The Washington times., 1901-07-31
LIABILITY FOR ARMY FUNDS.
4 Plan Sought TO Relieve Pnymns-
ters in the Philippines.

ters in the philippines
Secretary Root has asked the heads of
departments of the War Office for sug-
gestions as to the best way OF relieving
officers In the Philippines of the great
burden of responsibility resting upon
them in the matter of holding and hand
ling the Governments money in their
possession. AT present the majority OF
these officers. particularly those of the
Paymaster's Department. are violating
the army regulations in depositing funds
in Hongkong and other banks. and there
by subjecting themselves to trial by
court-martial if charges should be filed
against them. although it is conceded on
all sides that the course which they are
pursuing is the best possible one under
the circumstances and safest for both the
Government and the officers themselves.
The disadvantage under which the Of
ficers in the Philippines labor in handling
the Governments money was first called
to the attention of the Secretary of war
three years ago by the Cou.missary De-
partment. In providing for the payment
of soldiers and purchasing quartermas-
ter and commssary supplies they are
obliged to handle more than s20.U0,OW an
nually. The money is shipped to them on
transports and they are required to Keep
1t in their possession until disbursed for
the requirements of the army.
Under the law no officer of the Gov
ernment is permitted to deposit public
funds in his control in any banking insti-
tuition except those especially designated
by the Secretary of the Treasury. under
authority of an act of Congress.
The law does not allow public moneys
to be deposited in banks outside of the
United States, and hence II is unlawful
to place Government funds in the bank
ing houses of China or .he Philippines, as
officers have made a practice of doing.
After the Secretary of War had called
attention to the circumstances Congress,
in 1899, authorized the deposit of money
in banks in China and elsewhere for the
convenience of army officers where such
banks should deposit United States Gov
ernment bonds with the Treasury De-
partment to the par value of the full
amount placed with them by army Of
ficers. Under this authorization Secre-
tary Gage designated the Hongkong and
Shanghai Banking Corporation and tie
chartered banks of India, Australia, and
China as the fiscal agents of the United
States, to receive money deposits.
These banks. however. declined to COM
ply with the terms imposed because 1t
and purchase United States bonds at con-
siderably more than par for the purpose
of being allowed to receive on deposit the
funds of the United States. Consequent
ly, the action of Congress brought the
army officers no relief and many Of them
have gone on and upon their owl. respon-
sibility placed funds in their charge in
Hongkong banks for safe-keeping, deem
ing it more advisable to do so than to re-
tain large sums in their personal posses
sion. where it would be subject TO attack
by robbers.
The matter has been brought up again
recently by the reports which have come
into the office of the Inspector General of
the Army. These have in the majority of
instances of officers in the Philippines
contained a statement of a certain amount
of money deposited in HoDgkong banks.
One officer in his last report recently re-
ceived showed more than 100000 de-
posit in Hongkong. All of this is con-
trary to the army regulations and sub
1ectS the officers to court-martial If
charges are made against them.
Major Candy, paymaster, was recently
robbed of $50, 900 of Government money in
the Philippines. He carried the money
in a small safe which he placed under
the care of a detachment of soldiers. No
trace Of it has been found.
Secretary Root will obtain the opinions
of the heads of his department and ask
Congress at its next session to enact
suitable legislation to relieve the difficult
ty.