The new United States Secret Service goes into operation for the Treasury Department

Treasury Secretary Hugh McCullough had recommended the founding of a governmental unit to battle the rampant counterfeiting of United States paper money.  One estimate put the percentage of fake bills in circulation in 1865 perhaps as high as 50%. The United States Secret Service began operation this day under its chief William P. Wood and achieved instant success in the fight against the counterfeiters.  The Service did not begin its more famous role of protection of officials until 1894.  (By John Osborne)