice was continued. tinguishable on a note by color variant lost their individuality when reproduced photographically.However, the coun- Hydrostatic Printing terfeiter soon discovered that the colored A basic principle in the printing from inks then in use could easily be removed engraved plates is the application of suf- from a note without disturbing the black ficient pressure to force the paper into the ink. He could eradicate the colored por- engraved lines so that it will pick up the tion, photograph the remainder, and then The amount of make a desired number of copies to be ink deposited there. overprinted with an imitation of the col- pressure required is inversely, proportion- ored parts. The solution to the problem ate to the flexibility of the paper used. lay in the development of an ink that Banknote paper in vogue during the 19th could not be erased without adversely century was of such substance that it had affecting the black coloring.Such an to be dampened prior to printing to in- ink was developed and the patent rights crease its pliability.The alternate wet- were purchased by Tracy R. Edson, who ting and drying during the various stages later was one of the founders of the of producing currency notes resulted in American Bank Note Co.This is one shrinkage of the sheets. A further dis- of the same finns that produced the first advantage was that this contraction was paper money issued by the United States. not uniform in group lots.Therefore, The faces of these and other early notes great care had to be exercised in me- produced under contract were printed chanically separating multisubject work. with a green tint, presumably of the pro- The problem was particularly acute in tective ink. the separation of printings as small as It is not unusual in printing with oil- fractional notes.In his search for eco- base-type inks, such as was the "patent nomical means of producing the cur- green," for the color to strike through to rency, it occurred to Spencer Clarkthat the opposite side of a sheet.It might if the notes could be printed dry, the the lives and . . . Just at the point where Since Baker's charges could not The proposal of dry printing was be- "imminent peril to constantly down for repairs until it was constantly down for repairs until it finally determined that the cause was due to faulty metal employed in their construction. Dr. success of the project seemed certain, on Gwynn was arrested and imprisoned in charges brought by Lafayette Baker the connection with the procurement of machinery. littled by Baker in his investigative report. To him the idea was a fantastic hoax. In his opinion the mechanism required for operation of the hydrostatic presses, employing an elaborate series of weights the and pulleys, had irreparably damaged an Treasury building and constituted ment." be substantiated, Gwynn was released after being held for 1 month in the Old Capitol Prison of Civil War notoriety. Disgusted by the treatment and since re- dress was not forthcoming, Gwynn cut off all personal relations with the De- persons of the employés of the depart- Never- Hydrostatic pressroom. The press Their machine printed Secretary Chase had reser- Gwynn also became fasci-

result if Clark was successful, Chase au- result if Clark was successful, Chase shrinkage problem would be eliminated. The idea was not new; it had been tried was the result of prolonged experimentation. The first machines installed were sheet under a pressure roller. sion was printed by slowly passing a trast to the hand press where an impres- print dry work. whole sheets in one fell swoop in con- a press operated by hydraulic pressure to a press operated by hydraulic pressure Gwynn, together with Clark, developed Principally at his own personal expense, nated with the potentials of dry printing. developed. a special currency paper which he had a special currency paper which he the Government for the manufacture of the Government for the manufacture with execution of a contract made with came to the Department in connection Shortly thereafter a Dr. Stuart Gwynn thorized him to experiment with the idea. theless, aware of the economies that would many others had already failed. out success. so vations as to Clark's succeeding where both in this country and in Europe, with- ' 20 HISTORY OF BUREAU OF ENGRAVING AND PRINTING partment.Clark continued the experi- printing.He draws the curtain on the ments alone and brought them to a suc- subject in these words: cessful conclusion.On June 3,1864, Upon his [Clark's] retirement, however, Secretary Chase wrote that hydrostatic a return to the use of hand roller presses was made by his successor and the plate presses "are now in daily use, producing printing of the Bureau since 1869 to the dry-printed impressions of unexcelled per- present time has been executed by that fection and beauty." process, with the exception of some work With such an endorsement it seems performed during the past two years by steam plate printing presses. strange that use of the equipment was not It is extremely fitting that today the expanded.It appears that production Bureau is printing approximately 50 per- from these presses was confined to that cent of its currency by dry printing.Al- of fractional currency. Use of the presses though the present-day method is based was discontinued in 1869 for a now un- on an entirely different principle of press determinable reason.Clark severed his operation, Spencer Clark stands vindi- connections with the Department that cated in his efforts to introduce the best same year.Chief Irish in his 1880 his- equipment that could possibly be devised tory makes only a brief mention of dry for printing U.S. paper money. CHAPTER II Growing Pains- a nameof itsown

i868-1879

HE WORK OF SEALING, trimming, and separating the $1 and $2 Treasury notes begun in the Department in the late summer of 1862 was not given corporate form at that time. This is understandable since the letter of August 22, 1862, placing Spencer M. Clark in charge of the operations specifically stated that the work was being undertaken on a trial basis and that if the new procedure did not prove to be more economical and better than the method previously employed, it would be discontinued.Even after a successful trial period and the subsequent assigning of the processing of all denominations of currency to Clark's jurisdiction, no action was taken to set up a formal organizational component within the Depart- ment to handle the functions.Apparently, the work was regarded as being directly attached to the Secretary's office. The unit performing this work was rein the Official Register of the United ferred to by a variety of titles.Early rec- States is found in the 1863 edition, where ords make reference first to the "Small it is listed as the "First Division of the Note Department," "Small Note Bu- National Currency Bureau."That Bu- reau," "Small Note Room," "Note Bu- reau, now the Office of the Comptroller reau," and later to the "National Note of the Currency, came into being as a Thireau."Evidently, this last name was result of the passage of an act of Febru- given some formal acceptance, for there ary 25, 1863 (12 Stat. 665), "...to pro- is in existence today correspondence ad- vide a national Currency, secured by a dressed to various Treasury Department Pledge of United States Stocks, and to officials by Clark on official engraved provide for the Circulation and Redemp- stationery bearing that title. tion thereof." The first mention of the organization In his book Men and Measures of Half

21 22 HISTORY OF BUREAU OF ENGRAVING AND PRINTING a Century, Hugh McCulloch, the first That the arrangement had no appli- Comptroller of the Currency, states that cation to fact is brought out in the testi- he came to Washington in the spring of mony of Comptroller McCulloch before 1863 for the purpose of establishing the the 1864 congressional investigating com- National Currency Bureau. mittee.In answer to a request that he Just when the first division of that Bu- give his "views of the Printing bureau, or reau was formed with Spencer Clark as the printing of the currency at the Treas- its head is uncertain.The earliest evi- ury Department . ..," he replied: dence that could be found relating to the It is a matter which I have not given use of the name "National Currency Bu- special attention to; it is not connected reau" in reference to the printing of paper with my bureau directly, and I have given money is a copy of a letter from Secretary it no personal attention; I do not know Chase to the Continental Bank Note Co., that I have any views to express on the subject. dated July 20, 1863. On July 31 of that year, Clark wrote to a Charles C. Edwins In the same testimony, he stated: of Brooklyn, N.Y., and signed the letter I have nothing to do with the issues as "Chief 1st Division National Currency of the government; my duties are con- Bureau." A report prepared in October fined entirely to the national currency. 1867 for the Joint-Select Committee on *** Retrenchment relative to the cost of oper- I understand that Mr. Clark, head of that division, is nominally in my bureau, ating the "Printing Division" since its but I have never regarded that depart- organization states: ment as having any legal connexion with this division was not organized, in mine form, until sometime in the winter of The independent status of the currency 1862-63, but expenses were incurred, with a view of its organization, as early as printing and processing operations is evi- April 1862. denced by the omission of any reference to these functions in the first annual re- The assigning of the currency produc- port of the Comptroller of the Currency, tion operations to the National Currency which covered fiscal year 1863.That Bureau proved to be fallacious.It was official lists only six persons as being em- originally contemplated that the printing ployed by his Bureau at that time. None of national bank notes, or national cur- of the persons known to have been con- rency, would be performed at the Treas- nected with the early currency produc- ury Department in conjunction with the tion operations are named in this list.In production of U.S. notes and other Gov- his 1865 report the Comptroller cites the ernment securities.However, the idea did not materialize until some 12 years bank notes were printed exclu- later.1Clark attributed responsibility for sively by private contractors until September the change in plan to Comptroller of the 1875; thereafter this type currency was partially printed by the Bureau of Engraving and Currency McCulloch who had "steadily Printing.Beginning in October 1877, the opposed transferring and printing of the Bureau executed all the work in connection National Currency in the Treasury. .. with the printing of national currency. GROWING PAINS 1868-1879 23 names of 75 persons as being employed 1877 a bill (H.R. 1808) was introduced by his organization.In contrast, itis in the House of Representatives, which, if known that in February 1865 there were it had been enacted into law, would have 527 persons engaged in currency produc- required all U.S. paper money to be tion operations in the Treasury. printed by private concerns and "only the In all probability the title "Bureau of sealing, final authentication, and record Engraving and Printing" originated with of the isues... bedone in the Treas- Spencer Clark.Like McCulloch, he was ury."The proposal also provided that cognizant of the fallacy that currency pro- the force of the Bureau of Engraving and duction operations were an organizational Printing be reduced to a token number of part of the Comptroller's office.In his 38 persons and directed the Secretary to 1864 report, Clark comments: sell all the surplus machinery and stock of In my judgment, this Division which the Bureau "as thus reorganized." now only exists ex necessitate rei, should The first reference on record of the use be organized by law as a distinct and sep- of the name "Bureau of Engraving and arate Bureau, to be entitled "The Engrav- Printing" is found in a copy of an order of ing and Printing Bureau of the Treasury July 31,1868, placed with John R. Department." Hoole & Sons, New York City, for an No action was taken on Clark's recom- ornamental strip with that wording, for mendation to establish the Bureau as a use in printing a form needed by the legal entity.The reason for such an Bureau. omission can now be but conjectured. A diligent search for definite data as Likely, it was an apprehension of losing to the date of the adoption of the name what was already "in the hand."The has proven fruitless.It can be inferred Department was on a sound legal basis that it was sometime in mid-September in printing the currency at the Treasury: 1868.George B. McCartee, later to be But there was the possibility that any ef- appointed the second Chief of the Bureau, fort to obtain legal organizational form was then serving as acting head of the for the activity could well result in revo- establishment.Extant records show that cation of that authority. priorto September 17ofthat year Various arguments had been advanced McCartee signed himself as "Acting Chief as to the impracticality and insecurity of of Division."Beginning with that date having the Government produce its own he signed all correspondence as "Acting currency.The private banknote industry Chief of Bureau." had its champions in Congress and in the Apparently, the new name was slow in Treasury Department as well.Strong taking hold.In testimony given in No- political pressure had been brought, and vember 1868 before the congressional would continue to be brought, with a view joint-select committee in its investigation toward hampering and curtailing the of the printing of Government securities work of printing Government securities in the Treasury Department, while some in the Treasuryeven toward abandon- witnesses identified themselves as em- ing the work there entirely.As late as ployees of the Bureau of Engraving and 24 HISTORY 01' BUREAU OF ENGRAVING AND PRINTING

Printing, many referred to their place of ing of the Great Exhibition held in the employment merely as the Printing Bu- Crystal Palace at Hyde Park, London, in reau. 1851.So successful was this British in- Though there is no specific enabling novation that other countries were en- act establishing the Bureau, its existence couraged to depart from the exclusively had the early approbation of Congress. national character of their former ex- The first legislative recognition of the hibitions and to welcome displays of the agency, per Se,is found in an act of industries of the world. March 3,1869(15 Stat. 312),which pro- In 1873 an international exhibition hibited any work from being "done in the opened in Vienna that far surpassed any engraving and printing bureau for private other previously held and that was to be- parties."Beginning with the appropria- come renowned for its extent and gran- tionactof June 20, 1874 (18 Stat. 110), deur.Some 60,000 exhibitors partici- funds were specifically assigned for the pated, of whom 650 represented the operationof the Bureau.Previously, UnitedStates. Included among the allotments for engraving and printing of American entries was a display of en- currency notes had been made to the graved portraits and vignettes by the Treasury Department without reference Bureau.Such action on the part of the to the existence of the printing establish- fledgling organization might have been ment.Additionalorganizationalrec- regarded as a bit brash.Having been ognition was forthcoming in an act of engaged in the engraving business but 10 July 11, 1896 (30 Stat. 18), which pro- years, here it was, submitting examples vided: of its work in competition with the entries That all the business of the Bureau of by the long-time masters of the craft of Engraving and Printing shall be under both the Old and New Worlds. Presump- the immediate control of the director of tuous or not, the action of the Bureau said Bureau, subject to the direction of in placing its work in the competition the Secretary of the Treasury, and the had to be admired.The daring paid director of the said Bureau shall report to and be responsible directly to the Sec- off, for the entry was accorded the ex- retary of the Treasury. hibition's medal Dem Verdienste.This top rank award was given to exhibitors First International Award "in consideration of the excellence of the exhibits, the extent of their operations, Mid-l9th century saw the birth of the and the superiority of means and forces international exposition with the open- employed."It was the first of many to

DIPLOMA, WORLD'S COLUMBIAN ExposrrloN The Bureau printed 25,000 of these diplomas.The engraving measured 17.5 by 23.5 inches. The Bureau's annual report for fiscal year 1895 said it had been "pronounced by all who have seen it one of the most beautiful and most skillfully executed works of the kind ever issued. It is especially pleasing that this result has been attained, as the diploma will go to all the nations of the world and be subject to the severest criticism." GROWING PAINS 25

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L 26 HISTORY OF BUREAU OF ENGRAVING AND PRINTING be bestowed upon the Bureau, attesting place in Philadelphia and comprised a the skill of execution and the artistic display of immense proportions of the merit of its products.The recognition "arts, manufactures, and the products of attached to this award was a point of lively the soil and mine." A special building discussion during the hearings held on the was erected to house the U.S. Govern- aforementioned 1877 House of Repre- ment exhibits of various functions of the sentatives bill that would have virtually public service.Here the Bureau placed disbanded the Bureau. on display a collection of engravings rep- Naturally, the award was of great sat- resentative of its work. The Bureau was isfaction to the Bureau's proponents.It particularly gratified to receive a formal also had another benefit, bringing to a report from the exposition commissioners virtual end the charges of inferiority as concerning its display, as follows: to the artistic merits of the Bureau's work. The specimens of engravings exhib- The Vienna accolade was soon to be ited are according to the highest present followed by another.In 1876 the United standard of art in design and execution, States sponsored an international expo- and are worthy of the National Institu- sition in honor of the centennial anniver- tion within which they have been elabo- rated. The printing is perfectly done, and sary of the signing of the Declaration of bears witness to the employment of the Independence.Thecelebrationtook best skill and materials, and of highly

The Bureau's exhibit at the National Sesquicentennial Exposition held in Philadelphia in 1926. GROWING PAINS 1868-1879 27 improved machiney and process.The duties" imposed by the legislation.This whole exhibit is highly meritorious. act became the basis of the present in- The Bureau was awarded the Diplome ternal revenue system, as far as items d'Honneurthe highest award for gov- taxed and organization to collect revenues ernment exhibitionsby the Paris Uni- are concerned.It taxed incomes, estates, versal Exposition of 1878; the Grand Prix public utilities, banks, insurance com- of the Paris Universal Exposition of 1900; panies, advertisements, occupations, liq- the Grand Prize of the Alaska-Yukon- uors, tobaccos, and other specified com- Pacific Exposition held in Seattle, Wash., modities, and provided for stamp taxes in 1909; and the Medal of Honor of the on medicines, perfumes, cosmetics, play- Panama-Pacific International Exposition ing cards, and certain commercial papers. held in San Francisco in 1915. The 1862 act and various subsequent In addition to a display of its products, laws provided, in general, for three cate- the Bureau's exhibit at the Philadelphia gories of internal revenue stamps: docu- Sesquicentennial Exposition in 1926 in- mentary and proprietary, tax paid, and cluded demonstrations of the art of plate special tax.Documentary stamps were printing securities, both on a hand press required to be aflixed to such legal in- and a power press.This collective ex- struments as deeds, mortgages, leases, and hibit was awarded the Exposition's Gold charters.Proprietary stamps were re- Medal.The Bureau was awarded the quired for use on specific individual prod- Diploma de Honor of the Ibero-American ucts as purchased by the ultimate con- Exposition heldatSeville,Spain,in sumer.Both of these types of stamps 1929-30. carrieddenominationalvalues,were gummed, and resembled postage stamps in design and size.Manufacturers of Internal Revenue Stamps proprietary taxed articles had the privi- lege of furnishing their own designs for The same desperate need for Civil War the stamps used on their products, sub- financing which indirectlyled to the ject to approval by the Commissioner of creation of the component that eventu- Internal Revenue. Tax paid stamps inally grew into the Bureau of Engraving dicated that proper tax payment had been and Printing resulted in the formation made by the manufacturers upon certain of the U.S.internal revenue system. commodities in bulk quantity.These Until that time, the National Government were printed in a variety of sizes, usually relied almost exclusively on tariffs and larger than the customary stamp dimen- other customs taxes for its income. An sion, were ungummed, and denoted quan- act of July 1, 1862 (12 Stat. 432), au- tity rather than denominational value. thorized the President to appoint a Com- They were used for liquors, tobacco prod- missioner of Internal Revenue who was ucts, distilled spirits, and beer.Probably given the authority to assess, levy, and the best known of this category is the collect taxes and provide stamps "for ex- once-so-familiar bluecigarette stamp pressing and denoting the several stamp bearing the likeness of DeWitt Clinton Jli ifl UW)Ju1 LI) .thY Thewasreproduced earliest the influencing cigarette in the world, stampfactor, the portrayisince reason Cliii on was thisardentobscure. elaborately champion of the It is assumed year 1870indicateddeliveriesof31mil- stamps printedandprocessedbytheBu- an increaseinthenumberofrevenue early as1867.Thenextfewyearssaw place ofbusiness. quired tobepostedconspicuouslyatthe The stampitselfresembledalicenseor on offsetpressesbytheBureau. stamps wereoneoftheearliestjobsprinted item wasdiscontinuedin size packofcigarettesatthetimethisrevenue The offsetprintedstampusedonthestandard- etors ofplacesspecificamusements. dlers ofcertaincommodities,andpropri- were ineffectalicensetoengagebusi- part fromregulatorylegislation. more than490billionpacksofcigarettes. June 1959,thatportraitappearedon in theclassicfinger-to-templepose.From tax stamps.By1873deliveries hadrisen beer, tobacco,customcigars,andspecial lion stampsembracingdistilled reau. TheChief'sannualreportforfiscal printing private banknotefirms,theBureauwas first U.S.revenuestampswasassignedto certificate informatandwasusuallyre- over manufacturers,dealers,andped- ness andwereusedasameansofcontrol Special taxstampsemanatedforthemost 1878 untiltheitemwasdiscontinuedin Though thebulkofprinting beer and cigar 1959. stamps Cigarette spirits, They as GROWING PAINS 1868-1879 29 to over 224 million stamps and the cate- goriesexpandedtoincludedistilled spirits for exportation, compound liquor, cigar and cigarette, and snuff stamps. Most of the work reverted to private banknote companies by 1875 since their bids for producing a variety of the stamps were less than those of the Bureau, which continued to print only the custom cigar and special tax stamps.An act appro- The first U.S. commemorative revenue issue priating funds for Government expenses was this 10-cent documentary stamp marking for fiscal year 1877 (19 Stat. 152) re- the hundredth anniversary of the Internal Rev- enue Service on July 1, 1962.Designed, en- quired thatinternalrevenue stamps graved, and printed at the Bureau, it pictures should be printed in the Bureau, provided the present Internal Revenue headquarteii. that the cost did not exceed that paid under existing contracts to private bank- by contract whenever such stamps can note companies.However, the Secre- not be speedily prepared by the Bureau tary of the Treasury felt that the Bureau ofEngravingandPrinting;...." would be unable to compete with the This authorization proved unnecessary, private firms, and it was not until the as all internal revenue requirements were following year, under a new Secretary, filled by the Bureau at that time.The that the Bureau resumed manufacture of authorization was renewed in the follow- almost all the internal revenue items. ing year (30 Stat. 1090) and the Com- The printing of proprietary and docu- missioner has ever since had this preroga- mentary stamps was transferred to the tive in the placement of stamp orders. Bureau in 1880, but the legal requirements In 1902, many of the laws calling for for these stamps were soon canceled. specific internal revenue stamps were re- Certain stamps were authorized in the pealed, but the Bureau continued to print following years:oleomargarine stamps great quantities of the stamps that re- were introduced in 1886, and playing- mained in effect. As an example, in 1907 card stamps were revived in 1894. When there were 2'/ billion revenue stamps de- new financing became necessary because livered,includingthosefordistilled of the Spanish-American War in 1898, spirits,rectifiedspirits,liquor dealers, proprietaryand documentary stamps oleomargarine, snuff, cigars, cigarettes, were reintroduced.In that year the Bu- flour, wine, denatured alcohol, beer, and reau printed approximately 1 billion playing cards.The use of proprietary revenue stamps.Since the demands for stamps was renewed during the prepared- stamps were so great and so many varie- ness period preceding World War Iand ties of securities were required from the was continued into 1922. Bureau at the same time, the Commis- Aside from the staggering amount of sioner of Internal Revenue was "au- revenue stamps manufactured in the Bu- thorized to procure any of the stamps... reau, a further significance of these items 30 HISTORY OF BUREAU OF ENGRAvING AND PRINTING derives from the part they played in the onslaught of organized resistance to full introduction of improved machines and use of the press. processes employed by the Bureau. The Milligan was a "practical plate printer tremendous stamp requirements not only by trade" 2 and was, therefore, familiar contributed to the introduction of the with the arduous physical effort entailed power plate printing presses in 1878 but in the operation of the single-plate hand spurred the improvements made to this roller press then in vogue.This press type equipment during the period of its with its long radial handles called a original use by the Bureau.The need "spider" was a relatively simple mecha- for additional revenue items was also re- nism.In addition to its iron framework, sponsible for the extended use of typo- it consisted of a plank or bed, also of graphic printing made in 1890 and of off- iron, which moved between two steel set printing made in 1914. rollers, the top one of which was covered Although many internal revenue items with felt to soften the pressure.The en- have been discontinued in recent years, graved plate had to be heated on a small the Bureau delivered more than 2 billion stove and the printer had to vigorously revenue stamps during fiscal year 1962. roll the ink onto the plate with a leather or rubber roller.The heat and rolling action caused the ink to penetrate the Power Plate Printing Presses lines of the engraving.Next, the surplus ink lying on the surface of the plate had On August 1, 1876, James Milligan of to be removed by a brisk rubbing with a Brooklyn, N.Y., was granted U.S. Patent piece of starched muslin.In order to No. 180,490 for an "improvement in clean the plate perfectly, the printer then plate printing presses."The invention had to polish it with the palms of his was to revolutionize the engraved print- hands.This polishing required skill and ing industry.Use of the new press by judgment, for every trace of ink had to the Bureau was to entail extended and be removed from the surface of the plate careful evaluation. W. J. Gibson, attor- without disturbing the ink that lay in the ney for the owners of the press, well de- engraved lines.The printer then trans- scribed this effort in a statement before ferred the plate to the bed of the press, the Senate Committee on Finance, in and his assistant laid a dampened sheet of 1889, when he said: paper upon the plate.Grasping the The Government probably never exer- spokes of the "spider" in a hand-over- cised greater care and deliberation about hand action, the printer forced the bed the introduction of any machinery into and plate between the rollers.His assist- its work than it did with respect to these ant removed the sheet and set it aside. Milligan power plate-presses. After the backs were printed, they were Once the press was introduced into 2 Bureau operations, the effort put forth in Milligan later served as a foreman plate printer in the Bureau. He died in 1884, leav- evaluating it was matched only by the ing his interest in the press to his wife and persistency displayed against the constant daughter. GROWING PAINS 1868-1879 31 dried; then the sheets were rewet and the faces printed in the same manner. Milligan's press, which incorporated the basic principles of the hand press, was powered by steam and performed the printing, inking, and wiping simultaneously through the continuous movement of four plates around a square frame. The printer made the final polish by hand and his assistant placed the sheet on a moving plate which was engraved with register markings for proper positioning of the paper.After the impression was printed by movement of the plate between a set of pressure rollers, a second assistant removed the sheet and the plate Hand printing press. continued onto another cycle. The mech-

Steam printing press.

648-001 O-64-----4 32 HISTORY OF BUREAU OF ENGRAVING AND PRINTING anizationofthreeofthefunctions classes of work in a satisfactory manner formerly performed by the printer nat- with a considerable savings to the Govern- urally increased the productive output ment (the Milligan type more so than over that of the hand press. the other) and it was suggested that "it At the request of Secretary of the might be to the advantage of the Govern- Treasury John Sherman, Milligan ment to procure a limited number of the brought his press to Washington for the steam-presses under consideration..... purpose of having it evaluated by a corn- Accordingly, a proposal was made to the rnittee of experts for possible use by the owners of the presses to permit the Bu- Government.Testing of the machine reau to retain the experimental models began in May 1877.The committee and to construct 5 additional machines appointed by the Secretary reported that of each type at $500 per press and a roy- "There are certain classes of work which alty of $1 for each 1,000 impressions might be satisfactorily printed upon the printed.The proposition was accepted press with more economy and more by the owners of the Milligan patent and rapidity than by hand-press."Accord- in January 1880 a contract was entered ingly, the press was introduced into the into under the "expressed agreement that Bureau in January 1878.It would ap- the right to make and use these presses pear that this machine was procured for was for the purpose of a more thorough extended practicaltrialpurposes,for test of the adaptability of the press to Milligan did not consider his press as the work of the Government."Owing being in full operation until the follow- to disharmony between the owners of the ing August 1.Meanwhile, another type Neale-Appletonpress,the proposition of steam press, the Neale-Appleton, which was not accepted by them and, conse- did not require the services of a plate quently, no further use was made by the printer, was evaluated by the Bureau. Bureau of that machine. The following December the Secretary In August 1881 tests were begun on a appointed another committee "to ex- third type steam press, the Homer Lee.3 amine and report upon the merits of the Like the second machine tested, it did not two [types of] machines ... ."That group was composed of Representative require the services of a plate printer.4 Hiram P. Bell, a member of the House Almost a year later a committee of seven Committee on Banking and Currency, as persons, two of whom were from the Bu- chairman, and "four experts from the reau, was appointed by Secretary of the Treasury Department." Treasury Charles J. Folger to consider "After a very careful, patient, and as the relative merits of the Homer Lee, the thorough an examination as practicable, ." the committee concluded that the pamphlet written in 1889 about the steam presses did not "attain as high a Milligan press states that the Homer Lee was a French product, known as the "Guy Press." standard as that done by the hand-roller 'These machines needed only the attention presses."However, in their opinion the of a pressman to adjust them and keep them in presses were suitable for printing certain running order. GROWING PAINS 1868-1879 33 Mulligan, and the hand press. After a 10- it has been found can be printed with month investigation, the full committee greater economy by the steam-power found that the Milligan could "print cer- presses, and to use such a number of Homer Lee presses as will accomplish tain classes of securities with an acceptable the printing of the securities for which degree of excellence," but the members it is adapted. were split 5 to 2 as to the potentials of the Homer Lee press for printing work of Accordingly, the Secretary directed that a higher standard than that which the the Bureau acquire the experimental model and three other Lee presses. The Chief Milligan press was capable of producing. The committee majority concluded that of the Bureau felt that such a move would be a false economy and recommended that the steam-power presses can exe- no additional Lee presses be introduced. cute the securities for which they are adapted at less expense than the hand- Apparently, this recommendation did not presses, and that the Homer Lee press can prevail and an effort was made to procure execute the same work at less expense the machines but without success.In an than the Milligan press. 1885 report on the matter, the succeeding it is for the interest of the Govern- ment to discontinue the use of the hand- Chief stated that "for some unexplained presses for printing those securities which reason, the owners of the patent declined

The Homer Leethe automated plate printing press of its day. 34 HISTORY OF BUREAU OF ENGRAVING AND PRINTING to furnish the presses." Subsequently, securities printed by this process.They the Bureau arranged for the construction do, however, compare favorably with of six Milligan presses of an improved pat- much of the printing of the same class done on hand-presses. Their quality has tern and all were in operation by Janu- steadily improved since the first attempt ary 1887. to print them by steam, and there is no Previously, production on the steam doubt that with added experience it will plate presses had been confined to print- still further improve. ing 2- and 4-ounce tobacco stamps and the The extent to which steam presses were green backs of some U.S. notes.Upon being used is recounted in the Rtireau's acquisition of the additional machines, annual report for fiscal year 1888, which power press production was expanded to reads: include that of backs for the $1 to $10 The steam-presses are now printing silver certificates and the $10 and $20 much more than one-third of the work U.S. notes.Early in fiscal year 1888 it of the Bureau with a great economy of was found that the Bureau could not meet room, labor, and expense.The cost of production requirements, because of the the printing done by them is less than legal provision granting all Bureau em- $80,000.To print the same work by ployees 15 days absence (24 Stat. 607), hand would cost $180,000..... effective July 1, 1887, and the unprece- This broadening application of the dented demand for tobacco, cigar, and presses was too much for the plate print- cigarette stamps.In consequence, the ers. They saw it as yet another encroach- number of Milligan presses was further ment into the once exclusive realm of the increased to 18. hand press. How far away was the print- These latest acquired presses were as- ing of black internal revenue stamps from signedtothe production of 50-cigar the printing of black faces of currency stamps.This innovation illustrated the notes? The printers were concerned that progress made in the improvement of they might be thrown out of work.Fur- steam press equipment.It was described ther,they were convincedthatonly as follows: through use of hand roller presses was it possible to achieve the best quality work The 50-cigar stamps are printed in black ink, which is more difficult to work than so essential as a definite check to success- the green ink used on the other securities ful counterfeiting. printed by the steam presses, and there- The heretofore token opposition to the fore they do not come quite up to the use of power plate printing presses in the same standard of excellence as the other Bureau took on added impetus.The A possible clue to the firm's refusal to ne- Knights of Labor of North America in a gotiate is found in the 1889 Milligan press general assembly held at Minneapolis, pamphlet which stated that the Homer Lee Minn., in October 1887 adopted a reso- press was then "owned by a private bank note lution demanding that "all Government company and its further use cannot be had by securities,notes,bonds,checks,and the Government."It could well be that the exclusive rights to the press were being trans- stamps shall be printed in the highest ferred to that company in 1885. style of the art of plate printing, from GROWING PAINS 1868-1879 35

hand-roller presses...."Further, the Distinctive Currency Paper assembly directed that any group or person appointed to represent the union be- Theu4of a distinctively marked paper fore Congress do everything "practicable in printing currency notes, limited by law to give effect to this resolution."Orga- to this single purpose, was early recognized labor was not satisfied even with the nized a one of the prime deterrents to extent of this measure, for it vigorously countereiting. backed a bill introduced in the Senate Spener Clark reported that he had in January of the following year that not frequen1y recommended to the Secretary only provided that all Government securi- "the p4priety and economy of manufac- ties be printed on hand roller presses but turing paper of a distinctive character in also required that the Chief and the As- the Deartment."In 1862 he was au- sistant Chief of the Bureau be practical thorizec by Secretary Chase "to make in- engravers or plate printers. vestigations and experiments in reference Though that bill never became law, the to the manufacture of a distinctive paper opposition was greatly heartened by the in the [Treasury] building."In connec- provision of the Sundry Civil Act for tion with this assignment, he reported: fiscal year 1889 (25 Stat. 511) which prohibited any increase in the number of I labored at this as time and opportunity allowed, and received much aid steam plate printing presses used in the and many suggestions from different ex- Bureau.The appropriation act for the perts,to whom I communicated my following fiscal year (25 Stat. 945) like- views. We attempted to produce a paper wise legislated against any increase in the evenly tinted in the fibre with a bright non-photographic tint, which would not number of steam presses and contained interfere with the engraving, and could an additional provision as follows: not be removed from the paper without destroying the fabric, and which would That unless the patentees of said steam at a glance distinguish the Government presses shall accept the five hundred dol- issues from all other.All our efforts lars already paid as a royalty on each failed to produce this desideratum. We press and the rate [of one cent] per thou- could introduce no suitablepigment sand sheets herein provided the said press- which we could not chemically remove. es shall not be used by the Government after the close of the present fiscal year Meanwhile, the Department issued an [1889]. advertisement inviting proposals from manufacturers to furnish paper for use That proviso sealed the doom for the in the printing of U.S. securities.In time being of the Bureau's steam plate answer thereto, Stuart Gwynn of Boston, printing presses.The old royalty had Mass., submitted "samples of most ex- been $1 per thousand sheets and the traordinary character and excellence" of holders of the patent rights declined to a vegetable membrane paper of his in- accept the drastically reduced rate. Con- vention. InClark'sopinion,"The sequently, use of the equipment was dis- 'distinctivemark'submittedby Mr. continued after June 30, 1889. Gwynn ...[was] ingenious, and might 36 HISTOEY OF BUREAU OF ENGRAVING AND PRINTING be serviceable to the Department in de- the origin of the so-called "spider-legs" in tecting counterfeits."After some delay, the membrane paper, and which has been adopted as one of the distinctive a contract was entered into between the characteristics of the National Paper now Secretary and Gwynn on October 13, [1864] made in the Department. 1862, for- the production of the unique *** paper in the Treasury Department. The first membrane paper produced Some of the interesting features of this was unsatisfactory. The peculiar process contract were: of making, rendered it more liable to The Treasury Department had the ex- split than ordinary bank note paper. clusive right to manufacture and use the But experiments were immediately made paper. to overcome this difficulty, and ultimately The "secret" or process of manufac- with entire success. He now produces a ture was not to be divulged to any per- paper under his contract which cannot be son whatsoever except to those immedi- dissolved in hot or cold water, which can- ately engaged in its manufacture in the not be split, which has an irremoveable Treasury building. non-photographic tint in itsspider-leg Gwynn was required to superintend the fibre, and which takes ink more readily, construction of the necessary machinery retains it longer, and wears better than for the manufacture of the paper. any paper heretofore manufactured for A secret mark "of such size and device the purposes of currency in any country. as may be directed by the Secretary" had Thus the Government acquired its first to be placed in the web of the paper "so distinctive paper for currency.It was that one copy, or impression thereof, shall be upon each note or stamp issued..... originally contemplated that the paper would be used for all issues of notes. Upon coming totheDepartment, With this intent in mind, Secretary Chase Gwynn devoted his first attention to tint- had legislation passed which made it un- ing the fiber of the paper to be made unlawful for anyone, except by special au- der his contract.- A report describing thority, to possess a paper similar to that theseexperimentsandthesuccess used for currency afterit had been achieved in this regard states: adopted as a distinctive item by the Gov- He [Gwynn] made extensive experiments, ernment (13 Stat. 222).6 However, the but with allhisscientific knowledge paper had been applied only in the pro- failed to produce an even non-photographic tint which that same scientific duction of fractional currency when some knowledge could not effectually remove. difficulty arose between the Treasury and In the course of his experiments he discov- the supplier of the basic paper stock ered a method of tinting non-photo- used' and manufacture of the spider-leg graphically, with a new and rare pigment, a fibre foreign to that used in the manu- A similar restriction is in effect today: 18 facture of paper, but which could be in- U.s.c. 474. troduced into and mingled with it in- such 'From meager data available, it appears that a manner that no re-agent known to Gwynn's process involved the introduction of chemistry, nor any method that he could tinted fibers between two sheets of specially devise, would removeitsnon-photo- premanufacturedpaperstockwhich were graphic property without at the same chemically treated and pressed together to time removing the fibre itself.This was form a single print-sheet. GROWING PAINS 1868-1879 37

paperwastemporarilydiscontinued. intended for use in printing of currency, Meanwhile, Gwynn was imprisoned on bonds, and notes would embody the discharges of defrauding the Government, tributed fiber feature and the "U.S." brought by Lafayette Baker, which were watermark and, in addition, the paper later proven unfounded.Failing to re- intended for legal tender issues (U.S. ceive vindication for this embarrassment, notes) would include a newly invented Gwynn disassociated himself from the localized fiber feature.The patent for project, leaving the execution of his con- the latter was held by the Willcox firm, tract to a subordinate and an attorney. the special characteristic being a "band or Apparently, without his personal direc- bands of dark-blue jute fibre, two or three tion, the manufacture of the spider-leg inches in width, traversing one face of the paper lagged and was soon discontinued. sheet[s]." 8Willcox continued to manu- A distinctive paper for currency was facture this paper for the Government not again used until 1869. On March 31 until August 31, 1877, when it was felt of that year, Secretary of the Treasury that there were sufficient stocks on hand George S. Boutwell entered into a con- to meet requirements for a considerable tract with Messrs. J. M. Willcox & Co., of period and all agreements were canceled. Philadelphia, for the manufacture of a When additionalstockswere next paper for use in printing fractional cur- needed, Willcox refused to make avail- rency and U.S. notes. The contract spec- able data upon which a "just and equita- ified that there would be introduced into ble price" for the paper could be ad- the paper "silk fiber of two different judged;therefore,theSecretary is- colors,. .. and also a watermark show- sued a general advertisement soliciting ing repeatedly, as may be thought advis- proposals for furnishing adistinctive able hereafter, the letters 'U.S.'."From paper to the Department. On the basis an explanation found in the report of a of the bids received, the contract was committee appointed by the Secretary of awarded in June 1879 to Crane & Co., of the Treasury in 1877 to make an exam- Dalton, Mass.That firm furnished a ination of the Bureau, it would appear paper comprised "of pure linen stock, that the product manufactured under with continuous colored [red and blue] this original contract contained distinc- silk lines or threads running parallel to tive fibers of only one colorshort, red each other from the top to the bottom of silkrather than the two called for by each sheet, or from side to side, as the the specifications.The group also re- case might be; and in addition thereto, ported that this paper was "used to some colored [red and blue] silk fibers were in- extent in the printing of Fractional cur- troduced into the pulp from which the rency, but was never used for United paper was made..... States notes." The contract remained in effect only 6 Actual experience proved the use of this months,forinSeptember1869the jute paper to be impractical for securities where Treasury entered into agreement with signatures or endorsements had to be hand- the Wilicox firm whereby all the paper written. 38 HISTORY OF BUREAU OF ENGRAVING AND PRINTING

In 1885 the practice of incorporating tinued and replaced by small distributed distributed fiber into the paper during the red and blue silk fibers dispersed through- course of manufacture was discontinued, out the sheets.However, there had been but the security feature of localized fibers changes made in the basic rag content of remained in effect.A public notice is- the paper during that interim. sued by the Secretary of the Treasury Owing to the conditions brought about dated June 10, 1885, advising the public by the outbreak of war in Europe in 1914, of the adoption of the distinctive paper Great Britain placed an embargo on the described the item as follows: export of linen cuttings. As a result, the The paper for United States notes, na- distinctive paper contractor was unable tional-bank notes, and certificatesis a to secure adequate stocks of such cuttings, white bank-note paper, glazed on both which were employed in the manufacture sides, and its distinctive feature is the of the currency paper. Consequently, by introduction of a blue silk thread into the the fall of that year the Treasury Depart- body of the paper. .., which shall run lengthwise through each note or certifi- ment authorized the contractor to sub- cate. stitute cotton in place of one-third of the linen formerly used.As hostilities in- Actually, the distinctive feature com- creased, a reduction to 50 percent in the prised eight threads to a sheet or two to linen content became necessary as of a note, approximately an inch in length, January 1, 1917, and by the end of July located in an irregular manner on the of that year this ingredient had to be re- right and left sides of the note.In Au- duced to 25 percent. By the close of 1917, gust of 1886 this requirement was re- the world supply of linen available for duced to one blue thread to "appear near nondefense purposes was such that the the center of each note." The following Government had to resort to the use of a year the use of two threads for each note paper made entirely of cotton.This was was resumed and this type paper remained used until March 1921 when the supply in effect until 1891.In July of that year of linen on the market was sufficient to the requirement was changed to read: warrant restoration of the 50-percent The paper for United States notes, formula.In July 1922, the linen con- national-bank notes, and certificates is a tent was further increased to 75 percent cream-white bank-note paper.Its distinctive feature consists of localized red and then to 100 percent by the following and blue silk fiber incorporated in the spring. body of the paper while in the process of Experience showed, however, that this manufacture, so placed as to form a per- pendicular stripe on either side of the all linen paper was not as satisfactory, center portrait or vignette of each note from the standpoint of printing and wear- and other obligation. ing qualities, as that made with one- No change was made in the distinctive quarter cotton.In view of this finding, feature of the paper until the introduc- a return to the stock formula of 75 per- tion of small-sized currency notes in 1929 cent linen and 25 percent cotton was au- when the localized feature was discon- thorized in September 1924.This 3-to-i GROWING PAINS 1868-1879 39 ratio was maintained until shortly prior notes was further reduced to 25 percent. to America's entry into World War II. It is interesting to note that the Crane Fortunately, during the Second War company has continued to supply the dis- period it was never necessary to alter the tinctive paper used in the printing of cur- basic linen and cotton formula to lower rency from 1879 to date.From time to than a 50-50 ratio.The difficulty this time the Bureau has cooperated with time concerned finding suitable replace- other paper manufacturers who have ex- ments for the silk fibers used as the dis- pressed an interest in supplying a special tinctive identifying feature in currency paper for the purpose.In furtherance paper. The world supply of silk was so of this end, the Treasury Department adversely affected that in April 1942 nylon negotiated "educational" contracts with fibers were substituted in the manufac- another manufacturer in1928,1930, ture of the paper. By April 1943 nylon 1934, and 1935 to supply small amounts was in critically short supply and the Gov- of the total distinctive paper require- ernment had to resort to colored cotton ments.However, on each of these occa- thread for the protective feature.This sions the product furnished was found to type thread continued to be used until it be unsatisfactory.Invitations to bid on was replaced by another synthetic fiber the paper contract have been extended in 1950. each year to all known rag-paper manu- The numerous technological advance- facturers throughout the country. ments in paper manufacturing achieved To encouragecompetitioninthe during and immediately after the war, manufacture of distinctive paper for U.S. which resulted in a much stronger and securities, Congress, in 1932, authorized longer wearing product, obviated any the Secretary of the Treasury to split the necessity for the Bureau to return to a award for such paper between two bid- higher linen content paper than the 50- ders whose prices per pound were the percent type.In fact, with the introduc- lowest received after advertisement (47 tion of dry printing of currency in 1957 Stat. 583), and this authority remains in the linen content of the paper for the effect today (31 U.S.C. 418a). CHAPTER iii The Bureau Comes

of Age- ahome of itsown 1880-1893

SCANT 3 YEARS after beginning operations, Spencer Clark made a formal recommendation to the Secretary of the Treasury that separate facilities be provided for the printing and processing of the currency. The scope of the work then performed can be gaged by his report of the same time wherein he stated that a "total of three hundred and twenty-four engines, machines, &cwere in use and there were employed "in connection with this machinery, 237 male and 288 female operatives;. ..."The physical facilities for performing the work were anything but ideal, being divided between the basement and the attic of the Treasury building and requiring the use of a dumbwaiter to transport the paper and printed securities between the two locations. It was Clark's recommendation that the finished money through the main The work should all be executed in a fire- halls and passages of the Treasury, to proof building, to be erected and exclu- which both the public and the Treasury sively occupied for this purpose. A sub- force have free access.The experience stantial but not costly structure should of the past two years in this Division, in be built on the grounds adjacent to the connection with the detailed descriptions Treasury Building, and communication which have been obtained of the construc- between it and the room occupied by the tion of the buildings in which the Banks Treasurer of the United States should be of England and of France prepare and made by a subterranean passage between issue their notes, will enable the interior the two buildings through which the accommodations to be economically and printed values could be transmitted, thus conveniently planned for the safe pros- avoiding such risk of transmission as ecution of the work, if such a structure attends the present method of carrying be authorized by Congress. 40 THE BUREAU COMES OF AGE 1880-1893 41

No concrete action was taken concern- with the commission's findings, the Chief ing Clark's suggestion.Apparently, the went on to recite "the nature of the pre- situation was stillacute in1868. A cautions taken [by the Bureau] against specialdepartmentalcommittee,ap- the occurrence of a fire."These give pointed at that time "to examine and re- an excellent picture of conditions at that port upon the method of business and time. present condition" of the Bureau, while After working-hours all inflammable uncertain- that the scope of its assignment substances used in the processes of the called for comment relative to the physi- Bureau are carefully removed from the cal plant, deemed "it better 'to take the building each day.All oiled rags, paper, and other combustible material, are gath- responsibility' rather than be recreant to ered and also removed from the building. duty."It was the unanimous opinion of A careful watch is kept upon the premises the group that of the Bureau during the entire twenty- four hours.The plate-printers are orga- aseparatebuildingshouldbe nized into a fire-brigade, and are drilled erected for the accommodation of this every Saturday afternoon; and, a large bureau, not only on account of its incon- portion of them being experienced fire- gruous arrangement, necessitated by its men, they constitute a very valuable proposition, but for more safety and con- tection.There are one hundred and venience, and because of the objection- forty-fivefire-buckets, constantly filled able interference with other bureaus of with water, hung in the various rooms the department, by reason of the noise of occupied by the Bureau.Attachments the machinery and the smoke and soot of have been made to the pipes giving the the furnaces. water-supply, which, with a large supply It is likely that the report of a special of hose, would give instant access to an commission appointed by President Hayes endangered point.In addition to this, there will be an attachment made to a in 1877 to investigate the fire protective large iron tank, now in the process of con- conditions of the various Governmeiit struction, on the upper floor of the Treas- buildings in the city of Washington did uryall which precautions, it is believed, much to stimulate remedying the con- reduce the risk to a minimum. dition.That group reported that the It is, nevertheless, conceded that the operations of the Bureau could be car- materials used in connection with the ried on with a nearer approach to abso- work of the Bureau created a serious lute safety in a building entirely fire-proof. hazard inthe Treasury building.In It would also be better that the machin- view of this stand, the Chief of the ery required for our purposes should be Bureau, in his annual report for fiscal in the basement, rather than in the upper stories of any building, however substan- year 1877, stated he felt it not "improper" tial. The proposed changes would, therefor him "to suggest the expediency of fore,notonlyrelievetheTreasury the appropriation by Congress of a sum building from whatever strain may be put sufficient to erect, for the purposes of upon it by the operation of the machinery this Bureau, a plain, substantial, fire- in use in the Bureau, but it would relieve proof building, on one of the unappro- for other purpose of the Department, the space now occupied by the Bureau.In priated lots convenient to the Treasury that event, other bureaus of the Depart- Department."Though in full accord ment, now occupying rented buildings, 42 HISTORY OF BUREAU OF ENGRAVING AND PRINTING .aonUn,enI Grofldt

