The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-05-15
PAY OF THE ARMY.


PAY OF THE ARMY.
PROPOSITION OF NEW YORK BANKING FIRM
FOR THE ADvANcEMEN: OF THE NECESSARY
FuNDs-coRREsPoNDENc WITH THE sEcRE-
rARY OF WAR;
WASHINGTON. May IA, 1877.
Tho Secretary OF War has received from Messrs.
Drsxe. Morgan 4 Co.. OF New York. the following
letter regard to advancing funds pay the army
Ngw YORK. May IL, 1877.
| To Hon. George w. MccRARY. secretary Of War,
Washington, ID. e.. -
sIR-The failure OF Congress TO perform what appears
to US obvious and sacred duty-namely. the making
OF the necessary appropriation Tor the pay OF the OIL
and men Of our army and navyand our desire TO
prevent II possible. inevitable loss and distress 10
class Of whose interests should, in Judgment
command tho greatest and most earnest solicudc Of
the government anu OF the country prompt US to ad-
dress you, sir. tho following questions:--
Frrst-What would be The risk one would incur in
advancing the funds for tho prompt payment OF the
Secoad-whch are tho dates whom the sundry pay
ments iall ducs
TAird--what would DO tho probable duration OF the
| outayf
Foxrh-which would be the safest mode OF efecting
Fyih-Could the machinery OF the government be
| used Tor such purpose?
IL is our intention 10 offer to lend the money TO
the government for purpose, and thus establish
what might perhaps be considered an objectionable
nor should we wish 10 d. anything 10 place
the officers and men tho light Of bcnclciarics; but
idea would be. SIMPLY 10 order to protect the men
from exorbilant charges. TO form syndicate who
would furnish the necessary means, the rate Of
i've or six per cent per annum. should the project
appear you practicable we shall be pleased to take
reading par. in presenting II 70 tho public and sup
porting IL IN liberal and substantial manner, and
shall be gratcd for any suggestion you may III to
mako Tor tho successful carrying out of tue scheme.
Wc remain sir, your obedicnt servants.
DREXEL MORGAN 4 co.
REPLY SECRETARY
To the above letter the Secretary replied fol.
lows
WAsniSGrox, d. c., May ~, 1877.
To DRExEL. MORGAN n Co., New York
GKSrLsxgS-Your letter oil the l1tn rs received, and
wish thank You for the kind soiicituue which you
manifest Tor the necessities Of faithful class oil public
servants.
You make inquiries as 10 the feasibility OF paying
the officers by syndicate whose rates oi dis
cou III would DO those current in ordinary business
transactions instead the extorionae rates TO wnch
they might otherwise be subjecisd Sucn scheme is,
opinion. entirely practicable, but the laws pro-
n.biting any executive officer from involving the gov
any liabilities provided Tor BY uppropri-
atoms are SO positive that tho transaction must be
purely private one, at the risk OF tho syndicate.
ENCOUNTERED
This risk Is, first. the possibility that Congress
might not pass the Deficiency bill second the posi-
Utility OF officers nakina out fraudulent pay accounts
THIS l regard almost nothing. such an offence Is
OF detection, ana subjects officer 10 tral by
court martial and dismissal.
In reply to your questions l would state that tho
machinery OF the government could not DO used n
any way for tho proposed purpose It would be neces
sary for you TO have your own agents.
PAY or THE MEN.
l think meet most all OF the OBJ
legations to discharged soldiers ~ dlschargng at
once all those whose terms expire before November
and paying them out OF the current appropriation.
The enlisted men paid muster and payrolis
every month"; Only pay mont, that OF August
81, Will intervene between Jdiy and the meeting OF
Congress- aud us the men are and clothed by tho
government would DO great hardship post
pon ng their payment until the muster OF October 30.
Moreover there are difficulties In the way Of paying
them owing 10 the provisions OF section POI, Revised
Stntules which invalidaes assignment oil pay by
enlisted men prior 10 their discharge.
PAYMENT OFFJCERs.
These difficulties do not however, exist In the
OF officers who are dependent their pay Tor the
actual necessities Of lie They arc paid monthly
their own vouchers, oil which copy is enclosed.
will consult with the Attorney General. ana II there is
paymaslers. when accounts presented TO them
paymonto put on the back an Endorsement somewhat
Of this Sort
The within account is believed to be correct and would be
paid BY me II had public funds available Tor that purpose.
- Paymaster.
The officer could then indorse the account TO your
order your agent could pay 1t BY check other.
| wisc less discount as you might establish When
appropriation Is made you can present these III.
Pay for the months OF July, Angus. aud September
Will certainly be required. and possibly also, Tor Octo
| THE AMOUNT AND PLACE OF PAYMENT.
The approximate monthly expenditure TOR the pay Of
officers, acting assistant surgeons and paymasters'
clerks, and mileage and other payments to officers, is
$3.50, 200 You would require di s agents
Neb.; Lcavenwortn, Kansas; New Orleans, La.
San Antonio, Texas; Salt Lake City, Utah; Helena.
N. T.. santa Fe, New Mexico; San Francisco, Cal
Portland Oregon and Prescott, Arizona ana possibly
lew others From New York you could pay the sta
tons along the Atlantic und lake Possibly
agent at Charleston $. G., ana another at Atlanta,
Ga, would be necessary.
enclose ,aUulated statement Of the stations OF tho
regiments, from which you Can form your estl-
mate Of the number OF agents necessary. Twill cheer
fully afford you AZ any time any Information concern
ing The routes oil travel and any maps published Ivy
(. this department.
CHARACTER THE ARRANGEMENT.
Pleasc understand that, owing 10 the provisions OF
section 1873 OF the Revised statutes The War Depact-
mcnt have nothing 10 do with the transactions pro-
posed II is purely matter OF business between you
and the officers, and your security Tor your advances
must rest upon your iaith that Congress viii pass
adequate appropriations and upon the fact that any
double dealing or fraud on The part OF the officer Will
forfeit his commission.
one other point desire 10 call your attention to-
VIZ II any other firm or syndicate should como in nc
any and oier lower rates oi discount than your
the officer would, OF course, have the opton of
inlursng his account to the other firm l hope that
the ABOVE VIII give you the information necessary 10
make intelligent plans and propositions 10 the army
officers.
ure tending TO relieve the hardsnps Of the officers
far ms can do without violating the provisions Of
/ law. Very respectfully,
GEORGE w. McCRARY, Secretary OF War.
SUBMITTED TO THE ATTORNEY GENERAL
Tho Secretary Today transmitted to tho Attorney
General the blank form Of voucher upon which officers
paid with tho request that no will give opinion
as to whether Mould DO violation OF section 3,G79
or any Of tho Revised Statutes, OF any
law TO issue an authorizing paynastors 10
such u certificate as that mentioned. or authorizing
officers 10 make such Endorsement and transfer OF
their accounts for valuable consideration.
LABOR TROUBLES IN CANADA
QUEBEC May ii, 1877.
| Contractors for laying stone pavcmcnts in tho
streets here having employed country instead of city