The evening times. [volume] (Washington, D.C.) 1895-1902, 1901-07-30
MIR. ROOT SEEKS ADVICE.
A Problem Concerning Army Off
GERS Handling Money.
Those ia the Philippines Compelled
to Deposit Large Sums in Foreign
Banks, Which Il Against the Law
Congress Failed to Afford Relief.

Banks Which Il Against the Law
Congress Failed to Afford Relief.
Secretary Root has asked the heads of
departments of the War Office for sug-
gestfons 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
Paymasters Department, are violating
the army regulations in depositing funds
in Hongkong and other banks, and there
by subjecting themselves TO trial BY
court-martiaI 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
fccrs 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 Commissary De
partment. In providing for the payment
Of soldiers and purchasing quartermas-
ter's and commIssary supplies, they are
obliged to handle more than $50, 900 an
| nuaHy- The money is shipped to them on
transports and they are required to keep
it in their possession until disbursed for
fba -a0y1frarneofe of Tho amy
Cnder 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 it is unlawful
to place Government funds in the bank
ing houses Of China or the Philippines as
| officers have made practice of doing
After the Secretary Of War had called
| attention to the circumstances Congress.
| in 1899 authorized the deposit Of money
| in banks IL China and elsewhere for the
| convenience Of army officers where such
/ banks should deposit United States Gov
| ernmenc bonds with the Treasury De
| parJmeut % the par value Of the fun
| amount placed with them by army Of
| fcers- Under this authorization Secre-
| tary Gage designated the Hongkong and
/ Shanghai Banking Corporation and the
! chartered banks OF India, Australia. and
/ China, IS the fiscal agents OF the United
/ States. to receive money deposits.
! These banks however. declined to com
| ply with the terms imposed because it
would oblige them TO 20 into the market
I and purchase T-nite,I 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
| II, the action Of Congress brought the
| army officers no relief and many of them
/ have gone on and upon their own respon-
| sibiIity placed funds in their charge in
! JOug6Cng 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 como
! into the Office Of the Inspector General of
/ the Army. These have in the majority of
/ instances of officers in the Philippines
I contained statement OF a certain amount
! of money deposited in HOngkong banks
| One officer n his last report recently re-
/ ceived showed more than 100000 on de-
| post in Hongkong- All of this is con-
tEary TO the army regulations and sub
| jects the officers to coUrt-martiaI if
charges are made against them.
| Major Candy. paymaster. was recently
/ robbed of S2n,0A0 Of Government money in
/ the Philippines He carried the money
| in Il small safe which he placed under
/ the care of a detachment of soldiers. No
| trace OF II has been found.
Secretary Root viii obtain the opinions
of the heads OF his department and ask
/ Congress at it's next session to enact
! suitable legislation to relieve The difficult