B. s B. s

Ey-JJep D.0 1'J8 S.?.1ook2

An 1885 plat showing the site of the first Bureau of Engraving and Printing building.The remaining property in Square 231 was later acquired for expansion of the facilities.The present main building occupies a portion of that land and all the ground dedicated as C and D Streets, between 14th and 15th Streets, as well as the whole of Square 232.It will be noted that at the time of the origin of the plat, the Potomac River shoreline abutted Square 233 where now stands the Treasury Department's Liberty Loan Building. THE BUREAU COMES OF AGE 1880-1893 43

could be brought within the Treasury ideas ever materialized, the congressional building and the rentals saved.These authorization (20 Stat. 211) for the erec- rentals, and the economies which, in a tion of the Bureau building specifically new and especially-constructed building, could be introduced into the business, will stated that the structure was also to be more than pay the cost of that portion of devoted "to the mechanical purposes of the building which would be devoted to other bureaus and branches" of the Treas- this use. ury Department and "to like purposes of The Bureau's plea was seconded by the bureaus of other departments..... Secretary of the Treasury in his annual The choice of site was later changed to report for 1877. a parcel of land comprising approxi- When serious consideration was first mately one-third of the square lying di- given the matter, it was suggested that rectly south of the Government-owned the best available location for the new property originally suggested for the pur- building was a portion of the land owned pose.This land was purchased on June by the Government lying between 14th 26, 1878, for a sum slightly in excess of and 15th Streets and B Street NW. (now $27,500, from William W. Corcoran, Constitution Avenue) and B Street SW. Washington historical figure and philan- (now Independence Avenue). The Sec- thropist, probably best known as the retary was of the opinion that the proper founder of the world-famous Corcoran site for the building would be at, or near, Gallery of Art. the corner of 14th and B Streets SW. No time was lost in getting the building This would have placed the building in underway. A contract for the excavation line with the Smithsonian Institution for the project was awarded the following property and the Department of Agricul- month. The structure, Romanesque in ture grounds. style, was designed by James G. Hill, The Director in writing to the Honor- Supervising Architect of the Treasury.It able Justin L. Morrill, chairman of the was completed in record time at a cost Senate Committee on Public Buildings of $300,000 and was ready for occupancy and Grounds, in April 1878 stated: on July 1, 1880. I cannot conceive of any interest which A popular Washington guidebook of would be injuriously affected by this loca- the day gives a picturesque description of tion [suggested by the Secretary], and the building: it would have the great advantage of avoiding a purchase [of other property] [It] is 220 ft. long and 135 ft. wide,. and would secure, at the same time, a constructed of pressed bricks, above the commanding situation which would be basement with string courses of moulded healthful and give the light needed for our bricks; is fire-proof throughout, the floors work. 'The building was never occupied by any It was initially intended that the build- other Government facility until the Bureau ing provide space for the storage of the moved into its newer building in 1914.Ap- burgeoning records of the Department as parently, these clauses were inserted in recognition of the customary Bureau practice of well as an assay laboratory for the Bureau performing servicesfor other Government of the Mint.Though neither of these agencies in its various mechanical Shops. A portion of the Currier & Ives print, "The City of WashingtonBirds-eye View from the Potomac Looking North," copyrighted 1880.The Bureau is located in the extreme right foreground. THE BUREAU COMES OF AGE 1880-1893 45

consisting of iron girders and brick arches, On the second floor are the draughting, the doors and window frames only being destruction committee, numbering ma- of wood. The North facade, facing the chine, examining, hydraulic press (200 city,comprises a basement and three tons pressure) rooms, also the stock vault stories, surmounted by an artistic cornice, 65 x 12 ft. of chilled steel and masonry and broken by three pavilions, that at the and double doors with time and magnet N.E., rising into a belfry tower 130 ft. lock. high. The South facade, overlooking the On the third floor, hand plate press Potomacriver,isbroken by several and wetting rooms. chimneys of architectural designs.The On the fourth floor (attic), dressing west carries off the fumes of the harden- rooms, males in the E. end and females ing rooms, and is built of massive walls in the W. end. Also ventilators and fans. to resist the action of the fumes of the The tower is ascended by an iron spiral acids used in hardening the plates.The staircase: in the first landing is the tower elevator towers are also of beautiful de- clock,2 and above, a lookout. signs. The stack from the boiler rooms in The boiler house in the rear, 2 stories the rear is 100 ft. high. high, contains rooms for the destruction On the Principal story are the entrance of defective bank-notes, furnace room hail in the belfry tower, lined with orna- and laundry. The building is heated by mental and colored brick, and the stair- hot water, and ventilated by machinery. way of iron and brass railing, with ornamental and enamel brick wainscoting. On laying out the ground for the new Nearby are the rooms of the officer of the building, it was soon apparent that the watch and administrative offices.On site was not large enough, for although this floor are the vaults, with timelocks of the most delicate mechanism, generally the structure was placed close to the B set from 4 p.m. to 7 a.m.; the hardening Street property line, there remained but room, where softened rollers and plates a narrow passageway between the rear of containing the designs are hardened for the building and the adjacent privately use by being put into furnaces with heated owned land.Steps were immediately cyanide of potassium: transfer; geometric taken to acquire that ground in the north lathe; dressing and wash rooms. The plate vault, guarded day and night half of the square not owned by the Gov- by trusted watchmen, contains all the ernment, as an addition to the Bureau engraved plates of the government. The site for the erection of necessary outbuild- chief custodian is under the Secretary of ings and a passageway to accommodate the Treasury, and delivers plates for delivery teams of horses at the rear of printing only upon the Secretary's order, and requires them to be restored at the the building. An estimate was submitted close of work hours. to Congress for an appropriation for the In the basement, reached from the purchase of the needed land, at a price main hall-way, are clerks' offices; bindery; perforating, gumming, ruling, steam 2 Though the architect's plans called for a plate press, engine and boiler rooms, and tower clock and records of bids for its installa- ink mill.There are 8 boilers, 40 H.P. tion are available, no evidence could be found each, and 2 engines 200 H.P. and 60 in support of this statement.Several retired H.P., and 2 elevators. employees who were born and raised in the In the sub-basement are the machine vicinity have no recollection of such a time- shops for the repair of the machinery piece nor is any shown in early photographs used. of the building. 46 HISTORY OF BUREAU OF ENGRAVING AND PRINTING not to exceed 50 cents per square foot. Bureau had outgrown the capacity of the An act, approved June 16, 1880 (21 Stat. building. Contributing much tothis 260), provided $15,732.70 for the pur- predicament were the restrictions imposed pose.It was claimed that the rate speci- by Congress relative to the use of steam fied in the legislation was the price agreed power presses as of July 1, 1889, thereby upon between the agents of the Treasury creating an immediate need for some 60- Department and the owners of the land. odd hand presses to offset the loss of 19 However, when the funds actually be- steam presses; consequently, the already came available, one of the four property inadequate facilities became exceedingly owners concerned declined to sell at the overcrowded with the additional ma- rate set, holding out for a higher price. chines and personnel required by the Since the lot involved was strategically changeover. As the economic growth of situated, it was impractical to buy all the the Nation spiraled, there was a corre- land that was made available and the sponding increase in the demands for Government purchased only the plots more of the Bureau's products, evidenced bordering on 14th Street. by the amount of work executed in 1891 The opening ofthe new building which was an increase of 27 percent over brought a complete metamorphosis to the shipments made during the previous year. semirural atmosphere of the area.Dirt The increase in orders for small denom- roadways becamecobblestonestreets, ination currency notes in the spring of farm horses were replaced by dray teams, 1891 and the steadily rising demand for pasture land was developed into city internal revenue stamps made it apparent blocks with row houses. Along with these that the Bureau's productive output had changes, surrounding land values soared. reached the saturation point.The only In the years that followed, it became more way to gain relief was the enlargement apparent that the Bureau would even- of the building.Accordingly, by an act tually require all the property originally of August 30, 1890 (26 Stat. 374), Con- sought and it was thought best to purchase gress appropriated $80,000 for the erec- the land that was still available at the tion of a wing at the southwest corner of initially agreed upon price.This land the building.This addition provided was acquired in June 1886. By the time 13,000 square feet of workspace. that it was absolutely essential that the Further expansion of facilities soon fol- Bureau acquire all the ground originally lowed. A second extension to accommo- sought, the asking price for the holdout date a boiler plant was erected at the rear land had increased to $17,000, or approxi- of the building in 1894. Two additional mately four times the purchase price au- stories were added to this boilerhouse thorized by Congress.Finally it became the following year, and a third story was necessary for the Government to institute added in 1896. condemnation proceedings for the land By July 1899 the Bureau again reached and title was thus acquired by court a crucial point in its need for workspace. decree in 1891, at a price of $15,350. Particularly pressing was the need for Meanwhile,theworkloadofthe additional outbuildings to accommodate An 1895 view of the first Bureau building from the foot of the Washington Monument. On the right is the first addition made to the structure, and in the center, the lofty boiler chimney decoratively capped. the grinding of dry colors, mixing and tons a year.When delivered,it was grinding of ink, storage of coal, and bet- dumped in lots of 100 tons at the rear of ter stabling facilities. the building and conveyed, as needed, by Because of the lack of space, the Bureau wheelbarrow into the boilerroom.The was compelled to mix and grind its ink in coal lay exposed to the weather, con- the basement and to mix its dry colors stantly subject to waste caused by the in a dark room in the cellar without sun- runoff of the rain and melting snow. In light or proper ventilation. The dust from the process of being dumped and handled, the dry colors permeated other parts of it gave off a thick dust that floated into the building, fouling the air and discol- the building and seriously interfered with oring the ceilings.It was felt that the the operation of some of the more deli- removal of the ink-manufacturing activi- cate machinery. ties to an outbuilding would remedy these The stable, wagonhouse, and harness difficulties and bring about improvements and storage rooms were housed in tem- in the related production processes. porary wooden structures, ill suited for the There were no provisions whatever purpose and not in keeping with the main for storing, or even sheltering, the coal brick building. used, which approximated some 2,250 On June 6, 1900, Congress appropri-

645-001 O-64---.--5 48 {ISTORY OF BUREAU OF ENGRAVING AND PRINTING ated $100,000 for the construction of a The Bureau had early been caught in wing to be attached to the northwest cor- the swell of Washington community life. ner of the building and $115,000 for the In a city principally devoted to adminis- erection of the needed fireproof outbuild- trative and clerical work, it was one of ings (31 Stat. 589). The wing, four sto- the main local industrial plants, along ries high, was occupied in December 1900 with the Government Printing Office and and the outbuilding accommodating the the Washington Navy Yard.Its ups and ink mill, carpenter shop, harness room, downs had impact upon the local econo- stable, and coal storage facilities, which my, especially that of the Southwest became known as the "South Outbuild- wharves and Foggy Bottom areas of the ing," in January 1902. city.To the native population, the term In 1903 Congress provided $215,000 "The Bureau" came to have but one (32 Stat. 1039 and 1211) for the acquisi- meaningthe Bureau of Engraving and tion of additional land south of the Bureau Printing.The "taLk of the neighbor- site for the erection of a building to ac- hood" was the installation of silo-structure cornmodate a new laundry and another fire escapes with circular slides that were stable.The appropriation also provided the bane of the timorous employee but a for the razing of the temporary wooden joy to the young, as well as those "still structures situated along the 15th Street young at heart." boundary and used to house these two During its 34-year tenure, the building activities to be replaced by the construc- saw many changes occur both at the local tion of a two-story brick building for the and national levels.It had been a silent accommodation of security production sentinel to the completion of the Washing- activities.The new laundry and stable ton Monument that opened to visitors in building was completed in August 1904 1888.It had been introduced to the and the other addition, which came to printing of postage stampsin1894. be known as the "West Outbuilding," by Within its walls the securities needed for December 1905. financing the Spanish-American War had The Bureau continued to occupy this been produced.It covetously eyed the home until 1914 when it moved into new building expansion program of the adja- and larger quarters erected on the square cent Department of Agriculture early in immediately south of the old location. the new century.The horsecars that As public buildings go in Washington, stopped at the Bureau corner to discharge the red-brick edifice is not old. At the hundreds of passenger-employees had time of its erection it was regarded as an been replaced by electric cars operated on industrial structure containing the most underground cable.The horseless car- advanced factory-type facilities. But dur- riages of the day chugged past the Bu- ing the period of its lifetime, vast im- reau's high-domed windows on a 1905 provements in the technological fields had Sunday outing to test the vehicles' capa- occurred and the Bureau's physical plant bilities around the Speedway in the newly was soon to become not only overcrowded created East Potomac Park. but outmoded as well. For 8 years, beginning in 1906, Bureau Life was not all dull at the Bureau.Employees often banded together in planning an outing as did this group, off for the opening of the 1905 baseball season.The gentleman with the cane is Assistant Director Thomas J. Sullivan. management was to strive to obtain new tion,accountabilityforvalues,and plant facilities.Finally, the effort was methods of business."They comprised successful and with the opening of the "such customs and practices as have ob- new building the original main structure tained in the Bureau from its establish- was vacated as of April 25, 1914.It was ment, and which, having been thoroughly turned over for the use of another branch tested since its reorganization, are deemed of the Treasury Department and affec- advisable to retain, together with such tionatelybecamedubbedwiththe additions as have been found necessary emeritus title, "the old red brick build- for the successful operation of the Bu- ing." reau as a business establishment.. . A sociologist would probably regard the The 1880 Rule Book book as a good example of the easy pace of living just prior to the turn of the 20th Just as for any family moving into a new century, reflecting the mores of the times, home, new rules were established by the and pointing out the contrast between Bureau in 1880 "covering its organiza- management's problems then and today. 50 HISTORY OF BUREAU OF ENGRAVING AND PRINTING

The volume evokes a picture of an era at their parents or guardians, a good and once quaint and familiar. sufficient excuse for the absence. For instance,the operation of the The conveniences taken so much for Treasury Department was not the diversi- granted today were valuable innovations fied and farfiung activity that it is today. in 1880, and their use was largely re- The Secretary had time to devote his stricted since personal attention to each activity under No employwill be allowed to use his jurisdiction and either of the elevators except upon the The Chief of the Bureau of Engraving special permission of the Chief of the and Printing makes daily reports to the Bureau. Secretary of the Treasury of all classes of The use of...[telephone]instru- securities and stamps, showing the re- ments is restricted by contract to Depart- ceipts, deliveries, and balances tn hand mentbusiness.To insurethatthe by denominations, and carrying the aggre- contract is not violated, all messages must gates forward from day to day. be sent through or received by the office of the Chief, Assistant Chief, or the Ac- Supplies were tightly conserved; sal- countant, or by persons attached to their vaging was a virtue; the guideline was respectiveoffices,acting undertheir "Waste not, want not," therefore direction. Packages must be tied with a slip-knot, Fire was a constantly lurking enemy and the twine of no package tied in this and air conditioning a thing yet un- manner, must be cut. dreamed of.The specific duties of the A dollar went far in those days and Bureau watchmen required that brawn had its reward since they will make a special examina- Laborers suited and trained to heavy tion of all gas-fixtures, and see that no work [were paid] $1.50 a day.Laborers gas is escaping, ...that no combustible unsuited to heavy work;. ..$1 a day. material is left in any of the rooms, and The use of nicknames like Bridie and that no fire is smouldering. It shall be the duty of the watch-force Barney, Lizzie and Len, Maggie and Moe to see that the water-pipes and hose pro- were taboo and the timeclerks were re- vided for use in case of fire are constantly quired to take in good working order, and that an ample care. ..that the proper, not the famil- supply of water-buckets are kept filled iar, names of all employés are entered with water. [on the work records]. The watchmen on the second relief [which started work at 7 a.m.] arc charged Children started work at an early age with seeing that all doors and windows child labor laws were few.The regula- throughout the building are opened.No tiOns regarding young employees required window must be opened in the morning that to admit the outer air until the sun is Boys employed in the Bureau must pre- well up. sent the written request of their parents There were no automatic washers and or guardians before they can obtain ad- dryers, nor a Laundromat in every other vance on their pay. city block.The rules remind us that it Boys...absent for one day without leave, will not be permitted to return to was a time when personal hygiene made work unless they present, in writing, from the bath a Saturday night ritual for- Practically from its very first days, "boys" were employed as apprentices in the various trades in the Bureau.The solemn young men in this 1912 picture were members of a committee which arranged for a Thanksgiving Day dance for the plate printer apprentice force.

Employés of the printing division will the sleeves nor be open so far in front as be required to change working-clothes to violate decency.To accomplish this once a week as far as practicable. the sleeves of shirts must come to the The Superintendent of the plate branch elbow and shirts must be buttoned to the is instructed to refuse a plate on Monday throat. morning of each week to any printer who A college education was not necessary shall present himself in a shirt which bears to succeed in life and an employee started evidence of having been worn at work during the preceding week. at the bottom of the ladder and worked no article shall be allowed to re- himself up inasmuch as- main in the dressing-rooms after itis Youths employed as messengers unfit for use. must possess a good common-school ed- It was certainly the day prior to the ucation. They will be considered in the line of promotion to such division cleric- suntan cult since ships, when vacancies occur, as they may Shirts worn by printers while at work be found, on examination and trial, qual- in the Bureau must not be cut so short in ified to fill. 52 HISTORY OF BUREAU OF ENGRAVING AND PRINTING

A 1914 group clustered around a phonograph during luncheon period.The sign reads: "This machine was presented to the Director by Thomas A. Edison for the use of the employees of the Bureau of Engraving and Printing."

basis of ability. On the other hand, dis- The Civil Service and Servants gruntled factions might have seriously crippled the program by a refusal to co- The stress of the Civil War saw the be- operate. ginning of a movement to increase the efficiency of the Federal service by chang- The Treasury's moneymaking opera- ing the method of appointment to the tions were not exempt from the pressure secondary positions in the various Gov- to appoint party worthies and "deserv- ernment departments. Though the idea ing" constituents.While the basic pro- was doomed to failure, it was at least a duction functions were performed by beginning.Government agencies had skilled tradesmen, they were relatively long been plagued by the patronage sys- few in number. But the related process- tem. An effect of the spoils system is ex- ing operations were such as to require pressed in the U.S. Civil Service Com- the services of many hands. Much of the mission's History of the Federal Civil work was of a sedentary nature and of ServiceI 789 to the Present [1941]: a type that called for manual dexterity rather than a great deal of formal edu- Probably the Civil War would have ended in much less time if all [Presiden- cation.Many of the operations were tial] appointments had been made on the particularly suitable to be handled by THE BUREAU COMES OF AGE 1880-1893 53 female employees. The hiring of women ment on the present "condition of the for Government work was a relatively civil service," he replied, "I do not well new practice brought about by the exi- see how it could be much worse."His gencies of the war.Since the Bureau solution for making it "more effectual" was one of the few establishments where was ". .. divorce itsworking details from there were a great number of positions the individual actions of members of Con- for females, the Secretary and the head gress."He then went on to recite an of the agency were constantly being im- instance illustrating the practical work- portuned to hire the friends of politically ings of the system: "One of the Auditors influential persons. [of the Treasury], noticing that a (then) Spencer Clark was not gentle in his recent appointee performed no labor at evaluation of the situation.In 1868, his desk, remonstrated, and told him he Congressman Thomas Allen Jenckes of must do more work'Work!'-----replied Rhode Island introduced his fourth bill the neophyte in amazement'I worked to reform the Federal civil service. He to get here!'" accompanied it with an analysis of com- In answer to the specific questions as ments garnered from the answers to ques- to whether any person had been appointed tionnaires he had sent out to numerous to the subordinate offices under Clark Government administrators.Clark was without examination and upon what rec- one of those contacted.Asked to corn- ommendation or supposed qualifications

Some five years later, Bureau employees were making their own music. The high-derby hat per- sonage is Director James L. Wilmeth.The gentleman in the fedora is Assistant Director James M. Fisher.The band leader is "Bill" Doaks. 54 HISTORY OF BUREAU OF ENGRAVING AND PRINTING such appointment was made, the Chief to prevent frauds and mistakes in the replied: operations. The "supposed qualifications" so far as the committee do not mean to I am aware are that the parties recom- intimate that all or even the majority of mended live in the member's district who the persons employed by the government urges their claims.This has generally in these affairs are either incapable or beentheprominent"qualification." unfaithful; but, from political or other Sometimes the additional "qualification" causes, so large an element of incapacity, is stated that they have been in the Army, carelessness, and unfaithfulness is intro- or have lost relations by the war.Parti- duced into the operations, as, in a con- sans appear careless as to any other qualifi- siderable degree, to derange and para- cation in making their recommendation. lyze the efforts of those who are sincerely Women are frequently strongly com- desirous of doing the best possible for mended to me because they are weak, or the government. sickly, and unable to work . There With the change of administration that would be powerful inccntivcs to comply occurred in 1877, one of the first acts of wiLh the request if I was in charge of a Charity Hospital, but inasmuch as hard the new Secretary of the Treasury, John and unremitting labor is required of all Sherman, was the setting up of a commit- the operatives in this Division, such rea- tee of Department officials to look into sons fail to impress me that there is any the operations of the Bureau. That group official propriety in hiring women thus asserted: commended.Others have been pressed upon me where better qualifications were We cannot condemn too strongly the urged; but the qualification, on trial, system of patronage, which is chiefly re- failed to appear. sponsible for the extravagance and irregu- larities that have heretofore marked the Clark was impartial in his criticism. management of the Bureau, and which, He stated that he had served in the De- it is safe to say, has cost the people millions partment under seven Secretaries of the of dollars in this branch of the service Treasury and had the opportunity to see alone. Without it, there would have been the effect of the patronage system under no incentive to waste the public moneys in the payment of needless employés; with different political parties.In this regard, it, no matter what reforms may be insti- he wrote: tuted for the time, we greatly fear that no I find no material difference in respect to permanent improvement is possible. parties. Whichever party is in power, the The committee's report is replete in de- general result is the sameThe abuses tails of its findings of the adverse effect the continue, and are not infrequently aggra- vated at each political change, irrespec- patronage system had on the cost of tive of the party made ascendant by the Bureau operations.In language, often change. acid in tone, it castigated the abuse; for Clark was merely reiterating, in detail, example, what the 1866 congressional Joint-Select the Bureau has been made to sub- Committee had to say on the subject from serve, to a great extent, the purpose of an almshouse or asylum. If a woman was its investigation of the methods adopted found to be in destitution, that fact was by the Treasury Department in the print- deemed a sufficient cause for demanding ing of securities and the guards established that employment be given her as an act THE BUREAU COMES OF AGE 1880-1893 55

of charity regardless of the needs of the fined his comments concerning this wel- service or her own competency; and in comed development in his annual report this way many people who, in any other city, would have depended on some public for 1888 to or private charity, have found a refuge in The first and most striking effect of the a Bureau which aims to compete with order was to put a stop to the importunity private enterprise, and which, in order to for employment, which had become an fulfil the purpose of its establishment, intolerableannoyance and aserious should be essentially a workshop. hindrance to the proper performance of The Pendleton Act, passed in 1883, the public business. which established the competitive civil One can almost hear the Chief's sigh service system, directed that the four of relief as he dictated a letter of Feb- classes of clerks created in the depart- mary 19, 1889, in answer to a request for ments at Washington by the salary act information regarding appointment to the of 1853 be made subject to appointment Bureau: "I have to say that all places on the basis of competitive examinations held by women, except the charwomen, to be conducted by the new Civil Serv- are within the civil service classification, ice Commission.These positions were and that application for proper instruc- incorporated into what became knownas tions as to the way to proceed in order the classified civil service; those not sub- to secure an examination should be made ject to competitive examination, but in- to the Civil Service Commission, Wash- cluded in the civil service system,were ington, D.C." referred to as the unclassified service. But the employment picture in the Bu- The same act of origin also gave the Pres- reau was not all dismal. Many employees ident authority to direct the heads of the spent the greater part of their years in departments to add other positionsas well the service of the agencyand gave not as classes of positions to those cited. only the best years of their lives but also Because the greater portion by far of their best efforts to the Bureau.It is the work performed in the Bureau was not unusual to find that many employees' other than clerical in nature, few of its service spanned periods of 40 and 50 positions were covered by the provisions years. One such instance is that of Emma of the Civil Service Act.However, on S. Brown who came to work in 1865 when June 29,1888, by order of President she was not quite 11 years old and spent Grover Cleveland, coverage was extended more than 58 years in the Bureau's em- to all positions in the Bureau with excep- ploy.Her family had come to Washing- tion of those of watchmen, charwomen, ton from Philadelphia when her father and the lowest grade of male laborers. had received an assignment to work at The position of watchmen was placed the Treasury Department in connection under civil service in 1896; and those of with the constructionofitssecurity charwomen and laborers in 1905 and vaults.While engaged in the task he 1906, respectively. became a victim of pneumonia and died. It must have been with a great deal of The burden of the family's support fell restraint that the Chief of the Bureau con- to the only son, Alonzo Y. Brown, a soldier pointed as an apprentice 6 months after he entered the Government. He had the unusual honor of receiving a 2-year Pres- idential exemption, which was later extended for life, from compulsory Federal retirement at age 70.Hall also had the distinction of having applied his labors in every home of the Bureau, from the main Treasury to the Bureau annex building completed in 1938. In December 1928, HaIl was honored at the first awards ceremony for employees who had attained a half century of Bureau service.The ceremony took place in the Secretary of the Treasury's office. The awards were bestowed by Secretary Mellon amid the flashing lights of cameras and the drone of motion picture equipment.Similarly honored at Edward M. Hall with only 25 years' experience as an engraver. the same time were Miss Maggie Cross, a blank-paper counter, with 55 years of service;Miss Lucy Woodin, national with the 188th Pennsylvania Volunteers, bank currency stockclerk, and Miss who was killed in action during the siege Bridget C. O'Neill, final sheet examiner, of Petersburg in July 1864. The mother each with 52 years; Miss Annie Geddes, was a cripple and unable to work and, assorter-examiner, with 51years; and consequently, Emma Brown was given Miss Alice Lehman, offset examiner, and employment in the Bureau. She retired Miss Mary King, note examiner, with 50 on April 24, 1924, from the position of years of service. forewoman of the trimming section in the Bureau longevity has not been confined Bureau's examining division. to the "good old days."As recently as Miss Brown's longevity record was un- 1958 when the Treasury Department in- usual, but there was another employee, augurateditslength-of-service awards Edward M. Hall, whose 61-year period program, there were then 57 Bureau em- of service was indeed unique. He started ployees on the rolls who had 40 or more his career as a helper on January 2, 1879, years of Government service. At the time when the Bureau was housed in the main of the initial presentation ceremony held Treasury building.He died at the age in connection with this program, Mrs. of 77 while still in the employ of the Teresa M. Gerhardt, forewoman of the Bureau, on December 23, 1939.At the Bindery Section, was recognized for her time of his death Hall was a letter en- 50-year tenure, and Andrew S. Wright, graver, the craft to which he was ap- plate printing foreman, for his 48 years, both of whose entire working careers were spent in the Bureau. The Bureau's files contain numerous accounts of individual employee accomplishment in building and maintaining the agency as a strong, efficient, and proud segment of the Federal service.Perhaps, of all those who thus labored through the years none better exemplifies the Bureau esprit de corps than Thomas J. Sullivan who was appointed Director on July 1, 1906.Sullivan began his career in the Bureau on December 1, 1869, as a book- keeper with the admonition, he later recounted, ". ..that if I proved compe- tentI should be permanently employed, if notI was not to be disappointed if not retained."Proof of his competence is evidenced in the fact that he was given three promotions during his first year of employment. In April 1873 he was made chief accountant and in 1882 was ap- THOMAS J. SULLIVAN Assistant Director, March 1882June 1906 pointed the assistant head of the Bureau. Director, July 1906-May 1908 He held that position for more than 24 (Actually, Sullivan was appointed to the po- years until he was appointed Director. sition of Assistant Chief of the Bureau. When The main Bureau building can well be the title of the Chief was changed to that of regarded as Sullivan's memorial, for he Director, effective July 1, 1896, Sullivan's title was likewise changed.) worked efficiently and steadfastly to acquire an appropriate and adequate physical plant for the agency. He did not live playing a likeness of Sullivan, erected as to see it erected, for he died on May 4, "a tribute from the employees of the 1908. One of the eulogies paid him was: Bureau of Engraving and Printing"a mute testimony of the esteem with which The one dream of his life was to have a new building, ample for the needs of he was regarded by his fellow workers. the Government, and a little over a week ago [April 1908J, when he walked into Division of Work the big printing room, and announced that Congress had appropriated for a new With the transfer in 1880 of the print- building, for which he had labored day ing of documentary and proprietary and night so long, that day was prob- stamps from private concerns, responsi- ably the proudest of his life. bility for the production of all major U.S. Today, there hangs in the vestibule of the securities, except postage stamps, was main building a large bronze plaque dis- vested in the Bureau.And the transfer 58 HISTORY OF BUREAU OF ENGRAVING AND PRINTING of that one remaining class of work ap- were dropped from the Bureau's rolls. peared to be close at hand.Just 1 year Apparently, the committee failed to previously an appropriation act for the convince the Secretary of the advisability Post Office Department had been en- of dividing the responsibility for printing acted which contained a proviso that if currency since his 1877 annual report postage stamps could be printed by the stated: Bureau at less than they then cost, ". After careful examination the Secretary the work of printing the same shall be is satisfied that the work, as done in the given to said Bureau..."(20 Stat. bureau, is more perfectly done than that 357).Actually, such transfer did not heretofore done in private establishments, even at the high rates paid.Upon the occur until 1894. question of safety, the Secretary cannot The Bureau in its 18 years of existence see how it is possible for the Government had proven its worth.It had weathered to be better protected from fraud or mis- the storms of protest and opposition to take than it now is.But the question of engaging even in the partial printing of safety being one of public policy, the consideration of which properly belongs to currency and then to the eventual taking Congress, the Secretary respectfully sub- over of this task initsentirety.Its mits it to that body, with the remark that, champions had succeeded in defeating the as the Government has been able with legislative proposal made in 1877 to have absolute safety by its own agents, to make all Government securities printed under and issue its gold and silver coin, analogy would indicate a similar course as to its contract and to reorganize the Bureau in paper circulation, and experience shows such a manner as would have reduced it its practicability. to a mere nonentity. Congress took no action in this matter The committee set up by Secretary of of "public policy." Actually, the situation the Treasury Sherman in 1877 to review remained at a status quo until 1885. On the operations of the Bureau noted that July 16 of that year the work of sealing congressional committees previously in- and separating U.S. notes and gold and vestigating the propriety of dividing the silver certificates was transferred from the printing of Government securities had Bureau to the Office of the Treasurer. reached the general conclusion that some The previous May 1, a new Treasurer portion of the work should be done by of the United States had assumed office. outside parties in order to obtain greater In his opinion the method then in effect security against fraudulent issues.Sher- of issuing currency "appeared. .. tolack man's committee "fully and cordially" the security which is had in every institu- concurred in this conclusion. Many dras- tion where such instruments of credit are tic changes in the management of the On May 4, the Secretary di- Bureau were effected as the result of that issued." group's findings. The extent of the modi- rected that the imprinting of the seal on fications made on the committee's rec- U.S. notes and certificates by the Bureau ommendation can be gaged by the fact be discontinued.Later that month he that within 6 weeks after the members appointed a committee to devise and rec- began their investigation, 538 employees ommend to him a plan for sealing and THE BUREAU COMES OF AGE 1880-1893 59 separating the notes under the supervision Committee on Appropriations in review- of the Treasurer of the United States. ing the matter at that time was not im- The committee reported that absolute pressed with the arguments advanced for security against fraud and overissue "can the continued separations of the functions. best be attained by intrusting the final It was pointed out that the supposed se- authentication of the public securities to curity provided by shipping national bank other control than that of the mechanical notes out of the Bureau unsigned was ac- establishment by which they are exe- tually ineffective.The courts had held cuted." Apparently, the Bureau's record the banks liable for bills that were issued of past performance was taken for naught. into circulation by them without the usual Then too, the person who would normally officers' signatures.It was argued, since be expected to come immediately to the the Bureau had sustained no loss of na- Bureau's defense, the Chief of the agency, tional bank currency, could it not also Edward 0. Graves, was the very man who handle U.S. currency as well. The matter had headed the group of Treasury offi- was again taken up by the subcommittee cials that investigated the Bureau in 1877. during the hearings for the next year's It was his committee that advocated the appropriation. division of work at that time. Graves was Finally, in 1910 the operations were re- appointed Chief on June 1, 1885, 2 days transferred to the Bureau when it was after the review committee was estab- shown that it was possible to combine the lished.He was probably of the opinion printing of the seal with the numbering that the then-contemplated action was of the notes, thereby effecting an annual the best approach for solving what he savings in excess of $150,000. From that considered a serious situation. time on, the Bureau has continued to per- The 1885 committee's report having form all functions relating to the printing been approved by the Secretary, steps and processing of U.S. currency. were taken at once for the transfer to the National bank currency continued to be Office of the Treasurer of the presses, sealed at the Bureau.Since these sheets were machinery, and operatives required to delivered to the individual national banks in carry its recommendation into effect.3 uncut sheet form, where the notes were signed The matter of having all the work cen- by the appropriate officers and then separated, it was evidently thought that the procedure tralized in the Bureau was revived in was sufficient protection and no further divi- 1908.The subcommittee of the House sion of the work was necessary. CHAPTER iv Production Expanded- newhorizons ina newcentury 1894-1913

THE U.S. postal system datesback to 1782, its first postage stamps were not introduced until 1847.True, some postmasters had special stamps or devices made up for use as evidence of prepaymentof postage fees, but these were strictly provisional in nature. The firstnational issue of stamps consisted of but two denominations: a 5-cent stampbearing the likeness of Benjamin Franklin and a 10-cent stamp showing a portrait ofGeorge Washingtona far cry from the many denominations and classes of postage stamps nowin use. The Bureau took over the production relative to a matter that was to prove of of postage stamps on July 1, 1894.Prior great philatelic interest in years to come, to that time, the stamps had been custom- was received in the Bureaufrom the Post arily printed for the Post Office Depart- Office Department. ment by private banknote companies. JANUARY 23, 1875 There had been two exceptions to this GEO. B. MCCARTEE Esc1. Chief Bu. Engraving & Printing Treas- procedure insofar as the Bureau was - UT)' Dept. cerned.The particular reasons why the SIR: The Department is making prep- services of the Bureau were employed arations to sell to stamp collectors and these two instances remain unexplained, others specimens of all the postage stamps in January 1875 the following letter, ever issued under its auspices.

60 PRODUCTION EXPANDED 1894-19 13 61 The plates are still extant for all the the skilled eye.The failure to secure several issues except that of 1847, (the absolute duplicates of the originals in no first issue,) embracing. the denominations of 5 and 10 cents.To obtain these it way reflects on the abilities of the master will be necessary to re-engrave the plates: engravers who did the copying.Rather, and by direction of the Postmaster Gen- it is an exemplification of the fact that eral, I have the honor to request that you the nature of engraved work is such that take the matter in hand, if consistent with perfect imitation is virtually impossible. your official duty. On May 20, 1875, the Post Office De- Also, please cause to be prepared from the new plates, 10,000 stamps of each of partment requested that the Bureau pre- the two denominations, as nearly similar pare a die for a new 5-cent ordinary post- as possible to the originals herewith. age stamp.The item was required by the Very respectfully, &c. revised foreign letter rate agreed upon by WM. M. IRELAND the member-countries of the General Acting 3d Asst. P.M. General Postal Union in convention at Berne, Charles Burt and George McCoy were Switzerland, in 1874.The new rate was assigned the task of engraving the repro- to become effective July 1, 1875.Ac- ductions.The work was printed in 50- tually, the treaty agreement was not rati- subject sheets and was left ungummed. fieduntil May 3,1875.This short There were 11,450 specimens of the 5-cent interval between the time of ratification value and 10,000 of the 10-cent denomi- and the effective date may account for the nation delivered to the Post Office De- Bureau's being asked to assist in this partment. instance. Strictly speaking, these items produced The May 20 request was evidently a by the Bureau cannot be regarded as re- formal followup of previous verbal dis- prints of the original issue.The earlier cussion, for the writer specified that the stamps had been demonetized in 1861, stamp was to be "of the design (head of soon after the outbreak of the Civil War.1 [Zachary] Taylor) approved some days Then too, the Bureau prints were specifi- since....." A transfer to a roll was cally declared invalid as postage stamps. made from a Taylor portrait die already It is interesting to note that in 1947 on hand which originally had been em- the Bureau was again called upon to re- ployed in preparing plates for printing produce the original designs in connec- bond coupons.This roll was used in pre- tion with the production of a souvenir paring the die for the new 5-cent stamp sheet commemorating the centenary of which was engraved with a border of U.S. postage stamps.The variances in compatible style with that of the ordinary finisheddetailsbetweentheoriginal series of postage stamps then current. stamp designs and the reproductions of One week later the die was turned over 1875 and 1947 are easily discernible to to the Post Office Department. The feasibility and propriety of assign- was done to preclude the large stocks remaining on hand throughout the States in ing the printing of postage stamps to the rebellion from being used to the advantage of Bureau had long been debated.As pre- the Confederacy. viously noted, legislative authority for 62 HISTORY OF BUREAU OF ENGRAVING AND PRINTING having the work done at the Bureau on such establishment in the world.Its busi- a qualified basis was contained in the ness is so systematized as to give the greatest security possible in handling of values appropriation act for the Post Office De- against unauthorized issues or loss from partment in 1879.While the appropria- any source. tion act for the next year was silent on *** the point, that passed in 1881 (21 Stat. The Post Office Department would 376) specifically provided for the repeal therefore, by the execution of its postage stamps in this Bureau, receive the ad- of the 1879 proviso in full.Notwith- vantage of this system already in opera- standing this fact, there was deemed to be tion for the protection of the Government no legal impediment to the manufacture issues.With these facilities and advan- of postage stamps by the Bureau.This tages possessed by this Bureau it is only reasonable to expect that it can do all is borne out by the specifications issued of the work of this character required by the Post Office Department in 1885, by the Government more cheaply than 1889, and 1893 for printing the stamps on any private individual or firm could un- a 4-year contract basis.Each expressly dertake it for profit to itself.In the stipulated that, should the Secretary of execution of the work on the securities of the Government it is necessary to employ the Treasury submit bids or estimates portrait, vignette, and other engravers, found to be more advantageous to the superintendents, clerks, and a large num- Government than those submitted by pri- ber of skilled artisans of various kinds vate contractors, the Postmaster General whose number and compensation remain reserved the right to award the contracts the same until the maximum amount of work which they are capable of perform- to the Bureau. ing is reached. The cost of this force is There were three private bidders for in the nature of a permanent or fixed supplying the stamps under the 1893 charge against the amount of work to be advertisement. A proposai to do the executed and no additional expense on work was also submitted by the Chief of this account is incurred until the amount of work to be done exceeds their capacity. the Bureau, with approval of the Secre- For the execution of the adhesive postage tary of the Treasury, at a cost amounting stamps by this Bureau the cost would to almost $7,000 less than the lowest bid therefore be only the actual additional ex- received.The Bureau letter stated: penditure incurred by it on account of the execution of this work. The Government has in this Bureau When the Bureau's proposal was made [Engraving and Printing] the most extensive and complete establishment en- public, there was a loud and strong pro- gaged in the work of engraving and plate test voiced by the private contractors. printing in existence.It is installed in Aside from advancing the point that the a substantially constructed and thoroughly Bureau had no legal authority to per- fire-proof building; it has a plant of the most improved machinery and appliances form the service, they also contended that for the execution of such work, and a the agency had not submitted its offer large force of thoroughly trained em- in accordance with the terms outlined in ployees.It executes all of the work of the Post Office Department's advertise- engraving and printing the securities of ment for bids. The matter was therefore the Government and the volume of work finished by it yearly is the largest of any submitted to the Department of Justice Gumming postage stampsi903. for review.Upon the rendition of an prevent any mistake or misunderstand- opinion that there was no legal impedi- ing in the future in connection with the ment involved, the contract was awarded manufacture and issue of postage and spe- to the Bureau by Post Office Department cial-delivery stamps for this Department Order No. 59 of February 21, 1894. by the Bureau of Engraving and Print- In April, the Department turned over ing,on and afterthe1StofJuly, to the Bureau a quantity of dies, rolls, 1894. .. and plates of the then-current stamps. In getting the operations underway, the No further use was made of the rolls and Bureau was not without its trials and plates, but the dies, after being slightly tribulations.The situation is described altered in order to distinguish the Bu- in a report of the Third Assistant Post- reau's printings, were employed in the master General dated October 31,1894. manufacture of new plates. In entering upon the work under this Finally, a formal 4-year agreement was new arrangement, a great manydiffi- entered into, under date of June 9, 1894, culties were necessarily encountered. A between the Postmaster General and the large number of printing machines had Secretary of the Treasury, "in order to to be fitted up by the Bureau, perforating

&48-OO1 O.-64------6 64 BISTORY OF BURRAU OF ENGRAVING AND PRINTING and gumming machines had to bese- uniform coating of adhesive [for postage cured, a considerable force of employees had tobe trained stamps] is one of the remarkable features to do the work of the work of the institution." promptly, large numbers of new plates for It de- printing were needed, anangements for scribes the operation as follows: storing and shipping theenormous num- The Government expends nearly $50 a ber of stamps constantly required hadto day merely for the gum which is pre- be made, to say nothing of many details pared in monster 100-gallon kettles in entering into the intercourse between the two Departments in the transaction of the basement of the big printery.In their respective shares of this business. order to meet the varying climatic condi- But I am happy to say that everything tions of the different seasons of the year has been satisfactorily arranged, and the the character of the sticky substance is work is now proceeding without serious changed four times each twelve months. interruptions. The hardest gum is used in summer and the softest in winter. The sheets of newly Perhaps one of the most vexing prob- printed stamps-400 stampsineach lems encountered involved the gumming sheetare given a coating of gum by passing under a roller from which oozes of the stamps. When awarded the stamp just the right proportion of mucilage, contract, the Bureau had no gumming and then they are carried by means of an machines.Heretofore such stampwork endless chain through a wooden tunnel as had been produced in the Bureau had fifty feet long, where a high temperature been gummed by hand.Such a proce- ismaintained and from which they emerge perfectly dry. dure would have been totally inadequate to handle the great volume of postage The first of the work printed by the stamps needed.Since gumming equip- Bureau was placed on sale on July 18, ment was not manufactured on a com- 1894.This 6-cent reddish-brown ordi- mercial basis, it was impossible to pur- nary stamp was soon followed by the chasetheneededmachinery. The 4-cent denomination which was issued on private banknote firm which previously September 11.By the end of the first produced the stamps would not make its year of operation, the Bureau had printed equipment available or divulge its mode and delivered more than 21 million sheets of operations.It was thus incumbent of stamps for the Post Office Department upon the Bureau to develop its own ma- embracing 13 denominations of ordinary chines.Working only upon the recol- postage stamps as well as miscellaneous lections of an employee who had previ- values of special delivery, postage due, ously been in the service of the private and newspaper and periodical stamps. contractor and who had operated their That the Bureau was successful in the equipment, the Bureau accomplished the undertaking is evident from a letter of feat.The first machine was a crude July 9, 1917, from the Postmaster Gen- affair, but through adaptation of constant eral to the Secretary of the Treasury.It improvements the Bureau's equipment had been rumored that the Treasury De- was perfected to such a point as to merit partment was considering abandoning the comment of a leading printing-trade the printing of postage stamps because journal in 1905 that the "provision of a of the Bureau's tremendous workload. PRODUCTION EXPANDED 1894-19 13 65

The Postmaster General was writing "to of adhesive postage stamps, special de- express the hope that such a change will livery stamps, or books of stamps shall be not be made."In support of this stand, made by the Government [Post Office he wrote: Department] with any Department or As a matter of correct public policy, Bureau of the Government below the cost all fiscal issues of the Government should of such work to the Government." Even be produced in a Government plant. The though a stipulated charge for postage service given by the Bureau of Engraving stamps had been agreed upon under for- and Printing has been satisfactory in every mal contract, whenever there was a rise respect, and greatly improved over that in cost of the basic materials used by the which obtained under previous private contracts.All the precautions and safe- Bureau in manufacturing the stamps, that guards thrown about the production of production charge had to be adjusted ac- currency and bonds are extended to the cordingly.Likewise, it was the practice postage stamps.All requisitions of this to immediately lower the charge when Department are filled promptly and ac- economies were realized through the in- curately, the Bureau's record for accuracy being substantially perfect, so that this troduction of improved methods and Department can absolutely rely upon it, equipment in the manufacturing proc- which is a matter of much importance in esses, rather than to hold to the originally issuing stamps to the 56,000 postoffices stipulated fee. of the country.. ..The materials used and the workmanship are excellent, and our Under the arrangement currently in postage stamps possess a high order of effect, the Post Office Department fur- artistic merit. .. . The Bureau is pro- nishes the Bureau an estimate of its post- gressive, and in recent years has success- age stamp needs just prior to each fiscal fully brought out such important im- year. This estimate is used by the Bureau provements as the stamp book and the coiled stamps, which not only are of much in planning its production program and advantage to the public and the postal the stamps printed are billed for at cost. service, but produce a yearly profit to this Department of more than $200,000.Its officials have always worked in a spirit Philippine Currency and of complete harmony with the Post Office Department, complying with every re- Postage Stamps quest cheerfully, promptly and most efficiently. Under the terms of the Spanish-American At the expiration of the original con- War peace treaty of December 10, 1898, tract, the agreement was renewed for an- Guam, the Philippine Islands, and Porto other 4 years.It is definitely known that Rico were ceded to the United States. By this contractual scheme remained in effect the same treaty Cuba was relinquished to into 1919.Apparently, it fell into disuse the United States in trust for the Cuban thereafter because of the incongruity people.These territories were first ad- created. There was a statute on the books ministered by military governments under (34 Stat. 475), initiated in 1906, provid- the jurisdiction of the U.S. War Depart- ing that "no contract for the manufacture ment, other than Guam, which was placed 66 HISTORY OF BUREAU OF ENGRAVING AND PRINTING

under the charge of the Navy Depart- Insular Affairs, the agency assigned to ment. serve as liaison for Philippine Govern- The Bureau was called upon to supply ment matters, as follows: the postage stamps used in these terri- I submit herewith [a] new model of a tories.Originally, all four areas were silver certificate for the Philippine Islands furnished regular U.S. postage stamps of the denomination of two pesos.This overprinted with the name of the respec- model has been prepared after careful tive territory in which the stamps were consideration of the suggestions made by to be used. the Honorable Secretary of War and your- However, it was only in the self, the most important of which were case of the Philippines that a special cur- that there should be a marked difference rency was prepared. Thus was begun a between the Philippine and the United pleasant relationship between the Bureau States certificate, so that one could not and the Filipino people that was to endure be passed for the other, and there should through the years. also be a marked difference between the denominations of the Philippine certifi- A congressional act of March 2, 1903 cates, so that the lower denominations (32 Stat. 952), which established a stand- could not be passed for the higher denom- ard of value and provided for a coinage inations.To meet these suggestions the system in the Philippine Islands, author- size of the certificate has been materially reduced to a small oblong 6V2 in. x 25/8 ized the Secretary of the Treasury to have in., and an additional printing has been currency notes printed upon request of added to the face, which in the case of the thePhilippineGovernment.Accord- two pesos certificate is blue. ingly, the Bureau was immediately called The design was accepted and used, but upon to produce an issue of Philippine little was it dreamed that the decision silver certificates of three denominations: was to have a bearing on the future re- 2, 5, and 10 pesos. With but one excep- duction in the size of U.S. currency some tion,2 Philippine currency is the only 20 years later.The successful use of the regular currency other than that for the small-sized Philippine currency was a United States which the Bureau haspro- significant factor in the adoption of a duced during its 100 years. similar size for U.S. paper money in 1928. The original design proposed for the The Bureau continued to produce Philippine notes, which was atfirst Philippine currency of various classes, deemed satisfactory, was later rejected on the basis that "the Secretary of War series, and denominations until the Islands assumed national status.Thereafter only [Elihu Root] was fearful that there might reissues of notes originally prepared be- be confusion between U.S. notes. . fore that time were produced for the Phil- and the suggested design.In submitting ippine Government. a second design for consideration, the Di- This was in accord rector of the Bureau on May 6, 1903, with Treasury Department policy that the wrote to the War Department's Bureau of Bureau's facilities should not be employed in competition with private industry.In An issue of currency was produced for the all, the Bureau delivered 397 million Phil- Republic of Cuba in 1934.(See ch. VI.) ippine currency notes between 1904 and PRODUCTION EXPANDED 1894-19 13 67

short lived.In 1899 the Bureau, at the request of the U.S. Post Office Depart- ment, designed and printed a distinctive issue of stamps comprising 1-, 2-, 3-, 5-, and lO-centavo ordinary values and a 10- centavo special delivery stamp especially for use there. Even though the U.S. military administration of the island ceased in May 1902, the Bureau continued to furnish these stamps for the Republic of Cuba until fiscal year 1905. 6-centavo postage stamp of Independence of Overprinted"Guam"and"Porto the Philippines issue. Rico" postage stamps were not required after1900, with the establishment on 1949, when the last delivery of this class those islands of regular mail service under of work was made. the jurisdiction of the U.S. Post Office The U.S. postage stamps overprinted Department.Since that time regular "Philippines" were replaced in 1906 by a U.S. postage stamps have been used on special issue peculiar to the Islands.As the two islands. in the case of Philippine currency, the Bureau continued to produce Philippine Coiled Postage Stamps postage stamps until the Islands took on the status of an independent republic on Today, when it seems that coin-operated July 4, 1946.The last stamps so pro- vending machines have but recently be- duced were the three denominations of come standard equipment for offices, fac- identical design commemorating Philip- tories, and places of public amusement, pine independence. This was an issue of it may come as a bit of a surprise to learn particular beauty.In order to do justice that a variety of such machines were being to the design, the stamps were printed in marketed in the early 1880's.The turn an outsize of 1.15 by 1.72 inches.The of the 20th century saw a tremendous in- central vignette was designed by the re- crease in the uses to which this type equip- nowned Philippine sculptor, Guillermo E. ment was being put. Dispensing machine Tolentino.It depicts a Filipina wearing manufacturers were quick to consider the the delicately flowing terno, the native sale of stamps as a new use for their prod- dress of the country. She is shown hold- ucts. They were soon followed by several ing thenational flag of the Philippines and office equipment firms which introduced preparing to enter it among those of the lines of stamp-affixing machines. other nations of the world.The frame At the time, printing of postage stamps and lettering of the issue were designed was confined to individual sheet form. In by a Bureau artist. order to obtain stocks for stamp dispens- The practice of furnishing regular U.S. ers, it was necessary for either the machine postage stamps overprinted "Cuba" was manufacturer or the private user to at- 68 HISTORY OF BUREAU OP ENGRAVING AND PRINTING tach a given number of sheets of stamps one to another, cut the rows of stamps into strips, and then wind the strips into coils. This was a tedious task.Then too, the sheets had been perforated for separating the stamps by hand and work so perforated often proved toofragilefor dispensers.The solution lay in making unperforated sheets available to be produced into coils privately.Imperforate sheets for this purpose were distributed on an experimental basis in 1906, and by 1908 were available at post offices as a regularly stocked item. Meanwhile the Bureau had been experimenting in processing stamps into coil form. The first of this experimental work was issued on February 18, 1908.These Stamp coiling machine in use until 1958. coils were produced from regular sheets of 400 stamps perforated horizontally and be possible to supply coiled stamps for cut into strips of 20.The strips were general purposes. then pasted together to form coils of 500 An improved model was developed in or 1,000 stamps each.Soon thereafter 1910 which cut the pasted stream of the Bureau developed a machine forpre- horizontally perforatedsheetsof 200 paring the coils which materially reduced stamps into strips, trimmed the margins, processing costs. The report of the Third and wound the strips into coils in one Assistant Postmaster General for the fiscal operation. Through use of this machine year 1909 gives the following description the Bureau was able to produce the stamp of this piece of equipment and detailed coils at a much lower cost. The reduced comments concerning its advantiges: production rates, in turn, were reflected [It] is of simple and effective construc- in the service charges made by the Post tion and performs the work of about ten Office Department for coiled stamps. operatives.Under the old method of The charge for coils of 500 perforated coiling the cost is from 6t to 12per stamps was reduced from 8 to 3 cents; coil.During the past year the demand for coiled stamps grew to such an extent for the same quantity, unperforated, from as to make this expense something of a 6 to 3 cents; items of 1,000 stamps, per- burden and it became necessary to charge forated, from 12 to 6 cents; and 1,000 it to the users.With the new machine, stamps, in unperforated form, from 9 to however, the coiling is done at a cost of 6 cents.Even with this improved equip- a fraction of a cent and the extra charge ment the necessity of pasting the indi- can probably be discontinued.If a sufficient number of the machinescan be in- vidual sheets together was still a draw- stalled during the coming year it should back in the preparation of coils.It PRODUCTION EXPANDED 1894-19 13 69 seemed that the most feasible means for perforate the stamps much more accu- elimination of the problem was the de- rately so that the "centering" is substan- velopment of a press for printing the tially perfect,3 which is not true of stamps producedbytheoldmethod.The stamps in a continuous roll form.Steps greater accuracy of perforation not only were taken to devise such a machine and improves the appearance of the stamps success in this regard was achieved by but will facilitate the operation of auto- 1912.The impact of this press toward rnatic vending and affixing devices which facilitatingtheproductionofcoiled feed the stamps by means of pins or fingers engaging the perforations. stamps is described in the report of the Third Assistant Postmaster General for With the development of this press, that fiscal year: parallel improvements were made in the The machine also gums the stamps as processing of coils of stamps through the they are printed and an exceedingly rapid perforating device has been designed for The paper was wet in the machine itself use in connection with it.... Another just prior to the printing operation.It was advantage is that the omission of the pre- not until after the development of the electric- liminary "wetting down" of the paper eye perforator and the dry printing methods practically does away with the variation that perforation spoilage was reduced to a due to shrinkage, making it possible to minimum.

