US1615566A - Method of protecting financial securities - Google Patents

Description

Jan. 25 1927.

c. B. BREWER METHOD OF PROTECTING FINANCIAL SECURITIES Filed Jan. 12, 1923 am" my:

Patented Jan. 25, 1927.

llhil'lE,

CHARLES BLOUNT BR'EN'ER, OF COLLEGE PARK, IKARYLAND.

METHOD OE PROTECTING FINANCIAL SECURITIES.

Application. filed. January 12, 1923.

The prime object of the present invention is to devise a method of serially numbering issues of financial securities, such as bonds, certificates, currency notes, etc., that will not only make it exceedingly diiiicult to fraudu- (lently alter the number of any document, but also render it absolutely certain that the alteration shall be eventually detectable and proven, and the identity of such altered security definitely established, as more fully hereinafter set forth.

Another object is to provide a means for facilitating the counting of securities by banks and governmental a encics by reducing the number of identifying numerals to a minimum and by separatig the numerals by acomma between groups of the numerals, preferably between the thousandth and hundredth columns.

A further object is to employ a series of classifying chancters for each number that will permit, with fewer numerals, a very much longer series of securities to be issued than now employed without increasing the space required forthe serial number on the document or in the printing-press and thus provide a meansof serially numl'iering every bond, note, bill or banknote of all issues and denominations to be hereafter printed for centuries, so that by short inexpensive ref erence to the prefix cited by phone. telegraph, cable, etc, the denomination and class or issue of the securities referred to and the bank from which issued, if a national bank note, may be readily recognized by the initiated,-in other words, a complete code and recording system is combined in one.

In the drawing- 1 is a view of a font of munerals employed in carrying out my method;

Fig. 2 is a fragmentary view of a part of a financial security serially numbered in accordance with. my method;

Fig. 3 is a. reverse view of Fig. 2;

Fig. (l: is an enlarged vertical cross-section of a type or block for printing one of the digits.

The digits will be printed from type provided on their printing surfaces with one or more small pointed punches a, so that in printing the digit on the document the paper will be, simultaneously with the press ing of the ink thereon, punctured or dis rupted or bruised sufficiently to carry a slight quantity of the ink through to the other side of the paper, where it will show Serial No. 612,159.

as spaced dots, these dots being shown in Fig. 3 at Z). Any arbitrary arrangement of punctures may be employed, it being essential only that the punctures shall be made within the outline of the numeral and at the time the printing is done, so that, as stated, av small quantity of the ink is forced through the bruised or punctured fibers of the paper so as to appear on the other side as dots or stains. I prefer two punctures for each numeral. By arranging these punctures in an arbitrary manner with respect to each other and the adjacent numerals as well as the base and top planes of the numerals, I have an arrangement of punctures which will enable me to identify each numeral by the punctures alone and also provide a means of keeping secret the arbitrary arrangement adopted through the medium of the minute distances between the puncture points and the angles between lines which can be drawn between the puncture points. In this way, it will be observed that if any one numeral is erased and a difierent numeral substituted therefor, it will be an easy matter, by examining the punctures (these being always plainly visible, either to the naked eye or by a light-powered magnifying glass, from the reverse side of the sheet) to determine with absolute certainty the numeral that has been erased.

To make it further difficult to erase one numeral and substitute another, I cut or engrave in the face of each type a miniature of the numeral itself, so that in printing this miniature numeral will be shown by an uninked surface, as shown at c. That is to say, this miniature numeral will be entirely in the border lines of the main numeral and will have the color of the paper on which the bond or other security is printed. This will be a very delicate character and will be so located and arranged that it will be exceedingly difiicult, if not impossible, to reproduce on the face of the substituted numeral in case of forgery. That is to say, even if it be possible to erase the original. numeral and to substitute another numeral therefor that would in general appearance be undetectable, the fact that the forger would have to reproduce this very delicate corresponding miniature numeral on the inked face of the main numeral would make the work of forgery almost impossible, due to the fact that no process is known whereby these corresponding miniature numerals can be printed within the inked face of the numeral with exact uniformity except by very delicately engraving, by the pantograph system, the face of the original steel type used in printing the numeral and the fact that the number of firms in the world who are equipped for such work is very limited.

As is well known in issuing bonds and certificates and other financial securities, it is necessary that the issues be classified and that as large a number of individual bonds be issued within each classification as possible. It is also well known that the space on the present security issues for the serial number and the classification characters and on the presses which print them is limited. One of the objects of my invention is to provide for a very wide range of classification within the limits now permitted by present mechanical facilities for numbering these documents. In accordance with my method, I; need to employ but one additional letterspace or type-space at one end of the serial number. As shown, I arrange these classitication characteristics at the beginning of the number. In the sample shown, these classification characteristics are AA superposed over BB, thus giving me four classilication characters; and these characters are so proportioned and arranged that the four of them occupy but one type-space. By substituting other letters and numerals and changing them about in accordance with the well-known permutation system, it will be observed that I can provide for a classification of issues and provide a range of numerals which, for the requirement of the silver certificates (the ones most frequently printed) of about 1,000,000 a day or 365,000,000 a year, would necessitate no change in the system for 1,252 years. For instance, the single classification illustrated, namely, AA over BB, may cover 999,999 bonds without adding to the length of the line of printing and without changing the classification characters. When this issue is completed, and it is therefore essential to change the classification, I may start another series of 999,999 issues by merely changing one of the upper letters or one of the lower letters; and so on practically indefinitely. My system, by thus furnishing 456,976 (26 26 26 26) variables of 999,999 securities (or a total of 456,976,000,000 nun'ierals), provides a means of treating 999,999 securities by any number of classes up to the great limit of 456,976. Thus, when it becomes desirable to call in for redemption any portion of an issue, as in the recentcase of Victory notes, or to otherwise divide or refer to any portion of an issue, or to provide different classes for difierent national banks, an immense latitude is available.

.Vhat I claim is:

The method herein described of protecting financial securities, consisting in forming a series of secret arbitrary punctures in the serial numbers of the documents, these punctures being formed at the time of printing and within the outlines of the numbers, to thereby carry the ink through to the other side of the paper in the form of dots, said punctures being so placed as to avoid giving by themselves any clue to the identity of the numerals except to those having knowledge of the secret.

In testimony whereof I hereunto affix my signature.

CHARLES BLOUNT BREWER.

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