New coiler-perforator introduced in 1958. 70 HISTORY OF BUREAU OF ENGRAVING AND PRINTING

years.In 1929, the Director of the Bu- overall technological improvement pro- reau gave the following description of coil gram planned and developed by the manufacture: Bureau after World War II.In 1955, a Coils of stamps are made from rolls contract was made with a private engi- printed on intaglio web presses,...the neering and manufacturing concern for a printing and gumming of the rolls being prototype model of a coil-processing ma- accomplished at the same time.They are placed in special perforating machine. This model was desired for use in chines, which perforate the rolls cross- conducting experiments geared to the im- wise only, and wind them again into a provement and automation of the coil roll.These perforated rolls are delivered manufacturing operations. The contract to operatives at specially devised measur- was let on the basis of functional specifi- ing tables, who unwind the rolls, measure cations calling for the mechanization of them into lengths of 500, 1000,or 5000 stamps, according tothe number of the measuring, examining, slitting, coil- stamps to be in the finished coil, cut each ing, and wrapping functions. In addition, length and insert labels denoting the class it was specified that the machine should and denomination of the coil by pasting incorporate facilities for perforating the one edge to the margin of the cut off printed work. The equipment developed length and the opposite edge to the margin of the portion yet to be measured, by the machine manufacturer consisted thus joining the measured lengths with of three separate components: an exam- these labels.These lengths are rewound iner, a perforator-coiler, and a wrapper. into rolls and the stamps are ready for the These were received in the Bureau early next operationthat of coiling. in 1957.After a great deal of joint, con- The spindle on which the stamps were wound during the preceding operation centratëd effort and study on the part of fitsinto the coiling machine.Eleven the Bureau and the machine manufac- knives on the coiling machine slit apart turer, the components were perfected to the ten rows of stamps and trim the mar- the point that they were placed in regu- gin of the outside rows as the roll is un- lar production on January 27,1958. wound, and simultaneously each row is wound into coil form until the labelspre- Within the year, purchase contracts were viously pasted on are reached. The op- made fortheadditionalequipment erator at this points stops the machine, needed to completely automate coil pro- separates each coil from the roll by cut- duction operations. ting the label, pastes the labelas a binder for each coil, and places her initials or It was indeed fortunate that steps had name on the binder. The coils are then been taken to develop this type equip- carried to tables, counted and boxed ment. Without it, the Bureau would ready for delivery to the vault from which have been sorely taxed to meet the un- they are shipped when ordered. precedented orders for postage stamps in There was little, if any, change made in coil form that were received beginning in this manner of manufacturing coils until mid-1958. A factor in this regard was the 1958. However, since it was realized that Post Office Department's decision to in- the manufacturing methods left much to augurate an intensive drive to popularize be desired, improvement in this regard coiled stamps, with particular emphasis was placed high on the agenda of the placed on a new 100-stamp size. With the PRODUCTION EXPANDED 1894-1913 71 aid of the new equipment the Bureau was indicate to the average individual that able to handle this increase concurrently there had been a decline in the number with the demands for stamps necessitated of revenue stamps being used.By com- by the increased postal rates which be- parison, there were 7 million fewer sheets came effective at that same time. delivered in 1914 than in 1910.The The coiling equipment processes the hidden factor, however, is that there were printed web down to finished products of actually 850 million more stamps de- precisely 100, 500, or 3,000 stamps, as liveredin1914. This situation was desired.First, the roll of work is placed brought about by the fact that, although in the examining component and an op- fewer sheets were printed, more stamps erative examines it for imperfections as were on each sheet.For example, small it unwinds.This machine has built-in cigarettestamps formerly printed80 provisions for the removal of imperfect subjects to the sheet were redesigned and work and the automatic joining of the the size of the sheets was enlarged to ac- severed ends.There is also a means by commodate200subjects. Similarly, which the operative can flag individual sheet cigar stamps were increased from stamps or strips of imperfect work for a 96 subjects to 200 subjects per sheet, and later automatic removal. The examined playing card stamps were doubled in rollis next placed in the second com- number per sheet from 200 to 400 sub- ponent which perforates the stamps, slits jects.There were several other items the work by rows, and forms the individ- which were increased in subjects per sheet ual coils. Those coils containing defective to reflect additional economies as a result work flagged during the examining opera- of faster production.These included the tions are automatically diverted at this various classes of strip cigar, sheet to- point into a separate bin.The perfect bacco,stubtobacco, wholesale liquor coils are conveyed by a series of belts and dealer,distillery warehouse, and sheet chutes to the third component which beer stamps.Custom wine and malt wraps each coil in transparent plastic film liquor stamps were also included in the and applies a label indicating the con- program of redesign.It was estimated tents and sales price of the item. that the completed changes would effect Today, the Bureau has 6 of the exam- a savings of more than $136,000 annually ing units in regular use, together with 4 when applied to the estimated require- perforator-coilers, and 14 coil wrapping ments for the fiscal year beginning on machines.About 39 million coil stamps July 1, 1915. are printed and processed each day. There were other changes in the manufacture of revenue items which further Savings From Imp roved enhanced the economy moves. Treasury officials decided that tints used on in- Methods ternal revenue stamps added little to their security features and the tints were there- A comparison of deliveries of revenue fore eliminated.The use of hand roller items for fiscal years 1910 and 1914 would presses was further deemphasized and RESTORY OF BUREAU OF ENGRAVING AND PRINTING

Currency trimming-1907.The op

view simply to eliminate one printing. be printed on power presses.The esti- As the experiments progressed it was mated savings on this item alone was re- found that by perfecting the trimming ported to be $90,000 for the first year of the sheets, a device could also be at- and an additional similar amount each tached to the numbering and sealing year until a total of $450,000 would be presses which would separate, collate, and realized on a recurring basis. count the notes. A trimming machine This relief legislation was particularly to trim all sides of the sheets at once welcome in view of the report made by and cut all the sheets to exactly the same the Treasurer of the United States in size was then designed and constructed in February 1912 that the demand for new the Bureau.The separating, collating, currency had increased on an average of and counting device was perfected, with 16Y2 million notes each year since 1902; the result that the machinery numbered, that during fiscal year 1910 redemption sealed, separated, and collated the notes, of old notes exceeded the issuance of new counting them into units of 100 each.It currency by approximately 4'/4 percent; was estimated that the work so performed and that he could foresee no lessening of would be accomplished with a reduced the demand. He attributed this condi- annual expenditure of about $132,000. tion to the following reasons: The Director's report to the Secretary The growth in the country's popula- dated January 19, 1915, included many tion, which has necessarily caused the other items of improvement which re- money, and especially the smaller de- flected an aggregate total savings of over nominations, to circulate more rapidly, $ 11/2 million on an annual basis and an with corresponding wear. The growth in business activities. accumulated savings of more than $3 mil- The tendency toward the use of small lion from March 1909 through February denominations. 1914.This special report incorporated The publicity given to uncleanliness 38 items of improvement which in effect and insanitation of soiled notes and the reemphasized the Bureau's continuing ef- consequent demand for cleaner money. The necessity for maintaining in good forts to comply with the edict of Con- condition an increasing volume of out- gress, that work shall be performed as standing pieces. economically and efficiently as possible The growing practice of payment of in the best interests of the Government. wages in factories, shops, etc., weekly and The largest single item of savings re- biweekly, as compared with monthly. The growing popularity of paper money ported in this period came about as the in sections where silver was formerly in result of legislative action in August of the greatest demand. 1912. This evolved from the decision As in every printing establishment there that one-fifth of all currency backs could are related operations which require con- be printed on power presses rather than stant observation with a view in mind on hand roller presses during fiscal year for improvements to effect the best ways 1913, and an additional one-fifth could to obtain the end product. be accomplished each year by this con- The observant eyes of experienced op- version until all currency backs would eratives and the mechanical know-how of 74 HISTORY OF BUREAU OF ENGRAVING AND PRINTING

presses were used for this purpose, but only one of the new machines was needed to do the job.Roller attachments installed on perforating machines obviated the use of plater presses for pressing the work and permitted the combination of perforating,pressing,andexamining processes. A revolutionaryimprove- ment was installed for dampening the paper preparatory to plate printing. From time immemorial it had been the custom in the industry to dampen the sheets of paper by placing them between wet cloths, a method which required subsequent shifting of the sheets to assure that thepaper was uniformly dampened. Since this process was both crude and Paper-wetting operation-1907. expensive, the Bureau designed and constructed machinery to dampen the sheets "watchdog" technicians were responsible singly and uniformly without the use of for many changes which resulted in a cloths.The Director, in his annual re- more efficient and economical operation. port for fiscal year 1911, estimated a Early in 1909 it was found that automatic yearly savings of $42,000 from the intro- deliverydevices could be successfully duction of these machines. A new solu- adapted to the machines used for apply- tion was substituted in washing the wiping ing the gum to postage and revenue cloths used by printers at the press, which stamps.The elimination of the hand prolonged the usefulness of the cloths, operation coupled with an improved saving an estimated $6,500 annually.It method of drying, which was developed was also discovered that waste inks from later that same year, permitted the ma- the hand roller presses could be used chines to be operated at greater speeds satisfactorily on the power presses with and consequently more savings were real- an attendant saving.An indication of ized by the increased output. Other op- the thoroughness with which every phase erations were closely scrutinized during of the plant's operations was reviewed that year for potential savings.It was to realize all possible economies for the found that by changing the design of Government is evident in the report that postage stamps, a more durable style of a savings was realized by theinstallation engraving could be utilized and this would of an ice plant in lieu of contracting for add greatly to the life of the plates. A ice. specially designed machine was developed The examining operations at the vari- for canceling imperfect sheets of postage ous stages of production play a veryim- stamps. Previously,twotypographic portant part in the Bureau's determina- personnel. looked bytheeagleeyesofexamining few oftheseimperfectionshavebeenover- the years,itisalmostunbelievablehow that havebeenprintedforissuethrough In viewofthecountlessnumbersitems pear onsecuritiesissuedintocirculation. error, odditiesortrivialdefectswillap- undoubtedly theproductoflegitimate Government securitiesinhispossessionare and everypersoncanbeassuredthatthe hands ofthepublic. inal diesandplates,shouldreachthe which areexactreproductionsoftheorig- tion thatonlyperfectlyexecutedsecurities, issue. ported fromthebureautoTreasurywithoutlossofonestamporcertificate." officers, andarearmed. between thebureauofengravingandprintingTreasury. which dailyformanyyearshascarriedmillionsofdollarsinbanknotesandpostagestamps "Seven able-bodiedsonsofUncleSam,triedandfoundtrue,hereafterwillguardthevan PRODUCTION EXPANDED1894-1913 . Lastyear$12,000,000,000instampsand$3,000,000,000certificatesweretrans- . TheguardsareattiredintheuniformsofMetropolitanpolice,swornasspecial Occasionally, So few,infact,thattheyare In thismannereach through human dexterity oftheseoperatives areuncanny. of theexperiencedeye. can bedetectedonlywithkeenobservance and manyotherfinitemarkingswhich result ofimproperpolishingtheplate, when theinksarewet,brokenlinesasa in theplate,fingermarksfromhandling plate, pinpointsmudgesfrompitmarks of hairlinescausedbyscratchesinthe items. amining thesheetsofworkorindividual flaw tothemostobviouserrorwhenex- out everythingfromthemostminute employees areresponsibleforsearching owners. invariably -THE WASHINGTONPOST, The flawsmaybeintheform It mustbeconsideredthatthese retained as The speedand curios bythe June 15,1910. cct Currency laundering machine.

Before July 1910 if any deviations from be realized from the reduced spoilage. perfection were observed in any subject The Director was gratified that he on the sheet, the entire sheet was ear- could report all these economies at that marked for destruction.In the case of particular time because the Bureau's new currency notes, which were printed four building had been recently completed subjects to the sheet at that time, this and this was his way of justifying the ex- would mean that three perfect notes penses which Congress had approved in would be destroyed, along with the one connection with its construction. note known to be defective.It was found that if the examiner would plainly Currency Laundering mark the bad note, the whole sheet could be processed through to a later operation Machines where the sheets were separated into individual notes.The spoiled note could A Bureau project that seems especially to then be removed for mutilation, and the have intrigued the public's imagination is remaining three notes processed to com- that of laundering money.Today, some pletion.In this manner savings could 40 years after the program was aban- PRODUCTION EXPANDED 1894-19 13 77 doned, inquiries are still received con- were abandoned because the cost proved cerning the methods and equipment used prohibitive.Once again the Bureau had to clean soiled currency. to fall back on its own resources and The idea of washing used nOtes origi- turned the problem over to its technicians nated early in 1909.At that time it was for solution. customary to destroy redeemed currency Finally, on May 29, 1912, the Director by maceration.Though the actual de- was able to report that the machine was struction operation was the function of then completed and ready for practical another branch of the Treasury Depart- use. He further noted that ". ..it would ment, the Bureau was charged with the be possible to launder on one machine a housing and maintenance of the equip- minimum of 20,000 notes a day.. . ment used in this connection.4 Under actual operating conditions the Prompted by the growing demand for productive output ranged from 30,000 to new currency and the resulting necessity 40,000 notes per day.The following for employing a night force to meet this month the equipment was turned over to demand, the Bureau undertook an in- the Office of the Treasurer of the United vestigation of the feasibility of cleaning States for operation. soiled currency for possible reissue.Ex- A graphic explanation of the equipment aminations disclosed that at least 30 per- is found in a letter of September 27, 1912, cent of the notes returned by banks from the Bureau to the Bank of Montreal, throughout the country were not actually Canada. worn but simply soiled. Hence, the This machine utilizes a new principle Bureau took steps to develop a device for washing.Briefly, the note is placed for laundering the money.Though of between two endless bands of cloth, which crudeconstruction,themechanism are alternately slid upon each other, cre- proved sufficiently practical to warrant ating a microscopic friction which loosens further experimentation. the dirt from the note and is discharged As a result, by the water being repeatedly absorbed machines were developed for washing, and pressed out of the bands. sizing, and ironing the notes in three The machine will remove all the dirt separate operations.However, inasmuch that can be washed out by any process of as the equipment required the services of washing.Grease,stains,writing and six operatives, it was regarded with dis- printing ink, etc., cannot be satisfactorily removed without disturbing the actual favorthe desideratum was a single printing.Old bills that have the ink in machine which would perform all three a powdery condition have a faded appear- functions in .one operation, requiring the ance, but new bills may be repeatedly services of but two operatives. washed without showing the slightest signs Efforts to secure the assistance of man- of fading. The washed bills are sterilized ufacturersofcommercial and free from any odor. laundering The machine is self-containeda bill equipment in perfecting such a machine placed upon the feed table emerges two This practice was probably a holdover from minutes later, dried and ironed flat. The the days when it was customary for the Bureau capacity with inexperienced operators will tuse the residual pulp of maccrated money in be 2000 per hour, and 5000 and over has the manufacture of new banknote paper. been attained by experts. No skill beyond 78 HISTORY OF BUREAU OF ENGRAVING AND PRINTING ordinary dexterity is required to feed the subtreasury on April 27, 1913, followed machine. by an installation in the Chicago sub- Ordinary yellow bar soap and a special germicide and bleach sold as a dry powder treasury the next month. The use of the is all that is used, a small amount of run- original machine in the Office of the fling water is required with sewer outlet. Treasurer was discontinued and it was re- The machine is entirely gas heated, but placed with three improved models.In can be equipped with steam or electricity, early 1914 installations were completed at an additional cost.It requires two horsepower motor to drive it. in the subtreasuries at Boston and Phila- The cost of maintenance, aside from delphia. labor, should not exceed two or three dol- The laundering practice was short lars per day, running continuously.It lived, however.With the outbreak of requires two operatorsone to feed and World War I it became impossible to se- one to receive, and a man with some general knowledge of machinery to make up cure adequate supplies of new linen cut- solutions and take care of the machine, tings used in the manufacture of currency although an inspection once an hour, after paper.The situation necessitated the getting started, is all the mechanical at- substitution of cotton for a portion of the tention required. linen used and, eventually, the elimina- For operating, a space of about three by fourteen feet is required.In warm tion of linen entirely.Since the new pa- weather, it should be well ventilated on per did not lend itself to the laundering account of the heat, but there is no ob- process, it was decided to discontinue the jectionable vapor or odor. cleansing operation until such time as it The machine is mechanically well con- was again possible to secure an all-linen structed, the best materials usedprinci- product. From fragmentary evidence pally brass for the working partsand is not likely to get out of order.The con- now available, it appears that the use of struction is such that bills cannot be lost the laundering machines, at least those in the machine, as once placed in it, they in the Treasurer's Office in the main must come out, and they are handled only Treasury building, was discontinued in at the beginning and ending of the process. 1918. A stamp of approval was given the The question of resuming the launder- equipment with a congressional appropri- ing operation was considered in 1921 ation to the Secretary of the Treasury on when a return to the use of a 100-percent August 26, 1912 (37 Stat. 595), for the linen content currency paper was being purchase, installation, and operation of contemplated.However, the U.S. Se- additional machines.These were to be cret Service was unalterably opposed to installed in the Office of the Treasurer of the proposition and the matter was drop- theUnitedStates and various sub- ped. A memorandum of June 26, 1924, treasuries throughout the country.Ac- from the Acting Chief of the Secret Serv- cordingly, 12 machines were constructed ice to the Commissioner of the Public from designs prepared by the Bureau and Debt gives the reasons for this stand. purchased under contract at a cost of Numerous and exhaustive experiments $1,250 each. The first of the contracted have demonstrated beyond question that equipment was installed in the New York the washing of paper currency so changes PRODUCTION EXPANDED 1894-19 13 79 the feel of the paper and the appearance struction of such a machine.Accord- of the bill as to confuse not only the public ingly, the Post Office Department was generally but even those who are called upon to determine the genuineness of approached on the matter.So promis- ing were Stickney's ideas that in 1910 bills turned in for redemption... .[Re- sumption of the practice] would result the Postmaster General authorized the not alone in bringing our paper currency expenditure of $5,600 for the construc- into suspicion everywhere but would action of an experimental machine in actually lend substantial aid to the counterfeiter. cordance with the plans, from money appropriated to the Post Office Depart- ment for expenses incident to investigat- Rotary Web-Fed Postage ing and testing mechanical and labor- Stamp Press saving devices. Strangely there is little information in Little was it envisioned that the growing the Bureau's records relative to the de- popularity of stamp vending and affixing velopment and introduction of this ma- machines would exert such a phenomenal chine. No mentionis made of the impact on the production of postage equipment in the annual reports of the stamps by the Bureau as was later to Bureau until that of fiscal year 1914 when develop. its use was an accomplished fact.Even With the ever-increasing demands for that account was kept to the barest stamps in coiled form in the early 1900's, details. it was soon realized that only by eliminat- A rotary web plate printing press was ing the need to paste the sheets together constructed from plans designed by the for further processing could the Bureau mechanical expert of this bureau, and after several years experimenting itis hope to keep abreast with the orders for nowworkingsatisfactorily. Postage coiled stamps.In 1909 the Third As- stamps printed in rolls on this press have sistant Postmaster General recommended been made into coils which have for sev- "that steps be taken looking to a change eral months been issued to postmasters in the method of printing our postage for sale for use in stamp-vending and stamp-affixing machines.A device for stamps which will enable the Department gumming postage stamps has been at- to provide this improved service [retail tached to the press.Four more of the sale of stamps in coiled form at stamp presses have been ordered to be used in windows]." printing postage and revenue stamps.It Working on a suggestion for printing is expected that an annual economy of several hundred thousand dollars will be the stamps on continuous rolls of paper, effected when the printing of postage BenjaminF.Stickney,theBureau's stamps and of certain revenue stamps has mechanical expert and designer, devel- been transferred to these machines. oped plans for a rotary press which would A clue to the lack of data may be con- wet the paper stock, print the stamps, tained in a Bureau memorandum of April gum and dry them, and perforate the 26, 1913, to the Assistant Secretary of the work, while in web form.However, the Treasury.Here is given an explanation Bureau lacked the funds to finance con- as to why competition was not invited

648-001 O-64---7 firm, which is not particularly interested in the development of printing machinery, there is less possibility of the adoption of any of the basic principles of the machine by outside interests which might cause vexatious difficulties in the matter of obtaining patents for the press. Fortunately, from a historical view- point, the annual reports of the Third Assistant Postmaster General, whose duty it was to administer the procurement of stamps, give more insight into the details of the development of the rotary stamp press. The confidence expressed by the Post Office Department in financing the construction of an experimental press in accordance with Stickney's plans was well placed.In his report for the fiscal year 1912, the Third Assistant Postmaster Gen- eral described the stamps printed on the experimental press as being "exceedingly well printed, having a softer and more Original Stickney rotary web-fed intaglio press pleasing appearance than stamps printed (roll feed end). with the old method."The machine, however, was not put into actual produc- for the constructing of the production tion, but was used only to test and perfect model press, saying: its mechanisms. As a result of these ex- Another reason why it is desired to have periments a pilot model embodying cer- the work done by the Universal Tele- tain structural changes, especially with graphic Company5 is that while itis regard to the drying of the printed strip competent to execute the work, it is a of paper, was constructed. This time the comparatively small and unknown con- cost of manufacture was borne by the cern and the press can be constructed without publicity which would probably Bureau and steps were taken to assure cause agitation and opposition on the that changes were made in its parts which part of the plate-printing trade, which, of would obviate possible conflict with -ex- course, is opposed to improved machinery isting patents on other printing presses. for use in the process of plate printing. Bureau Also by having the work done by this Theaforementioned 1913 memorandum, in justifying the cost of firm, which was located in Baltimore, this pilot machine, throws an interesting Md., had been selected to construct the experimental pressin accordance with Stickney's light on the potentials of the Stickney original plans. press: PRODUCTION EXPANDED 1894-19 13 81

The present method of manufacturing two years with a rotary intaglio printing postage stamps is to print them on single press which was designed here and con- sheets containing four hundred stamps structed under the Bureau's supervision each on power plate printing presses, for the purpose of printing postage stamps then to gum them in single sheets, and from a continuous web of paper and the finally to perforate them by passing them machine is now perfected and ready to be in both directions through rotary perforat- put into regular daily operation. ing machines. In all of the various proc- While the desirability of a machine of esses from the handling of the blank this character was suggested through the paper to the delivery of the finished necessity for a more expeditious and per- stamps in packages to the stock vault, feet manner of preparing stamps in coils there are necessary twenty-three different for use in stamp vending and stamp affix- handlings, while by the use of the press ing machines to avoid the joints which which itis proposed to purchase, and were necessary, due to the printing of the which has as appurtenances devices for stamps in sheets, and will fully meet this gumming and perforating in connection requirement, it is at the same time a with it, the number of handlings or sep- revolution in the method of plate-print- arate processes will be reduced to eight, ing,asit has never heretofore been resulting in an annual saving in the man- satisfactorily demonstrated that perfect ufacture of postage stamps by the use of printing could be executed from curved 8 of these presses, of $240,000. intaglio plates and on paper that had not In addition to the use of this machine in previously been thoroughly dampened. manufacturing postage stamps, it was be- *** lieved that when the presses had been put In view of the importance of this de- in actual operation it would be found that velopment in plate-printing machinery they could be adapted to other classes and the possible great savings that will result from its use in the work of this of work in the Bureau, with resulting Bureau, I would be very glad if you could great economies. find it convenient to visit the Bureau at It was probably with some pride and 2:00 p.m., tomorrow, Thursday, the 2nd great satisfaction that the Director of the instant, to witness its operation. Bureau sent invitations in the spring of The distinguished visitors saw a very 1914 to the Secretary of the Treasury, the unusual machine manufacturing 2-cent Postmaster General, the Assistant Secre- tary of the Treasury, the Third Assistant the press was originally intended for the production of postage stamps, it was Postmaster General, the chairman of the also thought to have potentials for the print- Committee on Appropriations of the ing of currencyhence the invitation to the House of Representatives, and the Comp- Comptroller of the Currency. An experimen- troller of the Currency 6 to visit the Bu- tal project to print currency backs on the ma- reau and observe the operation of the chine was begun in 1918.Although specimen unique Stickney press. The following let- back impressions of $1 Federal Reserve notes printed on the press were approved by the ter was addressed to the Secretary of the Chief of the Secret Service in November of Treasury: that year, the technical problems involved in APRIL 1, 1914 actual production work proved insurmountable M DEAR MR. SECRETARY: This Bu- even after experimentation that continued for reau has been experimenting for the last several years, and the scheme was abandoned. A battery of Stickney presses, such as the machine pictured here, were used to meet the Nation's postage stamp needs up until the early 1950's.They were gradually replaced by high-speed, web-fed intaglio presses. postage stamps.At the outset, a roll of moving web then passed to a printing paper, just as it was received from the cylinder equipped with two semicircular contractor, was placed in a drum com- engraved plates.These plates had been partment at the front of the press and independently inked, wiped, and polished manually threaded through the machine. by the mechanism of the press.As the As the press motor was turned on, the paper moved past the cylinder, a pressure roll unwound and the paper was damp- roller pressed itagainst the revolving ened on one side as it passed over a set plates, thereby printing the impression. of two rubber rollers, one of which re- The roll continued to unwind and the volved in a small tank of warm water printed work was dried as it moved on a and wet the other which served as a dis- heated track to the gumming apparatus. tributing agent. Then the paper motred The stamps were gummed as the web of between a set of three rollers in a second paper passed over a roller which revolved trough, the bottom roller serving as a in a trough of adhesive solution.The further dampening agent and the top two work then moved through a heated cham- rollers pressing out the excess water. The ber to the far end of the press where it PRODUCTION EXPANDED 1894-19 U 83 emerged perfectly dry.Next, it pro- machines. Encouraged by the reception ceeded to the perforating mechanism given the coiled work, the Bureau ar- which perforated the stamps in both di- ranged to procure a larger model of the rections or in either direction separately, press to accommodate the printing of as desired.7Finally, the printed web was stamps from 400-subject plates.This rewound into roll form for future proc- press was installed in 1920 and used for essing into coils. the printing of sheetwork issued to post- Contrary to the old adage concerning masters in 100-subject form. the prophet and honor, Stickney's name After the addition of a second of the became linked . with that of the rotary larger machines, further expansion to the web-fed intaglio press.The machine number of presses was delayed because of came to be called simply the "Stickney the numerous complaints received from Press" and, though it has been supplanted postmasters concerning the tendency of by modern versions, it is still so identified the sheets to curl and then crack.How- throughout thegraphicartsfieldin ever, with the addition of a breaker bar to America and abroad. the press in 1924, which ridged the gum as The first stamps produced on the rotary it was applied to the web of paper, the press were the 2-cent ordinary variety of problem was solved to a great extent. By series 1911. The initial issue of this work July 1, 1926, all ordinary postage stamps occurred on June 30, 1914. As additional of 10 cents and under were being pro- presses were acquired, the production of duced on the rotary presses.With the other denominations of coiled postage gradual increases in the quantities or- and revenue stamps was assigned to the dered, stamps of the higher denominations, with exception of the $1, $2, and 7Evidently, the perforating mechanism was $5 values, were transferred from the flat- operated in conjunction with the press for only a short while, since other early descriptions of bed to the rotary press in 1931. the Stickney machine do not make mention of The rotary presses gave Trojan service a perforating apparatus.Itis known that in the Bureau until they were replaced by Stickney was working on another perforating electronically actuated web-fed presses. device in October 1914.Probably, upon its successful development it was manufactured The last of the Stickney presses was de- as a separate and distinct machine. commissioned on March 15, 1962. CHAPTER v A Bigger Home- anexpanded workload

1914-1928

y 1906 FURTHER EXTENSIONS to the Bureaubuilding were out of the question.The Bureau property, comprising a little more than half of a full city square, was then fully occupied.Supposedly, each addition erected, beginning in 1890, would provide the space for current needs and allow for future growth. However, the expanded facilities proved to be only temporary alleviations.The Nation's economy was on the upsurge. The victory achieved in the Spanish-American War had raised the United States to the rank of an international power. The resultant demands upon the Bureau for more and more currency notes and other securities could be met only by overtime work and the creation of a second work shift.While such steps could be justified economically for relatively short periods of time, they were not practical on an extended basis.The work performed on the night shift required the services of a large force of employees, mostly young women.This was not a desirable situation inasmuch as they had to pass through the lonely park area surrounding the Bureau late at night in order to reach their homesa fact that was often a point for comment by the local newspapers. Figuratively the Bureau was bursting 224 hand presses with a gas stove and a at the seams.All available space was be- work table attached to each machine. A ing used and there was an overcrowding report of the times relates that the presses of machinery and employees in every in this room were "so close together that workroom.For instance, in the main there is but a few inches of space between plate printing pressroom, comprising some the handles by which theyare op- 9,000 square feet of floorspace, there were erated .. .."Extreme care had to be

84 A BIGGER HOME 85

An 1898 view of the main plate printing pressroom at the time of the Spanish-American War, Note the Cuban flag on the machine just back of the printer to the left, in the. black shin, "Air conditioning" consisted of a series of paddles located at ceiling height which were motor driven to circulate the air in the room. 86 HISTORY OF BUREAU OF ENGRAVING AND PRINTING

exercisedlestinpassing among the an entirely new building for the Bureau, presses a person might be struck by the to be designed and constructed for its long radial handles or be burned.Here special needs.It is believed that with the experience of the last twenty-five years a 470employees worked in close proximity. building can now be designed in every The heat generated by so many gas stoves way adapted to the work, having the created an atmosphere that was anything rooms for the several divisions conven- but pleasant, particularly during Wash- iently grouped with reference to the work ington's hot, humid summer months. executed in each and to the administrative offices, and embodying all of the improve- The report goes on to state that "similar ments in building construction and in the conditions exist in many of the other operation of machinery, including electric [work] rooms." light, power, and other processes that Another situation to be contended with havebeendevelopedduringthat was the wide dispersal of like activities period. . throughout the building and the conse- The initial step toward improving the quent lack of centralized operations.In situation was the granting of a $5,000 all, there were eight plate printing press- appropriation(34Stat.1306). This act rooms, located on five different ifoors. was interpreted as authorizing the Secre- These workrooms had been set up as the tary of the Treasury to have plans, speci- various extensions to the building were fications, and estimates of cost prepared completed and though it was realized that for (1) the purchase of a site and the the situation was far from ideal it was construction of a new building; (2) the felt that they were "as well located as the remodeling and extension of the building arrangement of the rooms will permit." then occupied; and(3)the purchase of Already overcrowded and pressed to the privately owned property within the meet the demands for increased require- square where the Bureau was located as ments for currency resulting from the well as the two adjoining city blocks im- natural growth of the country, the Bu- mediately to the south, on which to con- reauviewedwithapprehensionthe struct an additional building or buildings growing movements which advocated a as necessary. more frequent redemption of currency A report covering these propositions notes and a more elastic currency system. was submitted to the House of Represent- If Congress should approve either of the atives onFebruary12, 1908. After proposals, the Bureau would be sorely carefully considering the ramifications of taxed to meet the increasedrequire- each proposal, the Department recom- mentsshould both ideas be adopted, the mended that "Congress authorize the result would be catastrophic. construction of an entirely new group of It was in the lightf this background buildings." that the Director felt compelled to close In developing Plan No. 1, prime con- his annual report for fiscal year1906in sideration was given to the need of the the following manner: engraving operations for an abundant I have the honor, therefore, to recom- north light required in executing the mend that Congress be urged to provide delicate and detailed work of the craft. A BIGGER HOME 1914-1928 87 Consequently, the objective in this in- the park area and would be incompatible stance was the selection of a site that with the classic design of the neighboring would give the greatest expanse facing Department of Agriculture buildings.It north.It was believed that an ideal site was further believed that this arrangement for the purpose would be a tract of land would be unacceptable to the general pub- bounded by 17th, 18th, D, and E Streets lic and prove to be a constant cause for in the northwest section of Washington.1 adverse comment and criticism. The location had the added advantage of The third plan provided for the erection being close to the Treasury proper, which of an additional building on land south would eliminate long hauls between the of the site then occupied. The proposed two buildings.It was proposed to erect structure would be rectangular in shape, three structures on the site.The largest three stories and an attic high, with two would be rectangular in shape with a cen- center courts.If a building were located ter court.The main portion, comprising on this site, the first point to bedetermined five stories and an attic, would be devoted would be the method of access between toproductionactivities.Withinthe the twothrough the open streets or by court would be a smaller building to ac- tunnel.The carrying of securities back commodate the engineering and machin- and forth through an open area would ing operations. A third structure for be insecure and expensive. Access by tun- housing the stables, ink mill, and macera- nel would not be practical because the tor was to be located some distance from foundation of the south outbuilding inter- the others to separate the dust and vened between the Bureau proper and the disagreeable odors of these activities from proposed site.Even if it were possible to the main building. install a tunnel, there would still remain Plan No. 2 provided for the remodeling the problem of lack of centralization of of the old Bureau building and the erec- like operations. There was also the draw- tion of a four-story-and-attic addition to back that if the plan were adopted, it the structure.Since the second provision would be necessary to demolish the laun- of the congressional act made no mention dry and stable located in the northwest of acquiring additional land for the pur- corner of the site and to provide for re- pose, it was presumed that the extension placement of such facilities. was to project onto the public park land Apparentlythisreportwasmost lying directly north of the existing Bureau thought provoking, for 1 month later the building. The proposed addition would Speaker of the House of Representatives cover a ground area of 32,000 square feet and the chairman of the House Commit- and would stand four stories and an attic tee on Appropriations visited the Bureau high. However, it was felt that this pro- for the purpose of determining what re- posal would be objectionable sinceit lief should be granted. A report concern- would project a factory-type structure into ing this visit states:

1 national headquarters buildings of the They made a thorough inspection of the American National Red Cross are presently main and the outbuildings, and were very located on this site. much impressed with the necessity for 88 HISTORY OF BUREAU OF ENGRAVING AND PRINTING additional room in which to execute the finally enacted on May 27, 1908 (35 Stat. work of the Bureau.They were, how- 319), granted the sum of $250,000 for ever, strongly disposed to retain the present building, and to provide for additional the purchase of the necessary land and room by way of a new building to be lo- established a limitation of $1,900,000 for cated on the public park where the green construction of a new building. The act houses 2 are now located, west of 15th further specified that the building should Street, and south of the road that runs be erected on the grounds immediately to through the Monument Park in front of the Bureau building. the south of the site of the Bureau. The They practically intimated that unless features of the bill were the same as had this proposition be accepted, no relief been proposed in Plan No. 3 of the three- would be granted. On leaving the build- point report of the previous February, ing, they requested that an estimate of the except that the structure would be large cost of the additional building located as enough to serve as a replacement for, indicated, and providing for the present necessities of the work of the Bureau, with rather than an addition to, the original allowance for a reasonable increase in the Bureau building. future, be submitted. It appeared that at long last the Bureau The decision to erect the addition on was well on the way to obtaining a plant the site of the Propagating Gardens was that would meet all its requirements. But prompted by the fact that the land in the fate seemed to rule otherwise.All the area of 17th and D streets had been the bids received in connection with the erec- subject of a great deal of real estate specu- tion of the new building exceeded the lation and for this reason the site favored amount of money authorized by Congress by the Treasury Department was rejected. for the purpose.The plans had to be The specially requested report was im- discarded. One after another, alternate mediately prepared and submitted to Con- solutions were considered and then re- gress.This proposal called for a building jected for a variety of reasonsone pro- 300 by 500 feet, with interior courts, base- posed layout would not accommodate all ment, four stories, and an attic to be the necessary machinery; another did not erected at an estimated cost of $2,200,000. readily lend itself to possible future addi- The House Appropriations Committee tions; the next would extend the buildings gave immediate consideration to the pro- onto ground that would require the use posal and that group was about to report of pilings to an extreme depth; another out a bill incorporating essentially the also proved too expensive to be accom- same elements as contained in the special plished within the money limitation; the report when the committee chairman was fifth would require the retention of the informed that the President would veto old building, a factor that would be most any proposal to remove the Propagating unsuitable.Finally, a set of plans was Gardens.The bill reported upon and developed that provided for an arrangement suitable to the work requirements These greenhouses were part of the Public in a structure of esthetic appearance and Buildings and Grounds Propagating Gardens administered by the Corps of Engineers, War proportions and at the same time proved Department. to be feasible from the standpoint of cost. A BIGGER HOME 1914-1928 89

Fortunately, Congress had seen fit to raise the cost limitation to $2,300,000 in August of 1911 (37 Stat. 34). Accordingly, a construction contract stipulating a completion date of May 1, 1913, was entered into on November 17, 1911.But here again fate stepped in to take the upper hand.Erection of the steel superstructure was delayed because of the lack of fabricated steel girders and a siege of inclement weather that gripped the city.Finally, the difficulties were overcome and the tremendous task of moving the operations from the old to the new building was begun on February 24, 1914.The new Bureau was formally occupied on March 19 when Old Glory was raised from the staff heads located atthe north and south ends of the building. The architectural style of the building is Roman Doric.It is of steel superstructure with concrete fireproofing and is constructed of reinforced concrete faced with Howard F. Ralph shown with his father, Di- Indianalimestone and granitetrim. rector Joseph E. Ralph, raising the flag on Along its main facade, fronting on 15th the north end of the building on the occasion Street and overlooking the Tidal Basin, of the formal opening of the new Bureau is a series of stone columns spanning the building on March 19, 1914. The other boy, Frank Ferguson, son of Assistant Director entire 505-foot length of the building. Frank E. Ferguson, had the honor of raising Four factory wings extend a distance of the flag on the south end. 296 feet back toward 14th Street.In all, the structure contains approximately 10 congratulates the Treasury Department acres of floorspace. It is 105 feet in height both on the type of architecture selected and comprises a basement, four stories, and also on the dignified and even noble and an attic.It cost $2,882,000. manner in which the design hasbeen The frustration of the delay in getting carried out, The result should be grati the building underway was tempered to fying in a very high degree. an extent by comments of the Commis- The finished result was indeed gratify- sion of Fine Arts in a letter of February ing; the discourageinents of the past 6 15, 1911, approving the design: years soon faded in the lightof the ensu- The modified design for the building ing praise for Uncle Sam's new money is highly satisfactory, and the commission factory. The Bureau was the subjectof The Main Bureau building at the time of its completion in 1914.This photograph was taken from the rooftop of one of the houses located on the east side of 14th Street, now the Site of the Bureau Annex. numerous feature articles in the leading Supply Problems newspapers andpopularmagazines throughout the country, even some 10 War broke out between Austria and years later. A good case in point is the Serbia in July 1914.Soon almost all the full-page advertisement published in a major European nations were engaged Washington, D.C., newspaper in Novem- in, or fell victim to, the conflict. Germany ber 1927one of a series relating to local and England established naval blockades industries and sponsored by a business- of each other's country to prevent the im- portation of needed supplies as well as men's associationwhich carried a pic- theexportationofcommoditiesthat ture of the Bureau and stated: would aid in the financing of armaments. In Washington there is an industrial Month by month the situation became planta factory which for services ren- more involved and as a result many sup- dered is unmatched anywhere in the plies needed by the Bureau which were world. As seen from the Mall, its stately imported from Europe became very dif- proportions mark the Bureau of Engrav- ficult to obtain.The shortage situation ing and Printing as a building of sym- created by the war was particularly acute metry and beauty. And yet for size, num- regarding dry colors for inks.Principally ber of employees, and value of output it affected were those of red and blue which is the world's premier printing establishment. were available only from Germany in the It is in reality a huge factory, in which quantity and of the quality suitable for are housed many processes ranging from maintaining the Bureau's standards. the treating of paper to the design of deli- A chief factor relied upon as a deter- cate engravings. rent to the counterfeiting of U.S. securities A BIGGER HOME 1914-1928 91 has always been the manufacture by the After several days of anxious correspond- Bureau, according to secret formulas, of ence, an order was placed with the firm the inks used in printing its products. of Gebrueder Heyl & Co. of Charlotten- The protection of money and stamps was burg at prices considerably lower than seriously threatened by the shortage. those last paid in this country. A notice As a result of prompt action at the out- dated January 31, 1916, stated that the break of hostilities, the Bureau secured German Government had issuedthe all the stocks of red and blue dry colors necessary permit for exportation of the then available from commercial suppliers materials and that deliveries would corn- in Philadelphia and New York, but it was mene on February 1.The British Gov- evidentthatthequantitiesobtained ernment had previously guaranteed that would not be sufficient for more than 6 these shipments from a neutral port months. Through diligent search the Bu- would not be interfered with and had so reau was able, from time to time, to pur- notified its consul general at Rotterdam chase from other sources additional quan- in the Netherlands, the port selected as tities of dry colors which through some the point of shipment. The stage was now means had been permitted to reach the set.Anxiety in the Bureau was at a high United States from abroad.These tided pitch. As the stockpiles dwindled, trepi- the Bureau over the remainder of the dation grew.Finally, on February 16, year.In August 1915 another respite 1916, the first shipment comprising 90 was gained through the personal solicita- casks of blue and red dry colors left port tion of the Director in procuring small aboard the steamer Oosterdyk, reaching stocks from various importers located on New York early in March. the eastern seaboard.However, the im- On its return to Rotterdam the steamer minent situation created great concern was reloaded and its next cargoincluded since it was realized that in the future it 164 additional casks of what the Bureau would be necessary to secure all the sup- had come to regard as very precious ma- plies directly from abroad.With this in terials.Regular shipments continued to mind, the Director requested that the be made during the year, but not without Secretary of the Treasury discuss the mat- some exceedingly tense moments. The ter with officials of the State Department British consul general at Rotterdarn occasionally questioned whether the Bureau to see if it would be possible to negotiate had exceeded the tonnage authorized in with known suppliers of dry colors in Ger- the guarantee of uninterrupted shipments many for direct procurement from that and, as a result, the Director was in almost country.The urgency of the request constant contact with the British Embassy brought immediate action by the State in Washington relative to the matter. Department. The American consul gen- Sometimes the supplier was doubtful as eral in Berlin was notified.He in turn to whether he would be able to furnish the contacted various manufacturers to de- quantities requested, but deviations were termine who could supply the require- very minor.So successful was the ven- ments and what the prices would be. ture that by November 1916 the Director 92 HISTORY OF BUREAU OF ENGRAVING AND PRINTING reported to the Treasury that the supply their production by the Bureau from April on hand, including the order then in 1917through the early spring of1919. process, would be sufficient for a year or The first Liberty Loan bond issue called more.Actually, the supplies lasted al- for the printing of more than6million most 2 years. bonds.Although there was some delay Meanwhile, alarmed by the fact that in their issuance, due to the suddenness the Bureau still found it necessary to im- of the need and the lack of a sufficient port dyestuffs in spite of the growing ink number of employees to handle such an supplies industry in this country, the increased production program, the ob- American Chemical Society formed a stacles were surmounted.The Liberty committee to ascertain whether any do- Loan issues definitely placed a heavy bur- mestic manufacturers were in a position den on the existing work force, and to meet the Government's requirements. coupled with this program were other The Bureau cooperatively furnished its war-financing measures which could not specifications for the dry colors needed be handled without additional personnel. and an estimate of the yearly consump- The creation of the Federal Farm Loan tion of the items.Evidently the society Board by an act of July 17,1916 (39Stat. was successful.In response to an offer 360),required the printing of interim received late in 1918 from a commercial certificates and charters for the Joint Stock firm in Holland to sell prewar stocks of Land banks and the National Farm Loan German blue dyes, the head of the Bu- associations. War savings stamps and reau's ink making division replied that he savingscertificateswereintroduced. was "able to purchase a very satisfactory Orders for huge quantities of certificates American made product at a price no of indebtedness, increased orders for vari- greater than the one quoted.. .."To- ous classes of currency notes, and the day, all the dyes used by the Bureau in the adoption of certain revenue measures for manufacture of inks are products of which stamps were required comprised a domestic concerns. heretofore unmatched demand on the Bureau'smanpower, equipment, and Liberty Loan Bonds machinery.In order to accomplish the task it was necessary to work on a 24-hour Probably the greatest combined effort in daily schedule and to secure the services the Bureau during the war years was dis- of some 1,200 additional workmen and played in the printing and processing of clerks.By order of the President, per- the five issues of Liberty Loan bonds. mission was obtained to waive Civil Serv- This achievement has been referred to as ice Commission regulations in recruiting gigantic and tremendousand justly so the needed help.This deviation was for the magnitude of the task can be purely an emergency measure; the order realized only when it is known that more was meant to be revoked as soon as the than 100 million bonds were printed, necessity for it had passed. Unknown at numbered, and controlled through the the moment was the fact that this war- various operations during the period of time decision would continue in effect Secretary of the Treasury Carter Glass removing the first Victory note from the press. for more than 3 years.Bolstered by this was still staggering under the load de- Executive order, Bureau officials engaged manded by that issue when the second in an unprecedented recruiting program. drive was announced to begin on October Teams of crafts representatives were dis- 1,1917. The Treasury founditself patched to various cities in the East, swamped with orders for purchases of the where their particular trades were known bonds of the two loans.As a result it to flourish, to recruit the services of any was decided to issue anticipationinterim qualified person within the trade who certificates and bonds of a temporary na- would be interested in Government em- ture until such time as they could be ployment.Position opportunities were replaced with standard bonds. The Bu- advertised extensively throughthe reau was called upon to produce the "spe- medium of newspapers and trade jour- cial" securities. nals; assistance was requested of various In desperation the Director called a trade unions and the printing industry meeting of the representatives of the vari- was canvassed to secure the services of ous printing trades within the Bureau to craftsmen who might be willing to accept discuss methods by which production appointment, even for as little as 90 days. could be increased. One of the most sig- Withtheadditionalhelpacquired nificant achievements emanating from through these means and the continuing this meeting was the mutual agreement long hours, the Bureau was able to keep that power plate printing presses must be pace with existing orders. fully utilized if the Government was to Because of America's thrust into the be provided with the needed war-financ- war there had been little time for ad- ing securities.It was also decided that vance planning in connection with the additionalclassesofrevenue stamps first Liberty Loan drive.The Bureau should be printed by the offset method, 94 HISTORY OF BUREAU OF ENGRAVING AND PRINTING thus releasing power presses for produc- coincidewiththeestablishedsales ing other plate printed work.If these dates.The fifth loan, better known as power presses had not been made avail- the Victory Loan, was also expedited in able itis doubtful that the 17,363,000 such a manner as to promote on-the-spot bonds needed for the second Liberty Loan issue at the time of sale.As previously issuecould have been deliveredon stated, the original issue of the five loans schedule. comprised over 100 million bonds.Add Having become accustomed to han- to this the more than 8 million conversion dling the orders for such large quantities bonds and a like number of interim cer- of bonds, the Bureau was able to cope with tificates delivered through June 30, 1918, the demands for the more than 25 million and one can readily understand why this items required by the third loan and the war-financing measure had such a tre- 381/2 million of the fourth issue.De- mendous impact on the Bureau's produc- liveries of these items were made to tion efforts.This feat was described in

"Washington went 'over the top' with its quota of the Victory Loan and last night thousands assembled on Pennsylvania Avenue and celebrated this event with one of the most spectacular and frolicsome festivals ever witnessed here.... The prize for the most unique car advertising the Victory Loan went to the Bureau of Engraving and Printing.The machine contained a small printing press with which men were printing Victory Loan notes and holding them up for the spectators to see." -THE WASHINGTON POST, May 9, 7919. A BIGGER HOME 1914-1928 95

Labert St. Clair's book, The Story of the men & Assistants'Unionof North Liberty Loans, as "the most stupendous America in a letter of May 1913 to the task of its kind ever accomplished in the Secretary of the Treasury relative to the history of the world." installation of this type of equipment in the Bureau stated that the "offset press was not known, or at least not generally Photolithographic Offiet known, prior to 1900."Though the in- Printing novation proved to be an economical venture, it was still regarded in the Bu- The greater portion of printing in the reau as being in an experimental stage Bureau has always been accomplished on until America's entry into World War I. plate printing presses.Yet, almost from Admittedly, the process had been satis- the very first days of operation, use has factorily used by the Bureau in the pro- also been made of flatbed typographic duction of certain internal revenue stamps cylinder presses,the type of machine required by an act of October 22, 1914 found in any ordinary printshop.Stereo- (38 Stat. 745), the first to be produced type plates and electrotypes were used for in this manner.The legislation called for the letterpress printing required by the the issuance of these stamps within a short various Civil War financing issues.The time after its passage; in fact, some were output of the typographic presses through needed as early as November 1.In all, the years has been confined, to a great some 5 million sheets of stamps were re- extent, to the overprinting of plate printed quired and it would have been impossible work, but some internal revenue stamps to produce them in time by any method have been produced on these machines. other than the offset process in a manner It was not until 1912 that a third type that would afford the needed degree of ofprinting, a branch of lithography security and satisfactory designs.How- known as photolithographic offset print- ever, the use made of the process was ing, was performed by the Bureau. An limited and it was only because of the act of August 24 of that year (37 Stat. astronomical quantity of Liberty Loan 430) nullified the legal requirement that bonds required by the war that additional all checks and tints for securities be offset presses were procured for printing printed on hand roller plate printing the tints for these bonds.It was in this presses and left the method of producing instance that the method proved its prac- these two classes of work to the discretion ticability and efficiency, and thereby be- of the Secretary of the Treasury.Ac- came firmly established within the Bureau. cordingly, the Bureau procured two used Many improvements had been made offset printing presses for the purpose in lithography since the days of the cum- a step which within 5 years was to prove bersome stone plates employed by Johann fortuitous indeed. Senefelder who discovered the process Offset printing was comparatively new in 1796. At the time of the introduction in the graphic arts industry.The presi- of the offset presses into the Bureau, the dent of the International Printing Press- lithographic printing medium used was 648-.001 O-64-----8 96 HISTORY OF BUREAU OF ENGRAVING AND PRINTING a zinc plate which carried a photographic ened with water and a mild acid solution, image of the impression to be reproduced. which in turn rejects ink. The principal The design was composed of a thin layer drawback to offset printing was that the of a hardened chemical solution adhered dampening agent eventually caused a to the surface of the metal whence the deterioration of the design of the plate. plate derived its name, planograph. The Planograph and deep-etch plates were press took its name from the fact that used by commercial printing establish- the impression was first taken up on a ments long before the Bureau adopted the revolving, rubber-coated cylinder from use of such plates.However, it was which it was offset on to the paper. through the efforts of Bureau personnel The application in the Bureau was to overcome the limited life-use factor naturally limited because offset printing caused by the destructive action of the did not afford the same security protec- dampening agent that a third type of tion as intaglio printing.For that rea- plate was developedthe high-etch plate. son the offset process was used only for Truly, this plate is a Bureau contribution printing securities of a type which would to the graphic arts industry.It was con- holdlittleappealforcounterfeiters. ceived and perfected here and is in use Nevertheless,theinnovationbrought today throughout the printing trade. The about an annual savings of $30,000. The plate is manufactured in essentially the advantage of the process lay in the fact same manner as the deep-etch plate, but that it was capable of producing a clear, the design is in relief with the background sharp impression at a very high rate of etched away, rather than vice versa. The speed.While the plates could be man- need for a dampening agent was elimi- ufactured at a relatively low cost, they nated and the lifeof the plates was were serviceable only for 1 or 2 days' extended appreciably. straight running, or an average of 60,000 The average life of high-etch plates impressions. Steps were taken to see during the first year of their use in the whether thislifefactor could be im- Bureauwas12millionimpressions. proved.As a result, the use of deep- Through the years various improvements etch offset plates was begun in 1924. were made in the quality of these plates These were also manufactured by a and as this progress was achieved, the photomechanical process, but the design scope of work produced therefrom was ex- was cut, or etched, into the plate by a panded, reaching its zenith during World corrosive chemical action. The term ap- War II.The "DeWitt Clinton stamps" plied to the plate was a bit of a misnomer, that were used on all packages of ciga- for actually the etching was only approx- rettes until June 1959 were produced from imately one-thousandth of an inch. high-etch plates in quantities that stagger The underlying theory of lithography the imagination.The tints of the more is based upon the physical principle that than a billion savings bonds produced water and grease do not mix.Conse- during, the defense and war periods of quently, the process involves keeping that the early 1940's were likewise printed portion of a plate not to be printed damp- from this kind of plate.Today, with A BIGGER HOME 1914-1928 97 the discontinuance of many classes of tion contained coarse particles which internal revenue stamps and the conver- caused the intaglio printing plates to sion of Government checks and transpor- wear rapidly.In somecasesplates tation requests to punchcard forms, the wore out in 10 days, whereas their nor- variety of offset work produced by the mal life expectancy was from 6 to 8 Bureau has been considerably curtailed. weeks. The coarse barytes had been used However, bottled liquor strip stamps, cov- in the manufacture of the purple ink ers for stampbooks, and miscellaneous employed in the printing of the 3-cent certificates continue to be produced in ordinary postage stamp.Requirements huge quantities from high-etch plates. for this denomination were running about 25 million stamps each day.This was Offiet Printed Postage Stamps an unusual demand resulting from an increase from 2 to 3 cents in the domestic In the desperate attempts made during letter rate that had become effective on World War I to keep the Bureau's sup- November 2, 1917.Because of the ex- plies of raw materials at safe levels, it cessive wear of the intaglio plates and was often necessary to accept items of the fact that replacements could not be an inferior quality and to rely upon the supplied fast enough, production of the ingenuity and resourcefulness of Bureau 3-cent denomination was less than one- chemists and research personnel to bring half the required amount and the Bu- the products up to standard.Some of reau's stock of this stamp was becoming the inferior products could not be satis- alarmingly depleted.The Director re- factorily remedied and others could be quested permission from the Post Office altered only sufficiently to meet the min- Department to resort to the offset method imum requirements.It was strictly a for printing this item as an interim meas- touch-and-go situation. ure.This was not an unreasonable re- An item of constant use in the manu- quest in the light of the seriousness of facture of Bureau printing inks was a the situation. The Bureau had previously substance called barytes.It was a deriva- experimented with the offset printing of tive of an earthy rock which after refining postage stamps in 1910 in connection with and grinding was used as an extender for its efforts to manufacture stamps suitable the coloring material in the inks.In the for use in dispensing machines.Based early part of 1918 the Bureau received a on the findings of these tests, it was known shipment qf barytes which was to bring that an acceptable stamp could be pro- about a drastic, though temporary, induced by the offset method. novation in the production of U.S. post- The Postmaster General, realizing the age stamps.The samples chosen from importance of the 3-cent stamp to the this lot for test purposes passed the basic needs of the public and the confusion that requirements for the item, but it later would result if the stamps were not sup- developed that a large quantity of the plied in sufficient quantity, acceded to the total supplied was below standard and request on March 9, 1918. The necessary the inks manufactured with that por- offset plates were hastily prepared and 98 HISTORY OF BUREAU OF ENGRAVING AND PRINTING printing was commenced on March 12. into the war. Some consolation lay in the The first delivery of the offset printed fact that if the new building had not been stamps was made 10 days later.It was a reality, the situation would have indeed then observed that the plates for printing been chaotic.Two operations particu- the 1-cent ordinary stamp were also wear- larly affected by the space shortage were ing very rapidly and permission was ob- the examining and surface printing func- tained to print the stocks of that denom- tions.In the examining division the situ- ination on offset presses.Thus another ation became so critical that the area "first" was recorded, but it was only a normally occupied by the supervisory and temporary change to prevail until a suf- clerical forces was taken over for process- ficient supply of new intaglio plates could ing the work, and the preempted groups be made. A similar situation developed were moved into the corridors.Equip- in March 1920, which ironically enough ment was also set up in the hallways to was shortly after the first-class domestic accommodate the tissue separators and postal rate was reduced to its prewar counters.Since the building was closed level.At that time it was the printing to tourists, the visitors' galleries in the of 2-cents stamps that necessitated the division were likewise used for examining same treatment and, as before, it was a operations.Three shifts were formed to poor quality of barytes that caused the work around the clock, 7 days a week. By trouble. December 1918 there were almost 1,500 These are the only three instances in employees assigned to the examining di- which U.S. postage stamps have been vision, a threefold increase in personnel printed in their entirety by the offset for that component.Security checks method. which were not of the utmost importance had to be sidetracked temporarily to ex- pedite processing.The sizing operation Space at a Premium was abandoned in order to release experienced personnel for more important The efforts to obtain additional and duties, even though it was recognized that suitable workspace for the expanding eliminating the process would have an Bureau activities had culminated with adverse effect on the wearing qualities of the completion of the new building.At currency notes.But war-financing se- that time it was believed that the struc- curities were the most important products ture would provide sufficient space for at that time and were, therefore, the ob- any future expansion of activities for some jects of first concern. years to come.Little was it anticipated The surface printing division was un- that within the short period of the next prepared to cope with the staggering 3 years there would be a dearth of work- workload channeled in its direction. First, space brought about by America's entry it was necessary to acquire additional machinery and equipment to be used in By Nov. 7, 1918, there were 8,432 persons on the rolls, the highest number ever employed processing orders for work never before during the Bureau's 100-year history. performed by that division.Additional A BIGGER HOME 19 14-1928 99 offset, flatbed, and cylinder presses were The work was transferred to the Bureau installed. Hundredsofnumbering for final processing and delivery. machines for use on printing presses were The legality of having this work done purchased wherever they could be se- outside the Bureau without specific con- curedaction that was later to plague the gressional authority was seriously ques- Bureauinconnectionwithbaseless tioned during the hearings held by the charges concerning the fraudulent dupli- subcommittee of the House Committee cation of bonds.The offset method of on Appropriations on July 16,1917.Ac- printing had been tried previously in the cordingly, the following day the Director Bureau only on an experimental basis, telegraphed a work stoppage order to the but the process had advanced to such a lithograph firm. At that time the orders stage as to demonstrate its practicability for documentary stamps had been nearly and efficiency.Consequently, when the completed with the delivery of some plate printing division became swamped 500,000 sheets to the Bureau. The com- with orders, some types of work previ- pany had also produced approximately ously printed on power plate printing 35,000 sheets of the parcel post tax presses were converted to the offset print- stamps4 and a small quantity of the postal ing method. A notable change in this re- savings certificates ordered. A later regard was the printing of the tints for the quest for authority to resort to outside help Liberty Loan bonds. This new function, in instances where demands for printing in addition to the overprinting and num- exceeded the capabilities of the Bureau bering of the war bonds, interim certifi- was not granted.However, the printing cates, and certificates of indebtedness and of postal savings certificates was later re- the printing of various internal revenue sumed by the Niagara Lithograph Co. issues, completely overtaxed the facilities on the basis of a contractmade with that of the division.It therefore became nec- firm by the Post Office Department. essary to resort to securing outside help in meeting the needs of the Government. Wartime Personal .ffort In June 1917 the Bureau arranged with the Huebner-Bleistein Co. of Buffalo, Outward demonstrations of the patriotic N.Y., to prepare offset plates for the print- spirit of Bureau employees have been ing of a new issue of postal savings certifi- displayed by their active participation in cates required by July 1, 1917, as well as many civic undertakings throughthe parcel post tax and documentary stamps years.Perhaps the most notable was the in anticipation of a new war revenue bill. very large turnout that took partin the The work was printed by the Niagara Flag Day parade in 1916 when some 4,000 Lithograph Co. in Buffalo under the su- These stamps were never issued inasmuch pervision of a Bureau representative.In as the Bureau of Internal Revenue laterde- addition, 10 employees were detailed from cided to use documentary stamps as evidence of the tax paid on parcel post packages rather Washington to theprinting plant to than introduce a specially designed stamp for handle and safeguard the finished stock. the purpose. NISTORY OF BUREAU OF ENGRAVING AND PRINTING

A contingent of women employees of the Bureau who made up a 400-member marching unit in the Preparedness Parade of June 14, 1916.

Bureau employees were part of an esti- job regardless of the fact that payment of mated 60,000 persons who marched down their wages might be delayed for some Washington's famous parade grounds, time.Also, in the previous year when a Pennsylvania Avenue, behind President fire had done extensive damage to a por- Woodrow Wilson in a demonstration of tion of the Bureau plant, 160 employees American preparedness.The President worked continuously for 36 hours to have himself established a precedent when he the damaged area in condition for opera- led the parade on foot from the Capitol tion on February 23 even forfeiting their to the White House in what was described previous day's holiday.The Secretary as "one of the grandest spectacles ever of the Treasury gave recognition to this witnessed in the National Capital."The particular display of cooperativeness by Bureau contingent, in addition toits writing a personal letter of commendation marching units, included six decorated to each employee concerned. floats, one of which was declared by a The gigantic job of supplying the local newspaper as among "the most elab- needed Liberty Loan bonds is a tribute orate in the whole parade." to the efforts of all employees who will- The war encouraged Bureau employees toward extra effortnot only in matters ingly did "their part" in producing the affecting production but also in cases securities.Appreciation of this task is where need was evinced for unselfish help- enhanced when it is considered that these fulness to the country during that critical same employees purchased more than period.For example, in the early part $1,308,000 worth of bonds and stamps of 1917, when it was apparent that the during the various bond sales drives. appropriations received from Congress Bureau personnel were prominent in would be insuflicient for that fiscal year volunteer work during the war.Realiz- and a remedial deficiency bill had failed ing the extensive needs of the American to pass the Senate, the employees indi- Red Cross, a group of "Bureau girls" cated their willingness to continue on the completed 15,500 garments and prepared The Bureau's prizewinning float in the 1916 Preparedness Parade.The decorative theme was "Protection of American Womanhood," symbolized by the figure Liberty towering over a group of women and children and surrounded by armed sailors and soldiers on guard. many surgical dressings for the society's lonesome and somewhat chagrined in the use overseas.On the home front, two presence of the electric and gasoline ve- units of the binding division distinguished hicles which, shortly after the war, had themselves by their active interest in the taken the place of prominence in the welfare of the injured soldiers in Walter stable where his kind was once king. Reed Army Hospital here in Washington. There was little for him to do, since all All these activities were aside from their wagons, carts, and carriages had been regular duties in the Bureau, which in disposed of and motorized trucks were themselves would seem overwhelming. being used to make deliveries of the Bu- reau's products. Even the lawns around A Bit of Jfostalgia the buildings were being mowed by other than horse-drawn machinery. Transpor- "Time and tide wait for no man" and tation equipment comprised 22 vehicles. that goes for horses too!The Bureau's The first mechanized truck procured by one remaining horse must have been very the Bureau was an electrically driven 102 HISTORY OF BUREAU OF ENGRAVING AND PRINTING

vehicle manufactured by the Studebaker ing system which enabled the Bureau to Brothers Co. of New York City.It was determine costs specifically by operations, received at the Bureau during November measure the efficiency of the individual 1910. On November 15, an application organization, and compare variations in was submitted to the Commissioners of cost of labor, materials, and overhead. the District of Columbia for a permit to Any deviations were readily identified and allow one Thomas E. Skinner, a Bureau the proper remedies applied.Reorgani- employee, to operate the truck.The zations in some divisions released person- application described him as being ex- nel for utilization in areas of greater need. perienced in the operation of electrical It would seem that with the signing of vehicles and "thoroughly competent to the Armistice in 1918 there would have operate the machine. . .."Additional been an immediate end to the staggering mechanizedequipment wasacquired workload and demands on the Bureau through the years and finally on July 1, facilities, but this was not the case.Print- 1920, old "Prince," the lone survivor of ing orders continued to be received for a once large group of horses, was sold at conversion bonds for the various Liberty auction for $75. The stable division be- Loan issues,both permanent coupon came a name in history, giving way to the bonds and registered bonds, and for re- more appropriate title of garage division. placement bonds of all issues.While the requirementsfor somewar-revenue Postwar Tears stamps decreased, those for domestic revenue items were increased; this more or Many of the innovations adopted during less stabilized revenue stamp production. World War I, primarily as emergency The Treasurer of the United States re- measures, proved to be so successful in quested an enormous increase in the de- operation and economical in cost that they livery of U.S. notes, mitigated in part by were continued after peace was resumed. a reduction in the requirement for silver Of particular note was the increased size certificates.A notable achievement of in the back-and-face currency plates from the Bureau during fiscal year 1919 was the four subjects to eight subjects each. The manufacture of dies, rolls, and plates in printingof currency backs in8-sub- connection with the printing of a new ject sheets commenced on July 26, 1918, issue of Federal Reserve Bank notes. De- and the faces were first similarly printed liveries of these new bills during that year on August 1.Checks which were pre- exceeded 56 million pieces.And so it viously handled in 5-subject sheets were was, the end of the war eased the tension increased to 15 subjects.Government and reduced the necessity for pinpoint transportation requests were doubled from time schedules but the Bureau continued 5 to 10 subjects a sheet.All these changes to produce at a grueling pace. The worst resulted in sizable economies and pro- was over and the challenge had been met. vided for greater production than would The achievements will long be remem- otherwise have been possible.Other in- bered. novations included a revised cost account- The period immediately following the A BIGGER HOME 19 14-1928 103 war was considered one of emergency, and time.During this period the midnight special measures were necessary to meet shift, begun during the war, was discon- the requirements of existing orders. Lack tinued and the Executive order which of space and equipment made it neces- permitted the Bureau to waive Civil Serv- sary to operate some divisions on three ice regulations in recruiting personnel was work shifts daily so that all machinery rescinded, with the result that the Bureau could be fully utilizedWooden tempo- was once again subject to all rules and rary buildings in Potomac Park, adjoining regulations of that agency.There were the Bureau, were used for storage pur- some peaks and vaileys in production poses, as were several small, Government- schedules. Soon there was a definite level- owned buildings between the Mall and ing off of production requirements and it Pennsylvania Avenue. The Bureau had became necessary to reduce the work force been in its spacious new building only to a more realistic number in relation to 5 years but already it was becoming over- the workload.Between January and crowded. September 1921 the force was decreased Advancements realized through the by some 1,200 employees.Most of these introduction of the electrolytic process for separations were initiated as indefinite the manufacture of intaglio plates were furloughs, but were later changed to defi- matched by improvements in the produc- nite terminations through reduction-in- tion of offset plates.The latter achieve- force proceedings when it was determined ment was of particular importance to the that the reduced production needs were rapidly growing program ofprinting of a permanent nature. internal revenue stamps. The photolithographic section which manufactured these The Dismissal Fiasco plates was completely reorganized and modern equipment was obtained. Responsible management required that Fiscal year 1921 proved to be a stabiliz- the work force be reduced to the min- ing period. The acquisition of 50 power imum necessary. This was not a pleasant plate printing presses as additional equip- task but the Bureau adopted what was ment andforreplacementpurposes felt to be the most equitable plan for brought the total to 243 power presses in effecting the separations in the light of use.This, along with the termination of the best interests of the Government. The the printing of Liberty Loan bonds in production cutback in the Bureau affected April of 1921, except for those needed for the workload of other segments of the exchange or replacement purposes, tended Department. They, too, had to institute to taper activities back to the normalcy reduction-in-forceproceedings. Natu- of prewar years.The production rate rally, some employees affected by the sep- was still 50 percent over that of prewar aration actions believed they had been output, but the modernization of equip- treated unfairly.Their dissatisfaction ment and successful experimentation had caused them to become tools in the hands placed the Bureau in a position where it of certain individuals who charged that could produce more in a shorter span of the Government had been defrauded of 104 HISTORY OF BUREAU OF ENGRAVING AND PRINTING

"probably hundreds of millions of dollars" 1920 with a former Assistant Register of through the issuance of "duplicate [Lib- the Treasury, who it was claimed had erty Loan] bonds."Bitterness, in this been discharged because he persistently instance, colored the complainants' judg- brought the matter of duplicate bonds to ment.Convinced that there were over- the attention of his superiors.Treasury issues in the number of bonds printed and records show that charges of unfitness that numerical duplications were pur- for duty had been brought against that posely initiated, the smitten employees official in 1919 and substantiated, and willingly reduced their convictions to that President Wilson authorized his re- writing.There were others also, still em- moval. However, in consideration of the ployed in the Bureau, who provided addi- officer's family he was permitted to resign tional spark to the already sizzling fuse in July 1920.Apparently piqued at the of the powder keg. To merely say "print treatment he received, he published his and issue" sounds like a simple operation, charges.Later he took the information but when the printed matter involves to his Congressman who turned the data Governmentsecuritiestheresuddenly over to the Department of Justice.That comes into being a complex network of agency immediately initiated an investi- rigid controls, special processes, and strict gation of the matter that was to drag on security measures.Unless one is fully for almost 4 years.Concurrently, the informed, there can readily be a miscon- Committee on Banking and Currency of ception of what any one phase may ap- the I-louse of Representatives began an pear to represent. investgation of other allegations of mis- The claims of fraud and the action management and misconduct in the Bu- taken as a result of these claims were reau. Thus was set in motion a series of to become the subject of acrimonious de- chain reactions that were to develop into bate in the House and Senate.Before a cause celebre. the matter was to be resolved, 29 persons The high point of the case insofar as would be summarily dismissed from their the Bureau was concerned was reached positions in the Bureau by one President on March 31, 1922.On that date, Presi- of the United States and eventually be dent Warren G. Harding issued an Ex- exonerated by another.There would be ecutive order summarily removing the Di- four different Directors of the Bureau in rector, James L. Wilmeth, and the Assist- a span of less than 3 years. Two of the ant Director, James M. Fisher, from office changes would be directly attributable to and appointing two subofficials in the Bu- the charges and countercharges; and the reau to those positions.The order also other two appointments would be made summarily dismissed 27 other persons as- in an effort to place Bureau operations on signed to top management positions in an even keel once again. The case would the Bureau and abolished 7 of those jobs. shake the Bureau to its very foundation The order further provided that any of and remain a vivid memory to Bureau the 27 persons eligible for retirement on employees for many years to come. account of age should "be placed on the The charges originated in September retired list" rather than be dismissed.No A BIGGER HOME 19 14-1928 105

reason was given for the discharges other restoration did not bring immediate rein- than they were ordered "for the good of statement.President Harding died in the service."Many of the persons con- August 1923. During the next 6 months, cerned knew nothing of the action until it was conclusively proved that, although the next day when they reported for work. there were some numerical duplications of Only those who had personal property on bonds issued, they were the result of the the premises were granted admittance to mechanical malfunction of the printing the building. They were permitted to re- trieve their property under escort of a equipment and the ever-present element guard and then were immediately accom- of human error and were in no way con- panied to the exits. A state of shock took nected with the integrity and trustworthi- hold of the Bureau.Since no specific ness of the employees who had been charge was made against the dismissed summarily dismissed. employees, they were at a loss to defend This turn of events brought about the themselves. Conjecture became rampant. resignation of the Director appointed to Who might be next?What protection succeed Wilmeth.Upon the latter's re- did one have for job securityif it could fusal to accept reappointment, Maj. Wal- happen to one, it could happen to another. lace W. Kirby,Corps of Engineers, Wherein lay the opportunity to refute ma- U.S. Army, was detailed by President licious gossip? Coolidge to serve as Acting Director of the Records are not clear as to whether the Bureau on February 14, 1924.Major Presidential order was prompted by the Kirby was a lithographer who was findings of the Department of Justice or familiar with Bureau operations, having those of the congressional committee. served for a year as Superintendent of the Nevertheless, they do show that nearly a Bureau's offset platemaking division until year later President Harding became convinced that he had been misled and that his resignation in 1920.He described his an injustice had been done.By an taking over the directorship as follows: Executive order of February 14, 1923, he At the time the present incumbent as- restored the civil service status of 17 of sumed control of the bureau (February the persons concerned.5However, this 15, 1924), it was found that one of the first things to be done was to devise ways Six employees had elected to take advan- and means to gain the confidence of the tage of the proviso of the original order per- employees and build up morale.The mitting them to retire on account of age; three first step in that direction was the restora- had already regained their Status through em- tion to service of 17 of the officials dis- ployment by other Government agencies; and missed by Executive order March 31, one had died.Apparently, there was still some 1922.By way of explanation of the fail- doubt as to the innocence of the remaining ure to reinstate all of the employees dis- two for they were not mentioned by the Presi- missed March 31, 1922, it may be stated dent's order.However, they were later re- that all who were eligible for reinstate- stored to status on Dec. 24, 1923, by President ment and in the United States were in- Calvin Coolidge; one subsequently chose to vited to confer with the director.Four- return to the Bureau. teen accepted reinstatement immediately, 106 HISTORY OF BUREAU OF ENGRAVING AND PRINTING three at a later date, some had reached Prior to October 1917 the only U.S. the age of retirement, and others had died. securities that could be legally printed on The spirit in which the original group power presses were postage and internal were welcomed upon their return was the revenue stamps and the backs and tints subject of an item which appeared in the of currency and bonds.The initial weeks WashingtonStarof March 2, 1924, re- of hostilities saw production orders on the porting that crowds of coworkers gathered Bureau soar, particularly those for bonds. to congratulate the returned employees It was realized that the financing of the and that the strains of "Hail, Hail, the war effort would be seriously hampered if Gang's All Here" were heard echoing and any phase of the bond program should reechoing throughout the halls.There fail.Practically from receipt of the first were others who returned later amid less orders, the tints for Liberty Loan bond is- ceremony but it was, indeed, good to have sues were printed by the offset method. them back.That's how it ended, the em- This released printers for resassignment barrassing fiasco that should never have to other engraved plate jobs, but the re- happened.The dark cloud was removed, lief thus attained proved only temporary. but many years later it was still talked It was soon evident that more drastic ac- about as though it had happened just the tion was required. Accordingly,the day before. printing of the faces of the bonds was Major Kirby's original assignment was converted to power equipment.In Sep- to cover a 30-day period.Later the tember of that year, the Director of the Senate Military Affairs Committee rec- Bureau volunteered the following ex- ommended that he serve for an extended planation of this step during the Senate time.On this recommendation a Senate hearings on the urgent deficiency bill for joint resolution was passed which au- fiscal year 1918. thorized the President to appoint him as In the printing of the bonds I say to Director for a period of 6 months begin- you we printed them on power pressesby fling June 16, 1924.While in this posi- and with the consent of the plate printers. That is a technical violation of the law, tion he was permitted to retain his com- but we could not have executed them mission and was paid at the rank of otherwise. major. He returned to duty with the He then went on to ask that the legal Army on December 16, 1924. prohibition against the full use of power presses be suspended during the continu- Power Presses Vindicated ance of the war. The requested relief was granted by an act of October 6, 1917 (40 The unprecedented demands upon the Stat. 349), and extended to cover the Bureau for all types of securities during period of "the emergency growing out of World War I served as the wedge that the war" by a subsequent act of July 11, eventually opened the way to the unre- 1919 (41 Stat. 44). stricted use of the power plate printing As previously mentioned, the use of press. power presses in the Bureau had ceased A BIGGER HOME 1914-1928 107 as of July 1, 1889.Prior to that time and tightened further by the next year's ap- during the ensuing years the plate printers propriation bill (30 Stat. 1082) which conducted a vigorous and vigilant anti- specified "That the faces of all tobacco power-press campaign which wavered stamps for use upon packages of two only during the war and postwar emer- pounds and upward, and of all beer, gency periods. whiskey, cigar, snuff, oleomargarine, and The first breakthrough for the return special liquor tax stamps, shall hereafter of power presses into the Bureau came be printed from engraved plates upon with the printing of postage stamps in hand-roller plate-printing presses." 1894. Ten machines were purchased out- Efforts to expand use of the laborsav- right for the purpose and three more ing presses were to remain stymied for the presses were added before the year was next 8 years.In a letter of March 27, Out. No objection was raised on the part 1913, to the Assistant Secretary of the of the plate printers to the introduction Treasury, the Director described how of this equipment, the theory being that partial relief in this regard was eventually previous to the time of the takeover of achieved. the production of postage stamps by the The Sundry Civil bill for the fiscal year Bureau that work had been produced for ending June 30, 1908 [34 Stat. 1309], con- the Government by the American Bank tained a joker which repealed the Act ap- Note Co. on power presses.Since no dis- proved March 3,1899 [regarding the clamation of that practice had been made manner of printing specified internal revenue stamps].This joker was placed in the by organized labor, the Bureau printers bill by the Committee on Appropriations could not well advocate a return to the of the House and did not become known slower and more expensive manner of to the parties interested in its suppression, printingthestamps on hand roller and, in fact, was not known to anyone presses. outside the interested Members of the Committee on Appropriations, until after Encouraged by the satisfactory results the bill had been signed by the President. obtained through the use of the machines The joker was so worded as to cover up in the printing of postage stamps, the Sec- its purpose and read, as follows: "And retary of the Treasury approved the con- the second proviso under this head in the struction of 12 additional power presses Sundry Civil appropriation Act, approved which were installed in March 1898.It March 3, 1899, is hereby repealed..... was intended that this new equipment Soon thereafter the Bureau had 25 would be employed for printing the backs power presses engaged in the production of U.S. and Treasury notes and silver cer- of internal revenue stamps. tificates.Their use for this purpose, how- Another loosening of the restrictions ever, was short lived.The sundry civil was secured through a proviso of an ap- act for fiscal year 1899 (30 Stat. 604) con- propriation act of August 24, 1912 (37 tained the terse proviso, "That hereafter Stat. 430), which repealed in part the all bonds, notes, and checks shall be 1898 requirement that all bonds, notes, printed from hand-roller presses." and checks be produced on hand presses. The restriction on power presses was Effective as of the 1912 date it was per- 108 HISTOR? OF BUREAU OF ENGRAVING AND PRINTING missible to print the backs of currency dure that he had developed back in the notes and bonds on power presses and early1800's. The growing influx of the tints and checks by any process. printing orders as World War I progressed The Director, in his aforementioned sorely taxed the facilities of the Engrav- letter, attributed the change to the hearing Division.Even though that compo- ings held by the Senate Committee on nent operated three shifts daily, it was Printing on a bill to amend, revise, and unable to keep pace with the require- codify the laws relating to the public ments of the plate printing sections. The printing and binding and the distribution situation gave credence to the old adage of Government publications.He stated that "necessity is the mother of inven- that these hearings ". .. culminatedin a tion."George U. Rose, then Superin- compromise agreement on the part of tendentoftheEngravingDivision, the Plate Printers Union and the Com- developed an alternate method to the mittee providing for the repeal of the said transfer process as a means of augmenting Act [of 1898]." the supply of plates.Rose's plan called The quality of the products printed by for the reproduction of printing plates by the Bureau during the war period re- means of electrodeposition.In brief, his moved once and for all the stigma at- method employed the use of a steel en- tached to power press work.The theory graved master plate upon which alternate that such printings were inferior to those layers of nickel and copper were deposited produced on hand roller presses was by the process of electrolysis to form an proven invalid.Finally, in 1923, the re- exact replica in reverse of the steel mas- striction on power presses was lifted ter.This reverse formation, called an permanently.An act of January 3 of alto, was then used to create basso repro- that year (42 Stat. 1099) directed in part: ductions, or press plates, by the same Hereafter the Secretary of the Treasury means. is authorized to print from plates of more By July 1918, the results of tests made than four subjects each upon power of the proposed idea warranted the Bu- presses the fronts and backs of any paper reau's requesting an evaluation of the money, bonds, or other printed matter now or hereafter authorized to be exe- method bytheNational Bureauof cuted at the Bureau of Engraving and Standards, which after further experi- Printing;. mentation on its part concluded "that This brought to a close the struggle of the procedure devised by Mr. Rose was some 30 years'duration to introduce commercially practicable."An electro- laborsaving equipment on an unrestricted lytic plant was established in the Bureau basis in the printing of U.S. currency. with the assistance of the Bureau of Standards in April 1920. As is the case of any development in Electrolytic Plates conflict with establishedinterests, the The dawn of the 20th century found projectmetwithstrongresistance. little,ifany, improvement in Jacob Shortly after creation of the unit there Perkins' transfer press. The siderography was a change in the directorship of the process was still the slow, tedious proce- Bureau of Engraving and Printing and A BIGGER HOME 1914-1928 109

the new incumbent, being unsympathetic coating was then removed, and the plates to the method, restricted the operations were rechromed.This materially in- of the plant to a negligibleoutput.In creased their use span and proved so ef- 1923, on the basis of a reduction in the fective that the principle was eventually need for new plates, the Assistant Secre- applied to plates manufactured by the tary of the Treasury authorized the aban- transfer process as well. donment of the operation.Fortunately, In 1928, a further improvement was that official was "not satisfied that the effected.The use of copper in the pro- electrolytic process... had a fair test" duction of the plates was discontinued. and directed that the equipment bere- Instead, the bassos were made entirely of tained and properly protected, "with the nickel and were approximately only one- full intention of again putting theprocess half their former thickness.The nickel into operationifand when occasion formations were then welded to thin should arise."It was but a year later sheets of iron to form press plates.Since with another change in the directorship iron was cheaper than copper, the inno- that the reopening of the unitwas deemed vation resulted in a substantial reduction feasible; the new incumbent reported that in cost.A few years later another change the "discontinuance of the electrolytic was introduced in that a plastic cement section about a year and halfago was was used as the adhesive for binding the found to be ill advised." electrolyticshellto the iron backing. The saga of the firm establishment of This feature improved the strength and the electrolytic process asan integral part wearing qualities of the plates. of the Bureau operations isone of un- These and other modifications intro- yielding determination to succeed.The duced into the system resulted in a vast champions of the process, confident of its improvement of the process over the years. value, worked hard and persistentlyto For instance, during the first 3 years of demonstrate its practicability. operation the greatest number of impres- A valid argument of the opponents to sions printed from an electrolytic plate the electrolytic processwas that the serv- was 48,000.In 1930 the average number iceability of plates produced even with was approximately 100,000 impressions the hardest of nickel was not equal to that per plate.Today, almost 98 percent of of casehardened steel plates produced by our paper money is printed from electro- the transfer process.However, soon after lytic plates having an average life of a the resumption of the activity, through half million impressions. further experimentation, itwas deter- The existence of a plant capable of mined that this difficulty could beover- producing electrolytic plates facilitated come by coating the plates with chro- the conversion to the dry printing of cur- mium, the hardest metal known.An rency undertaken in 1957, for it would additional benefit was realized through have been highly impracticable to pro- the adoption of this coating feature in duce a 32-subject plate by the transfer that a program was established whereby process.These larger plates are com- the plates were taken out of production prised entirely of nickel with a chromed prior to their becomingworn, the old coating. CHAPTER VI A Smaller Product-the depression and nationalrecovery 1929-1940

HE INTRODUCTION OF smaller sized currency notes in 1929 was the culmination of 20 years' effort to achieve that goal.Franklin MacVeagh, who served as Secretary of the Treasury under President Taft from 1909 to 1913, can be credited with fathering the idea.His term of office is marked by his unflagging interest in the project.Soon after assuming office, Secretary MacVeagh appointed a committee made up of the Treasurer of the United States, the Chief of the Secret Service, the Chief of the Division of Loans and Currency, and the Director of the Bureau of Engraving and Printing to consider changing the designs and size of currency notes.After a very careful and exhaustive study, this group reported favorably on the advantages and savings which would result from an issue of smaller notes identical in size to Philippine currency which had proven "an unqualified success."The committee estimated that the savings to be realized through the proposal would amount to over $600,000 annually. On the basis of the committee's findings, Secretary MacVeagh issued instructions to the Bureau on February 26, 1913, which stated in part: I have caused this design to be pre- notes from their present dimensions to the pared for use in connection with a change dimensions of Philippine certificates, and in the size of United States notes, gold as soon as the engraving of the die of the and silver certificates and national-bank new design is completed you will at once

110 A SMALLER PRODUCT 1929-1940 111 prepare plates for the printing of the were a multitude of problems to be re- classes above named of this reduced size. solved before a workable plan could be An interesting facet of the MacVeagh put into effect.Because a meeting of the plan was his idea for a uniform back de- minds could not be reached on all issues sign for all denominations of currency. at the same time, the recommendations In the same letter of instructions, he of later committees appointed to consider directed: the matters were doomed to failure. Confirming my oral approval and in- There were differences of opinion in con- structions of January 31, 1913, the design nection with the use of colors for printing prepared by Mr. Kenyon Cox, of New the backs of notes; the use of a uniform York City, for use on the backs of all design by type of note; the colors for the denominations of paper money is hereby approved, and you are instructed to pro- overprinting on the faces; the type of ceed immediately with the engraving of design to be used on the faces and backs; a die of this design, completing the work and the selection of portraits as well as at the earliest moment possible. the denominations on which they were to Secretary MacVeagh's order was never be used.In addition, there were many executed. With the change of presiden- obstacles, which would have to be over- tial administrations 1 week later, he was come, involving the issue and redemption replaced as Secretary.The successor to of supplies of any new nttes and, of the office, William G. McAdoo, while fav- course, printing processes and related ma- orable to the project in general, instructed chinery would have to be altered and new that the matter be held in abeyance until equipment acquired. he had the opportunity to review it in On August 20, 1925, Secretary of the detail.The setting up of the Federal Treasury Andrew W. Mellon appointed Reserve banking system was then close a committee to restudy the whole ques- at hand and was to absorb the attention tion of currency design, printing opera- of the Department for some time.Un- tions, issuance, and the related interests wittingly, the idea of a change in currency associated with replacing the large-sized design was to be sidetracked indefinitely. currency with smaller notes.This group In 1914 and again in 1918, attempts was to be the last of a long line appointed were made to revive the issue.How- to investigate the pros and cons of the ever, the outbreak of war and the ac- subject.Itsdeliberations were to be companying gigantic program of printing crowned with eventualsuccess.The in the Bureau during the war years di- committee consisted of 15 officials repre- verted attention from the plan to the sentative of every phase of the U.S. mone- more urgent issues of the times.The tary system and, in addition, included proposal was not completely forgotten, officials of the National Bureau of Stand- however.It was an often recurring topic ards and the Bureau of Efficiency. of discussion among Department officials The central group was broken down who were prodded by the magnitude of into eight subcommittees in order that potential savings and the all but unani- detailed consideration could be given to mous acceptance of the idea.There the following prime facets embodied in an 648-001 o-64-----e 112 HISTORY OF BUREAU OF ENGRAVING AND PRINTING undertaking of such magnitude as a could handle the tremendous program, change in our Nation's currency: directed that the necessary steps be taken New designs to effect the change from large- to small- Mechanical production aspects sized notes.Dies, rolls, and plates for the Inauguration f new designs new designs had to be made. The smaller Distinctive paper size allowed the use of 12 subjects on each Reduction of note size plate instead of 8 as previously used in Currency contract clauses and printing most of the large notes.There legends was no difficulty experienced in convert- Destruction of unfit currency ing the plate printing equipment, but the Legal aspects trimming machines, which removed the Once the study was begun it was dis- excess margins of the sheets, had to be covered that the work of subcommittees rebuilt.Machines utilizing a new prin- Nos. 1 and 4 was so interrelated that they ciple of numbering notes had to be de- were combined.An example of the signed and installed.It was necessary thoroughness of the task forces is shown toaccumulate stockpilesofsufficient in the records of subcommittee No. 1 quantities of notes to provide for the si- regardingitsdeliberations ofportrait multaneous issuance of the various classes selections: Washington was suggested for and denominations.Notes of $1 to $20 the $1 note because his portrait was were printed first; the higher denomina- familiar to everyone and bills of this de- tions of gold certificates and Federal Re- nomination had the greatest circulation; serve currency were to follow as soon as Garfield's likeness was suggested for the possible, as were the established denom- $2 note because of the sentiment attached inations of national bank currency. to our martyred Presidents and because A scheme of numbering so valuable a his flowing beard would offer a marked product as paper money requires that contrast to the clean-shaven features of there be no two notes of any one class, Washington and permit a ready distinc- denomination, and series with the same tion between the $1 and $2 bills; Lincoln identification number in order that the for the $5's because he followed Wash- record of its production may be traced ington in the rank of American heroes at any time.The system must be ade- and it seemed logical that Abe's likeness quate to accommodate a large volume of should appear on the denomination hav- notes and the size of type of the numbers ing the second largest circulation.And used must be sufficiently large to facilitate so the groups labored to bring about a immediate identification.This was the plan that would save the Government problem facing the Bureau in its task of millions of dollars annually. numbering the new notes. The machines Finally, in May 1927, nearly 18 years devised for the purpose were the product after the idea was conceived, Secretary of the mechanical ingenuity of Bureau Mellon approved the designs and recom- personnel.The simple explanation that mendations of his appointed committee the machines were constructed to separate and, with the assurance that the Bureau the 12-subject sheets in half lengthwise, In the summer of 1929 the Bureau and small-sized currency were prominent topics on the front pages and in editorial columns of newspapers throughout the country.This cartoon appeared in the Brooklyn (N.Y.) Eagle. overprint the seals and numbers, cut the pated with the use of two sizes of notes half sheets into individual notes, and dis- during the interim period. pense the notesin reverse numerical The results of 20 years of research, ex- order, is in no manner indicative of the perimentation, and planning finally be- effort, labor, and heartache that went came a reality.The new notes were of into the development of these presses. such form that not only were they attrac- Prior to the introduction of the new tive in appearance but they also embodied currency, a vigorous advertising cam- security features which readily identified paign was conducted to fully inform the the "real McCoy" from spurious issues. public of the description of the notes to The uniformity of portraits for the same be issued.Displays were exhibited in denomination was an identifying feature banks across the nation.Speakers went which put a cramp in the counterfeiters' before large assemblies to describe the style of upping a value.This mode of procedure by which the change in cur- altering notes had been successful because rency was to be accomplished and to out- of the widespread confusion as to what line the difficulties which were antici- designs belonged to which denominations. 114 HISTORY OF BUREAU OF ENGRAVING AND PRINTING

For instance, as late as 1922 the Bureau use and maintenance of distinctive plate delivered 6 classes of currency notes en- stocks for notes of a particular bank. compassing 15 different series in all with Few banks had need for printed stocks varying face and back designs for 11 de- of any one denomination in quantities nominations,manyofwhichwere that would warrant the use of the larger repeated among thevariousclasses. sized plates.In fact, production needs With the adoption of the uniform por- were such that it was not unusual to print trait system the general public was alerted mixed denominations of notes for a par- to associate the valuef a note with the ticular bank from the same four-subject related portrait.The classes of currency plate or, in the case of $50 and $100 notes, were distinguished by the color of ink to print only one each from a two-subject used to overprint the Treasury seal and plate. the note serial numbers; silver certificates The introduction of small-sized cur- were overprinted in blue, U.S. notes in rency in 1929 brought about the most red, gold certificates in yellow, Federal radical change in the production of na- Reserve notes in green, and national bank tional currency since its inception in 1863. notes in brown. Along with all other classes of currency, One distinctive item, which was devel- its production was converted to 12-subject oped quite by accident during the re- plates.The notes were incorporated in- search program to acquire a paper with to the denominational-portrait and uni- unique characteristics and of a superior form back design systems which were the quality, was the new distributed fiber significant innovations accompanying the paper used for the small notes.The find change in the size of U.S. paper money. was the result of work spoiled at the mill, The names of the banks were no longer which had been put back into the beaters engraved in the printing plates but were and reprocessed.The silk fibers that had overprinted typographically on the notes. formerly appeared in localized strips were Also, the facsimile signatures of the banks' distributed throughout the product in the officers were overprinted by the Bureau. form of small particles.Careful study of Previously the notes had been delivered this distributed silk fiber led to the con- in uncut sheets and the necessary signa- clusion thatitfurnished a distinctive tures were either signed manually or the marking difficult to counterfeit. bank arranged to have them overprinted by local jobbers. The End of an Era These changes were a boon to the Bureau in light of the fact that as of The conversion from four- to eight-subject currency plates which occurred in 1918 January 1,1929, there were still more did not embody national bank currency. than 7,600 national banks in existence. At that time there were some 7,700 na- Under the old method of production it tional banks.Each had the authority to was necessary to await receipt of a spe- issue notes of a common basic design cific order and then to withdraw the bearing its wn name.This entailed the plates of the ordering bank and go to A SMALLER PRODUCT 1929-1940 115 press.No advance work was practical. Extensive Furlough Plan Under the new system of printing, sheets of a particular denomination could be The matter of adjusting personnel quotas printed in anticipation of future require- to fluctuating program needs had long ments and the stocks placed in storage. been a problem in the administration of When an order was received, the number Bureau affairs.As early as 1864, Spencer of sheets required could be withdrawn Clark had expressed concern regarding and the name of the bank and the signa- the subject.The problem was particu- tures overprinted without delay.The larly acute during the transition period plan accomplished a threefold purpose: from old- to new-size currency. The solu- it materially reduced the length of time tion lay in the inauguration of a rotating requiredto complete an order;the furlough system.It was adopted to avoid amount and the variety of engraved plate dismissal of experienced employees tem- stock were materially reduced with the porarily in excess, but whose services attendant benefits of a savings in steel, would be needed in later phases when storage facilities, and less account keep- production was in full swing.Through ing; and, since all currency sheets were this plan employees in overstaffed units then of a uniform size, processing equip- would be off from work a fixed number ment could be standardized. of days each month without pay.The Thus it was possible to abandon the idea was not new to the Bureau's opera- use of the single-plate handpress.This tions.It had been used on numerous type press had been used since the very occasions in the past. beginning of currency printing opera- The printing of the initial supply of tions in the Treasury Department. Now the smaller currency was completed on the once mighty monarch was dethroned. June 30, 1929. A sharp decline in the It had seen the rise and fall of the hydro- work program which immediately fol- static press and the steam press, and its lowed the issuance of the new notes exponents had fought a tenacious battle necessitated not only the release of the of some 30 years' duration against its re- temporary help engaged in accomplishing placement by the four-plate power press. the unprecedented production of the first Upon completion of the final order for half of 1929 but also an adjustment of the permanent force of employees.Fur- the old-size national bank notes on August loughs were again resorted to after care- 7, 1929, the section in which these notes ful consideration of the interests of both were printed was closed. The 50 presses the employees and the Government. in this room, the last of a group which Close upon the heels of the issuance in their heyday had numbered as high as of the first small notes in July 1929 came 585, were dismantled and sold for scrap. the collapse of the New York stock mar- Today, there remain in the Bureau only ket to be followed by the staggering de- a token number of these presses.They pressionoftheearly1930's.The are reserved for the proving of plates and Nation's financial condition had its effect the production of small special orders. on the demand for currency notes and 116 HISTORY OF BUREAU OF ENGRAVING AND PRINTING

other securities.Little did the Bureau's duction operations were once again re- management dream that upon the inaug- sumed.Through humane considerations uration of a furlough plan late in 1929, and mutual cooperation on the part of the system would extend over a period of both management and labor, the Bureau 6 years with only intermittent periods of had weathered the storm well. relief.It principally affected plate printers, plate finishers, and women operatives, "Emergency Currency" and at times applied to all classes of employees. Furlough schedules were The Bureau was concerned in a number worked out for employees in every proof programs instituted by the Government duction division, the number of days off to stem the tide of the depression because depending on the workload in each com- of the demands for its printing services ponent.Any reduction in personnel was in connection with the recovery projects. accomplished only by voluntary resigna- Many of the requests made upon the Bu- tions and retirements. reau necessitated quick and decisive ac- The Bureau's annual reports for the tion.A case in point was the special fiscal years 1930 through 1936 are replete currency authorized by emergency legisla- in their descriptions of the fluctuations tion of March 9, 1933, for an issue of that occurred in the program and of the FederalReserveBanknotes.The efforts taken to alleviate the situation. urgency for this issuance of additional Every operating division was placed on a notes was due to the panic withdrawals rotating furlough basis throughout most of savings deposited in the banks through- of fiscal year 1930.During the greater out the Nation.Foresight and versatility part of 1931 and 1932, the plan applied were essential if the dire consequences only to three groups in which there were that could have resulted from the ensuing surplus employees.Plate printers were paper money shortage were to be avoided. required to be off 3 days a month; plate It would have taken 18 months to pre- finishers,1 day a month; and women pare the new currency issue had conven- operatives, from 1 to 4 days a month.In tional methods been followed.However, fiscal year 1933 there was an alleviation only 2 days after passage of the legisla- of the situation brought about by the need tion, the first shipment of the new notes for "emergency currency" during the was on its way to the Federal Reserve months of March and April.It was in Bank of New York.The dispatch of fiscal year 1934 that the furlough system currency to the other Federal Reserve had its full impact.During the months banks followed immediately.Such an of August through October 1933, every accomplishment was the result of ingenu employee observed some offdays and plate ity on the Bureau's part.Much of the printers were out of work for as many as preliminary work relating to the new notes 11days each month.Thereafter the was accomplished at the same time that situation gradually tapered and by the the financial aspects were being con- last quarter of fiscal year 1936 full pro- sidered and the legislative bill was being A SMALLER PRODUCT 19 29-1940 117 drafted.The expeditious production of 5 million sheets of regular Federal Re- the currency was made possible through serve notes.Recognition of its effort was improvisingavailableblank engraved given in a departmental news release is- stocks of national bank currency for the sued in March 1933 which stated, in part: purpose.This was achieved by blocking The production required by the Emer- out the officers' engraved titles already gency Bank Act is unprecedented.To appearing on the notes and overprinting meet this program many quick changes the names of the Federal Reserve banks had to be made in the methods of han- and the facsimile signatures and the sub- dling the currency as it passed from one operation to another.Vaults had to be stitute titles of the required officials by expanded. The entire staff of the Bureau means of logotypes. undertook the task in splendid spirit. An example of the speed with which "Emergency currency" was also to the project was handled is found in the serve in another critical situation 10 years preparation of notes for the Federal Re- later.After the last delivery was made serve Bank of San Francisco.It was nec- in 1934 there remained on hand 7,317 essary to procure actual signatures of two packages comprising some 29 million of officials of every Federal Reserve bank these notes in the vaults of the Bureau. for use in preparing the overprinting During World War II these stocks were plates. Telegrams were dispatched to the used to help meet the large demands banks asking that the necessary specimens made for currency. be furnished immediately.In order to brook no delay in getting initial stocks A Big Check Job of the new notes to the west coast, signatures of the Californians were copied from A great volume of the work performed documents on file in the Treasury. Any by the Bureau during the depression and necessary corrections could be made later. recovery periods was the printing of Notes bearing the San Francisco officers' checks ordered by the various Federal facsimile signatures were already en route agencies concerned with the gigantic task when the specimens requested by telegram of improving the unstable economic and were received at the Bureau from that employment conditions of the times. bank. Checks had been produced by the Bu- The dire need for "emergency cur- reau for the various Government depart- rency" soon subsided; however, shipments ments as far back as the mid-1860's. of token amounts continued to be made Theseearlyitems were cumbersome through February 1934. The face value things in comparison with the small-sized, of the total deliveries was in excess of coded checks that serve the ordinary citi- $460 million.The Bureau could take zen's banking needs today.Nevertheless, pride in the part it played in boosting pub- they were beautiful examples of the art lic confidence in the Nation's banks, for of engraving that was then in its prime. during the emergency period it also han- With the constant call for increased re- dled the rush order received for more than quirements, the mode of printing Govern- 118 HISTORY OF BUREAU OF ENGRAVING AND PRINTING

Check used in the 1870's for drawing on the account of the Assistant Treasurer of the United States at New Orleans, specifying payment in a dollar amount but with coin.It carries the portrait of Francis E. Spinner, Treasurer of the United States from 1861 to 1875.Apparently, the law prohibiting use of the likeness of a living person on a security was construed as not applicable to checks, for Spinner lived until 1890. ment checks was gradually changed. The a week's notice was given for the manu- introduction of the once-so-familiar check facture and distribution of an initial sup- paper with its overall green security tint ply of the checks.Fifty temporary em- design obviated the needed for the secu- ployees were immediately hired to assist rity factor provided by the engraved in the task and three 8-hour shifts were or- process and production of checks was con- ganized for 'round-the-clock production. verted to the offset method of printing. Deliveries had to be made by air ship- The handling of orders for checks came ment in many instances in order that sup- to be regarded as a mere routine job. plies might be available to meet begin- On November9, 1933,President ning payroll time requirements. Approx- Franklin D. Roosevelt created by Execu- imately 4 million of these checks were tive order the Federal Civil Works Ad- delivered each week until the spring of ministration to provide regular employ- 1934 when the orders were discontinued. ment on public works projects for some 4 The Bureau was to continue the pro- million jobless men and women.Soon duction of Government checks on a volu- thereafter the Bureau had cause to change minous scale for some 20 years after the its mind as to the mere routine of a check- precedent-setting Civil Works Adminis- printing job.The new public works tration job.However, 1943 saw the be- agency placed an order for every U.S. ginning of the decline in the demands disbursing officer throughout the Nation upon the Bureau for this class of work. to be furnished a supply of its checks. In that year the Treasury decided that it Here was a job that taxed the resources would be economical to have a portion of of the Bureau to the very limit.Barely the checks, particularly in the case of A SMALLER PRODUCT 19 29-1940 119

Ad9 /1 ./ /16

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A Goveniment check produced during the early days of printing at the Treasury Department. It was printed in a currency-green color.The allegorical figure represents "Liberty and Union." The original die for the vignette was prepared by the American Bank Note Co. large users, produced in punchcard for- "Baby Bonds" and Other mat. Such a change would greatly facilitate the financial accounting of redeemed Securities checks by mechanical processing.Re- sponsibility of arranging for the produc- Financing operations of the Treasury and tion of the card checks through com- the activities of newly created Federal mercial contracts was assigned to the agencies during the national recovery period required the preparation of many Bureau. Gradually throughout the years new bonds and other types of securities. that followed, more and more checks were printed in card form.Finally, in 1956 Orders for nearly all the items were rush jobs which entailed the preparation of with the establishment of an integrated new designs and models and the manu- electronic system for the payment and facture of dies and plates before the print- reconciliation of checks drawn on the ing could begin.Production of these Treasurer of the United States, the need items helped make possible the total elim- for paper checks dwindled to a mere ination of the rotating furlough plan on tricklç. A once voluminous work project March 1,1935.The introduction of was concluded.However, the Bureau U.S. savings bonds early in that year was continued to handle the orders for card a significant factor in the discontinuance checks through June 1960, when the con- of the temporary layoffs. tractual duties were assumed directly by These bonds were unusual in a sense the Treasurer's office.Today, only small in that they were intended primarily to token lots of paper checks required for furnish a type of Government security specialpurposesareprintedinthe which would be attractive to the small Bureau. investor.They were particularlyin- PRINTING 120 HISTORY OF BUREAU OF ENGRAVING AND tended to appeal to the ordinary citizen be imitated millions of times over.With- who desiied to lay aside funds for future in less than 5 years more than 11 million use and yet who coulddevote only small of these bonds had been sold to some 2 amounts at any one time for the purpose. million investors whose purchases repre- Although these bonds were issued in sented $3 billion in maturity value.The values as high as $500 and $1,000, the extent of the bonds' significance tothe bulk consisted of $25, $50, and $100 de- Nation, spoken of in the promotional re- nominations, from which they derived lease, could not even then be imagined. their popular titleof "baby bonds." Little was it thought that savings bonds Each value bore the portrait of a Presi- would eventually evolve into defense dent.Woodrow Wilson's likeness was savings bonds and later change to war With the return to peace selectedforthe $500 denomination. savings bonds. This was the first time that his portrait in 1945 the original title was resumed and had been used on a public debt security savings bonds are still being sold today. of the United States.The bonds were Other prominent security issues pro- sold on a discount basis of one-fourth less duced in the national recovery period in- than their denominational value and ma- cluded Home Owners' Loan Corporation tured fully in 10 years.In order to en- bonds and Federal Farm Mortgage Cor- courage their sales they were madeavail- poration bonds.The initial printing than able at all first-, second-, and third-class orders for these items called for more post offices, and at all fourth-class post 10 million bonds.In order to meet the offices located at county seats. delivery schedules established by the issu- Within a month after receipt of the ing offices, it was necessary to assign as original order, the Bureau made the initial many as 75 percent of theplate printing delivery of savings bonds. A Treasury presses to the production ofthese items. Department promotional brochure relat- Another major task for the Bureau during to these securities described the sale ing the recovery period was the printing service of the first bond: in 1936 of registered adjusted bonds, resulting from the passage of the On the morning of March 1, 1935, at the White House, before an audience of Veterans' Bonus bill. The enabling legis- Government officials and newspaper men, lation was enacted, over a Presidential PresidentFranklin Delano Roosevelt, veto, on January 27, 1936.It provided Henry Morgenthau, Jr., Secretary of the for issuance of the bonds by the following Treasury and James A. Parley, Postmaster june 15.The time schedule set up for General, enacted for the news cameras the issuance of the securities meant that the purchase by the President of the first United States Savings Bond.This scene the Bureau had to prepare steel plates, was shown in the motion picture houses print and number the bonds, and perform throughout the country, received con- many other operationsincidental to the siderable comment from the press, and finished securities within a period of 3 then,pretty generally, was forgotten. months. The bonds were issued in only Nonetheless, this event is of historic interest and is destined to be of lasting signi- one denomination, $50.The Bureau's ficance to the American people. deliveries of this item exceeded 37 million President Roosevelt's purchase was to pieces, all within the time set.To meet A SMALLER PRODUCT 1929-1940 121

the deadline it was necessary to increase were in full production.This situation various operating forces, particularly that was particularly acute in regard to $1 of the plate printers. notes.The greatest volume of currency Because of the bonus bond job and production comprises bills of that denomi- other increases in the production program, nation and their plates make up the bulk 49 men who were employed in various of plate stock.Profiting from its experi- capacities in the Bureau, but who were ence with logotypes in producing national qualified plate printers, were transferred bank notes, the Bureau decided that it and given permanent appointment on the would be feasible to overprint the officials' printing force.The Bureau's manage- signatures on the $1 notes.1 Thus, when- ment was especially pleased in being able ever a new Secretary or Treasurer was ap- to take this action.Many of these men pointed, new bills bearing his signature had been caught in the reductions in force could be available in a very short while that had occurred in the early 1920's. and the changeover could be effected in Rather than disassociate themselves en- a more economical manner. tirely from the Bureau, they had elected Although there was no radicaldepar- to accept other assignments offered them ture from the face design of the $1 bills and to wait out an opportunity to return of the 1934 series, many of the individual to their regular trade.For some it had features had to be rearranged to accom- been a wait of more than 10 years. modate the new overprinting. Then too, in order to conform to the scheme of J'Iew Currency Designs printing the serial numbers and seals in In accordance with monetary legislation distinct colors for the respective classes of effective in 1933 and 1934, new series of currency, the Bureau had to convert some silver certificates, gold certificates, and of its numbering and sealing equipment Federal Reserve notes were called for. from single to bicolor machines. The new This entailed new designs, all of which notes, designated as series1935, were were designated as series 1934, for a total numbered and sealed in the established of 15 denominations in the 3 classes of blue color for silver certificates and the bills. signatures were overprinted in black in a The following year brought yet another simultaneous operation. change in the design of the $1 silver cer- It was the design selected for the back tificate.Heretofore, it was customary to of the new notes that created the greatest engrave the signatures of the certifying interest, from the President down. Here officers, the Secretary of the Treasury and were pictured for the first time on any the Treasurer of the United States, in the money issued by our Government both the printing plates.But this procedure pre- obverse and reverse of the Great Seal of sented a problem. A change of either of the United States. The only previous use these officers necessitated an alteration of the plates. Consequently, there was al- 1Overprinting the signatures on other de- ways a great deal of delay before all bills nominations was to await changes in their bearing the new signature combination designs made in 1950 and 1953. 4..

/11 'I

Model cf the design proposed for the back of the series 1935 $1 note, showing President Franklin D. Roosevelt's handwritten notes of the changes to be made.Apparently, the President first approved the design (note that his signature on the left has been scratched through) and later decided that revisions were appropriate. of the reverse of the Great Seal by the Bureau seeking an explanation of the Treasury, according to Department rec- various features depicted in the seal. ords, occurred in 1882, when a centennial They are told that it was adopted in 1782, medal was struck by the Bureau of the prior even to the adoption of our Con- Mint in honor of the 100th anniversary stitution.On the front is depicted an of the official adoption of the seal.The American eagle breasted by a shield with positioning of the two sides of the seal as our national colors. The bird holds in his incorporated into the original model pre- right talon an olive branch, symbolic of pared for the design of the new back was peace, of 13 leaves and 13 berries.In the the opposite of that of the design even- left talon is a bundle of 13 arrows signi- tually approved.At President Franklin fying the original colonies' fight for lib- D. Roosevelt's suggestion, the obverse, or erty.A ribbon flying from the beak of front of the seal, was moved from the left the eagle carries the Latin motto, "E to the right side of the design. He also Pluribus Unum," whichistranslated proposed that the title, "The Great Seal "One out of many," a reference to the of the United States," be incorporated unity of the 13 Colonies as one gov- into the design. ernment. Over the eagle's head is a con- Year after year, hundreds of school- stellation of 13 five-pointedstars children, and adults as well, write to the surrounded by a wreath of clouds.The Model of the revised design of the $1 back approved by President Roosevelt and Secretary of the Treasury Morgenthau. reverse of the seal is also rich in sym- motto is translated, "He [God] has fav- bolism. The pyramid is representative of ored our undertakings.""Novus Ordo permanence and strength. At its base in Seclorum" is translated as "A new order Roman numerals appears "1776," the of the ages" and, in the words of the de- year of the Declaration of Independence. signers of the seal, signifies "the beginning The structure's unfinished condition de- of the New American Era." notes that there was still work to be done to form a more perfect government and signifies the expectation that new States Printing of Foreign would be admitted to the Union.The Currencies eye in the triangular glory represents an all-seeing Deity and with the motto It has been customary over the years for "Annuit Coeptis" alludes to the many the Treasury Department to cooperate signal interpositions of Divine Providence with various foreign governments in the in the forming of our Government. The manufacture of their coins by the U.S. PRINTING 124 HISTORY OF BUREAU OF ENGRAVING ANI)

Mint.However, this practice has not odically as needed. However, it was spec- prevailed insofar as foreign paper money ified that the printing in this one in- is concerned. No American commercial stance was not to beregarded as a firms engage in the production of coins; precedent case.The Bureau continued on the other hand, printingof banknotes to receive and process ordersfor small and similar securities on a commercial quantities of the Cuban notes from time basis is a well-established private industry to time. The last delivery wasmade in in the United States.TherefOre, the De- 1950.In 1954, upon advice from the partment's view is that to undertake the Cuban Government that no further orders printing of foreign currencies would be to were contemplated, the dies,rolls, plates, compete with private industry. and seals used in the production ofthe There has been one notable exception currency were canceled anddestroyed. the to this policy.In 1934 the Treasury De- The Bureau was again involved in partment, in the interest of diplomatic reproduction of foreign currencies on a lim- lations at that time, acceded to a request ited scale in two other instances.In 1945 made by the Department of State that the the Royal Siamese Government,through Bureau print an issue of currency notes the U.S. Department of State,requested in the amount of 10 million pesos for the the Bureau's assistance in thepreparation Republic of Cuba. The job entailed the of a special temporary issue of its currency. preparation of dies and plates for five Although the Bureau designed the notes, denominations and the printing and proc- their actual production was performedby essing of more than 51/2 million notes. a Boston commercialprinting establish- The work was produced in 12-subject ment. The issue was made upof three sheets and involved three separate en- sizes of currency and comprised fivede- graved printings: a face tint, basic face nominations in all.The work was pro- design, and the back.The distinctive duced by the offset-lithographic method, paper used for the purpose had the same with two colors on the back and four on physical qualities as the paper for U.S. the face.The printed work was then money, except that the former contained transferred to the Bureau in sheet form only red distributed silk fibers, whereas where it was numbered, cut into individ- both red and blue fibers were used for ual notes, and boxed for shipment.The our Government's security paper. total volume handled under thisproject When the work was undertaken by the was 327 million notes. Bureau it was stipulated that all engraved In 1947, in accordance with plansmade media used in the production of this order by the U.S. War, Treasury, and State were to remain in the custody ofthe Departments and the Government of printer, namely the Bureau. This stipula- South Korea, the Bureau handled the pro- tion was an accepted banknote industry duction of an issue of Korean currency. practice the world over.In view of this All orders for the notes were placed by the condition, it was agreed that the printing War Department. The job was handled of additional quantities of these particular in the same manner as was the Siamese Cuban notes would be undertaken pen- currency.The lithographic process was An early 1900 handfed, motor-driven, sheet perforating machine. used and the printing was performed by a when the Bureau developed electric-eye commercial plant under contract with the equipment suitable for the perforating of Bureau.The job, comprising a total of postage stamps. 208 million notes for three denominations, The excessive amount of spoilage oc- was completed in the record time of 4 curring during the perforating operation months. had plagued the Bureau from the very beginning of its taking over the production of postage stamps in 1894.The Development of Electric-Eye private banknote companies that pro- Perforating Equzment duced the stamps prior to that time had experienced the same problem. The wet- In the fiscal year 1888, the Director re- ting and drying of the paper, essential to ported the installation of 1,000 incandes- the plate printing method of production cent lamps for lighting the Bureau build- of stamps, as well as the gumming of the ing.It was at about the same time that printed sheets, caused the work to expand the famous German scientist, Heinrich and contract.These physical changes Hertz, discovered that light under certain were not uniform throughout a sheet, and circumstances affected the intensity of as a result it was difficult to perforate electric current.These events, separated the stamps without punching into the by thousands of miles, were to join in a printed areas.However, the stretch and significant relationship some 40 years later shrinkage were usually consistent in a par- HISTORY OF BUREAU OF ENGRAVING AND PRINTING

Electric-eye perforating machine introduced in1939. ticular lot of work.So long as postage Studies conducted relative to the situ- stamps were produced in single sheet ation showed that the discrepancies of form, the situation could be rectified to three thirty-seconds of an inch in the some extent by manually adjusting the length of printed 400-subject sheets were perforating equipment to allow for the not uncommon; the differences inwidth variances that occurred.On the other were sometimes found to be asmuch as hand, in the printing of stamps in web a quarter of an inch.At first reading form on the Stickney presses, the changing these variances might seem minute, but conditions were cumulative and it was not when itis remembered that the longi- unusual that there would be a variance in tudinal difference expanded with the size and stamp location between the first length of the roll, they become quite sig- and last sheets from the same roll.There were other contributing factors to the nificant in view of the close tolerance be- variations that occurred inthe work tween rows of stamps.Even with the printed in rolls; such as, temperature, at- services of the most skilled machine op- mospheric conditions, and water absorp- eratiVes,perforating spoilage was ex- tion characteristics of the paper. tremely high. A SMALLER PRODUCT 1929-1940 127

Experimentation with the perforating unwinds, the register marks are scanned of printed rolls of postage stamps by by a pair of phototubes. Any slight vari- means of electronic controls was begun ation in the position of the markings will by the Bureau in 1930.This resulted in set up a corresponding lack of balance the development of primary equipment through the scanners and initiate the which was designed and built for part- movement of the carriage in the direction manualandpart-electroniccontrol. required to maintain the proper center- Further improvements were made and a ing of the moving web of paper.In this pilot machine was constructed that re- manner the web is delivered to a set of duced the need for manual corrections punch-and-die wheels that perforate the to a minimumThe first delivery com- stamps lengthwise. The web next passes prising some 9 million stamps perforated to the lateral, or horizontal, perforating on this machine was shipped on February element which comprises a group of cyl- 5, 1935. A production machine was de- inders equipped with punch-and-die bars veloped by Bureau personnel as a result extending across the web.Registration of extensive experimentation; it incor- of these lateral perforations is controlled porated more advanced mechanical and by a unit containing another light source electrical controls and was put into op- and photoelectric cell, or scanning eye, eration by 1939.Two years later five located just in front of the horizontal per- improved production models were pur- forators.This light is beamed at the chased and installed. Further refinements dashes printed in the margin of the web in the equipment have been made over of paper between the lateral rows of the years. stamps.If for any reason, due to con- The principles employed in the opera- traction or expansion of the paper, these tion of these machines are highly tech- series of markings fail to appear directly nical. The following description is a sim- under the light beam, the electric circuit plified explanation of the functions of this is closed.The closing of this circuit very complex equipment. causes current to flow through a series of In total effect, the electronic controls controls which move the horizontal bars make continuous adjustments to center either forward or backward into proper the roll of printed stamps as it is fed into position. A cutoff knife, also synchro- the machine, operate the vertical and nized with the lateral perforator, cuts the web into sheets of the appropriate size. horizontal perforating elements, and ac- The wonder of the machine is that all tivate the sheet-cutting blades. The work these adjustments are accomplished while in pçinted roll form has so-called electric- the web of printed paper is moving at the eye register markings printed in the side rateofapproximately 250feetper margins and through the space in the cen- minute. ter of the sheet referred to as the gutter. The electronic equipment in use today The roll is placed in a carriage in the per- provides for accuracy within limits of one- forator and a beam of light is impinged hundredth of an inch. The effectiveness onto the gutter markings.As the roll of these machines is illustrated by the fact 648-001 O-64-----10 128 HISTORY OF BUREAU OF ENGRAVING AND PRINTING that spoilage during the perforating op- In the early 1930's it was proposed that erations on the old, sheet hand-fed per- the Government acquire the square of forators averaged 35 percent of the work land opposite the main building, bounded processed.Today, that figure has been by 14th Street, C and D Streets, and Lin- reduced to less than 2 percent. worth Place as a site for an annex for the Bureau. The plans called for a rectangular-shaped building surrounding an The Annex Building open center court.Originally, it was intended that the building accommodate A step of major importance was the ex- only activities directly connected with the pansion of the Bureau's physical plant by Bureau.However, it was later proposed the erection of the annex building which that Linworth Place be closed and the was officially occupied on May 17, 1938. building be extended eastward to include As early as the mid- 1920's the Bureau had the adjacent square in order to house urged that the Department give serious other Treasury Department functions that consideration to centralizing under one were closely allied with the Bureau's pro- roofallthose Bureau activitiesthen duction activities. housed in numerous outbuildings.Most Finally in 1935, working in conjunction of these additions were temporary struc- with the Commissioner of the Public Debt, tures and were in dilapidated condition. who also was pressed for space to house Many of them had been so constructed many of his agency's activities, the Di- rector of the Bureau was successful in that it was impossible to install improve- persuading the Department to request a ments that had been developed in the congressional appropriation for the erec- areas of fire and theft protection.The tion of an annex building. On August 13, main Bureau building, which had been 1935, Congress appropriated an initial completed and occupied in 1914, was al- sum of $2 million for the "site and con- ready overcrowded, and expansion of that struction of an additional building for the structure to provide for the increased de- Bureau of Engraving and Printing and mands being made for the printing of U.S. other Treasury Department activities, . securities was not practical. The Director within a total limit of cost not to exceed in writing to the Assistant Secretary of $5,500,000" (49 Stat. 600). the Treasury in 1926 relative to the situ- No time was lost in getting the project ation stated: underway.Within 2 weeks preliminary plans which had been prepared in the The space now available for these activities [subsidiary security production func- Bureau in anticipation of congressional tions] is inadequate and the buildings are approval for a new building were for- in a very bad condition.Additions can- warded to the Treasury Department's not be made and repairs would be exorbi- Procurement Division, which wasin tant when the limited space is considered. charge of the construction work.These The gravity of the now existing Un- desireable, hazardous conditions increases plans were based on an exhaustive survey each year. made to determine general design fea- A SMALLER PRODUCT 1929-1940 129 tures, such as floorspace requirements; The annex was constructed in the shape column spacing; type of ventilation; door of a scaling ladder.The center portion sizes and types; elevator sizes, capacities, extends from 13th to 14th Street, with and locations; and vault and partition five wings projecting from each side.It locations.This study also was extended is seven stories high, exclusive of a sub- to include the must economical and prac- basement, basement, attic, and penthouse. tical location of divisions, sections, and The basement and the first and second mechanical equipment.As a result, the floors cover the entire foundation area; plans were so complete as to permit the the wings begin above the second story. installation of conduits, waste lines, water The building was arranged to provide for pipes, and air and vacuum lines in the the greatest amount of storage space pos- concrete floor fill for each machine and sible, yet at the same time to allow piece of equipment proposed to be located abundant light in the wing areas where in the new building. the work operations would be located. Preparation of drawings by the Pro- Two tunnels were constructed beneath curement Division for the new building adjacent streets for the annex.One of was completed in March1936;demolition the tunnels runs under 14th Street and of buildings then located on the site was connects the annex to the main building. begun by the following June and the first The other burrows under D Street and concrete was poured a month later.The provides direct railside connections by original estimates for the construction of means of a spur track from the neighbor- the annex did not provide for sufficient ing railroad yard. Raw materials for the funds.Therefore, in June1936,Con- Bureau can be unloaded directly from gress raised the total authorization to freight cars, loaded onto industrial trucks, $6,325,000(49 Stat.1640). The orig- and transported to storage or work areas. inal plans provided for the building to be This eliminated the expensive trucking constructed of steel superstructure but, service required to transport freight from because of the shortage of funds, rein- the railroad yards to the Bureau. forced concrete was substituted.(At the A unique use was made of this special siding and loading platform by the U.S. time of construction it was believed that Secret Service in connection withits the annex building was the second largest duties to protect the President.Because reinforced-concretestructureinthe it was extremely difficult for President world.)The original plans also called Franklin D. Roosevelt to climb stairs, for the building to be faced with tapestry when he was scheduled to travel by train brick.However, in consideration of the the Presidential railroad car was shuttled fact that it would be so situated as to be onto the Bureau's siding and the President one of the first Government buildings to was driven by automobile into the Bureau be viewed by visitors entering Washington and directly to the loading platform. from the South, it was decided to use a Here he could board the private car with- limestone facing compatible with that of out inconvenience in a well-protected the main Bureau building. area. 130 HISTORV OF BUREAU OF ENGRAVING AND PRINTING The building was completed on May Expanded Research and 16, 1938, more than 2 months earlier than called for by the construction con- Development Program tract.The total cost expended for the structure, including the installation of From the earliest days of the Bureau elevators and the spur track and loading special attention has been given to the platform, was $5,667,000.2 A review of development of improved materials and the quantities of materials used in the equipment used in the manufacture of construction of the annex would be a its products.The banknote industry was special delight to the statisticianthere a highly competitive business. There was were 17,600 windowpanes installed in the little or no exchange of ideas between building requiring the use of 25,000 companies, much less with the Bureau. pounds of putty, 690 single and 230 Advancements in processing systems and double doors, and 1,300 radiators. There improvements to standard printing equip- were approximately 10,000 lighting out- ment wereclosely guarded company lets and 126,000 feet of piping throughout secrets.Thus the Bureau came to-rely, the structure.More than 6,400 tons of to a great extent, on its own ingenuity, reinforced steel and 1,300 tons of struc- and its achievements are extensive.One tural steel in addition to 140,000 tons of improvement after another was adopted concrete were used in the construction. through the yearshydrostatic presses in The building contains more than 600,000 1864; sizing of securities in 1871; use of square feet of workspace and the floors silk-fiber paper in 1879; the development were built to carry a live load of 250 of postage stamp gumming machines in pounds per square foot.It houses 19 re- 1894; the development of a combination inforced-concrete vaults. sealing, numbering, and separating ma- The completion of the building cul- chine in 1909; and the reduction in the minated a 12-year effort to provide ad- size of currency notes in 1929, to name ditionalworkspacefortheBureau's but a few.Although a great deal of at- ever-expanding workload.It was indeed tention was devoted to improving mate- fortunate that an annex building has been rials used in the manufacture of the erected, for with the outbreak of World securities, greater emphasis was placed on War II the Bureau was swamped with the development of mechanical improve- productionordersandmanagement ments. would have been hard pressed to find It was in 1938 that a very significant space to houseallthe mushrooming step in the field of experimental research activities. was undertaken by the Bureau.By the direction of the Secretary, the Office of 'In addition, $298,000 was expended in the Research and Development Engineering removal of an old electrical substation to make was created, primarily for the purpose of way for the tunnel under 14th Street and for the construction of a new powerplant facility exploring deterrentstocounterfeiting. erected between A and B wings of the main The creation of the new Office was the building. culmination of efforts undertaken about A SMALLER PRODUCT 1929-1940 131

5 years previously with the establishing of of securities, longer life of currency notes, a research and experimental laboratory on greater flexibility and uniformity in pro- a small scale. The prime function of this duction conditions, and reduced manufac- laboratory was the study of possible ways turing costs.And these remain the cri- and means to improve the physical quali- teria today, the day of nonoffset ink, cur- ties of U.S. securities in order to add to rencyproducedbythedry-printed the difficulties of their being successfully method, and postage stamps printed in counterfeited.The scope of work was multicolor by a single pass through the necessarily limited because of the lack of intaglio press. suitable workspace.Upon approval of the erection of a Bureau annex, steps were Two Yotable Sets of immediately taken to purchase equipment and form the nucleus of a specialized staff Postage Stamps necessary for expansion of the laboratory into a full-scale operation.This expan- Many of our Presidents have ähown an sion allowed for the undertaking of exten- interest in the designs of currency and sive research and experimental work re- postage stamps, but none more so than lating not only to improvement of the President Franklin D. Roosevelt.It was Bureau's products but also to develop- at his suggestion that a new issue of ordi- ment of equipment for improvement of nary postage stamps, honoring the Presi- its processes. dents of the United States, was created in The magnitude of the achievements 1938.Appropriately, the set of stamps destined to come out of this new Office is became commonly known as the Presi- well illustrated in a report of the projects dential series and continues so today even underway just 3 years after its creation though the issue has been replaced by new the development of a postage stamp gum designs of the I 954-59 series.This Presi- from domestic dextrine, conduct of infra- dential interest is matched on the part of red drying tests on inks, improvement and John Q. Citizen who keeps a watchful simplification of ink formulas, study of eye over security designs, especially those high-melting paraffin waxes for possible use in interleaving books of stamps, development of techniques for the analysis ofcounterfeitnotes,investigationof water- and grease-resistant coatings for securities, study of pressure-sensitive ad- hesives, use of disposable containers for 4st CEORGE printing inks, and the reclamation of waste WMI4cWGTQ N '797 printing inks. i7$9 The improvements sought in creating CENT this new research component can be I I summed up briefly.They entailed in- Prizewinning design for 1938 Presidential creased deterrents against counterfeiting series of postage stamps. 132 HISTORY OF BUREAU OF ENGRAVING AND PRINTING of postage stamps. He is quick to spot George Washington in profile position. what he considers an inaccuracythe po- Consequently, it was incumbent upon sition of a plane in flight is contrary to the Bureau to search out sculptures that aerodynamic principles, a mode of dress would be suitable for copying in pre- is not historically accurate, the type of paring the designs for stamps of the other firearm shown is not the kind commonly Presidents.Success was attained in this used during the period the stamp com- regard with exception of the stamp de- memorates.(The Mississippi Territory picting President Taft which was based commemorative stamp of 1948, although on a profile photograph.Eleven of the it followed the Presidential set by 10 years, likenesses were copied after medals struck is a good case in point.Featured in the by the Bureau of the Mint. design of this stamp is the seal of the The set is distinctive for its simplicity, Mississippi Territory copied in its original number of denominations, and subject form wherein the name appeared as matter.It was the first time that the "Missisippi."The situation resulted in likenesses of many of the Presidents had a volume of letters from the public point- ever been shown on postage stamps.The ing out the supposed omission of one"s.") only then ex-President not included was For this reason, considerable effort is ex- HerbertHoover.Thisomissionwas pended on the part of the Bureau's staff necessary because of the Federal statute of designers to create a design that is not (14 Stat. 25) prohibiting the likeness of only esthetically attractive but accurate a living person from appearing on a U.S. in all details. security.PresidentRoosevelt took a The work relating to the preparation of keen interest in the preparation of this the Presidential series involved one of the issue of stamps.He suggested that a dis- most formidable research projects ever tinction between the three ranks of values, undertaken by the Bureau.The basic essential for the quick processing of mail design for this series was selected as a by postal clerks, could be attained by result of a national competition conducted adding to the basic design a simple frame by the Painting and Sculpture Section for the middle values and a double frame of the Treasury Department's Division of forthehigherdenominations. The frames were included and a further differ- Procurement, the first such competition entiation was achieved in that the $1, $2, ever held for a postage stamp design.3 and $5 stamps were printed in bicolor. The winning entry depicted a bust of The basic design of these three stamps was developed by a Bureau designer. a There were 1,027 designs submitted.The winner of the competition was Elaine Rawlin- In order to maintain a direct relation- son of New York City who was awarded $500 ship of the denominations to the numeri- for her design.Charles H. Bauer of East cal order of the Presidents, insofar as was Orange, N.J., received $300 as second-place practicable, the three stamps of fractional winner, and a husband-wife entry by the Erwin value required by the special postal rates Austins of Delmar, N.Y., took the third prize of $200. Neither of the runner-up designs was then in effect were of designs other than ever used for postage stamps. Presidentiallikenessesbut compatible A SMALLER PRODUCT 1929-1940 133

UNiTtottAtti pt1i

Artists. Authors. Composers. Educators. with the general overall theme.This relationship was maintained through the 22-cent denomination depicting Grover Cleveland.Thereafter the likenesses of the remaining Presidents were assigned to other denominations consistent with postal charges.The '/2-cent stamp portrayed a bust of Benjamin Franklin; the 1'/2- cent, that of Martha Washington; and the 4V2-cent value, a vignette of the southeast view of the White House. Up until 1940 when the Post Office Inventors. Department inauguratedthe Famous Americans series of postage stamps, little recognition had been given to the Na- tion's cultural heritage in the way of stamp issues honoring illustrious Ameri- cans in the fields of art and science.Pre- viously the greater number, by far, of the portraits shown on postage stamps had been those of statesmen, war heroes, arid personages connected withsignificant Poets. developments in our Nation's history. From time to time proposals had been made that various Americans renowned for other reasons, particularly in the ca- tegories of letters, music, and mechanical inventions, should be so honored.A comprehensive study made in 1935 by a former Post Office Department official arid reported in a philatelic magazine showed that of the 69 eminent Ameri- cans selected for recognition in New York Scientists. 134 HISTORY OF BUREAU OF ENGRAVING AND PRINTING University's Hall of Fame up to that each stamp. An effort was also made time, only 15 had been honored by hav- to locate portraits which depicted these ing their portraits appear on postage persons in their most productive years. stamps.Requests for philatelic recogni- In order to do justice to the design pat- tion of "heroes of peace" grew more terns, the Post Office Department ap- numerous with the issuance of the Army proved increasing the size of these stamps and Navy commemorative stamp set of slightly over that of the ordinary post- 1936-37 which portrayed 18 of the coun- age stamp. The press-plate size for this try's military heroes. issue was 280 subjects rather than the In early 1939 the Post Office Depart- usual 400 subjects.The work was pro- ment made known that serious considera- duced on rotary plate printing presses and tion was being given to the issuance of constitutes the largest set and one of the a set of stamps commemorating outstand- most voluminous issues of conimemora- ing men and women of our Nation and tive stamps ever manufactured by the that it would welcome suggestions from Bureau. the public of names of the persons to be Since the issuance of the 35 original included in the group.In July of that stamps, the Bureau has printed the 14 ad- year, Postmaster General James A. Farley ditions made to the Famous Americans announced that such a series would be is- series by the Post Office Department. sued embracing seven classifications of the arts and sciences.Each classffication Food and Cotton Order would comprise a 1-, 2-, 3-, 5-, and 10- cent stamp. The groupings chosen were Stamps artists, authors, composers, educators, inventors,poets, and scientists.At the Among the methods introduced by the same time announcement was also made Government for making use of surplus of the names of the 35 individuals select- farm products were the food- and cotton- ed to be pictured on the stamps.The stamp plans begun in 1939 and continued denominationalassignmentin each until 1943. The stamps used in connec- group was determined on the basis of the tion with these programs were produced chronological order of the birthdates of by the Bureau. the persons portrayed.These persons The first plan effected was that of the represented periods from prior to the food program. The Department of Agri- birth of our Republic to the 1930's. culture, under which the plan was admin- The preparation of this issue presented istered, described it as an attack upon an a research task of unusual magnitude for acute economic problem and as a means the Bureau's designing staff.After the of lifting the nutritional standard of basic designs for each of the respective health of low-income families.The plan classifications had been prepared and ap- involved the use of two stamps, each hav- proved it was necessary to find portraits ing a value of 25 cents.One, designated of the designated persons that would as a food order stamp, was printed in form an esthetically pleasing design for orange; the other, the surplus food order A SMALLER PRODUCT 1929-1940 135

stamp, was blue.Briefly, the mechanics tion of U.S. cotton exports.In its essen- of the plan provided that certain qualified tial details the cotton-stamp plan followed families could buy a controlled amount of the pattern established earlier for the orange stamps and would receive free a food-stamp plan.The Government gave quantity of blue stamps equal to half the surplus cotton order stamps to eligible value of orange stamps purchased. Both needy families in an amount equal to their were spendable at the grocery store of purchases of regular cotton order stamps. the purchaser's choice; however, the blue Surveys showed that these stamps were stamps were good only toward the pur- principally used in the purchase of such chase of food products designated by the cotton items as bedclothes, work pants Government as being in surplus supply. and shirts, dresses, and piece goods. The plan was first instituted on a lim- The assembling and binding of the food ited basis, but soon spread to wide use and cotton stamps into booklet form was throughout the country. In the first year one of the most complicated jobs ever of production, beginning in April 1939, handled by the Bureau. The demand for orders were received for approximately 2 these items was so great that a special million books comprising over 60 million organizational unit was set up to handle stamps.After the stamps were plate this work exclusively. By 1943, when the printed, they had to be gummed, per- programs were terminated, over 3 billion forated, cut, and assembled, with par- of the stamps had been shipped by the affin-sheet inserts, into 13 different series Bureau. of books, according to designated quan- A second food distribution program tity and combination of the 2 varieties. was established by the Government in the Originally, they were printed in 96sub- spring of 1961 on a pilot basis in eight jectsheets on flatbedplate printing areas of chronic unemployment through- presses.Later, the plates were increased out the country. Secretary of Agriculture to 200-subject and finally, as the scope of Orville L. Freeman referred to the new the program spread, the production was program as "another in a series of actions changed from flatbed to rotary presses. taken to put this country's food abun- In February 1940, the Bureau began dance to work to meet the needs of Ameri- printing 25-cent green cotton order and can families in distressed circumstances." brown surplus cotton order stamps for the The program, which is still in effect, is Department of Agriculture.Both vari- operated in a manner similar to that of eties of these stamps were printed from its predecessor of the 1939-43 period, but 200-subject plates on rotary plate printing is geared to the changed conditions of presses. They were processed in the same the 196O's and is a joint Federal-State manner as food stamps, and the finished venture. itemi were assembled in nine different The Department of Agriculture once combinations of book values.Particular again called upon the Bureau to produce significance was attached to this new the needed stamps, this time referred to stamp program because the outbreak of asfood-stampcoupons.Requisitions war in Europe had caused a severe reduc- were placed for a red 25-cent and a $1 136 RISTORY OF BUREAU OP ENGRAVING AND PRINTING gray stamp, each about the size of a dollar the denominational values were increased bill, to be made up in separate books as to 50 cents and $2.Orange and blue well as in books containing a combination were the respective color selections for of the two values.These stamp coupons these revised values. Under the new ar- were plate printed and were the first items rangement the use of a combination book this large to be printed on the Bureau's was discontinued and each denomination web-fed rotary presses. of the coupons is now prepared in two In the course of time the program was different values of books. Through June extended to include other than the orig- 1962, the Bureau had delivered approxi- inally designated areas. With this expan- mately 6 million books comprising more sion the title of the items was changed than 48 million of these stamps and appropriately to that of food coupons and coupons. CHAPTER vii World War II Years the Bureauonthe Homefront 1941-1948

HE OUTBREAK OF WAR with the Axis Powers in December 1941 found the Bureau in a much stronger position to cope with the ensuing emergency situation than at the beginning of World War I.Currency was being printed in sheets of 12 notes rather than 8; the issuance of national bank currency, calling for a multiplicity of notes for the various banks, had been discontinued; the development of electric-eye equipment for perforating postage stamps had brought about a material reduction in spoilage of this class of work; an annex building had been erected; and the Bureau was already engaged in a production program for defense savings bonds which greatly facilitated the transition to printing and processing the astronomical quantities of war savings bonds that were eventually required. The national defense programs initi- The major difficulties which confronted ated about a year before the outbreak of the Bureau were those of securing suffi- hostilities and the war effort itself brought cient help and obtaining the supplies and about a vast increase in the work of the materials necessary to fulfill the demands Bureau.Printing orders were received made upon the agency.Additional perfor unprecedented amounts of bonds, cer- sonnel had to be found quickly, employees tificates, and other items needed for war had to be trained to handle new work, financing.The need for currency and and auxiliary workshifts had to be or- stamps also expanded enormously, and ganized to utilize available equipment new items for the War and Navy Depart- and workspace to the best advantage. ments were ordered in quantities which Women employees volunteered for as- previously would have seemed fantastic. signments normally handled by men.

137 138 WSTORY OF BUREAU OF ENGRAVING AND PRINTING Authority was obtained in certain in- and special currencies for protective and stances to retain employees beyond the military use. established retirement age and to rehire A striking illustration of the require- retired personnel.By the end of 1943 ments fulfilled by the Bureau is seen in Bureau employment reached a peak of a comparison of the maximum daily pro- 8,398 employees, exceeded only by the duction of war bonds during the two high of World War I.Securing supplies World Wars.In World War I the de- and materials became extremely complex livery schedule reached a peak of a half and difficult as the war continued.Like million Liberty Loan bonds per day, other manufacturing plants throughout while in the second war period the Bu- the country, the Bureau had its problems reau attained a daily production of 13/4 in this regard.Bureau employees coped million war savings bonds and even as with ration coupons at home, gas coupons high as 2 million bonds on two occasions. to get to work, and having arrived there A news release issued by the Treasury had to cope with shortages of such mun- Department on March 14, 1945, gave dane items as nails, cheesecloth, soap, the following explanation of the need for wax, and thelike.Nevertheless, the wartime currencies: problems were overcome, improvisations The wide geographical scope of mili- were made, and the work was accom- tary operations in this war and the great plished.In many instances it was neces- development of techniques of economic sary to assist paper manufacturers and warfare have made money an important offensive and defensive weapon of war. contractorssupplyingotherBureau- Just as we need many varieties of needed commodities in securing raw ma- military weapons, of ships and of planes, terials which were in critically short sup- so we have found that theeffective con- ply.This required almost continuous duct of war on the financial side requires correspondencewithvariousgovern- a variety of currency measuresdesigned situations. mental control agencies and the filing of to meet varied and changeable applications, statistical reports, and similar documents.In some cases, the mat- War Savings Bonds ter was of such urgency that special conferences had to be arranged with ap- With the threat of war in early 1941, the propriate officials of those agencies to Treasury's then current program for the justify the need for the priority or allo- sale of savings bonds was a readymade cation requested. vehicle for the promotion of national The demands made upon the Bureau unity.The program was enlarged to for its services were many and varied. A provide a channel for united patriotic ac- review of activities over the period of tion and popular participation in under- the war years might give the impression writing national defense. that the Bureau's productive capacity The enlarged bond sales program cen- was unlimited.The greatest demands tered around a savings crusade for every- fellin the fieldof war-financing and one, with emphasis onprotection for the monetary measureswar savings bonds small investor.The type of bond was WORLD WAR II YEARS 194 1-1948 139

right at hand.With very little change, on Pearl Harbor, daily production was the "baby bonds" were replaced begin- increased to 700,000. The work of col- fling May 1, 1941, with defense savings lating the bonds with their tabulating bonds, later to evolve into war savings punchcard assemblies and stitching the bonds. Theywerenontransferable, items had been done manually, up to that readily redeemable, andregistered time, because of the relatively small num- against loss through accident, fire, or ber of bonds required.The suddenness theft, thus overcoming the drawbacks as- of the increase would not allow for im- sociated with the Liberty Loan bonds of mediate mechanization of the operation; the First World War.By and large, the therefore, it was necessary to hire sev- greatest sale of bonds was made through eral hundred new employees and nine personal solicitation on the part of in- separate rooms were required as work- numerable volunteers.These voluntary space for processing the bonds.Actually, salesmen came from everywherefrom there was no suitable mechanical equip- insurance companies, banks, civilian de- ment on the market for handling work of fense rosters, business, fraternal and vet- this nature.Therefore, the Bureau pur- erans'groups,churches,andlabor chased four secondhand gathering and unions.They included Boy and Girl stitching machines and redesigned them Scouts, schoolchildren, rural mail car- for its needs. With the installation of this riers,andhousewivesliterallythey equipment, new methods and procedures came from all walks of life. were developed for processing the work. The backbone of the continuous sale In order to coordinate the various func- of bonds was the payroll savings plan, an tions involved in processing the bonds, a installment buying method under which separate organizational component was anyone paid wages or salary could have established.All finishing operations were his employer withhold a specific sum perfonned in this section, including num- from each paycheck toward the accumu- bering of the bonds in sheet form, cutting lation of the purchase price of a bond. of the sheets into single bonds, mating At the height of the war it was estimated the bonds with registration cards by serial that about 27 million workers, including number, stitching of the items, final exam- members of the armed services, were put- ination of the work, replacement of defec- ting $500 million monthly into the pur- tive stock, and arrangement of the fin- chase of bonds. ished bonds in numerical sequence for Keeping abreast of the demand created delivery to the Bureau of the Public Debt. by the volunteer sales force and the savings plan put a severe strain on the Bu- Shortly after the four machines were reau's production facilities.One of the placed in service the production schedule first steps taken was to increase the plate- was increased to a million bonds daily. subject size from two bonds to four. Op- Therefore, six additional machines were erations at the time were geared for de- purchased, reconstructed, and placed in livery of approximately 200,000 bonds operation. During the early part of 1943 daily.Immediately following the attack the requirements for war savings bonds HISTORY OF BUREAU OF ENGRAVING AND PRINTING

Trimming and perforating War Savings bonds. became such that the 10 gathering and A Dime at a Time stitchirg machines in service were inadequate for the task.Sufficient space was As the national defense financing effort not available to accommodate additional gained impetus, the Treasury arranged equipment.Further radical changes in with the Post Office Department to re- the design and construction of these ma- place the latter's then current issue of chines were necessary. At the same time postal savings stamps with another that it was decided to redesign the bonds and could be used in the purchase of savings they were reduced to half their former bonds.These and their successors were size. This permitted an increase in the the savings stamps that were to become so productive output of the printing presses familiar to the youth of the country during as well as that of the processing equip- the defense and war years.The choice ment. For instance, through the decrease of design for this new issue was a repro- in the size of the bonds and the further duction of the famous statue, "The Min- improvement devised for the collating ute Man" by Daniel Chester French machines, the capacity of each of these erected at Concord, Mass., in honor of machines was increased from an average the heroes of the first battle of the War of of 34,000 bonds per 8-hour shift to 55,000. Independence.The design was a fitting WORLD WARflYEARS 194 1-1948 141

was retained. The stamps were sold in post offices and in schools across the Nation to an estimated 25 million students and were exchangeable for savings bonds.Stamp booklets were made available to encourage children to save "a dime at a time," usually on weekly stamp sale days at school, just as their mothers and fathers "backed the attack" at their places of employment through participation in the The 10-cent "Defense" savings stamp.These payroll savings bond allotment plan. stamps were also issued in 25-cent, 50-cent, The patriotism and wisdom of Ameri- and $1 denominations. can youthfor though the s3le of stamps -was not limited to children they were the symbol of "America on Guard" and rep- principal purchasersare well illustrated resentative of the volunteer nature of the by the fact that from July 1, 1941, through defense savings program. June 30, 1946, the Bureau produced and The forerunner of the stamp was the delivered more than 8,100 million savings lowly 10-cent item introduced with the stamps of the various denominations with inauguration of the U.S. Postal Savings a total face value in excess of $1,700 mil- System created by law in 1911.The lion. program was set up by the Government Since the end of World War II, the to encourage thrift, to attract savings of program has been continued in thou- depositors who lacked confidence in pri- sands of public and private elementary vate banks, and to provide savings facili- and junior high schools.Over 6 million ties in communities where adequate bank- students are in schools where they can ing service did not exist.The postal buy savings stamps and bonds.In 1958 savings bonds, certificates, and stamps the Bureau produced the first bicolor embodied in the program were produced savings stamp.Its red, white, and blue by the Bureau. designstillfeatures the Minute Man In October 1942 the issuance of stamps statue, with the American flag added in in connection with the system was discon- the background. tinued and that particular facet was taken over by the Treasury Department in conjunction with its campaign for the sale Money as a Weapon of savings bonds.The change gave birth to a substitute, the war savings stamp. The infamous Japanese attack on Decem- Though the basic design of the new item ber 7, 1941,n Pearl Harbor had sunk was altered from that of its predecessor, half of the American fleet, with the ex- the prime feature of the reproduction of ception of the carriers, and had reduced the now well-known Minute Man statue our Pacific seapower to a dangerous low. 142 HISTORY OF BUREAU OF ENGRAVING AND PRINTING

Guam and the Philippines soon fell to the respective denominations and classes. enemy.Retaliation by way of a token The original order for the work was bombing of Tokyo had been made in received on June 8, 1942, and the first April of 1942, followed within a few delivery of the notes was made that same months by a defeat of the Japanese fleet day.The bills were placed in circula- in the Battle of the Coral Sea and the tion in the Islands in July and no other staggering blow to the enemy inflicted in U.S. currency could be held or used there the Battle of Midway.In spite of these after August 15, 1942, without a special American victories the Japanese were be- license from the Governor of the Terri- coming entrenched in various Asiatic tory.Likewise, the export of the special areas and other Pacific islands.Respon- notes to the U.S. mainland was prohibited sible U.S. naval and military leaders were in order to effectuate the purpose of their quick to quell any premature optimism, issuance.Had the Japanese conquered pointing tut that the threat of an inva- Hawaii, the distinctively marked currency sion of Hawaiistillexisted.It was would have made it possible to take ap- against this background that the Treasury propriate measures to prevent the enemy Department decided to withdraw all U.S. from using the money to any advantage. currency of regular design from circula- Earlyin1944Hawaiian currency tion in the Territory and to replace it served an offensive purpose.American with a special issue of notes for exclu- military personnel in their invasion of the sive use there.This action was necessary various Japanese strongholds in the Cen- as a step toward the complete economic tral Pacific zone brought with them sup- defense of Hawaii.Thus the Bureau was plies of "Hawaiian dollars," not only for called upon for the first of the wartime their own use but for the use of the in- currencies. habitants of the areas taken over.This The special Hawaiian issue comprised step was to facilitate identification of the $1 silver certificates and $5, $10, and $20 currency being used in the combat zones San Francisco Federal Reserve notes. and to make isolation of this particular The bills were identical in basic design currency easier in the event that military to the regular denominations of the two reverses caused any substantial amount classes of currency.However, the Treas- to fall into enemy hands. ury seal and the serial numbers were over- On October 21, 1944, the Treasury De- printed in brown rather than in blue partment announced that the economic which was the designated color for silver controls in the Hawaiian Islands, of which certificates, or green for Federal Reserve the issuance of the special currency was notes.In addition, all denominations of a part, were terminated.No further the special currency were overprinted issues of Hawaiian notes were made, but with the word "Hawaii" in bold type at the outstanding notes were then per- both ends of the face of the notes and mitted to circulate in the same manner as across the back in large skeleton letters. other U.S. currency both in Hawaii and The bills were serially numbered in suc- on the mainland. cessive sequence with regular notes of the In all, the Bureau processed more than WORLD WAR II YEARS 1941-1948 143

66 million Hawaiian notes having a face nisia with French francs in hope of set- value in excess of $411 million. ting loose an uncontrollable inflation; in The men engaged in the first American Sicily, they had ordered the banks to burn invasion operation of the war, that of all Italian currency before the Allied lib North Africa in November 1942, carried erating forces arrived. The United States with them "yellow seal" dollars.These and its Allies had to be prepared to sta- were notes that had been produced by the bilize financial controls quickly to meet Bureau at the request of the War Depart- both tactics, as well as other economic ment some 2 months previously.The stratagems that might be employed. The notes, like Hawaiian bills,, were regular troops had to be supplied an adequate American currency with a distinguishing amount of currency in order to be inde- mark to permit segregation if the situation pendent of local banks which might have so required. The currency embodied $1, been destroyed or be under the manage- $5, and $10 silver certificates on which ment of persons of questionable loyalty. the Treasury seal had been overprinted Local services such as police and sanitary in yellow rather than in blue as was cus- protection had to be established under tomary.It was anticipated that the in- native authority or military administra- vasion troops would encounter a great tion.Supply officers needed an accept- deal of U.S. currency being circulated in able medium of exchange to purchase North Africa at the time of their arrival. supplies and services which the Army In administering controls designed to keep required from local civilians.All this the Axis Powers from realizing advantage had to be accomplished without risking from captured money, the Government the capture and subsequent use of regu- was able to permit yellow seal currency lar U.S. currency which was negotiable to be brought into the United States un- all over the world. As an answer to these der less restrictive conditions than regular needs, it was decided to print special mili- currency, which might have been looted tary currencies in the monetary units of by the enemy.Yellow seal notes were the respective countries.This currency also employed in the Sicilian operation. was legal tender only in the individual However, they were used there only a country for which it was made and was short while, for they were soon replaced under direct control of the Commander by Allied Military lire notes, a special cur- in Chief of the Military Government rency that had been secretly prepared in there.Local administrations or central anticipation of the invasion of Italy. banks in the liberated areas were solely When the invasions of Europe and Ja- responsible for the redemption of the pan were being planned, it was evident currency. U.S. dollars were used as reim- that the Armed Forces would need some bursement only to cover troop salaries and type of special money and stamps when certain other strictly military expendi- they landed.From the outside, it was tures. The occupied countries were obli- impossible to predict with certainty what gated for the money spent for food, would be encountered in enemy-held ter- supplies, etc.; redemptions, in effect, were ritory.The Germans had flooded Tu- made part of their reparations.

648-001 0 - 64 - 11 144 HISTORY OF BUREAU OF ENGRAVING AND PRINTING

During the war years, the Bureau sup- made available.Multicolor lithographic plied more than 5 billion notes and al- printing was therefore selected as the most 1'/2 billion postage stamps for use process which could produce the largest in Italy, France, Austria, Germany, and and most rapid output with an accept- Japan. From the standpoint of physical able degree of security.The operation undertaking alone, there was no prece- was further expedited by the decision to dent for such a job.For the most part, confine the issue to two basic designs, the work was produced for the War De- those of large- and small-sized notes. partment; however, issues of franc notes On March 24, 1943, the Rtireau was were produced for the French Commit- instructed to proceed with the prepara- tee of National Liberation and the Pro- tion of designs.Work was immediately visional Government of the French Re- begun in the Engraving Division and by public.Japanese notes were also print- March 29, models for the two varieties ed for the Navy Department. of notes were submitted for considera- The preparation of the military and tion.One was the size of a dollar bill occupational currency in advance of the and the other half that size.Designs invasion of Italyisitself an amazing were prepared in strict secrecy, and stocks chapter in the story of the gigantic and ofspecialsecuritypaper and huge minutely detailed planning that preceded amounts of the ingredients for inks of the military operation.The planning various colors eventually needed for the of the monetary project began in July project had to be procured under similar 1942 when officials of the Treasury, War, conditions.The country for which the Navy, and State Departments and of the notes were intended was never identified British Government laid the groundwork at this preliminary stage.Any leak rein a series of extraordinary conferences. lating to the area in which the currency No inkling of the project was put in writ- was to be used would have forewarned ing, no word of it was spoken overa tele- the enemy of the Allies' selection of the phone, and it was not discussed outside point of invasion and could have caused the conference rooms; the information disastrousresults. The title"United would have been invaluable to the enemy States" and the word "Dollar" were used by disclosure of the forthcoming military fictitiously in preparing the basic designs expedition. where the term "Issued in Italy" and The intaglio printing process is recog- the word "Lira" were subsequently over- nized as the most effective means for printed on the notes.Overlapping de- providing security against counterfeiting, signs were developed and inks with spe- but the manufacture of the required orig- cific spectral characteristics were chosen inal dies, rolls, and plates involves tedious for the printing so that photographic sep- and time-consuming operations.If this aration of the various components of the method had been used for the production notes would be extremely difficult, if not of invasion currency, it would have re- impossible. Pigments possessing maxi- quired an appreciable amount of time mum resistance to chemicals and fading before sufficient quantities of notes were had to be selected.New methods were WORLD WAR II YEARS 194 1-1948 145 ALLIED flILIA1W CURRENCY

SERIES OF 1943 A

SeRIES OF 1943 A

?cj4

10-lire Allied Military Italian currency note (enlarged one and one-half times). developed by the Bureau for accurate 10, the day following receipt of the requi- color control during the actual printing sition.Though the term "Allied Mili- operation.This was necessary in order tary Currency" appeared on the face and to maintain all the inks in positive bal- back of the notes, the name of the country ance to prevent photographic separation and the currency designation were still of the colors which would be an aid to omitted.Offset presses were operated 24 counterfeiters in reproducing plates for hours a day doing the basic printing and surreptitious printings.Through a series making ready for the overprinting that of tests it was found possible to print the would give specific identification to the currency in sheets measuring 32 by 54 currency.Huge stocks of the partially inches, which would accommodate 200 finished notes were accumulated awaiting small or 100 large notes. the "go" signal. The Under Secretary of the Treasury The news of the invasion of Sicily by approved the designs on May 10, 1943. the Allied troops was flashed to the world Photolithographic plates were prepared on the night of July 9, 1943.It was not and the printing of the initial order call- until July 13, however, that instructions ing for 218,000 notes was begun on June were received to overprint on the faces 146 HISTORY OF BUREAU OF ENGRAVING AND PRINTING of the notes the identifying legend "Issued ing at Sacramento.The notes were in Italy" and the denomination descrip- printed by the San Francisco firm and tion "Lira."By July 19 two planes then transferred to the State agency for carrying 7 tons of the special currency numbering, finishing, and shipping. took off for Italy. The Bureau arranged for the delivery Once the invasion was an accomplished of paper and provided the inks and the fact, there was no need for the high de- designs of the notes to be printed; the gree of secrecy that had surrounded the contractors, in turn, manufactured the processing of the original order for the plates for printing the currencies.Rep- Italian notes.Since the Bureau did not resentatives of the Bureau were stationed have the equipment suitable for the offset at the plants to observe the progress of printing of the tremendous volumes of the work and to maintain control over notes that were urgently needed, it ar- the plates and printings.Upon comple- ranged for the services of commercial tion of the projects, the designs were re- firms to assist in the printing of the returned to the Bureau; the printing plates maining orders for Italian currency as and other related material were destroyed well as for all other invasion currencies. at the plants under the direction of com- A contract was negotiated with the Forbes mittees composed of representatives of the Lithograph Manufacturing Co. of Bos- contractor, the U.S Secret Service, and ton to do the preliminary printing of the the Bureau. remainder of Italian notes.The offset- U.S. Secret Service personnel were as- printed stock produced there was trans- signed to the Forbes plant for the dura- ferredto the Bureau forover-print- tion of the contracts and Coast Guards- ing the denominational values,series, men were stationed at the west coast name of the country, and serial numbers, plants to insure that adequate protective and for shipping thefinishednotes. facilities were maintained. Similar arrangements were made with One of the major problems in the respect to the production of Allied Mili- manufacture of invasion currency was the tary German mark notes.All the print- production of paper of the quality and ing operations, as well as the boxing and amounts required.At varioustimes, shipping of Supplemental French franc nine papermills were engaged in the task, currency, Committee French franc cur- and this necessitated preparation of de- rency,and certain denominationsof tailed specifications which provided for Allied Military Austrian schilling cur- technical tests to insure that the products rency, were performed by the Forbes of the respective firms were essentially firm. identical.The specialized paper had to Military Japanese yen currency for the be suitable for multicolor lithographic War and Navy Departments was pro- printing and at the same time highly reduced through arrangements made by sistant to moisture, distortion, and wear. the Bureau with the Stecher-Traung Only the finest materials could be used Lithograph Corp. of San Francisco and in its manufacture, and such materials the State of California Bureau of Print- were in critically short supply largely due WORLD WAR II YEARS 194 1-1948 147 to demands of the armed services.The acquisition of high-quality cotton rags was a particularly troublesome matter. When the usual sources of supply failed, the Bureau made contact with some of the navy yards and quartermaster depots, from which cuttings from uniforms were acquired.Cotton linters, combings, and Italy had not yet taken place.However, raw cotton were also utilized in spite of when the printing of the postage stamps the fact that many changes had to be began there was no longer a need for made in paper manufacturing operations. secrecy and it was known that the stamps In addition to procurement problems, the wereforusethere.Therefore,the Bureau had to cope with the development printing of the basic design and the over- of new and different sizing materials for printing of the name "Italy" and the the paper.Although all this work, and denominational value expressed in terms much more, had to be accomplished on a of "Centesimi" or "Lire," as appropriate, very tight time schedule, the cooperation were accomplished in one operation on a between the Bureau and the various two-color press.The work was printed manufacturers was such that the printing at the Bureau by the offset process in 400- operations proceeded smoothly and the subject sheets, each subject being the completed notes were delivered to the exact size of the ordinary U.S. postage Army and Navy at the required times. stamp.The paper used was a pregummed, unwatermarked, white sulfite stock.The printed sheets were perfor- Military Postage Stamps ated, quartered, banded into units of a On July 1, 1943, less than a month after hundred sheets of 100 subjects each, and receipt of the initial order for a military packed in wooden boxes containing 300,- currency, an order was received from the 000 or 600,000 stamps each, in accord- War Department for the production of a ance with War Department requirements. specialcompanionissueofpostage The initial delivery of the Italian stamps stamps.Here again, no indication was was turned over to the Army simulta- given as to the identity of the country in neously with the first lot of lira currency which the items would be used.Some on July 19.Orders were subsequently re- preliminary work on the basic design and ceived and processed by the Bureau for colors had already been undertaken on additional quantities of Allied Military thebasis of oral instructions and as Italian postage stamps and for furnish- quickly as this facet was completed and ing Supplemental French, Committee the choices were approved, the prepara- French, Allied Military German,' and tion of plates was begun.The first Supplemental Austrian postage stamps. printing plate was certified and sent to BritishGovernment independently press on July 17.At the time of receipt produced some of the Allied Military German of the original orders, the invasion of postage stamps. 148 HISTORY OF BUREAU OF ENGRAvING AND PRINTING Cloaks and Daggers and were placed in a large cylindrical drum, 12 feet long and 4 feet in diameter. Next, Currency a very special "dressing" was prepared a mixture of sand, floor sweepings, and Guerrilla activities carried out by the soggy, used coffee grounds. This concoc- Army and Navy brought the Bureau into tion was put in with the notes and the even closer association with warfare in contents of the drum were tumbled at 60 the Pacific areas. revolutions per minute for several hours In January 1943 the War Department after which the currency was well worn had urgent need for a quantity of Philip- in appearance. pine currency.It was planned to send A small group of Bureau of Engraving small groups of soldiers to engage in guer- and Printing employees, together with a rilla activities and harassment against the few persons from the Office of the Treas- Japanese then occupying the Philippine urer of the United States, all sworn to Islands.As the men infiltrated strategic secrecy, assisted in counting and prepar- areas they would need a means to pur- ing the notes for shipment. Within 3 days chase supplies.It was imperative that after the project was started, the first de- the notes be of a worn condition, for the livery of the "used" pesos was turned over sudden appearance of newly issued, genu- to the War Department for dispatch by ine notes would have tipped off the enemy Army plane to the rendezvous. A similar that something was amiss.Here was a shipment was subsequently prepared and new task for the Bureau.Previously, it dispatched in September 1943. Later, on had always striven to have its products two other occasions the Bureau cooper- as perfect as possiblenow, a used prod- ated with the War Department in fur- uct was being asked for. nishing quantities of Philippine currency It so happened that the Bureau had on for military use.In these cases, though hand large stocks of finished Philippine there was no need to age the notes, it was currency notes being held in safekeeping. requested that the currency furnished be A quantity of these notes had already of any issue prior to the 1941 series, be- been a "war casualty."They had been cause one of a later date would make it dispatched to Manila in November 1941 "subject to suspicion in connection with and were still on the high seas at the time the purpose for which it was being used." of the Japanese attack on the Philippines Since the Bureau had no stock of Philip- in early December of that year.Conse- pine currency of a previous issue on hand, quently, the shipment was diverted to it was necessary to print the quantity re- Australia and was eventually returned to quested from plates that were still avail- the Bureau in April 1942.These notes, able for the 1936 series of notes for the together with others in storage at the Bu- Commonwealth. reau, were used to supply the Army's spe- Another top-secret job involving Philip- cial requirements.They were properly pine currency was executed for the Navy "aged" with the assistance of the National Department in August 1944.This in- Bureau of Standards.There the bills volved the preparation of 5,000 packages WORLD WARIIYEARS 194 1-1948 149 designatedas"Aviators'Emergency a private firm.Thus for the first time Money Packets."Each was made up since1894 an issueof U.S. postage with a variety of notes having a total stamps was printed outside the Bureau. value of 100 pesos, in sealed, watertight There were 13 stamps in all, honoring containers. The packets were distributed Albania, Austria, Belgium, Czechoslo- by the Commander of Aircraft, Pacific vakia, Denmark, France, Greece. Korea, Fleet, to 35 aircraft carriers with instruc- Luxembourg, the Netherlands, Norway, tions that all crewmembers who flew in Poland, and Yugoslavia.The stamps the Philippine area were to be furnished were designed and printed by theAmeri- these packets for use in csse of emergency can Bank Note Co. in New York. A rep- should their planes be downed in enemy resentative of the Bureau was stationed or neutral territory. at the printing plant for the duration of At the time, these operations were the contract. known only to the few officials and em- The borders were printed from en- ployees who worked on theprojects. graved plates and were the same for all The lives of innumerable service per- stamps of the series.The central design sonnel depended upon the utmost se- for each stamp was a reproduction, in crecy regarding the transactions.There- appropriate colors, of the flag of the par- fore, no bookkeeping entries were made ticular country and was produced by the regardingthedeliveries. All records offset method. were placed in sealed envelopes and held by the Office of the Treasurer of the United States in safekeeping until after "R" and "5" Xotes the close of the war.It was not until The Bureau has a "tale of woe" to relate then that adjustments were made to the to those claimants that the American accounts and the Bureau's part in the public in general is nonobservant regard- supersecretprojects becamegenerally ing the physical aspects ofits paper known. moneythat so long as it is genuine and spendable, the ordinary citizen is not too "Overrun Countries" Stamps concerned about its looks.The lureau has reason to believe otherwise. In 1943 the Post Office Department de- Early in 1944 experiments aimed at cided to issue a series of stamps honor- improving the quality of currency paper ing those nations that had fallen victim indicated that the addition of certain to the Axis Powers.It was proposed that chemicals during its manufacture might these stamps be printed with the flags prove advantageous.In order to evalu- of the respective countries in true color. ate the findings it would be necessary to Inasmuch as the Bureau did not have produce a quantity of notes on paper em- suitable equipment for the expeditious bodying these special chemical features; production of stamps in multicolor, it then to issue these notes together with a was necessary to subcontract the work to quantity printed on regular paper for 150 HISTORY OF BUREAU OF ENG1AVING AND PRINTING comparison of the serviceability of each Personal 1ffort type under similar conditions.This was accomplished by simultaneously issuing Bureau employees supported the civilian identicallotsof $1silvercertificates wartime programs with the same enthusi- printed on the two kinds of paper. Notes asm demonstrated by their predecessors of the special paper bore a small, capital a quarter-century earlier.They raised "S" printed in red on their face in the over $1,200 in the spring of 1941 through lower right corner adjacent to the Treas- benefit entertainments and transferred the ury seal.Those printed on regular pa- sum to the American Red Cross to pur- per were similarly identified with the let- chase a mobile canteen for the citizens of ter "R."Arrangements were made with London. A unit of the American Red the Bureau of the Public Debt that it Cross was organized in the Bureau late in would report on the number of marked 1941 to assist in recruiting volunteer notes of both types turned in for redemp- workers.The principal project under- tion during specific periods.Such statis- taken by that group was sewing and knit- tics would materially aid in evaluating ting clothing for refugees in war-devas- the special paper. tated lands; about 700 participating em- Approximately 1 million notes of each ployees produced 11,485 garments.In type were placed in circulation in June addition, miscellaneous articles such as 1944. A few months later the notes be- books, phonograph records, playing cards, gan to trickle in for redemption but, un- and games were contributed by employees fortunately, the trickle did not grow to the to the District of Columbia chapter for anticipatedgeysersize.The returns distributiontoveterans' and military never reached a volume sufficient for hospitals and servicemen's canteens in making a valid analysis. the local area.Courses in knitting were Although no publicity was given to the conducted and instruction was given in issuance of the test lots, the public at large home nursing and first-aid procedures. apparently was quick to observe the spe- Workers assisted in the preparation of cial markings on the notes.Rather than surgical dressings, served as nurses' aides, spend the bills and keep them in circula- and participated in the Red Cross Motor tion, John Q. Citizen evidently decided Corps' activities.Two picture engravers to retain those notes that came his way donated their talents sketching hospital- as curios.Thus the.public's attachment ized servicemen.Every Christmas spe- for oddities brought the Bureau's efforts cial projects were undertaken: in 1941 to naught.Spending the notes would gift packages were sent to 51 employees have meant that they would eventually be then in the Armed Forces; in 1942 and presented for redemption because of their 1943 the soldiers assigned to an antiair- worn condition. craft battery located on the roof of the Today, 18 years later, some of these annex building were treated to dinner notes are still in circulation, for the Bu- and furnished gifts; in 1944, almost $1,600 reau continues to receive questions as to and quantities of cookies, candies, and the significance of these "unique" bills. tree decorations were contributed by Bu- WORLD WAR II YEARS 1941-1948 151 reau employees for parties for convales- he felt that "the practice of granting cent service personnel.On December passes for strangers to visit" the printing 13, 1943, the Department authorized the area should be limited because it was a inauguration of an extensive blood donor "serious hindrance to the public business, program sponsored by the American Red as well as detrimental to the system of Cross, in which Bureau personnel partici- accountability established for its govern- pated.This program was later set up ment."He went on to say on a continuing basis similar to the Com- I see nothing to commend in the prac- munity Chest and war savings bond tice.It would not be permitted in any drives.An average of 15 donations per other branch of the public service where week was made by employees during the values were handled. On the contrary I see everything to condemn.I therefore wartime period.The Bureau people respectfully recommend that the practice were also zealous in the purchase of the should be discontinued, or be confined products of their own laborsduring the only to special cases, when, within the various war loan drives and the Victory Secretary's own knowledge, or in pursu- loan drive and as participants in the pay- ance to an official recommendation from this Division, there may be satisfactory roll savings plan, they invested more than reasons [for] admitting persons not em- $7,300,000 in savings bonds. ployed upon the work. Apparently Clark's recommendation The Bureau as a Tourist relative to the pass system prevailed to a certain extent, for a guidebook on the city Attraction of Washington, written in 1874, noted that "you cannot enter [the Bureau] unless With the attack upon Pearl Harbor a you hold a written 'sesame' from the Sec- squad of soldiers was immediately as- retary of the Treasury; so sacred and signed to patrol the outside of the Bureau guarded is this ...precinct in which and the building was closed to visitors as Uncle Samuelcreateshis'Almighty a precaution against possible sabotage. Dollar.'" On August 14, 1945, Japan accepted the George B. McCartee, Clark's successor, peace terms of General MacArthur and had troubles too in regard to visitors.In on September 2, the formal surrender his annual report for the fiscal year 1875, aboard the U.S.S. Missouri took place. A he told of a loss of two sheets of $10 motes symbolic forecast of these events occurred amounting to $80 "from theft perpetrated with the resumption of public tours of the by visitors to the Bureau." Bureau on June 12 of that year. Upon the occupation of the first Bu- The moneymaking activities of the Bu- reau building in 1880, Chief 0. H. Irish reau have always held a great fascination established certain rules for guides and for the visitor to Washington.Spencer visitors which stated, in part: Clark, the first Chief, was not especially All persons desiring to witness the oper- happy about the fact.In November ations of the Bureau must obtain a pass 1865, and again in September 1866, he from the Chief or Assistant Chief of the wrote the Secretary of the Treasury that Bureau.These passes can be obtained 152 HISTORY OF BUREAU OF ENGRAVING AND PRINTING

on application to the lieutenant in charge others, for another party collects gener- of the watch at the main entrance. ally long before one has had time to go Visitors will be admitted only between the roundsrepeats the same story to a the hours of 9:30 and 11:45 A.M., and group of interested and astonished people between 12:30 and 2 P.M.They will who come from all over the world.Her register their names, will be placed in sympathizing sisters will ask her if she charge of the guides, and will be required does not find it very tiresome saying the to conduct themselves in an orderly man- same thing over and over again, every ner.They will not be permitted to con- day in the week, year in and year out, verse with employés, or to handle any and she will smile sweetly and say that of the impressions, plates, or representa- sometimes she does; and they will ask tives of value. her how much she gets for it, and she will The number of persons to be admitted tell them $1.50 a day, just as if everybody to the Bureau, as visitors, at any one time, had a perfect right to know.Others will shall not exceed thirty; nor shall a party try to encourage her by saying that it to be shown through at any one time, by must be agreeable to meet so many peo- one guide, exceed five. pie and tell them so many things they never knew before; and she will smile In1885,furtherrestrictionswere again, just a littleincredulously, and placed upon the admission of visitors to beckon another party to followher the Bureau, for the annual report for around; and .. .after her weary day's that year cites that work . ..she very likely thinks... that her position is by no means a sinecure. The indiscriminate admission of visitors to all branches of the Btireau seriously The Bureau had become such a popu- interfered with the work of the opera- lar and well-established tourist attraction tives, and required the employment of that, when the main Bureau building was ten guides at a cost of more than $4,000 constructed,provision was made for a year, besides the occasional services of mezzanines in the various workrooms other employés....As a result... the admissionf visitors was stopped, except from which the visitors could view the on Saturdays, and the guides discharged operations but would not come into con- or assigned to other work. tact with the work.Previously, in the By 1900, however, the practice of ad- old building, visitors had been escorted mitting visitors to the Bureau had been on tours directly onto the floors of the revived and a tour of the Government's workrooms in areas screened off from the money factory was once again a "must" actual operations. for visitors to the Nation's Capital. A Literally millions of persons have vis- contemporary account described the Bu- ited the plant since that time.Except reau guides at work, as follows: for periods during the two World Wars, the building has been opened to tourists when a little group of visitors has gathered in the reception-roomas they each regular workday. For almost a year are sure to do every few minutes every in 1938 and 1939, when the work pro- daya young woman with a marvelously gram called for the operation of a night glib tongue requests the group to follow shift on regular schedule, tours were also her, and she leads the way through those rooms opened to visitors.Again and conducted during evening hours from again during the day sheas well as 7:30 to 9.In 1920, the first year for WORLD WAR II YEARS 194 1-1948 153 which statistics are available relating to rency.The chairman of the joint com- the number of visitors, 120,283 persons mittee explained: were escorted on tour through the Bu- [This] hearing is being conducted... reau. Down through the years that num- as a means of inquiring into the circum- ber has increased by leaps and bounds, stances surrounding our Federal Govern- reaching a high of 638,000 visitors in ment's handling of occupation currency, 1959.During 1962 more than 630,000 particularly as applied to the occupied people visited "Uncle Samuel's" money areas of Germany and Austria. During the last several months consid- factory. erable concern has been aroused. .. over reported losses that have been incurred by the War Department resulting from The Case of the acceptance by Army fiscal officers of. occupation currency issued by the Rus- Russian Plates sians. *** Every once in a while there arises a ru- mor that during the war the Bureau [Among] reports that have caused the [is turned over plates for printing U.S. cur- Senate committees grave concern one] ... thatthe United States turned rency to the Russian Government. Noth- over the engraving plates to Russia, who ing could be further from the truth, but forthwith began flooding the countries it is easy to understand how such a mis- with exactly the same occupation marks conception could arise.This is the story used by the American military govern- of the "nefarious" Russian plates. ment. The last shipment of a military cur- Thisandsubsequentcongressional rency was made on October 17, 1945. A hearings brought to light "the story of the 3 years' effort begun in the secrecy of Russian plates," as it was dubbed by the the preinvasion days of 1942 was brought daily press and news weeklies, and pointed to an orderly conclusion.The Bureau up the Bureau's efforts to protect the was proud of the part it had played, how- integrity of the military currencies. ever small, in assisting the Armed Forces The account as developed from the in achieving total victory.The memory testimony is a story of major and minor of the stupendous quantities of military irritations and, as the then Director had currency notes and postage stamps which noted, the matter was a "pretty trying had been produced was fast paling when assignment for all associated with it." in 1945 the Bureau was called upon for an accounting of its role.Congressional On February 15, 1944, the U.S. Am- interest was aroused by reports that the bassador to the Soviet Union sent a mes- U.S. Government stood to lose huge sums sage to the Secretary of State to the effect of money by reason of redeeming certain that the Soviets desired to print a portion military currencies, and joint hearings of the mark notes so that the Red Army were held regarding the matter by the troops could be assured a supply of cur- Senate Committees on Armed Services, rency when they invaded Germany from Appropriations, and Banking and Cur- the east. They felt that the United States 154 HISTORY OF BUREAU OF ENGRAVING AND PRINTING would not be able to guarantee shipment Soviet Government 23 glass positives and in sufficient quantities for Russian needs a like number of glass negatives for mak- because of the distance between the ing plates to print the mark notes, to- United States and Germany. They re- gether with samples of inks and paper, quested the plates and models of paper also drawings, specffications, and other and colors for printing all denominations related material. But the ordeal was only of the mark notes.The Director took beginning.In May, another shipment of sharp exception to this request.In a inks was being prepared, but the amounts memorandum dated March 3, 1944, he as ordered by the Soviets were out of bal- pointed out six objections to compliance: ance; they called for too much of some of the violation of accountability prin- the pigments.If the pigments were or- ciples in the dividing of security items; dered in proper relationship to the ink the possible loss of the contractor's formulas, there would be considerable (Forbes Lithograph Manufacturing Co.) saving in transportation costs.A con- services if plates were removed from its ference was held in the office of the Under exclusive custody.It was indicated that Secretary of the Treasury to explain the the Bureau, with only a single multicolor situation.Representatives from the State lithographic printing press, did not have Department and the Bureau were present, the facilities for producing these large- as were several from the Treasury Depart- scale orders unaided; (3)the possible ment and the Russian Embassy.After variation in the notes produced by the a lengthy, detailed explanation, the Rus- Soviets due to differences in printing sian Ambassador curtly answered that he processes; (4)possible variation of the wanted exactly what was orderedhe notes due to differences in ink and cli- made no attempt to analyze the proposi- mate; (5) the probability that continu- tion and was not willing to concede any ing assistance and consultation with the change from the written order received Bureau would be required (as it was with from Moscow. On May 23 the Director the contractor) to minimize the danger of sent a letter to the Under Secretary which counterfeiting; and (6) the risks involved concluded: in transporting of security items.As an The third shipment was practically alternative, the Director offered the serv- completed and ready to go when the ices of the Bureau to assist the Russians letter was received yesterday from the in preparing a distinct currency for their Embassy changing the whole setup.It is use.Treasury Department officials were necessary now to uncrate all of the material and rearrange the whole shipment. apparently convinced of the validity of You will remember when we talked to the Director's arguments and drafted a the Ambassador, he insisted upon comply- cable to be sent to Moscow rejecting the ing strictly with instructions he received request.However, upon reconsideration from his government, and now that his it was decided to comply with the Russian government has reversed itself, we have proposition. to do the job all over again. On April 21, 1944, there This has been a pretty trying assign- were released to the representatives of the ment for all associated with it. WORLD WAR II YEARS 194 1-1948 155

After further, somewhat less hectic ar- orandum written by the Director on April rangements,shipmentsofdrycolors 15, 1944, in which he predicted: amounting to 5,516 pounds were prepared From the first time the Russian request and dispatched on November 2,1945, came to my notice I have strenuously ob- and February 11 and 21, 1946. jected, in oral argument and in writing, The forming of the joint committee to furnishing duplicate glass positives of and the holding of hearings on the matter the Mark currency to the Russian Gov- ernment.There may be serious reper- of turning the mark, currency material cussions when this transaction becomes over to Russia proved prophetic a mem public information. CHAPTER VIIITechnological Advancement- new ways for old 1949-1962

HE FILES OF THE Bureau contain innumerable reports of the achievements attained throughout its 100 years in improving the materials and processes used in its production operations.These same records bear witness to the constant effort expended in maintaining the superior standard of quality befitting U.S. securities.Early recognition was given to these endeavors in June 1866 by Congressman James A. Garfield, who was later to serve as President.At that time, when the matter of dry printing of currency was the subject of considerable debate in the House of Representatives, Garfield stated: Within the past few months one of the held at Philadelphia in 1876 was evidence most accomplished engineers of England that the fledgling bureau was fast matur- has visited the printing establishment of ing.In the opinion of the judges for the the Treasury Department, and he de- exposition, the Bureau engravings were clares the printing machinery now in use in accord with the "highest present stand- there to be a masterpiece of skillin mechanics. ard of art in design and execution and are worthy of the National Institution.. . The report of the U.S. Centennial Com- The officials explained that the "printing mission relative to the Bureau's exhibit [of the engravings] is perfectly done and displayed at the Centennial Exposition bears witness to the employment of the

156 TECHNOLOGICAL ADVANCEI4ENT 1949- 1962 157 best skill and materials, and of highly- phase was devoted to the development of improved machinery and process." substantially new sheet-fed and web-fed Constant improvements of the plant high-speed intaglio presses for the pro- facilities were made throughout the years. duction of both'currency and stamps. In 1903, the Director reported: Special efforts have been made during the year to improve the machinery and Jsfonoffiet Inks appliances used in the work of the Bu- reau, with very satisfactory results.A One of the primary concerns of the first new light and power plant has been in- phase of the improvement program was stalled, which has a capacity to furnish the elimination of the offset characteris- not only all of the light and power of the Bureau at present, but to permit of con- tic of green ink used in the printing of siderable increase in the future.It is currency backs.It was apparent that if proposed to operate all of the machinery, this problem could be overcome many as far as is practicable, by direct electri- other advancements would result as a cal connection, thus dispensing with cum- matter of course.For example, it was bersome belts and pulleys. . .. The plant of the Bureau is now one of the necessary to tissue the work 'by hand as most complete of its kind in the world. it was taken off the press to avoid smudg- The economies resulting from the vari- ing and to prevent the offsetting of an ous innovations were substantial as illus- impression from one sheet onto another. trated by a report of 1911 that improve- A nonoffset ink would eliminate the need ments in Bureau operations had saved for tissuing.It would also make possi- more than a half million dollars over a ble the storage of the printed backs in period of the preceding 3 years. The re- such a manner that the ink would set port added: "Notwithstanding these large but the paper itself would remain damp- savings, it is expected that further reduc- ened.This would obviate the need to tions in cost will be made in the next fis- dry the work and then rewet it prepara- cal year on account of additional im- tory to printing the faces.Further bene- provements in the machinery and meth- fits of a more technical nature would then ods." The saving to the Government ensue.Since distortion increases with through the introduction of small-sized sheet size, the 12-subject sheet was the currency notes in 1929 was estimated in largest size practicable at that time for excess of a million dollars annually. printing currency because of the double In keeping with this tradition, a two- wetting of the paper.(It was also neces- phase modernization program of tech- sary to wet the blank paper prior toprint- nological improvements was begun by the ing the backs.)Elimination of the dry- Bureau shortly after the close of World ing and rewetting of the printed backs War II.The first phase involved the would permit the use of a larger sheet, development of various adjuncts to the without creating serious complications in existent flatbed plate printing presses, as succeeding steps of the processing.The well as improved materials used in the result would be increased production production of currency.The second without additional manpower. 648-001 OG4-----12 the manufacture of the ink, since these components concerned surface tension and other physical properties which would af- fect the offset characteristic of the ink. The breakthrough came in 1950.Com- plete conversion was effected in 1951, and the optimistic expectations of the use of nonoffset green ink proved justified. Humidors, designed and built by the Bureau, were used to store the printed backs while the green ink was setting. The boxes were so constructed that there was little or no loss of moisture from the sheets and thus the work could be face printed without a second wetting. The beneficial results of the nonoffset green ink can be readily understood in reviewing the procedures in effect prior toitsintroduction. Previously,the Compartments used for the drying of secu- printed backs were assembled in wooden rities plate printed by the wet method. trays in lots of a few hundred sheets. The trays were then transferred to dry- A nonoffset green ink was developed by ing rooms.In these rooms there were the Bureau in 1943 but, unfortunately, it a number of metal compartments each did not prove effective under production equipped with a series of wire mesh shelv- conditions. The extensive potential ben- ing.Here the sheets were spread out efits of such an ink warranted continued uniformly on the shelves as the work was laboratory research on the project. How- received. The compartments were closed ever, this research was necessarily con- at the end of the day's work and the room ducted on a curtailed basis because of was locked.Hot air, heated to 210° the wartime conditions of the lack of Fahrenheit, was circulated through the manpower, difficulty in acquiring ma- units for a continuous period of 12 hours terials, and the need for concentration in order that the sheets would be suf- on the development of suitable inks for ficiently dried for handling on the follow- printing the military currencies. Ini- tially, modifications were made to the dry ing day.Next, the tissues had to be ingredients of the ink; namely, the pig- removed from the work, and the sheets ments and extenders. Production tests in- examined and then rewet.Stringent se- dicated the need for further changes in curity control which involved numerous the ink formulation and the Bureau chem- counts as the work proceeded through ists varied the nature of the liquid com- the various stages had to be maintained ponentsvehicles and bindersused in at all times.All this processing caused TECHNOLOGICAL ADVANCEMENT 1949-1962 159

an interval of some 10 days between the currency since the introduction of the printing of the backs and the faces. With small-sized notes in 1929.In spite of the the introduction of nonoffset green ink, many major changes necessary in the these steps were eliminated.The work various types of processing equipment printed with the new ink was ready for throughout the Bureau because of the face printing the very next day. innovation, the conversion to the larger Encouraged by the success of the non- sheet proceeded in a well-ordered pat- offset green ink, Bureau technicians then tern initiated in August 1952.All cur- concentrated their attention on the de- rency was being produced from 18-sub- velopment of a black ink of similar char- jectplates by September 1953.The acteristicsforuse in the printing of changeover necessitated only one major currency faces.By July 1952, a suitable adjustment in currency production opera- black ink was formulated and, by June tions and this was of a temporary nature. 1953, it was utilized for all currency face To get the new program underway at the production.It thus became possible to earliestpossibledate,two-color typo- eliminate the work section devoted to graphic flatbed presses were purchased tissue removal and to combine the ex- for use in overprinting the numbers, aminations of backs and faces into a seals, and signatures on the larger size single operation. sheets until such time as two-color sheet- fed rotary overprinting equipment could be designed and developed. The flatbed 18-Subject Currency presses performed satisfactorily during the very critical interim period of about 1 year As expected, dimensional variations in and were replaced gradually beginning the printed sheets were materially rein 1953 by newly designed rotary over- duced through the elimination of the printing presses which could process the need for the first forced drying and the work more rapidly. second wetting operation.In addition, there was a noticeable and welcomed improvement in the registration of the faces Flatbed Plate Printing Press with the printed backs.These better- ments were such that it was then feasible Improvements to plan for the printing of currency in larger size sheets.Detailed consideration The hand press had been used in the Bu- was given to the multiple factors involved; reau since 1862.With but little modifi- such as, press size, auxiliary equipment cation, principally the addition of an elec- capacities, handling facilities, and the tric motor, presses of this type were like.It was determined that an 18-sub- utilized for the printing of various issues ject sheet represented the maximum ca- of currency, bonds, and stamps on a pacity of the flatbed press and would be diminishing basis until 1929, when they the most practical size.Thus occurred were discontinued as major production the first change in plate-subject size of equipment. 648-001 O-64---12 Picture No. 1 shows a flatbed plate printing press prior to improvement. With installation of the automatic wiper (picture No. 2), the printer was no longer required to polish the plate by hand. The addition of the takeoff device (picture No. 3) eliminated the need for the services of one printer's assistant on each machine. The need for the other assistant was eliminated upon adoption of the feeder mechanism (picture No. 4), when the press was completely automated.

162 HISTORY OF BUREAU OF ENGRAVING AND PRINTING

The steam press introduced in 1878 and ink, it was determined that the best re- the flatbed power press of 1898 incor- sults could be attained only if it was possi- porated the same principles as the hand- ble to standardize the removal of the press, but performed the printing, inking, sheets from the press.This could best be and wiping simultaneously through the accomplished by mechanical means, since continuous motorized movement of four the handling of the sheets by many differ- platebeds around a square frame.The ent people was too variant a factor.For printer made the final polish by hand and instance, though the ink would not offset an assistant placed the sheet on the mov- it could be smudged.Also, an assistant ing plate, which was engraved with reg- merely in taking sheets off the press one ister markings for proper positioning of by one and placing them in the tray would the paper.After the impression was be fanning the work to a certain extent printed by movement of the plate between and there would be a resultant loss of a set of pressure rollers, a second assistant moisture content.As a consequence, removed the sheet and the plate con- automatic delivery devices, constructed in tinued to another cycle. accordance with a basic design developed In 1949, the Bureau developed a pol- by the Bureau, were installed in the latter isher mechanism which did away with part of 1951 on all presses engaged in the need for hand polishing. At the time printing currency backs.The design that these mechanisms were being added called for a group of small suction cups to presses, semiautomatic feedboards were set in a revolving vacuum cylinder. The also installed on the machines.These printed sheets were individually picked feedboards made it unnecessary for the up by the cups, transferred to a gripper assistant to place the sheet directly upon on an endless chain, and then deposited in the plate; two holes were drilled into the asheet-stackingapparatus. Allthis side margins of the paper and the print- mechanism was encased in a plastic com- er's assistant placed the sheet onto two partment to aid in conservation of the pins attached to a feedboard mechanism moisture in the sheets. Upon the success- which automatically registered the sheet ful development of a nonoffset black ink, in the proper position for printing.Be- it was possible to extend the use of auto- cause of these two changes, motor speeds matic takeoff and delivery devices to the could be so increased that individual press presses used in production of faces of cur- production rose by 30 percent. rency and savings bonds. Sheets continued to be removed from On the basis of a considerable amount the press by hand.However, with the of previous engineering research, the de- development of the nonoffset green ink velopment of a fully automatic feeder was it was clear that an automatic takeoff and integrated with the 18-subject conversion delivery device was not only feasible for program.Based on successful perform- the purpose but necessary for realization ance of pilot-model equipment, produc- of the full benefits of the new ink. At the tion units were purchased and installed time of the trial runs conducted in 1943 on the currency presses during 1953 and with the originally developed nonoffset 1954.The automatic feeder picked up TECHNOLOGICAL ADVANCEMENT 1949-1962 163 single sheets of wet paper from a stack resulting from this phase of the moderni- and delivered them to a feedboard, where zation program were multiple.In cold they were positioned by eight grippers statistics, they can be summarized in a and registered in relation to the plate. As total recurring savings of approximately the plate moved forward, the sheet was $5V2 million annually and an increased carried by two vacuum bars to the revolv- productive press output of 100 percent. ing impression cylinder. Automatic feed- On the human side, they represented ers and delivery devices obviated the need many hours of seemingly endless effort for the two assistants on each flatbed press. even frustration at times, but throughout As early as 1938 experiments had been it all there was a feeling of accomplish- conducted in printing currency on paper ment and pride.The stage was set for received in a wet state from the manufac- the inauguration of the second phase. turer.It was evident that paper furnished in this condition would be more nearly uniform and would eliminate numerous New Designs for Federal technical problems associated with the Reserve Notes wetting of the paper in the Bureau.The installation of automatic feeders on the In July 1950, an acute shortage in the currency presses provided the impetus for Bureau stocks of Federal Reserve notes further research and development work was caused by increased demands for this on mill-wet paper.As a consequence, class of currency.The Bureau's work- new methods of wrapping, handling, and load was already at peak production sta- transporting this type paper were per- tus because of the overwhelming needs for fected with the active and constant col- silvercertificates. To make matters laboration of the paper manufacturer. worse, the Korean conflict had begun and At the same time improved fungicidal there was a possibility that some 30 plate and germicidal components were found printers would be called into active duty advantageous and incorporated in the in the armed services by reason of their product.Meanwhile, tests were being membership in the National Guard or conducted with the new paper under ac- Reserve units.Overtime was necessary tual pressroom conditions, and with each and the plate printers agreed to increase improvement progressively larger amounts their individual productive output by 2.7 were used in the regular course of print- percent in order to help relieve the situ- ing currency.Finally, by September ation. 1954, all currency was being produced Meanwhile, the Bureau's planning staff with mill-wet paper. The machines used was busy in developing a remedy; namely, for wetting the paper in the Bureau, which the overprinting of signatures, series, and had been hailed so enthusiastically at the the identifying seal on the face of the notes time of their introduction in 1911, were for each Federal Reserve bank.This stilled. method of overprinting certain features All these changes had occurred in a on currency had proven a successful econ- period of less than 5 years.The benefits omy and production measure in the pro- 164 HISTORY OF BUREAU OF ENGRAVING AND PRINTING duction of $1 silver certificates.Twelve former Treasurer appeared as part of the years had elapsed since 1938 when the se- engraved work. The charge for making ries year, the last item considered for over- the required change in Federal Reserve printing on the $1 notes, had been deleted plates amounted to $160,000.In propos- from the engraved plates.At that time ing to overprint Federal Reserve currency, there were such an extremely large num- the Bureau pointed out that, in view of ber of plates for other currency issues in the fact that the identification symbol of the vault that it was not considered eco- each of the 12 Federal Reserve banks was nomically feasible to adapt the overprint- then engraved in the plates for the respec- ing method to these issues. The change- tive banks and there were 9 denomina- over would involve a revision in the tions of Federal Reserve currency, it was design of the notes, and new plates necessary to maintain 108 separatecombi- would have to be made. The inventory nations of printed stock in order to meet value of the plates for the other denomi- production demands. It was further noted nations was too great to warrant their re- that, if the Bureau was permitted to in- placement at that time.The impact of clude the identification symbol in the over- World War II, with its pressing need for printing operation, it would be necessary metals directly connected with the mili- to maintain only nine denominations of tary effort, and the readjustment years stock. followingthecessationofhostilities The Board of Governors of the Federal further delayed expansion of the over- Reserve System seriously considered the printing method to other denominations Bureau's recommendations and agreed to and classes of notes.The increased de- the use of the overprinting method for mand for Federal Reserve notes in 1950, printing the signatures of the Secretary however, gave impetus to applying the of the Treasury and the Treasurer of the method to that class of currency.Past United States along with the series desig- experience had proven that certain por- nation and the bank identification sym- tions of currency notes could be over- bols.In order to include these items with printed without adversely affecting their the printing of the serial number and the security protection.It was known that Treasury seal, which were already being if the specific identifying features on the overprinted, it was necessary to redesign Federal Reserve currency could be over- the numbering presses so that all the printed, improved scheduling would re- features could be overprinted in one op- sult, deliveries would be more timely, and eration.The Secretary of the Treasury there would be less complication in main- approved the change in August 1950. taining sufficient stocks.A specific ex- The first notes bearing the new overprint- ample of the economies that would result for was demonstrated in the previous year ing$S, $10, and $20 denominations when a new Treasurer of the United the Federal Reserve Bank of Richmond November 3, 1950. The States was appointed and it became neces- were delivered on sary to alter or replace 900 plates, all notes were distributed in theWashington, because the facsimile signature of the D.C., area first so that publicreaction TECHNOLOGICAL ADVANCEMENT 1949-1962 165

could be observed firsthand.Since there a fiscal program analogous to that of com- was no adverse comment, the plan was mercial firms.Accordingly, a legislative carried through to completion and notes proposal was submitted to Congress to for the other banks were distributed soon effect changes in the accounting, budget- thereafter. ary, and financing systems of the Bureau, and this resulted in the enactment of Pub- lic Law656of August4, 1950 (64Stat. Business-Type Budget 408).The law, which became effective July 1, 1951, requires all customer agen- At the request of the Director, a survey of cies to pay the Bureau at prices adequate the fiscal activities of the Bureau was un- for it to recover the amount of all direct dertaken in April1949 by representatives and indirect costs, including administra- of the Treasury Department; the General tive expenses associated with performing Accounting Office, and the Bureau of the the work.Instead of receiving yearly Budget, in cooperation with the Chief Ac- congressional appropriations, the Bureau countant of the Bureau. The purpose of was advanced working capital of $3,250,- this survey, in keeping with Government 000 which is used to meet such items as policy, was to determine the most satisfac- payrolls and purchases of raw materials tory budgeting, accounting, and financing until such time as the products can be procedures to serve the Bureau's indus- completed and payment received from trial-type operations and the best method the requisitioning agencies. of financing such operations. At that Many advantages have accrued from time, approximately two-thirds of the this program. More meaningful cost and work produced was financed by annual financial statements are developed so that appropriations made by Congress directly better analyses can be made of operations. to the Bureau, while one-third was fi- It eliminates the need for the Bureau to nanced through reimbursement from cus- justify appropriation requests for printing tomer agencies. The items manufactured under direct appropriation included U.S. requirements of agencies over which it has no control. currency, internal revenue stamps,dis- With funds recovered bursing officers' checks, and a wide variety through the depreciation of equipment, a of miscellaneous commissions, certificates, practice permitted under the new system, and other documents. Requisitioning the Bureau can better plan and schedule agencies, on the other hand, made pay- extended technological improvement pro- ment to the Bureau for Federal Reserve grams and purchases of specialized equip- notes; U.S. postage stamps; savings bonds ment.Although annual appropriations and stamps; Treasury bonds, bills, and are no longer requested, the Director ap- notes; and additional classes of products pears each year before representatives of not included in the direct appropriation. the Treasury Department, the Bureau of As a result of the survey, it was recom- the Budget, and the Congress to give an mended that, in view of its industrial- accounting ofhis stewardship of the type operation, the Bureau should develop Eureau's funds. 166 HISTORY OF BUREAU OF ENGRAVING AND PRINTING crepancy, and may also be subject to Payment for Lost Sheets rigid examination in the endeavor to dis- For many years, Bureau employees were cover such mislaid or lost sheets or parts of sheets representing values. required to pay face value for losses that occurred during the manufacture of se- Whenever a shortage was discovered, a curities, even though the securities were "pay receipt" covering the face value incomplete. When a shortage could be of the missing item was obtained from the traced to a particular employee, that per- responsible person or the superintendent son was held individually responsible.If of the division involved.The "pay re- the shortage could not be traced to a ceipt" authorized the Bureau's disburs- specific person or group, all the employees ing officer to withhold from the em- in the section or division in which the ployee's salary an amount equal to the discrepancy occurred were assessed for shortage, provided the missing item had the amount of the loss. not been located or the shortage had not In his 1864 report to the Secretary of been otherwise adjusted within a period the Treasury, Spencer M. Clark indicated of 30 days. Eventually the signing of the that this policy was in effect as early as "pay receipt" became somewhat of a that time.In 1875, George B. McCartee formality, since it was customary to ac- reported that during the 6 years he had cept contributions from employees of the served as Chief of the Bureau, "there have division concerned to compensate for the been but three instances of discrepancy, loss.The needed amount was collected whether from theft, embezzlement, or by "passing the hat"; groups of workers otherwise; and in each of these the dis- voluntarily assisted in making up the covery has been prompt, and the reim- shortage as a personal matter among bursement of the Government effectual." themselves in order that no one employee He further reported that since two of would be required to bear thefull these losses, amounting to $830, were not amount. No record was maintained of chargeable to any particular individual the amount specific individuals contrib- or group of persons, they were paid for uted.The moneys so received were de- by the "Chief of the Bureau and his posited with the Treasurer of the United assistants." States as miscellaneous Government re- The rules and regulations of the Bti- ceipts.If a missing sheet or item was reau which were approved by the Secre- afterward located, a refund could not be tary and published on November 1, 1880, made since withdrawals from this ac- contained the following statement: count were allowable only through spe- The employés of each division will be cial congressional authorization. held responsible by the superintendent of On May 25, 1925, the Secretary of the division for work while in their cus- theTreasuryapprovedaprocedure tody. And when sheets or parts of sheets which resulted in the creation of a fund representing values, or designed to rep- known as Special Deposit Account No. resent values, shall be lost in any division, Moneys collected from Bureau per- the employés in such division will be as- 29. sessed to the full amount of such dis- sonnel were held in this account so that TECHNOLOGICAL ADVANCEMENT 1949-1962 167 the Government could be reimbursed in On October 19, 1951, the Director is- the event securities lost during the course sued a bulletin establishing a policy which of manufacture were put into circulation remains in effect today.It provides that irregularly, or refunds could be made to when individual responsibility for loss can the employees in case the missing items be fixed, the person involved will be re- were found.The first deposit in the quired to make reimbursement for securi- amount of 10 cents was made on Septem- ties which the Government is called upon ber 17, 1925.In its 26 years of opera- to redeem.In other cases of shortage, tion, the special account received about disciplinary action will be taken and the $10,700.Approximately $135 was re- practice of soliciting contributions from turned to employees and $1,465 was employees was discontinued. withdrawn by the Government for secu- The balance in Special Deposit Account rities irregularly issued. During this same No. 29 was transferred as miscellaneous period some $2'/2 trillion in various se- receipts to the general fund of the Treas- curities were printed by the Bureaua ury in July 1954 and the account was statisticthat demonstrates remarkable closed. honesty and efficiency on the part of Bu- reau employees. High-Speed Stamp Presses In 1950, in the light of changed management-labor relationship not only in The original rotary web-fed intaglio press, Government but in private industry as commonly referred to as the Stickney well, the Bureau undertook a thorough press, had been introduced in the Bureau study of the policies and practices relating in 1914 and various improvements had to compensation for security shortages. In been made to this equipment from time response to a request for his opinion, the totime. Throughout the years,the General Counsel of the Treasury advised growth of the national population and the Director of the Bureau that (1) the the continuing increase in the volumeof Government is not obligated to redeem the country's business created a demand incompleted paper which has been placed for more and more postage stamps. The in circulation by a wrongdoer and, there- tremendous orders received during World fore, there appeared to be no justification War II years emphasized the need for for collections made from employees of new high-speed equipment to meet the the Bureau to cover losses of such incom- ever-increasing requisitions for stamps. pleted securities; (2) Federal laws con- In 1948 two Stickney presses were taken tain authority to protect the United States out of regular production and installed from fraud and loss in the preparation and in the development laboratory.Here issue of securities, therefore assessment they were used as a basis for study lead- against an individual responsible for loss ing toward the design and construction of completed securities would be pern-iis- of new postage stamp press equipment. sible; and (3)it was improper to solicit Through application of the data obtained contributionsto make restitutionfor from this study, specifications were pre- losses. pared for a new high-speed web-fed in- High-speed web-fed intaglio press (scanning mechanism end).

taglio press which was delivered to the of a press which will provide a high-speed Bureau in 1950.It was used for further productive output of hi-color postage stamps, while still retaining the security experimentation and perfectedto the feature provided through means of the point where it was suitable for printing intaglio printing process... bicolor stamps on dry paper in one con- The press is equipped with electronic tinuous pass through the machine.It controls to insure accurate registration of produced its first stamp in 1952the 3- the printed images, and has automatic cent International Red Cross commemo- temperature and constant tension controls.In addition, the latest safety de- rative issue.The information furnished vices for maximum protection to the by the Bureau to the Post Office Depart- printer, the installation of modern ma- ment for use in preparing a news release chinery for reduction of noise, vibration relative to that stamp well describes this and excessive temperatures in the surrounding work areas, and a new and im- new press: proved means of applying gum to the [It] is the result of more than ten years' stamps have been incorporated into the research by the Bureau of Engraving and design. The increased speed of the press Printing looking toward the development made it necessary for the Bureau of En- TECHNOLOGICAL ADVANCEMENT 1949-1962 169

graving and Printing to develop quick- to those on the electric-eye perforator. drying printing inks. This provides for continuous automatic The news release went on to say that register adjustments of the overprinting. research work on this press would be con- The development of these presses came tinued in the interest of achieving maxi- none too soon.Shortly after they were mum operational efficiency and economy. installed, the Bureau received the largest This further development work culmi- postage stamp order in its historystamps nated in the purchase by the Bureau in needed for the change in the domestic 1955 of five electronically actuated web- first-class letter rate from 3 cents to 4 fed presses of a similar, but improved, de- cents.At the completion of the initial sign.After some 40 years of service the order, the Postmaster General issued a Stickney presses were gradually retired press release on August 5, 1958, lauding from operation and scrapped. the unprecedented accomplishment by the The new equipment is much larger than Bureau: the old Stickney presses, with speed and when the increased postal rate bill production approximately tripled. A mul- became law [May 27, 1958] the Bureau's titude of improvements are incorporated high-speedrotarystamppresses in the machines, although the basic prin- were placed in production on three shifts to print 4 cent book, sheet and coil stamps, ciples of their operation are essentially the as well as the new 7 and 5 cent air mail same as those of the oldstyle presses. A stamps for the Aug. 1 start of the new few examples of the changes are: rates. A beta ray apparatus electronically As an example of how well this was measures and records the weight of the done, figures show that since the law was printed paper passing through the press signed to meet the change over, the Bu- before gumming, then measures and re- reau has turned out 6,237,004,794 stamps. cordstheweightofthe web after This was far above normal production gumming. By referring to the difference schedules. between these figures, the plate printer can maintain the required standard film of gum on the back of the stamps. The "Big" Robbery An ingenious scanning device momen- New currency, tightly banded in 4,000- tarily stops the movement of part of the web to permit the examination of the note bundles with steel strips, is sent to printed work while the press continues the packaging room to be wrapped in in operation. heavy kraft paper. Each wrapped bundle Fast-drying heat-set inks are used. At is affixed with a label describing the con- the outset of the development project, tents, including the serial numbers of the it was obvious that high-speed rotary intaglio stamp printing would require an billsit contains.After being wrapped ink which dried instantaneously.As a and labeled, the packages are piled on result of intensive research, heat-set ink skids to be carted into the vaults where formulaswereperfectedbyBureau they are stored until requisitioned. chemists for this purpose. It was on the morning of January 4, A typographic attachment for precan- celing the stamps, when required,is 1954, the first workday of the new year, equipped with electronic controls similar that two of these packages containing 170 HISTORY OF BUREAU OF ENGRAVING AND PRINTING

$160,000 in $20 Federal Reserve notes room conceived a plan for makingoff were discovered to be missing.In their with two bundles of $20 bills.At home, place were found two dummy packages he cut up large quantities of ordinary made to simulate the genuine articles. paper into pieces the size of currency Word of the shortage spread through the notes and packaged them in a form to Bureau like wildfire.It soon reached the simulate regular Bureau work. He tied local newspapers and was picked up by the bundles together, placed them in a the national press and wire services. John bag, and brought them into work on the Q. Citizen and his family, who for the morning of December 30, 1953.After most part had little idea of where and entering the building, he approached the how their paper money came into exist- parcel booth, ostensibly to check his pack- ence, listened that night to a radio broad- age in accordance with Bureau regula- cast or watched a television program that tions which prohibited the taking of un- told the story of the big robbery at the examined items into workrooms. As the Government's Bureau of Engraving and guard at the door turned to examine the Printing.And as the news spread, so credentials of other employees, the check- spread the long arm of the Department's er-distributor slipped by the parcel booth criminal investigative unit, the U.S. Secret and carried his package to a lockerroom Service. on the third floor where, unnoticed,he Shortages had developed in the Bu- concealed it under a burlap bag suspended reau's accounts in the past, but never be- in a large trash can.He then went to fore had they involved such a large his own lockerroom, changed into his amount of moneyfew cases had re- workclothes, and reported for work at the mained unsolved and in all instances the usual time. Government had been reimbursed for the His first assignment that morning was missing amounts.Control over the ac- to assemble banded currency notes on a tions of several thousand persons engaged skid and deliver them to the wrapping in the production and processing of mil- machine.From previous experience he lions of dollars in securities each day is knew that it would take about 20 minutes not an easy task.The problem was not for the operatives to wrap the quantity of new.It had been with the Bureau since notes he had delivered to them. He non- its inception, asit was present in the chalantly walked over to the skids of com- private banknote industry at that time. pletely wrapped currency, picked up two Today, even with the most modern of packages, covered them with paper and protective systems, the best security factor carried them out of the room to a storage rests with the personal integrity and hon- area in the attic.There he tore off the esty of each individual employee.Here wrappers and steel bands and placedthe lay the failure, discovered on that event- money in two paperbags he had brought ful day in early January 1954, that shat- along with himHe concealed the bags tered an outstanding record of more than under some rubbish and retained the parts 90 years' duration. of the wrappers to which the labels were A checker-distributor in the packaging attached. He was back on the first floor TECBNOLOGICAL ADVANCEMENT 1949-1962 171

before it was time to bring more work light in weight.They so informed their to the wrapping machine so that his ab- supervisor who opened the bundles and sence went unnoticed.Later that morn- discovered the theft.But for the alert- ing, during the regular rest period, he re- ness of these two attendants the packages turned to the third floor lockerroom, might have gone out of the Bureau and placed the labels under hot water to sep- remained undetected for an indetermi- arate them from the kraft paper, then nable time, because new currency is gen- pasted them onto his false packages which erally retained unopened until needed by he had removed from the trash can. He the recipient bank. then covered the bundles with a piece of Immediately upon discovery of the paper, took them to the packaging room, theft, the Secret Service was notified and and placed them on the skid of finished an exhaustive investigation was initiated. work. The loaded skid was later removed Interviews were begun of all employees to the vault. That afternoon, his tour of who had worked in the processing section duty completed, he changed to street- since the time the missing notes had been clothes, went up to the attic, and retrieved numbered.The next day, the Virginia one bag containing $128,000. He left the State Police advised the Secret Service remaining $32,000 because he believed it they had been notified that a large amount would make the bag too bulky.Next, of the missing notes was concealed on a he crammed some old workclothes into farm in Middleburg, Va. A solution to the bag on top of the stolen bills and pre- the case soon followed.The checker- pared to leave the building. On the way distributor who had stolen the money was out he pulled a trouser leg from the bag linked to the found notes and convicted to indicate to the guard that it contained of their theft.There were $127,840 of soiled clothing. The usual security check the stolen notes recovered. An additional was made in the operating section at the amount, slightly less than $5,000, was re- end of the day, but since all labeled pack- covered in small bills representing change ages were accounted for there was no received in passing some of the stolen cause for suspicion. $20's. Restitutionofapproximately Finished packages are stored in the $2,000 was made from the retirement vault, according to numerical sequence, funds and salary payments due the em- on shelves to facilitate their delivery in ployee involved.In all, the loss to the proper order.The skidload which in- Government through this case was ap- cluded the two dummy packages was not proximately $25,800. needed for the next day's work and so Down through the years the Bureau has it was not shelved.The succeeding day endeavored to maintain stringent con- was a holiday, New Year's Day, followed trol over its products. In 1864, reporting by a weekend. On Monday the scales on the control system then in effect, Spen- of fate slowly began to balance.Two cer M. Clark stated: vault attendants in shelving the work It is not supposed that this system is taken from the skidload stored in the vault perfect."Perfection is not among human noticed that two of the packages were conditions."But it has been improved 172 HISTORY OF BUREAU OF ENGRAVING AND PRINTING from time to time as experience has sug- The full development of dry printing gested, and it is expected to continue its in the Bureau spans a period of some 25 improvement until it is as near perfect as years.Step by step, the program pro- "human conditions" will admit. gressed through trial and error.It would It seemed incredible that such an in- be untruthful to say that there were not stance as the theft of $160,000 by an em- momentary periods of doubt as to the ployee could have occurred.Shocked by wisdom of the course being followed or the happening, the Bureau immediately as to the final outcome.Likewise, there instituted additional product protection were temporary setbacks. Sometimes suc- measures that would deter a recurrence. cess was achieved in mere stepsatother Once again, steps were taken to make the times, in broad strides.Knowledge ac- control system as near perfect as "human quired at one stage was applied and then conditions will admit." used as a steppingstone toward the final goal. This is the story of those 25 years. In 1934, experiments were conducted Sheet-Fed Dry Printing to adapt the flatbed engraved plate press to the printing of dry paper, but the tests As previously explained, the plate print- were discontinued when it wasdeter- ing process entails the use of substantial mined that many radical changes in ma- pressure to force the paper down into the chine structure as well as in the mate- incised lines of the engraved plate.Wet rials used in the printing would be neces- paper, being more pliable, is easier to sary.As a consequence of the potentials print than the dry. Dry printing, on the demonstrated through these experiments, other hand, causes relatively little stretch in 1939 the Bureau ordered a flatbed press and shrinkage in the paper, makes the use which was essentially the same as those of larger size sheets feasible, and simpli- then in productive use, but the new ma- fies subsequent processing operations such chine was built to withstand greater pres- as trimming and perforating. sures. Some dry printing was done onthis Until 1952, all currency and postage press, but the developmentwork was stamps printed in the Bureau were pro- curtailed to a great extent because of duced by the wet method.1Today, ap- wartime conditions. proximately 50 percent of U.S. paper In 1953, the Bureau obtained a sheet- money and all our postage stamps are fed rotary press that employed the dry- being produced by the dry method. method principle.This press was patterned after a machine utilized by the 1Some of the early fraAtiona1 currency is- British-American Bank Note Co., Ltd. of sues were printed dry on hydrostatic presses, Ottawa, Canada, and was based on draw- but the system was abandoned when the first Chief of the Bureau resigned in 1868.Dur- ings and designs graciously furnished by ing World War I, some 1- and 3-cent ordinary that firm to the Bureau.Even at the postage stamps were produced by the offset time of manufacture, however, it was printing method; and for a short while in 1920, recognized that this equipment did not the 2-cent ordinary postage stamp was produced in the same manner. embody all the modern engineering ad- TECHNOLOGICAL ADVANCEMENT 1949-1962 173

vancements that had then been developed and contraction associated with printing in printing press equipment.Neverthe- on a moistened paper, it was felt that the less, it was a tool for use as a starting dry method was especially appropriate for point and was to prove of inestimable the production of this particular stamp. The printing is being accomplished [in value to the Bureau.It was employed part] on equipment previously procured mainly for the purpose of developing and for experimental purposes. The ink used improving inks, methods, and materials. is a special Bureau developed product Its use led toward the realization of the having quick drying qualities. more complex and efficient dry printing Much was learned through the use of presses that were to be forthcoming in the press under actual production condi- the Bureau. tions.For example, there were frequent A report on the progress made with mechanical breakdowns, partly attribut- this experimental press is recorded in a able to the excess pressure requirements news release put out by the Post Office this showed a need for stronger press parts. Department at the time of the issuance of The tremendouspressuretendedto the new 8-cent ordinary postage stamp in stretch the paperthis would have a 1954.This new stamp was printed in bearing in the manufacture of press plates bicolor in two passes through thepress. in the future.The completed sheets It portrayed the Statue of Liberty, in showed a slightly pinkish huean indica- three-quarter length, with the wording tion that the adjustments of the wipers "In God We Trust" fonning an arch required further refinements since they over the head of the statue.These fea- failed to remove all the red ink from the tures were printed in red. The frame, or plate.The residual color effect was also background, which defined the outline evidence that some of the ingredients of of the stamp was printed in blue in a the red ink had characteristics which gradual tone effect, dark at the edges, and made the wiping of the plate more diffi- fading toward the center to create a radi- cult than when inks of bther colors were ant burst of white at the back of the fig- used. A second press of the same design ure.The informational release stated in was procured in 1954 for the purpose of part: expanding the development program on It [the 8-cent stamp] is being produced sheet-fed rotary intaglio printing equip- by the dry intaglio method rather than the ment. wet method and is being printed on pre- Meanwhile, Bureau technicians were gummed paper. considering the use of the press for the For some time the Bureau of Engrav- dry printing of currency.Also, in this ing and Printing has been conductingex- periments, exploring the feasibility of dry connection, a joint effort was undertaken intaglio printing of securities.These ex- with the distinctive paper manufacturer periments have progressed to the extent to perfect a paper that would be best that the method is deemed practical for suited for the dry method.It was found the printing of postal items. Since registration tolerances of the [various features that by adding a resinous component to of the] new "Liberty" design areso critical, the paper during manufacture, it was pos- and because of the variation in expansion sibletoincreasethepaper'stensile PRINTING 174 HISTORV OF BUREAU OF ENGRAVING AND strength and folding properties.2How- The firms supplied their own engineers, and ever, employment of thisadditive necessi- machinists, and printers to set up tated a further search for a suitable plas- operate the machinery andacquaint Bu- ticizer to make the paper sufficiently pli- reau personnel withthe equipment. The able for intaglio printing.At the same presses were installed inadjacent rooms, time, it was necessary to determine the securely locked from one anotherand ideal amount of plasticizer to be added in from all unauthorized persons. Thetech- proportion to the quantity of resin com- nicians labored industriously for more that ponent used. than a year to furnish a product Marked success was attained through would meet the exacting standardsof the all these efforts, and in the latter part of Bureau.In October 1956, one of the 1954 specifications, based on accumulated manufacturers submitted several sample findings, were prepared for a new sheet- sheets of currency produced on its press. fed rotary press embodying the dry princi- A special committee of Bureauofficials ple.Comments on these requisites were appointed for the purpose carefully ex- sought from seven well-known manufac- amined the sample sheets anddetermined turers of printing press equipment.The that they were of an acceptablequality. letter of request sent to each of these firms In January 1957, following furtherlarge- the stated, in part: scale tests of the satisfactory press, the pro- The primary purpose of this equipment Bureau proceeded with plans for is to meet future production requirements curement of eight presses of similardesign. for United States currency.Further ob- The experimental press used in theevalu- jectives are to increase efficiency and econ- ation studies was also purchased. omy of operations and to improvethe A much-simplified explanation ofthese quality and security of the printed prod- presses, touching on onlythe fundamental uct.In order to meet the production requirements with available manpower it points of their operation, follows. has been determined that new presses will Basically, the press consists of a plate be required.Our surveys indicate that cylinder positioned directlybeneath an an urgent need for this equipmentwill impression cylinder. The printingplate, develop and, consequently, time will be chromed, is of the essence in an award of contract. which is made of nickel and fitted to its cylinder and clamped As As a result, two of the companies which the plate revolves it is automaticallyinked, felt that they had equipment suitable for wiped, and polished.There is a row of the Bureau's needs offered their machines grippers recessed into the impressioncylin- for evaluation. The tests of both presses der. The press is equipped with an auto- In each case, were begun early in 1955. matic feeder which holds 10,000sheets the equipment was furnished at no obli- of paper and delivers each sheetindivid- gation or cost to the Government, except ually to a point where it ispositioned into for transporting the presses to the Bureau. the jaws of the impression grippers.These 2 is currently in progress to overcome hold the paper fast, and as thecylinder certain technical difficulties associated with the revolves it carries the paper to thepoint use of paper of similar composition in the wet where one end of the sheet comesin con- printing method. To make this Since no shrink- ight altos were manufactured essary to reduce the plate size to exactly 'lw--il always made slightly larger than the completed notes to compensate for shrinkage in the paper as it dried. age occurs in dry printing, it became nec- that of the printed note in order to retain the original dimensions. in reduction ('4 inch in length, '/8 inch width) the principal portions of the origi- and nal design were taken up on rolls transferred precisely within limits of the smaller size onto a new die; the linkage between the various elements was made by meticulous hand engraving. From the new die, by the eletrolytic process and joined ver- ast Sheet-fed rotary intaglio press for dry printing. As the two cylinders continue

The use of the larger sized plate effected The printing process involves the use of

&4801 O@4-13 impression cylinder, carried on endless ing plate. the sheet is automatically removed from tact with the companion end of the print- the Then the tension grippers relax and

required for the wet printing method were operations in the Bureau. Dies and plates trolytic 32-subject plate. certain changes in plate manufacturing lated nonoffset inks, and an engraved elec- dry, distinctive paper, specially forrnu- end of the press. tapes, and neatly stacked at the delivery to revolve, the whole sheet is printed. 176 HISTORY OF BUREAU OF ENGRAVING AND PRINTING ticallyafterthey had been properly introduced in 1954. However, it was not machined and matched. An eight-sub- incorporated as a .prime feature in the ject basso was thus prepared, which, in design of a currency note until 1957.It turn, was used to make four more altos. had appeared incidentally in four previous These were joined side by side to form instances.The contract made in 1863 the 32-subject alto from which the print- with the American Bank Note Co. for ing plates were produced. The 1957 se- notes of the original series of national bank ries of $1 silver certificates was the first currency specified that the back designs currency printed in its entirety from plates include a reproduction of "the coat of the made solely by the electrolytic process. State from which the note is to be issued." The design of these notes embodied the Since the Florida seal included the word- inscription "In God We Trust" for the ing "In God We Trust," notes prepared first time on any U.S. paper money. for banks in that State consequently bore A sheet-fed rotary press prints approxi- the motto. The seals of the various States mately 2,400 impressions an hour, as com- were also used on national bank notesof pared with 900 impressions an hour on a series 1875 and 1882. The backs of the $5 flatbed press. The work is printed in lots silver certificates, series 1886, depict five of 10,000 sheets.The backs are pro- silver dollars.Portions of the inscrip- duced first and held intact for approxi- tion "In God We Trust" are discernible mately 24 hours to permit the ink to dry. on four of the coins so pictured. They are then faced on another press. An amusing Lincoln remark relative to After the face printing, the work is kept the advisability of putting the motto on in the printing area overnight to allow the greenbacksisreported in Ward Hill black ink to dry. The next day the sheets Lamon's Recollections of Abraham Lin- are delivered to the examining area and coln, 1847-1865.When asked for his thus continue on their way to become view in the matter, the President replied, finished currency notes. "if you are going to put a motto on the The entire operation of sheet-fed rotary greenbacks I would suggest that of Peter printing tf 32-subject dry currency, as and John: 'Silver and gold we have not, well as the subsequent processing of the but what we have we'll give you.'" work, is unique in that all the functions On January 5, 1955, the Honorable are performed in a self-contained area. Charles Bennett, Member of the House This assembly-line production of paper of Representatives from Florida, intro- currency has simplified operations and duced a bill providing that all U.S. cur- enhanced security protection. rency issued more than 6 months after enactment should bear the inscription "In God We Trust."In answer to a request "In God We Trust" from the Office of the Secretary of the The inscription "In God We Trust" has Treasury for comment on the proposal, been used on U.S. coins intermittently the Director of the Bureau stated that if since 1864.It also appeared on the 3- the Department was so disposed, the in- cent and 8-cent ordinary postage stamps scription could be incorporated into the TECHNOLOGICAL ADVANCEMENT 1949-1962 177 design of currency notes in connection rency and coins." The bill wasamended with the introduction of new presses suit- accordingly, passed unanimously by the able for the production of larger size sheets House and Senate, on June 7 and June 29, of currency then being contemplated. respectively, and approved by the Presi- Actually, specific legislation is not re- dent on July 11, 1955 (69 Stat. 290). quired for a change in the design of cur- Meanwhile, the Bureau had begun rency, since the Secretary of the Treasury evaluation of the two types of presses for is empowered by law to issue paper money printing currency in 32-subject sheets by in such form as he deems suitable.Act- the dry intaglio process.At the same ing upon this authority and with the per- time, arrangements were underway to sonal approval of President Dwight D. Ei- prepare new dies and plates for $1 silver senhower, the Secretary decided that certificates bearing the inscription for use rather than wait for the passage of specific on the new equipment.The Bureau legislation, arrangements should be made deemed it practicable to plan for the in- to incorporate the inscription into cur- stallation of the new machines on a grad- rency designs in conjunction with the ual basis.With this in mind, the Bureau adoption of the new printing equipment. felt it could best comply with the spirit In May 1955 the Department advised and intent of the congressional act by the chairman of the House Committee on devoting the new equipment exclusively Banking and Currency, which had Mr. to the printing of $1 notes, since this de- Bennett's bill under consideration, of this nomination represents over 50 percent of decision. At the same time it was pointed the total volume of all paper money now out that if the time element as originally produced. Production on the new presses specified in the bill were allowed to stand, got underway early in July 1957.The it "would create administrative difficulties Bureau made the first delivery of notes as well as a very substantial additional bearing the inscription on September 9, cost."As an alternative the Department 1957, for placement in circulation on proposed that the bill be amended to read October 1. as follows: The output of these new machines was That at such time as new dies for the not sufficient to meet the demands for $1 printing of currency are adopted in con- notes and some bills of this denomination nection with the current program of the continued to be produced on the old Treasury Department to increase the ca- presses. This simultaneous production pacity of presses utilized by the Bureau of Engraving and Printing, the dies shall from the two varieties of plates accounted bear, at such place or places thereon as for the fact that some new $1 notes with- the Secretary of the Treasury may deter- out the inscription were placed in circula- mine to be appropriate, the inscription tion. The situation gave rise to a miscon- "In God We Trust." ception on the part of a great number of The substitution was agreeable to Con- persons throughout the N a t i o n. gressman Bennett with the addition of a Prompted by newspaper, radio, and tele- final clause, "and thereafter this inscrip- vision accounts that were misunderstood, tion shall appear on all United States cur- or by statements that the missing inscrip- 178 HISTORV OF BUREAU OF ENGRAVING AND PRINTING tion from some new notes was tied in stalled,it was decided that any further with atheistic intent, these people wrote refinements would be geared to man- to the White House, the Treasury Depart- power availability.All employees, re- ment, and the Bureau about the matter. gardless of job classification, were assured More than a thousand complaints have that no one would be involuntarily sepa- been received, many of them multiple- rated from the service except for cause. signed petitions and resolutions of protest This job security policy remains in ef- by religious, civic, and veterans' organiza- fect today and involves several guidelines. tions. These are: (1) continuing research is per- Beginning with September 15, 1961, all formed with a view toward improvement $1 notes have been printed with "In God of machinery and systems; (2) installa- We Trust." tion of such machines and systems is geared to normal attrition of regular employees; and (3) outside recruitment is Job Security kept to an essential minimumThis last factor has been accomplished through the With the introduction of the technological detailing of qualified personnel from reg- improvement program, which not only ular work assignments to other assign- improved many processes but also resulted ments as the work programs fluctuate, in substantial increases in productive out- training in new skills, reengineering of put, it was inevitable that there would be jobs for increased efficiency and better a surplus of employees in the Bureau. utilization, and the assignment of over- Many persons hired because of the ex- time work on a temporary basis as re- igencies of World War II were still on the quired by the various work situations. rolls. As the improvement program pro- The success of the job security policy gressed, it became necessary to resort to was well expressed in the statement made reductions in force.Every effort was by the Director before a House of Repre- made to lessen the impact of the employ- sentatives Appropriations subcommittee ment situation.Nevertheless, many em- on March 6, 1961, when he said: ployees became apprehensive for their jobs because of the layoffs and the esprit de In pursuit of my policy of guaranteeing corps frr which the Bureau was so well job assurance, these people [Bureau employees] have worked diligently and have known was adversely affected.Under- brought about great increases in produc- standably, some employees were not en- tivity.In the 32-subject note category, thusiastic about the installation of fur- for example, there has been a 300 percent ther improvements that might result in increase in unit productivity. their loss of employment.Recognizing extent of the improvements already the situation, in 1957 the Bureau initiated installed can be recognized through statistics a policy that can well be regarded as showing that, notwithstanding a 45-percent in- unique in Government operations. Those crease in wages and a 25-percent rise in materials costs, it was possible to reduce the price improvements deemed essential to eco- of currency by approximately 8 percent in the nomical operation having already been in- period of 1951-61. TECHNOLOGICAL ADVANCEMENT 1949-1962 179

On our postage stamp presses, because commemorative stamps printed by the of the enlightened attitude of manage- Bureauwould be produced in bicolor. ment and labor, there has been a unit in- However, with the outbreak of the Span- crease of 250 percent. ish-American War in April 1898 and the Accordingly we propose to continue these job assurances, and take full ad- subsequent heavy demands for the Bu- vantage of the fact that these people are reau's service in the production of war turning out more work because they know revenue items, the idea wasabandoned. they are not working themselves out of a Nevertheless, the issue was outstanding in job. its designs.The book, "Postage Stamp Design" published by the National Phila- Multicolor Postage Stamps telic Museum, says of this series: Writing to the Acting Director of the Bu- Deviating from stereotyped banknote design, the ornamental forms exemplified reau in October 1900, the Third Assistant in the Trans-Mississippi issue of 1898 Postmaster General stated: showed imaginative invention that made I desire to say to you in this personal this issue one of the best designed series way that I am especially gratified at the of its era. statement in your letter, that the stamps The commemorative stamps issued in may be printed in two colors.I have all along believed that there is no reason why connection with the Pan-American Ex- this government should not get out the position held in Buffalo, N.Y., in 1901 best stamps under the sun. were the first bicolor stamps producedin Since the beginning of its printing U.S. the Bureau. The six denominations com- postage stamps in 1894, the Bureau has prising this series were printed with dis- spared no effort to produce "the best tinctive borders, each of a different color, stamps under the sun."Ideally, postage and the vignettes, or central subjects, in stamps should be absolutely secure against black. counterfeiting and esthetically attractive There were other two-color stamps as well.The engraved printing process printed, the 1918 24-cent airmail issue Its is a method for approaching this end; the being probably the most well known. production of a stamp in more than one fame can be attributed to a quirk of fate. color is a further step in that direction. The stamp had as its central subject a However, until the development of suit- mailplaneinflight.Inadvertently, a able printing equipment, stamps designed sheet of these stamps was imprinted with in multiple colors required the use of a the plane upside-down. The error went different plate for each color and the in- undetected through a number of exami- dividual colors had to be printed in sep- nations and it was only after the sheet arate operations. of stamps was sold at a post office window The Post Office Department issued the that the purchaser realized that he had first bicolor postage stamp in 1869.It an oddity.The story of the high price was originally planned that the Trans- at which the original buyer disposedof Mississippi-"Omaha"Exposition1898 the item and the even higher amounts issue of postage stampsthe first set of paid for it at subsequent resales was widely 180 HISTORY OF BUREAU OF ENGRAVING AND PRINTING Since there was a growing demand for more colorful postage stamps, at the conclusion of the currency tests late in 1956 it was decided to acquire this press for further experimentation in connectbn with the production of stamps.Initial expectations concerning this machine were soon justified and it was used to produce the 4-cent American Flag stamp issued on July 4, 1957.This was the first time that our flag had been reproduced in full color on a U.S. postage stamp, a step that was The $1 denomination of the Trans-Mississippi- "Omaha" commemorative issue is considered widely acclaimed. by many philatelists as the most beautiful U.S. The operation of this press differs from postage stamp of the 19th century. other plate printing presses in the Bureau in that a separate fountain and series of publicized and placed the issue in the rollers are used for each color. The rub- celebrity class. ber rollers are cut out in such a manner Inthepost-World War IIyears, that the different-colored inks are placed marked by a tremendous advancement in on the plate exactly where needed. The the field of graphic arts, many countries surplus ink is removed from the plates by issuedvarietiesof multicolor stamps a set of gelatin rollers which are cleaned printed by typographic, lithographic, or as they revolve through a solvent bath. In gravure methods. Recognizing the grow- this manner the plates are cleaned without ing interest in multicolor stamps, the Bu- the use of paper wipers.The combina- reau intensively explored the potentiali- tion of these features permits a multi- ties of these processes for the printing of colored impression with only one pass of U.S. postage stamps.However, the re- the paper through the press and still resultant printed impressions were consid- tains the security aspect peculiar to the ered to be definitely inferior in quality to intaglio process. intaglio printed work.This factor, cou- Work is produced on the press in lots pled with the knowledge that the equip- of 5,000 sheets.Pregummed paper is ment employed in the processes was read- used.The paper is stacked in a feeder ily available on the open market and thus mechanism and as the printer starts the could be easily secured by counterfeiters, press, each sheet is separated from the impelled rejection of the use of the more pile by forced air, picked up by suction common printing methods. cups, and fed down the feedhoard of the During the period of evaluation of the press where grippers on the impression two intaglio sheet-fed rotary presses in cylinder carry it to the printing point. A 1955 and 1956 for the dry printing of cur- pair of identical printing plates is secured rency, one nf the machines showed exten- to the plate cylinder. The rotating plates sive potentialities for multicolor printing. are successively inked by theinking-in Multicolor high-speed sheet-fed rotary intaglio press. rollers, prewiped, wiped, and brought to other color or an intensified shading of the printing position.As the cylinders one of the basic inks.The colors stay revolve, the impression cylinder presses remarkably constant throughout long runs the paper down into the incised lines of of the press.The Frederic Remington the engraving, producing an impression commemorative stamp, which was printed on the ungummed side of the paper. by this technique and issued in October After the sheet is printed, it is automati- 1961, was accorded a great deal of in- cally removed from the plate by another terested, complimentary comment from set of grippers on an endless chain and the public at large. stacked in a pile.When completed, the 5,000-sheet unit is removed from the press and held intact until the ink is completely Project Mercury Stamp dry. Shortly after Astronaut Alan Shepard be- The various stamps produced on this came America's first space pioneer, Post press were so well received that the Bu- Office Department officials conceived the reau purchased another of these machines idea of a special postage stamp as a suit- in 1959.The printers and technicians able tribute to this country's space ex- continuedtheirexperimentation and ploration efforts.The proposal for is- found it possible to cut the rubber rollers suing a commemorative stamp simul- so that colors in certain areas could be taneously with the completion of the first blendedthe inks actually become mixed orbital flight by an American astronaut in the recesses of the engraved plates as was worked out with officials of the Na- the press operates, thereby creating an- tional Aeronautics and Space Administra- 182 HISTOR? OF BUREAU OF ENGRAVING AND PRINTING

ASTRONAUT

FIRST DAY OF ISSUE

DESIGNER L0J\. (L-' ENGRAVER - VIGNETTE Bureau of Engraving and Printing Washington 25, D. C.

ENGRAVER - LETTERING & NUMERAL

A first-day cover of the 4-cent Project Mercury commemorative postage stamp, specially autographed for this history.

tion and the Bureau.Because of the ostensibly took annual leave from his job; possibility that the flight might be unsuc- actually, he went into seclusion at his home cessful, it was decided to withhold any ad- studio to design the item. The engraver vance notice relating to the stamp. The who did the lettering performed his work stamp was produced under strict security on weekends when no one else was in precautions. the shop.The picture engraver, sup- The stamp was designated as the 4-cent posedly on vacation, came in at night to Project Mercury commemorative issue. engrave the central subject for the new A log of the activities relating to the print- stamp.The printing plates were made ing and processing of this item would read when the manufacturing division was like a cloak-and-dagger drama. Nor- supposedly closed. The multicolor press- mally, transactions between the Post Of- room was completely sealed off from the fice Department and the Bureau are rest of the plant and declared "off limits" handled on the basis of formal written except for persons directly concerned. orders and receipts, but in this instance all When production of the stamps was instructions were given verbally and the completed, they were removed--over a proposed designs, models, and die proofs weekendto the packaging and shipping were transmitted by hand-to-hand opera- area.There they were stored in a newly tions. The Bureau's designer of the stamp finished vault.Unbeknown to a dozen TECHNOLOGICAL ADVANCEMENT 1949-1962 183

or so employees who worked in the area, For the first time in American history, the new storage space was already loaded a stamp went on sale all over the Nation to capacity with a "secret" stamp. On at the exact hour of the event it memorial- weekends the stamps were dispatched ized, with no advance "leak" that it was from the Bureau to the registry section forthcoming. of the Washington city post office for shipment throughout the country.Postal in- Fin is spectors at 301 points across the Nation were alerted to receive unidentified sealed It is appropriate that this history of the packages from Washington, to be kept first 100 years of the Bureau of Engraving unopened awaiting further instructions. and Printing end with the telling of its Meanwhile, the Post Office Department part in the production of the "U.S. Man had two philatelic canceling machines in Space" stamp.This stamp was issued shipped from Detroit to the postmaster to memoralize our country's efforts toward at Jacksonville, Fla., with instructions that the increase of scientific knowledge and they be held for postal equipment tech- the maintenance of constant vigilance in nicians. The Post Office Department tr- the protection of the ideals on which the dered 1 million unmarked envelopes, os- Nation was founded.These 100 years tensibly for headquarters' supplies, but in embody a constant effort to improve the realityto be processedas"first-day Bureau's products and the methods, proc- covers"souvenir day-of-issue cancella- esses, and equipment used.These years tions marking the momentous achieve- cover a period of notable accomplishment ment at Cape Canaveral.Project Mer- in the printing of our Government's se- cury stamps were affixed to the envelopes curities.The span embodies the gamut by employees tf the Department's Phil- of all the experiences to which the human atelic Section, working behind locked spiritis subjectedsuccess and failure, doors at night and over weekends. A pride and frustration, joy and sorrow. large number of the stamped envelopes The Bureau's history has been the were transported to Cape Canaveral and heartbeat of many people.Each and the canceling machines were ordered to be every employee, beginning with the nu- delivered to a National Aeronautics and cleus of 6 on that summer day of August Space Administra.tion official there.All 29, 1862, down through the years until was in readiness for issue of the new today's force of almost 3,000 persons, has stamp. made his contribution to the Bureau's suc- At 3:30 p.m., February 20, 1962, the cess.No matter how small the task, it moment that Astronaut John Glenn was has been an integral part of "getting the retrieved from the ocean and his flight job done."There have been countless pronounced a success, postal inspectors numbers who have lived and labored as throughout the country were instructed though it were "their" Bureau. And truly to open the sealed cartons and release the it is theirs, for they did everything in their contents for sale.Immediately, cancella- power to make it a better place to work tion was begun of the first-day covers. and showed such pride in their perform- 184 HISTORY OF BUREAU OF ENGRAVING AND PRINTING ance that no order was too big or too small for the Bureau and the Secret Service as long as the end results were the best ob- have to be met to deter and suppress tainable. counterfeiting.Eternal vigilance is the Today, the Bureau rededicates itself preface in guarding against surreptitious toward fulfillment of its statutory man- reproduction of our currencya currency date, that it shall perform its functions which has gained widespread acceptance with economy, perfection, and safety. at home and abroad. Time passes swiftly and inexorably.As As with the famous bard, the Bureau new or refined reproduction devices and looks upon the past as but a prologue to methods become available, new challenges the future. -7_v IN TRIBUTE. TO THOSE WHO MADE THE SUPREME SACRIFIcE WORLD WAR I 1917-18

AMES R. GOGGINS

'T rccy ,cvrtrty' Bibliography

ADAMS, JAMES TRUSLOW (ed.).Album of of a PhenomenalEra. (No publisher), 1899, American History.Vol. I, "Colonial Peri- 720 pp. od"; Vol. II, "1783-1853."New York: BROOKMAN, LESTER G.The 19th Century Charles Scribner's Sons, 1944. Postage Stamps of the United States.Vol. AMES, MARY CLEMMER. Ten Years In Wash- I.New York: H. L. Lindquist, 1947, 319 ington: Life and Scenes in the National Cap- pp. ital as a Woman Sees Them.Cincinnati: BUREAU OF ENGRAVING AND PRINTING COOPERA- Queen City Publishing Co., 1874, 587 pp. TIVE LUNCH ASSOCIATION.The Coopera- AMERICAN NUMISMATIC AsSOCIATION.Selec- tor,1921-1922.Washington: Privately tions from The Numismatist: United States printed, 1922, 48 pp. Paper Money, Tokens, Medals, and Mis- BUREAU OF ENGRAVING AND PRINTING MUTUAL cellaneous.Racine, Wis.: Whitman Pub- RELIEF ASSOCIATION. Year Book, 1903- lishing Co., 1960, 317 pp. 1904. Washington: Privately printed, 1904, BAKER,L[AFAYETTE]C.Historyofthe 72 pp. United States Secret Service.Philadelphia: CAROTHERS, NEIL.Fractional Money: A His- Privately printed, 1867, 704 pp. tory of the Small Coins and Fractional Paper BATHE, GREVILLE AND DOROTHY. Jacob Per- Currency of the United States. New York: kins, His Inventions, His Times and His John Wiley & Sons, Inc., 1930, 372 pp. Contemporaries.Philadelphia:Historical CHRISTOPH, ART, and KRAUSE, CHET. United Society of Pennsylvania, 1943, 215 pp. States Postage and Fractional Currency, BAYLEY, RAFAEL A. The National Loans of 1862-1872.lola, Wis.:(Reprinted from the United States From July 4, 1776 to June Numismatic News), 1958, 39 pp. 30, 1880.Washington: Government Print- COFFIN, JOSEPH. Our American Money. New ing Office, 1881, 197 pp. York: Coward-McCann, Inc., 1940, 153 pp. BLAKE, GEORGE H.United StatesPaper DEKNIGHT, WILLIAM. History of Currency Money: A Reference List of Paper Money of the Country and of the Loans of the Including Fractional Currency Issued Since United States from the Earliest Period to 1861. New York: Privately printed, 1909, June 30, 1896. 2d ed.Washington: Gov- ernment Printing Office, 1900, 277 pp. 55 pp. DILLISFIN, WILLIAM H. National Bank Notes BoAar OF GOVERNORS OF THE FEDERAL RE- in the Early Years.Paterson, N.J.:(Re- SERVE SYSTEM. The Federal Reserve Sys- printed from the Numismatist, Vol. 41, No. tem: Purpose and Functions, 4th ed. Wash- 12, December 1948), 24 pp. ington: Privately printed, 1961, 238 pp. A Descriptive History of National BOSTON, WILLIAM C."Coin Shortage," The Bank Notes, 1863-1935.Paterson, N.J.: Numismatist, Vol. 69, No. 8 (August 1956), Privately printed, 55 pp. p. 884-885. DONALD, DAVID. (ed.)Inside Lincoln's Cabi- BOWEN, WALTER S., and NEAL, HARRY E. net: The Civil War Diaries of Salmon P. The United States Secret Service. Phila- Chase. New York: Longmans, Green & Co., delphia: Chilton Co. (Book Division), 1960, 1954,432 pp. 205 pp. DOSTER, WILLIAM E.Lincoln and Episodes Boyr,, JAMES P. (ed.).Triumphs and Won- of the Civil War. New York: G. P. Put- ders of the 19th Century: The True Mirror nam's Sons, 1915, 282 pp.

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DuPuy, WILLIAM ATHERTON.Money. Bos- in the United States.Rev. ed. New York: ton: D.C. Heath & Co., 1927, 181 pp. Macmillan Co., 1924, 573 pp. ELLIS, JOHN B.Sights and Secrets of the Na- HOOBRR, RICHARD T."Financial History of tional Capital.New York: U.S. Publish- Colonial Virginia."The Numismatist, Vol. ing Co., 1869, 512 pp. 66, No. 11, November 1953, p. 1138-1152; Evening Star (Washington, D.C.) 1864, 1918, No. 12, December 1953, p. 1266-1282. 1922, 1923, 1928 HOWARD, GEORGE P.The Stamp Machines FIELD, MAUNSELL BRADIIURST. Memories of and Coiled Stamps. New York: Lindquist Many Men and Some Women. New York: Publications. 1943. 127 pp. Harper& Bros., 1874, 339 pp. JOHL, MAX G.The United States Commem- FIELDING, MANTLE. AmericanEngravers orative Stamps of the Twentieth Century. Upon Copper and Steel.Philadelphia: Pri- Vol. I (1901-35), Vol. II (1935-47). New vately printed, 1917, 365 pp. York: H. L. Lindquist, 1947, 356 and 382 DictionaryofAmericanPainters, pp. Sculptors, and Engravers. New Ytrk: Paul United States Postage Stamps of the A. Struck, 1945,433 pp. Twentieth Century.Vol. III (1922-35), FLADER, LoUIS, and MERTLE, J. S.Modern Vol. IV (1933-37). New York: H. L. Lind- Photoengraving: A Practical Textbook on quist, 1935 and 1938, 286 and 309 pp. La t e s t American Procedures.Chicago: KEIM, DEB. RANDOLPH.Keim's Illustrated Modern Photoengraving Publishers, 1948, Hand-Book of Washington and Its Environs: A Descriptive and Historical Handbook of 344pp. the Capital of the United States of America. FRANKLIN, BENJAMIN.Autobiography.Bos- ton: Houghton Muffin Co., 1923, 286 pp. 15th ed.(Corrected to 1881.)Washing- ton: Privately printed, 1881, 252 pp. FRIEDBERG, ROBERT. Paper Money of the KING, DAVID H., GIBBS, A. JUDSON, and United States: A Complete Illustrated Guide NORTHUP, JAY H. History of the 93rd Regi- with Valuations. 3d ed.New York: The ment, New York Volunteer Infantry, 1861- Coin and Currency Institute, Inc., 1959, 303 1865. Milwaukee, Wis.: Assoc. 93 N.Y.S.V. -pp. (Vols.), 1895, 639 pp. GAIEL, R. H. (ed.) "American Money," p. KING, BEVERLY S., and JOHL, MAX G.The 283-297, and "Banking," p. 298-311, Pag- UnitedStatesPostageStampsofthe eant of America, Vol. IV. New Haven: Yale Twentieth Century. Vol. I (1901-22), Vol. University Press, 1927. II (1923-1933). New York: H. L. Lind- GRIFFITHS, WILLIAM H. The Story of the quist, 1934, 371 and 269 pp. American Bank Note Company. New York: KNIGHT, EDWARD H.American Mechanical Privately printed, 1959,92 pp. Dictionary. (3 vols.) New York: J. B. Ford GROCE, GEORGE C., and WALLACE, DAVID H. & Co., 1875, 2,831 pp. The New-York Historical Society's Diction- KUNZR, ALBERT (ed.). The Presidential Series ary of Artists in America, 1564-1860. New Manual.Pittsburgh: Tanki Mail Advertis- Haven, Conn.: Yale University Press, 1957, ing Service, 1939, 43 pp. 759pp. LAMON, WARD HILL(editedby Dorothy HAHN, GEORGE C. United States Famous Lamon Teillard). Recollections of Abraham American Series of 1940.State College, Lincoln,1847-1865.Washington: Pri- Pa.: American Philatelic Society, Inc., 1950, vately printed, 1911,337 pp. 193 pp. LIMPERT, FRANK ALVIN (comp.). United HARMER, GORDON P., and COSTALES, EUGENE States Paper Money, Original Series, Series N.Scott's Specialized Catalogue of United 1861-1923, Inclusive.3d ed. rev.Royal States Stamps.40th ed. New York: Scott Oak, Mich.: Privately printed, 1948, 110 pp. Publications, 1962, 641 pp. LLOYD, ROBERT H."National Bank Notes, HEPBURN, A. BARTON. A History of Currency Federal Reserve Bank Notes, Federal Re-

648-001 0 - 64 - 14 188 HISTORY OF BUREAU OF ENGRAVING AND PRINTING

serve Notes.1928-1950." The Coin Col- ent { 19411. Washington: Government Print- lector's Journal.Vol. 20, No. 1 (January ing Office, 1941, 162 pp. February 1953),p. 1-16. U.S. COMPTROLLER OF THE CURRENCY. "His- LOGAN, Mrs. JOHN A.Thirty Years in Wash- tory and Development of the National Bank ington: Life and Scenes in Our National Note."73d Annual Report of the Comp- Capital.Hartford, Conn.: A. D. Worth- troller of the Currency.Washington: Gov- ington& Co., 1901, 752 pp. ernment Printing Office, 1935, p. 817-842. LUFF, JOHN N.The Postage Stamps of the U.S. DEPARTMENT OF AGRICULTURE. Farmers United States.New York: Scott Stamp & in a Changing World: 1940 Yearbook of Coin Co., Ltd., 1902, 320 pp. Agriculture. Washington: Government MCCULLOCH, HUGH. Men and Measures of Printing Office, 1940, 1,213 pp. Half a Century. New York: C. Scribner's U.S. DEPARTMENT OF STATE. The History of Sons, 1888, 542 pp. the Seal of the United States.Washington: MOORE, FRANK.The Rebellion Record: A Government Printing Office, 1909, 72 pp. Diary of American Events.Vol. 7.New U.S.POST OFFICE DEPARTMENT. Postage York: Van Nostrand, 1864, 604 pp. Stamps of the United States: An Illustrated MORRIS, THOMAS F. "History of the Bureau Description of All United States Postage and of Engraving and Printing."The Stamp Special Service Stamps Issued by the Post SpecialistGray Book.New York: H. L. Office Department from July 1, 1847 to De- Lindquist, 1943, p. 92-119. cember 31, 1961. Washington: Government NEWMAN, ERIC P."Counterfeit Continental Printing Office, 1962, 229 pp. Currency Goes to War."The Numismatist, U.S. POSTMASTER GENERAL. Annual Reports Vol. 70, No. 1 (January 1957), p. 5-16. of (1894-1961). Washington: Government NUSSBAUM, ARTHUR. A History of the Dollar. Printing Office. New York: Columbia University Press, 1957, U.S. PUBLIC BUILDINGS COMMISSION.Public 308 pp. BuildingsintheDistrictofColumbia. OTTLEY, WILLIAM YOUNG. An Inquiry into (S. Doc. 155, 65th Cong., 2d sess.) Wash- the Origin and Early History of Engraving. ington: Government Printing Office, 1918, 2 vols London: John & Arthur Arch, 1816, 614 pp. 836 pp. U.S. SECRETARY OF THE TREASURY. Annual ST. CLAIR, LABERT.The Story of the Liberty Reports of the Secretary of the Treasury Loans.Washington: James William Bryan on the State of the Finances (1861-1960). Press, 1919, 186 pp. Washington: Government Printing Office. SCHMECKEBIER, LAURENCE F.The Bureau of U.S. SECRET SERVICE. Know Your Money. Engraving and Printing; Its History, Activi- Rev.Washington:GovernmentPrinting ties, and Organization.(Institute of Gov- Office, 1960,32 pp. ernment Research of the Brookings Institu- UNIVERSITY OF CHICAGO."Banknotes."En- tion; Service Monograph of U.S. Govern- cyclopaedia Britannica.(1947 ed.)Vol. ment, No. 56).Baltimore: Johns Hopkins 3, p. 51-53. Press, 1929, 111 pp. VALENTINE, DANIEL W. Fractional Currency SPELTZ, ALEXANDER. (Translated from the of the United States.(2 vols. in one.) New 2d ed. by David O'Conor.)Styles of Orna- ment. New York: Grossett & Dunlap, no York: F. C. C. Boyd, 1924, 53 and 48 pp. 1910, 1919. date, 647 pp. Washington Post. WEITENKAMP, FRANK. How To Appreciate STAUFFER, DAVID MCNEALY.American En- gravers Upon Copper and Steel.2 vols. New Prints.New York: Moffatt, Yard & Co., York: Grolier Club, 1907, 391 and 566 1908, 330 pp. pages. WILHELM, DONALD. "Paul Revere Without U.S. CIVIL SERVICE COMMISSION.History of His Horse." Nation's Business.Vol. 20, No. the Federal Civil Service, 1789 to the Pres- 4 (April 1932),p.35-38,64. Index

A Acts of Congress-Continued Page Acts of Congress Page Salary Act of 1853 55 12 Stat. 259-July 17, 1861 1 Urgent Deficiency Bill for 1918 106 12 Stat. 313-August 5, 1861___... 2 Veterans Bonus Bill-January 27, 12 Stat. 346-February 25, 1862_ 2 1936 120 12 Stat. 432-july 1, 1862 27 See also Appropriation acts. 12 Stat. 532-July 11, 1862 5, 16 Agriculture, Department of 43, 12 Stat. 592-July 17, 1862 9 48, 87, 134, 135 12 Stat. 665-February 25, 1863_ 21 Alaska-Yukon-Pacific Exposition 27 12 Stat. 711-March 3, 1863 3, 11 Albania 149 13 Stat. 220-June 30, 1864 11 Allied Military currency: 143, 145, 146 13 Stat. 222- 36 Austrian schilling 146 14 Stat. 25 12, 132 German mark 146, 153-155 15 Stat. 312-March 3, 1869..___ 24 Italian lire 143, 145 18 Stat. 110-June 20, 1874____ 24 Allied Military postage stamps 144, 147 19 Stat. 152 29 Alto 108, 175, 176 20 Stat. 211 43 American Bank Note Co__ 1, 18, 107, 119, 20 Stat. 357 58 149, 176 21 Stat. 260-june 16, 1880._ 46 American Chemical Society 92 21 Stat. 376 62 American Red Cross 87, 100, 150, 151 24 Stat. 607 34 Antipower-press cantpaign 107 25 Stat. 511 35 Appropriation acts: 25 Stat. 945 35 18 Stat. 110-June 20, 1874 24 26 Stat. 374-August 30, 1890 46 21 Stat. 376-Post Office Depart- 30 Stat. 18-July 11, 1896 24 ment, 1881 62 30 Stat. 604 107 25 Stat. 945-For 1890 35 30 Stat. 1082 107 37 Stat. 595-August 26, 1912 78 30 Stat. 1090 29 Post Office Department, l879 62 31 Stat. 589-June 6, 1900 48 Armistice - 102 32 Stat. 952-March 2, 1903 66 Army, U.S 143, 147, 153 32 Stat. 1039 48 Astronauts: 32 Stat. 1211 48 Glenn, John 183 34 Stat. 475 65 Shepard, Alan 181 34 Stat. 1306 86 Audubon, John James 133 34 Stat. 1309 107 Austin, Erwin 132 35 Stat. 319-May 27, 1908 88 Australia 148 37 Stat. 34-August 1911 89 Austria 90, 144, 149, 153 37 Stat. 430-August 24, 1912..95, 107 Automatic delivery devices 74, 162 37 Stat. 595-August 26, 1912 78 Automatic feeders 162-163 38 Stat. 745-October 22, l914 95 Automatic wipers 160, 162 39 Stat. 360-July 17, 1916 92 Aviators' emergency money packets 149 40 Stat. 349-October 6, 1917__. 106 Awards: 41 Stat. 44-July 11, 1919 106 Dem Verdienste 24 42 Stat. 1099-January 3, 1923 108 Diploma de Honor 27 47 Stat. 583 39 Diplome d'Honneur 27 49 Stat. 600-August 13, 1935 128 First International 24-27 49 Stat. 1640-June 1936 129 Gold Medal 27 64 Stat. 408-August 4, 1950 165 Grand Prix 27 69 Stat. 290-July 11, l955 177 Grand Prize 27 March 9, 1933 116 Length-of-service 56 Emergency Bank Act 117 Medal of Honor 27 Pendleton Act 55 Axis Powers 137, 143, 149

189 INDEX 190 Page B Bureau ofEngraving andPrinting, Page title 2 3-24, 48 Baker, Lafayette C 16, 17, 19, 37 Bureau of Insular Affairs (War Depart- Baldini, Baccio XII ment) 66 Banknote industry xiv, xv, 15, 130, 170 Bureau of the Mint (Treasury Depart- Banknote printing XVII, XVIII ment) 43, 122, 124, 132 Banks of England and France 40 Bureau of the Public Debt (Treasury 97 Department) 78, 128, 139, 150 Barytes 151-153 Basso 108, 109, 176 Bureau, tours of Battle of Coral Sea 142 Burin xs Battle of Midway 142 Burt, Charles 7, 61 Bauer, Charles H 132 Beer stamps 28, 29, 107 C Belgium 149 146 32 California, State of, Bureau of Printing_ Bell, Hiram P. (M.C.) Canada XIII Bennett, Charles (MC.) 176, 177 183 169 Cape Canaveral Beta-ray apparatus Casilear, George W 8, 13 Bicolor postage stamps____ 132,168, 173, 179 Centennial Commission, U.S 26 Bicolor savings stamps 141 Centennial Exposition, 1876 26, 156 Blood donor program 151 Certificates (as securities) 38, 99 Bonds 106, 139 Charwomen 55 Adjusted service 120 Chase, Salmon P 1, "Baby" 119-121, 139 3, 4, 5, 9, 16, 19, 20, 22, 35, 36 Bonus 121 Checks 97, 102, 117-1 19 Defense 96, 137, 139 Chief, Bureau of Engraving and Print- Duplicate 104-106 ing.See Director. Early 11 Chroming of plates 109 Federal Farm Mortgage Corpora- Cigar stamps 29, 34, 71, 107 tion 120 Cigarette stamps 27, 28, 29, 71, 96 Five-Twenties of 1862 14 Civil Service 51-57, 92, 103, 105 Home Owners' Loan Corporation- 120 Civil War xviss, 1, 9, 16, 27, 52, 53, 95 Liberty Loan 92-95, Clark, Spencer M___ 1,2,3,4,5, 7,8, 11, 12, 99, 100, 102, 103, 104, 106, 138, 139 13, 16, 17, 18, 19, 20, 21, 22, 23, 35, Postal savings 141 40, 41, 53, 54, 115, 151, 166, 171, 172 Savings 96, 119-121,151, 165 Cleveland, Grover 8, 55, 133 Ten-Twenties of 1864 15 Clinton, DeWitt 27, 28, 96 Victory Loan 94 Coast Guard, U.S 146 War savings 96, 138-140 36, 39 65 Code, United States Books, postage stamp See Postage Bottled liquor strip stamps 97 Coiled postage stamps. Boutwell, George S 37 stamps. Coins XIII, XVIII, 9, 58 Boy Scouts 139 See 172 Commemorative postage stamps. British-American Bank Note Co., Ltd_ Postage stamps. British Army XIV 89 91 Commission of Fine Arts British Embassy Commissioner of Internal Revenue 27, 29 British Government 91, 144, 147 Commissioners, District of Columbia 102 Bronzing 4, 10, 11 Committee, French National Libera- 17 Brooks, James (M.C.) tion 144 Brown, Alonzo Y 55 Committee, French postage stamps 147 55, 56 Brown, Emma 5 Committees: Budget, Bureau of the 165 Congressional 17 Budget, business-type 165 House: Buffalo, New York 99 Appropriations 59, Buildings, Bureau 40-49 81, 87, 88, 99, 107 Annex 90, 128-130, 131, 137, 150 Appropriationssubcom- Main 42, 46, mittee 178 57, 84-90, 98, 103, 128, 129, 130, 152 Banking and Currency 32, Red brick 47, 48, 87, 88, 151 104, 177 Bureau of Construction (Treasury De- Select 16, 22 partment) 2, 3 Joint:Select, on Retrench- Bureau of Efficiency 111 ment 22, 23, 54 INDEX 191

Committees-Continued Currency-Continued Page Congressional-Continued 18-subject 159-162 Senate: Page Emergency 116-117 Appropriations 153 Federal, need for xviii Armed Services 153 First Colonial XIII Banking and Currency 153 First U.S. Government 1, 13 Finance 30 Foreign, not printed 123-1 24 Military Affairs 106 4-subject 3 Printing 108 Fractional____ 8-13, 19, 20, 36, 37, 172 Public Buildingsand French franc 143, 146 Grounds 43 Hawaiian 142-143 Departmental 41, 58 Invasion 141-147 Compound interest notes 3, 13 Korean 124-125 Compound liquor stamps 29 Laundering machines 76-79 Comptroller, First or Second (Treasury Military 143, 144, 147, 153 Department) 2 Notes: Comptroller of the Currency (Treasury Compound interest 3, 13 Department) 21, 22, 23, 81 Demand 1 Confederacy 61 Federal Reserve 81, 112, 114, Congress (see also Committees, Con- 117, 121, 142, 163-165, 170, 171 gressional) 1, 2, 12, 13, 17, 23, 35, Federal Reserve Bank_ 102, 116-117 40, 45, 46, 47, 58, 86, 88, 89, 100, 153, Gold certificates 58, 165 72, 110, 114,121 Congressional acts.See Acts of Con- Interest bearing 3 gress. National Bank 22, Congressional committees.See Com- 38, 59, 110, 112, 114, 115, 121, 176 mittees. Non-interest bearing 2 Construction, Bureau of (Treasury De- Silvercertificates 72, partment) 2, 3 102, 107, 110, 114, 121, 142, Congressmen: 143, 150, 163, 164, 176. Bell, Hiram P 32 Treasury___._ 3,4, 5, 13, 21, 107, 165 Bennett, Charles 176, 177 U.S - 5,37,38,58,72, 107, 110, 114 Brooks, James 17 Notes, loss of 151, 166-167 Jenckes, Thomas Allen 53 Numbering 59, 112, 113, 121 Continental Bank Note Co 22 Overprinting___114, 115, 159, 163, 164 Continental Congress xiii Paper, distinctive 35-39, Continental currency xlii, xiv 78-79, 114, 124, 173-174 Coolidge, Calvin 105 Philippine 65-6 7, 110, 148, 149 Copperplate printing xii, xiii, xiv. xv Plates.See Plates. Coral Sea, Battle of 142 Postage.See Fractional. Corcoran, William W 43 "R" and "S" notes 149-150 Cotton, distinctive paper 78 Redemption of 149-150 Cotton order stamps 134, 135 Sealing 2-5, 57-59, 72-73, 121 Counterfeit xi, Sealing,trimming, and separat- xiii, xiv, xvii, 2, 11, 18, 35, 36, 79, 90, ing 3, 21, 59 113,114,130,144,145,154, 180 Seals, distinct colors 121 Cox, Kenyon 111 Separation of notes 72, 73 Crane & Co 37,39 "Shinplaster" 9 Cross, Maggie 56 Siamese 124 Crystal Palace (London) 24 Small-sized notes 17, Cuba, Republic of 65, 66, 67, 124 38, 66,110,114,115,130,157,159 Cub'an currency 66, 124 Soiled 76-79 Cuban postage stamps 66, 67 32-subject 175, 176, 177 Currency_ 59, 65, 106, 108, 142, 143, 144, 153 Trimming and separating 3-5, 21 Allied Military 143-146, 153-155 12-subject 112, 137, 157 Cuban 66, 124 Uncut sheets 59,114 Denominational-portrait design__ 114 Uniform back design 111, 114 Designs 110, 111, 112, 121-123 Yellow seal 143 Destruction 77 Custodian, dies and rolls 8 Dry printing of 18-20, Custom cigar stamps 28, 29 39, 109, 156, 172-1 76, 177 Custom wine stamps 71 8-subject 112, 137 Czechoslovakia 149 192 INDEX

D Page Page Electrolytic plates____ 103, 108-109, 175-176 Declaration of Independence 26, 123 Electrolytic process__ 103, 108-109, 175-176 Delivery and production statistics____ 13 Electrotypes 95 20, 24, 28, 29, 34, 46, 61, 62, 64, 66, Elevators 50 71-78, 96, 102, 109, 120, 127, 136, Emergency Bank Act 118 139, 141, 145, 148, 150, 163, 167, 176 Emergency currency 116-117 Delnoce, Louis 7 Employees: Dem Verdienste medal 24 Band 53 Demand notes 1 Dismissal of 29 103-106 Denatured alcohol stamps 29 538 dropped 58 Denmark 149 Furloughs 115-116 Depression of 1837 9 Longevity 55-5 7 Depression of early 1930's 115-116 Personal effort 99-101, 150-151 Detroit, Michigan 183 Reductions in force 103, 121, 178 Die sinker xvi England XIII, 90, 156 Diploma de Honor 27 England, Bank of 40 Diplome d' Honneur 27 Engravers: Directors, Bureau of Engraving and Burt, Charles 7, 61 Printing____ 33, 50, 52, 55, 62, 70, 73, 74, Casilear, George W 8, 13 76, 81, 86, 91, 97, 99, 106, 108, 110, Delnoce, Louis 7 128, 151, 153, 154, 155, 157, 165, 167, Duthie, James 5, 6, 7 176 First 5 Clark Spencer M ._. 1, Gugler, Henry 8 2,3,4,5,8, 11, 12, 13, 16, 17, 18, 19, Hall, Edward M 56 20, 21, 22, 23, 35, 40, 41, 53, 54, 115, Hobart, Elisha 7, 8 151, 166, 171, 172 McCoy, George 61 Graves, Edward 0 59 McLees, Archibald 6, 7 Irish, 0. H 6, 7, 17, 20, 151 Originalstaff 7-8 Kirby, Wallace W 105, 106 Ourdan, Joseph James P 7 McCartee, George B 17, Ourdan, Joseph P 6, 7 23, 60, 151, 166 Portrait 6 Ralph, Joseph B 89 Prud'homme, John F. E 7 Sullivan, Thomas J 49, 57 Sealey, Alfred 7 Wilmeth, James L 104, 105 Etching xi Dismissals, employees 103-106 Euclid's Principles xii Disbursing Officers, U.S 118 Examining operations 74-75, 98, 158 Distilledspirits stamps 28, 29 Executive order 103, 104, 105 Distillery warehouse stamps 71 Exhibitions 24 Distinctive currency paper 35-39, Great, 1851 24 78-79, 114, 124, 173-174 Vienna 24, 26 Distributed fiber paper 37, 38, 114, 124 Expositions: District of Columbia, Commissioners Alaska-Yukon-Pacific 27 of 102 Centennial, Declaration of Inde- Documentary stamps 27, 29, 57, 99 pendence 26, 156 Dry printing 18-20, Ibero-American, 1929-30 27 39, 109, 156, 172-1 76, 177 Pan-American 179 Drying rooms 158 Panama-Pacific International 27 Dürer, Albrecht xii Paris Universal, 1878 27 Duthie, James 5, 6, 7 Philadelphia Sesquicentennial 27 Trans-Mississippi-"Omaha" 179 E World's Columbian 24 East Potomac Park 48 Edison, Thomas A 52 F Edwins, Charles C 22 Farley, James A 120, 134 1864 investigation 13, 16, 17 Federal Civil Works Administration___ 118 Eisenhower, Dwight D 177 Federal Farm Loan Board 92 Electric-eye perforator 69, Federal Farm Mortgage Corporation 120 125-1 28, 137, 169 Federal Reserve Bank notes____ 102, 116-117 Electrodeposition 108 Federal Reserve notes 81, 112, Electrolytic plant 109 114, 117, 121, 142, 163-165, 170, 171 INDEX 193

Page Page Federal Reserve system 111, 164 Grant, Ulysses S 15 Bank of New York 116 Graver xi Bank of Richmond 164 Graves, Edward 0 59 Bank of San Francisco 117, 118 Gravure printing xi, 180 Ferguson, Frank E 89 Great Exhibition, 1851 24 Fine Arts, Commission of 89 Great Seal of the United States 121-123 Finiguerra, Maso XII Greece 149 Fire, Bureau plant 100 Greenbacks 17-18, 34 Fire escapes 48 Guam 65, 67, 142 Firemen 41 Gugler, Henry 8 First-day covers, Project Mercury post Gugler Lithographic Co 8 age stamp 183 Guides for visitors 151-153 Fisher, James M 104 Gumming.See Machinery. Fiscal activities, survey of 165 Gwynn, Stuart 19, 35, 36, 37 Flag Day, 1916 99, 100, 101 Flatbed presses. See Machinery: H presses. Hall, Edward M 56 Florida, State seal 176 Hall of Fame, New York University__ 134 Flour stamps 29 Hand polishing xii, 162 Foggy Bottom area 48 Hand roller xii Folger, Charles J 32 Hand roller presses xli, 13, 20, 31, Food order stamps 134-136 32, 72, 84, 94, 95, 107, 108, 115, 162 Food stamp coupons 135-136 Harding, Warren G 104, 105 Forbes Lithograph Manufacturing Co_ 146, Harper's Ferry, W. Va 7 154 Hawaii 142 Foreign currencies, not printed 123-124 Hawaiian currency 142-143 Fort Sumter Hayes, Rutherford B 41 Foster, Stephen Collins 133 Hertz, Heinrich 125 Fractional currency_ 8-13, 19, 20, 36, 37, 172 Hill, James G 43 France 144, 149 History of the Federal Civil Service- France, Bank of 40 1789 to the Present [1941] 52 Franklin, Benjamin xiii, 60, 133 Hobart, Elisha 7, 8 Freeman, Orville L 135 Holland 91, 92, 149 French Committee of National Libera- HomeOwners'LoanCorporation tion 144 bonds 120 French, Daniel Chester 140 Homer Lee press 32-34 French franc currency 143, 146 French Republic, Provisional Govern- Hoole, John R. & Sons 23 ment of 144 Hoover, Herbert 132 Furloughs 115-116 Horses 101-102 Houseof Representatives(seealso G Committees: Congressional) 23, Garfield, James A 17, 112, 156 26, 86, 87, 156 Gathering and stitching machines 139-140 Huebner-Bleistein Co 99 Gebrueder Heyl & Co 91 Humidors 158 Geddes, Annie 56 Hydrostatic printing__18-20, 115, 130, 172 General Accounting Office 165 General Counsel of the Treasury 167 I General Postal Union 61 Gerhardt, Teresa M 56 Ibero-American Exposition, 1 929-30_ 27 Germany 8, 90, 91, 143, 144, 153, 154 Idlitz, Mr 7 Gibson, W. J 30 Imperforate sheets, postage stamps__ 68 Girl Scouts 139 "In God We Trust" 173, 176-179 Glass, Carter 93 Independence, War of 140 Glenn, John 183 Inks xi, 47, 169 Gold certificates 58, 72, 110, 114, 121 Dry colors for 90-92, 155 Gold medal 27 Heat-set 169 Government Printing Office 48 Ingredients 97, Government transportation requests 102 131, 144, 145, 154, 158, 173 Grand Prix 27 Nonoffset 131, 157-159, 162 Grand Prize 27 Waste 74, 131 194 INDEX

Internal Revenue: Page L Commissioner of 27, 29 Page Stamps 27-30, Laborers 50, 55 57, 71, 93, 95, 99, 102, 103, 106, 107 Lamon, Ward Hill 176 Beer 28, 29, 107 "Landing of the Pilgrims," Sargent's 7 Bottled liquor strip 97 Laundering currency 76-79 Cigar 29, 34, 71, 107 Laws, child labor 50 Cigarette 27, 28, 29, 71, 96 Lehman, Alice 56 Compound liquor 29 Length-of-service awards 56 Deliveries of 28, 29, 30, 71 Liberty Loan bonds 92-95, Denatured alcohol 29 99, 100, 102, 103, 104, 106, 138, 139 Distilled spirits 28, 29 Liberty Loan Building 42 Distillery warehouse 71 Lincoln, Abraham____ 1, 2, 8, 9, 14, 112, 176 Documentary 27, 29, 57, 99 Linen content, distinctive paper___ 37-39, 78 Flour 29 Liquor dealers stamps 29 Liquor dealers 29 Lithography___ xi, 95-97, 124, 144, 146, 180 Malt liquor 71 Loan Branch (Treasury Department) - 2, 3 Oleomargarine 29, 107 Loans and Currency, Division of 110 Parcel post tax 99 Logotypes 117, 121 Playing card 29, 71 London, England 24, 150 Proprietary 27, 29, 57 Longfellow, Henry W 133 29 Loss of securities 151, 166-167 Rectified spirits 149 Sheet beer 71 Luxembourg Sheet cigar 71 Sheet tobacco 71 Mac-Me Snuff 29, 107 MacArthur, Douglas 151 Special tax 27, 28, 29, 107 MacVeagh, Franklin 110, 111 Strip cigar 71 McAdoo, William G 111 Stub tobacco 71 McCartee, George B____ 17, 23, 60, 151, 166 Tax paid 27 McCoy, George 61 Tobacco 28, 34, 107 McCulloch, Hugh 22, 23 Wholesale liquor dealer 71 McLees, Archibald 6, 7 Whiskey 107 Wine 29 M System 27 InternationalExhibition,Centennial Maceration, securities 77 Declaration of Independence 26, 156 Machinery 13, 16, 46, 98-99 International Printing Pressmen and Automatic delivery devices: Assistants' Union of North America_ 95 Flatbed plate printing presses_ 162 Invasion currency 141-147 Gumming machines 74 Investigation of 1864 13, 16, 17 Automatic feeders 162-163 61 Automatic wipers 160, 162 Ireland, Wm. M Beta-ray apparatus 169 Irish, 0. H 6, 7, 17, 20, 151 Coil stamps 67-71 Irving, Washington 133 Electric-eye perforator 69, Italy 143, 144, 146, 147 125-128, 137, 169 Gathering and stitching 139-140 J Gumming 63, 64, 130, 168 Jacksonville, Fla 183 Improved 30 Japan 141, 142, 143, 144, 148, 151 Laundering 76-79 Jenckes, Thomas Allen (M.C.) 53 Numbering 99, 112, 113, 121 job security 178-1 79 Numbering,sealing,separating, joint Stock Land Basks 92 collating, and counting 73, Justice, Department of 62, 104, 105 121, 130, 140 Perforator 70, 71, 74, 125-128, 137 K Plater presses 74 King, Mary 56 Polisher mechanism 162 Kirby, Wallace W 105, 106 Presses: Knights of Labor of North America___ 34 Cylinder 99 Korea 124, 149 Flatbed__ 83, 99, 157, 159-163, 172 Korean conflict 163 Hand roller xii, 13, 20, 31, 32, Korean currency 124-125 71, 84, 94, 95, 107, 108, 115, 162 INDEX 195

Machinery-Continued N Presses-Continued Page Homer Lee 32-34 National Aeronautics and Space Ad- Page Hydrostatic 13, ministration 181, 183 18-20, 115, 130, 172 National bank currency 22, Lithographic, multicolor 154 38,59, 110, 112, 114, 115, 121, 176 Milligan 30-34 National Bank Note Co 1 Neale-Appleton 32 National banks 114, 115 Offset 95, 99, 145 National Bureau of Standards__ 108, 111, 148 Overprinting 3, 159 National Currency Bureau 12, 21, 22 Power, plate printing____ 30-35, 72, 93, 99, 103, 106-108, 115, 162 National Farm Loan Associations 92 Rotary, intaglio sheet-fed___ 157, National Note Bureau 21 172-176, 180, 181 National Paper 36 Rotary, web-fed 79-83, National Philatelic Museum 179 136, 157, 167-169 Navy, U.S 147, 148 Sealing 2-5, 13, 73 Navy Department 66, 137, 144, 146, 148 "Spider" handled 30 Navy yards 48, 147 Stamps, coil 67-7 1 Neale-Appleton press 32 Stamps, high-speed 167-169 6, 7 Steam plate printing 20, Neale, Charles 31, 32, 34-35, 46, 115, 162 Netherlands 91, 149 Stickney 79-83, 126, 167-169 New Jersey colony xiii Transfer 108 New York stock market 115 Two-color sheet-fed rotary 159 New York Times 12 Two-colortypographicflat- New York University, Hall of Fame 134 bed 159 New York World 16 Typographic 74, 95, 159 Niagara Lithograph Co 99 Semiautomatic feedboards 162 Niello xi, xii Take-off and delivery devices 162 93d N.Y. Volunteer Infantry 7 Trimming machines 5, 72, 73, 112 131, 157-159, 162 Trimming and separating 3, 5 Nonoffset inks Wetting 74, 163 North Africa 143 Maine, State of xvi Norway 149 Mall 90, 103 Note Bureau 21 Malt liquor stamps 71 Notes.See Currency. Manila 148 Numbering of currency 59, 112, 113, 121 Mann, Horace 133 Numbering machines___ 15, 99, 112, 113, 121 Massachusetts Bay Colony xiii Nylon fibers, distinctive paper 39 Massachusetts, State of xvi Medal of Honor 27 0 Mellon, Andrew W 56,111, 112 Membrane paper 35-37 Office of Research and Development Messengers 51 Engineering 130 Middleburg, Va 171 Official Register of the United States 21 Midway, Battle of 142 Offset printing 30, Military currency 143, 144, 147, 153 93, 95-98, 99, 105, 118, 145 Military postage stamps 147, 153 Old Capitol Prison 19 Milligan, James 30, 31, 32,33 Oleomargarine stamps 29, 107 Milligan press 30-34 188th Pennsylvania Volunteers 56 Mill-wet paper 163 O'Neill, Bridget C 56 Minneapolis, Minn 34 Oosterdyk 91 Mint, Bureau of(Treasury Depart- Ourdan, Joseph James P 7 ment) 43, 122, 124, 132 Ourdan, Joseph P 6, 7 "Minute Man" 140, 141 Overprinting.See Currency; Postage Mississippi Territory, Seal of 132 stamps. Modernization program 157, 163 P Montreal, Canada, Bank of 77 Morgenthau, Henry, Jr 120, 123 Pacific Fleet, Commander of Aircraft__ 149 Morrill, justin L. (U.S. Senator)____ 43 Pan-American Exposition 179 Moscow 154 Panama-PacificInternational Exposi Multicolor postage stamps 131, 179-181 tion 27 196 INDEX

Paper: Page Plates-Continued Page Distinctive xi, 39, 175 High-etch 96, 97 Currency 35-39, Intaglio xi, -xv, xvi, 103, 108-109 78-79, 114, 124, 173-174 Offset 95-98, 99, 103, 105 Fractional currency 36, 37 Photolithographic 103, 145 Linen content 37-39, 78 Planograph 96 Membrane 35-37 Rechroming of 109 Produced in Department 36 Russian 153-55 Unlawful to possess 36 Steretotype xvi, 95 Distributed fiber 37, 38, 114, 124 Playing card stamps 29, 71 Localized fiber 37 Point of Rocks, Md 8 Mills 146 Poland 149 Mill-wet 163 Porto Rico 65, 67 National 36 Portraits xviii, 12, 13, 24, 111, 112, 132 Pregummed, postage stamp_ 147, 173, 180 Clark, Spencer M 12 Spider-leg 36, 37 Clinton, DeWitt 27, 28, 96 Watermarked 37 Franklin, Benjamin 60, 133 Paper specie xiii Garfield, James A 112 Parade, Flag Day 1916 99, 100 Grant, Ulysses S 13 Parcel post tax stamps 99 Lincoln, Abraham 8, 14, 112 Paris Universal Exposition, 1878 27 Spinner, Francis E 12, 118 Patronage 52 Taylor, Zachary 61 Payment for lost securities 166-167 Washington, George____ 10, 15, 60, 112 Payroll savings plan 139 Washington, Martha 133 Pearl Harbor 139, 141, 151 Wilson, Woodrow 120 Pendleton Act 55 Post Office Department (see also Post- Pennsylvania Avenue 94, 100, 103 master General)_ 60, 61, 62, 63, 65, 67, 68, Perforator.See Machinery. 70, 79, 80, 97, 99, 133, 134, 140, 149, Perkins, Jacob XV, XVI, xVIi, 108 168, 173, 179, 181, 183. Personnel statistics 13, Postage currency.See Fractional cur- 16, 23, 40, 58, 92, 98, 99, 103, 104, rency. 121, 138 Postage stamps 9, Petersburg, Va 56 11,48, 57, 58, 60-65, 66, 67, 106, 107, Philadelphia, exhibit, 1876 26, 156 147, 165, 180. Philadelphia Sesquicentennial Exposi- Airmail, 5-cent, series 1958 169 tiOn, 1926 27 Airmail, 7-cent, series 1958 169 Philatelic Section (Post Office Depart- Airmail, 24-cent, series 1918 179 ment) 183 Allied military 144, 147 Philippine currency___ 65-67, 110, 148, 149 Bicolor 132, 168, 173, 179 Philippine Islands.._ 65, 66, 67, 142, 148, 149 Billing for 65 Philippine postage stamps 65-67 Books 65 Photography 18 Centenary of 61 Photolithographic offset printing 95-9 7 Coiled 65, 67-71, 79 Plastic Cement 109 Commemorative: Plate finisher 116 American Flag, series 1957__ 180 Plate printers___ 6, 7,30, 34, 35, 41, 107, 116 Army and Navy 134 Neale, Charles 6, 7 FamousAmericans, series Plater presses 74 1940 133-134 Plates: First set, Bureau-printed____ 179 Bond 139 International Red Cross, Chroming of 109 series 1952 168 Composition of 109 "Mississippi" Territory,ser- Currency: ies 1948 132 8-subject 102, 112, 114 "Overrun Countries,"series 18-subject 159 1943 149 4-subject 3, 102, 108, 114 Pan-American Exposition, ser- 32-subject 109, 175 ies 1901 179 12-subject 112, 114 Project M e r c u r y,series 2-subjeat 114 1962 181-185 Deep-etch 96 Remington,Frederic,series Electrolytic 103, 108-109, 175-176 1961 181 Electrotype 95 Trans-Mississippi - "Omaha" Hand polishing of xii, 162 Exposition, series 1 898__ 179, 180 INDEX 197

Postage stamps-Continued Page Presidents, U.S.: Page Committee French 147 Cleveland, Grover 8, 55, 133 Contracts for printing 62 Coolidge, Calvin 105 Cost of manufacture 65 Eisenhower, Dwight D 177 Cuban 66, 67 Garfield, James A 17, 112, 156 Curling of sheets 83 Grant, Ulysses S 13 Design, national competition 132 Harding, Warren G 104, 105 Dry printing of 172 Hayes, Rutherford B 41 First U.S 60 Hoover, Herbert 132 First Bureau-printed 64 Lincoln, Abraham 1, 400-subject plates 83 2,8,9,14,112,176 Guam 66,67 Roosevelt, Franklin Delano 118, Gumming 64, 168 120, 121, 122, 123, 129, 131, 132 Imperforate sheets 68 Taft, William Howard 110, 132 Legislative authority for printing_ 61-63 Taylor, Zachary 61 Military 147, 153 Washington, George 15 Multicolor 131, 179-181 60, 112, 131, 132 Offset printing of 97-98 Wilson, Woodrow 100, 104, 120 Ordinary: Presses.See Machinery. 8-cent, series 1954 173, 176 "Prince," sale of 102 5-cent, series 1847 60 Printer's assistants 162, 163 4-cent, series 1894 64 Printing: 4-cent, series 1954 169 Copperplate xix, xiii, xiv, xv 1-cent, series 1911 172 Dry__ 18-20, 39, 109, 156, 172-176, 177 1-cent, series 1938 131 Gravure xl, 180 Series 1938 (Presidential ser- Hydrostatic 18-20, 115, 130, 172 ies) 13 1-133 Lithographic xi, 6-cent, series 1894 64 95-97, 124, 144, 146, 180 10-cent, series 1847 60 Offset 30, 93, 95-97, 99, 118 3-cent, series 1908 172 Typographic xi, xiv, 30, 95, 180 3-cent, series 1954 176 Wet 172, 173, 175 2-cent, series 1911 83, 172 Printing Division (Bureau title) 22 Overprinted 66, 67 Private banknote companies 1, 3, 5, Cuba 67 17, 22, 23, 28, 57, 60, 62, 65, 125, 170 Guam 67 Procurement Division(Treasury De- Philippines 67 partment) 128, 129, 132 Porto Rico 67 Production comparison, World Wars I "Overrun Countries" 149 and II 138 Perforating of 125-128 Production and delivery statistics 13, Philippine 65-67 20, 24, 28, 29, 34, 46, 61, 62, 64, 66, Precancelling of 169 71-78, 96, 102, 109, 120, 127, 136, Presidential series 13 1-1 33 Supplemental Austrian 147 139, 141, 145, 148, 150, 163, 167, 176 Supplemental French 147 Propagating Gardens 88 280-subject plates 134 Proprietary stamps 27, 29, 57 "Postage Stamp Design" 179 Provincial Congress of Massachusetts_ xiii Postal rate increase 97, 169 Provisional Government of the French Postal savings bonds 141 Republic 144 Postal savings certificates 99, 141 Prud'homme, John F. E 7 Postal savings stamps 140-141 Public Debt, Bureau of.See Treasury Postal savings system, U.S 140-141 Department. Postal system, U.S 60 Public Debt, Commissioner of (Treas- Postmaster General 9, ury Department) 78, 128 61, 62, 63, 64, 65, 79, 81, 97, 169 Farley, James A 120, 134 Q Third Assistant 61, 63, 68,69, 79, 80, 81, 179 Quartermaster depots 147 Potomac Park (see also East Potomac Park) 48, 103 R Potomac River 42 "R" and "5" notes 149-150 Power plateprintingpresses. See Ralph, Howard F 89 Machinery. Ralph, Joseph E 89 Presidential series, postage stamps__ 131-133 Rawlinson, Elaine 132 198 INDEX Page Page Rectified spirits stamps 29 Separating currency notes 72, 73 Reductions in force 103, 121, 178 Serbia 90 Register of the Treasury 2, 104 Serial numbers 114, 121, 164 Rembrandt XII Sheet beer stamps 71 Remington, Frederic 181 Sheet cigar stamps 71 Research and development program_ 130-131 Sheet tobacco stamps 71 Revere, Paul xiii Shepard, Alan 181 Revolutionary War 140 Sherman, John, Secretary of the Treas- Robbery, 1954 169-172 ury 32, 54, 58 Roosevelt, Franklin Delano 118, Sherman, Gen. William T 9, 13 120, 121, 122, 123, 129, 131, 132 Shinplaster 9 Root, Elihu, Secretary of War 66 Shortages 166-167 Rose, George U 108 Siamese currency 124 Royalties 32, 35 Siamese Government, Royal 124 Rule Book, 1880 49-51 Sicily 143, 145 Russian Ambassador 154 Siderography XVI, 108 Russian Embassy 154 Signatures, overprinting of__. 3, 121, 163-164 Russian Government 153-155 Signing of notes 2 Russian plates 153-155 Silk fibers, distinctive paper__ 37-39, 114, 130 Silver certificates 72, 102, 107, 110, S 114, 121, 142, 143, 150, 163, 164, 176 130 95 Sizing operation St. Clair, Labert 102 Savings 71-75, 96, 157, 163 Skinner, Thomas E 140-141 Small Note Bureau 21 Savings stamps Small Note Department 21 Scanning device 169 21 139 Small Note Room Scouts, Boy and Girl Small-sized currency notes 17, Seal, Great, of the United States____ 12 1-123 38, 66,110,114,115,130,157,159 Seal, Treasury 2, Smithsonian Institution 43 58, 59, 72, 114, 142, 143, 164 29, 107 Sealey, Alfred 7 Snuff stamps Sealing of currency__ 2-5, 57-59, 72-73, 121 Southwest Wharves 48 Secret Service, U.S 78, Soviet Government 153-155 81, 110,129,146,170,171 Soviet Union, U.S. Ambassador to___- 153 Secretary of State 153 Spanish-American War 29, Secretary of the Treasury 1, 48, 65, 84, 85, 179 2, 24, 29, 37, 38, 39, 40, 43, 50, 53, 54, Speical Deposit Account No. 29___ 166-167 62, 63, 66, 73, 78, 81, 95, 100, 108, Special tax stamps 27, 28, 29, 107 121, 151, 164, 166, 176, 177. Spencer, Asa XVI, XVII Boutwell, George S 37 Spider-leg paper 36, 37 Chase, Salmon P 1, Spinner, Francis E 12, 16, 118 3,4, 5, 9, 16, 19, 20, 22, 35,36 Stable division 102 Folger, Charles J 32 Stampaffixingandvendingma- Glass, Carter 93 chines 67, 79 MacVeagh, Franklin 110, 111 Stamp book covers 97 McAdoo, William G 111 Stamps: Mellon, Andrew W 56, 111, 112 Cotton order 134, 135 Morgenthau, Henry, Jr 120, 123 Food order 134-136 Sherman, John 32, 54, 58 Internalrevenue. SeeInternal Secretary of War, Elihu Root 66 revenue stamps. Securities 5, Postage.See Postage stamps. 17, 23, 34, 35, 75, 90, 156, 165,167 War savings 92, 141 Copperplate printing of XIII State Department (see also -Secretary Loss of sheets 166-167 of) 91, 124, 144, 154 Protection of 62 Statue of Liberty 173 War-financing__ 27, 92-95, 98, 137,138 Stecher-Traung Lithograph Corp 146 Senate. SeeCommittees:Congres- Steel engraving XI, XVII sional. Stereotype check points XIV Senators, U.S.: Stereotype plates xvi, 95 Morrill, Justin L 43 Stickney,BenjaminF. (see also Senefelder, Johann 95 Presses) 79, 80, 83 INDEX 199

Page U "Strike through" 18 Page Strip cigar stamps 71 Uniform back design, currency notes__ Ill, Stuart, Gilbert Charles 133 114 Stub tobacco stamps 71 Unions 34, 35, 95, 108 Studebaker Brothers Co 102 Universal Telegraphic Co 80 Subtreasuries 78 United States Code citations 36, 39 Sullivan, Thomas J 49, 57 U.S. notes____ 5,37,38,58,72, 107, 110, 114 Supplemental Austrian postage stamps_ 147 USS Missouri 151 Supplemental French postage stamps_ 147 Supply problems 90-92 V Vasari xii T Vehicles 101, 102 Vending machines, stamp 67, 79 Taft, William Howard 110, 132 Veterans Bonus Bill 120 Tax paid stamps 27 Vienna exhibition 24, 26 Taylor, Zachary 61 Technological improvements____ 70, 157, 178 Virginia State Police 171 Telephones 50 W Tobacco stamps 28, 34 Tokyo 142 Walter Reed Army Hospital 101 Tolentino, Guillermo E 67 War Department 16, 65, 66, 88, Transfer of designs xvi 124, 137, 143, 144, 146, 147, 148, 153 Transportation requests, U.S 102 War-financing measures 27, Treasurer of the United States 2, 4, 92-95, 98, 137, 138 12, 16, 40, 58, 59, 72, 73, 77, 78, 102, War of Independence 140 110, 118, 119, 121, 148, 149, 164, 166 War savings certificates 92 Treasury building 2, War savings stamps 92, 141 5,6, 7, 13, 16, 23, 41, 78,87 Washington, D.0 22, 41, 42, 43, Treasury Department 2, 44, 48, 90, 91, 94, 101, 151, 152, 164 3, 5, 13, 14, 16, 17, 18, 19, 22, 23, 24, Washington, George_ 10, 15, 60, 112, 131, 132 32, 36, 38, 39, 40, 41, 43, 46, 50, 54, Washington, Martha 133 64, 72, 78, 88, 115, 118, 119, 120, 122, Washington Monument 47, 48, 88 123, 124, 128, 138, 140, 141, 142, 156, Washington Navy Yard 48 165, 177. Washington Post 94 Assistant Secretary____ 79, 81, 109, 128 Washington Star 106 Coast Guard 146 Watchmen 50, 55 Comptroller, First or Second 2 Wet printing 172, 173, 175 Comptroller of the Currency 21, Whiskey stamps 107 22, 23,81 White House 120, 133 Construction, Bureau of 2, 3 Whitney, Eli 133 General Counsel 167 Wholesale liquor dealer stamps 71 Internal Revenue Service 27, 29 Willcox, Messrs. J. M., & Co 37 Loan Branch 2, 3 Wilmeth, James L 104, 105 Loans and Currency, Division of 110 Wilson, Woodrow 100, 104, 120 Mint, Bureau of 43, 122, 124, 132 Wine stamps 29 Procurement Division____ 128, 129, 132 Women employees 3, 16, 53, 137 Public Debt, Bureau of_ 78, 128, 139, 150 Woodin, Lucy 56 Workspace 46, 84, 98-99, 137 Register of the Treasury 2, 104 World War I 29, 38, Secret Service, U.S 78, 77, 90, 95, 97, 98, 99, 100, 102, 103, 81, 110, 129, 146,170,171 106, 108, 137, 138, 139, 152, 172, 185 Subtreasuries 78 World War II 39, Supervising Architect 43, 45 70, 96, 117, 130, 137, 138, 141, 152, Treasurer.See Treasurer of the 153, 157,164,167,178,180, 185 United States. World's Columbian Exposition 24 Under Secretary 145, 154 Wrapper, coil postage stamps 70 See also Secretary of the. Wright, Andrew 5 56 Treasury notes 3, 4, 5, 13, 21, 107, 165 Y Treasury Seal 2, 58, 59, 72, 114, 142, 143, 164 Yellow seal currency 143 Tunisia 143 Yen currency 146 Typographic printing____ xi, xiv, 30, 95, 180 Yugoslavia 149 U.S. GOVERNMENT PRINTING OFFICE 1964 O-648--OO1