A-56379, SEPTEMBER 11, 1934, 14 COMP. GEN. 206

A-56379: Sep 11, 1934

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TRAVEL ALLOWANCE PAYABLE ON DISCHARGE OR EXTENSION OF ENLISTMENT AND ACCUMULATED CLOTHING ALLOWANCE PAID ENLISTED MEN OF THE MARINE CORPS ON DISCHARGE ARE INCLUDED IN THE TERM "NET PAY AND ALLOWANCES" AS USED IN PARAGRAPH 3 (B) OF THE EXECUTIVE ORDER AND ARE PROPERLY INCLUDED IN THE COMPUTATION OF THE BENEFITS AUTHORIZED BY THE ACT. ARE NOT. THEREFORE ARE NOT WITHIN THE BENEFITS AUTHORIZED BY THE ACT. IT IS REQUESTED THAT THE FOLLOWING QUESTIONS BE PRESENTED TO THE COMPTROLLER GENERAL OF THE UNITED STATES FOR DECISION: (1) MAY TRAVEL ALLOWANCE ON DISCHARGE OR EXTENSION OF ENLISTMENT IN THE CASES OF ENLISTED MEN. WHERE SUCH DISCHARGE OR EXTENSION OF ENLISTMENT WAS EFFECTED WHILE IN SERVICE IN A FOREIGN COUNTRY ON OR AFTER JULY 15.

A-56379, SEPTEMBER 11, 1934, 14 COMP. GEN. 206

EXCHANGE - LOSS BY - NET PAY AND ALLOWANCES UNDER THE ACT OF MARCH 26, 1934, 48 STAT. 466, AUTHORIZING ANNUAL APPROPRIATIONS TO MEET LOSSES SUSTAINED BY OFFICERS AND EMPLOYEES OF THE UNITED STATES IN FOREIGN COUNTRIES DUE TO THE APPRECIATION OF FOREIGN CURRENCIES IN THEIR RELATION TO THE AMERICAN DOLLAR, AND EXECUTIVE ORDER NO. 6657-A, MARCH 27, 1934, PURSUANT THERETO, TRAVEL ALLOWANCE PAYABLE ON DISCHARGE OR EXTENSION OF ENLISTMENT AND ACCUMULATED CLOTHING ALLOWANCE PAID ENLISTED MEN OF THE MARINE CORPS ON DISCHARGE ARE INCLUDED IN THE TERM "NET PAY AND ALLOWANCES" AS USED IN PARAGRAPH 3 (B) OF THE EXECUTIVE ORDER AND ARE PROPERLY INCLUDED IN THE COMPUTATION OF THE BENEFITS AUTHORIZED BY THE ACT. SAVINGS DEPOSITS AND INTEREST THEREON OF ENLISTED MEN OF THE MARINE CORPS, BEING NEITHER PAY NOR ALLOWANCES, ARE NOT, AS SUCH, INCLUDED IN THE ACT OF MARCH 26, 1934, AND THE EXECUTIVE ORDER OF MARCH 27, 1934, ISSUED PURSUANT THERETO, AND THEREFORE ARE NOT WITHIN THE BENEFITS AUTHORIZED BY THE ACT.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF THE NAVY, SEPTEMBER 11, 1934:

THERE HAS BEEN RECEIVED YOUR ENDORSEMENT OF JUNE 27, 1934, REQUESTING DECISION ON QUESTIONS PRESENTED IN BASIC LETTER FROM THE PAYMASTER, UNITED STATES MARINE CORPS, AS FOLLOWS:

1. EXECUTIVE ORDER NO. 6657-A, DATED MARCH 27, 1934, ISSUED PURSUANT TO THE PROVISIONS OF THE ACT OF MARCH 26, 1934, PUBLIC, NO. 129, 73D CONGRESS, PROVIDES FROM AND AFTER JULY 15, 1933, CERTAIN BENEFITS TO MEET LOSSES SUSTAINED BY OFFICERS, ENLISTED MEN, AND EMPLOYEES OF THE UNITED STATES IN FOREIGN COUNTRIES DUE TO THE APPRECIATION OF FOREIGN CURRENCIES IN THEIR RELATION TO THE AMERICAN DOLLAR.

2. THE EXECUTIVE ORDER DEFINES, IN PARAGRAPH 3 (E), THE TERMS "NET ALLOWANCES" AND "NET PAY AND ALLOWANCES," AS FOLLOWS:

"THE TERM "NET ALLOWANCES" MEANS ALLOWANCES PAID TO THE EMPLOYEE.

"THE TERM "NET PAY AND ALLOWANCES" MEANS THE EMPLOYEE'S FULL PAY, INCLUDING EXTRA OR ADDITIONAL PAY, AND ALL ALLOWANCES (OTHER THAN THOSE FURNISHED IN KIND) LESS DEDUCTIONS THEREFROM ON ACCOUNT OF ALLOTMENTS, FINES, AND FORFEITURES, CLOTHING, HOSPITAL, CIVIL-SERVICE RETIREMENT FUND, PERCENTAGE DEDUCTIONS IN COMPENSATION, AND OTHER SUNDRY CHECK AGES.'

3. IN VIEW OF THE PROVISIONS OF THE EXECUTIVE ORDER ABOVE MENTIONED, IT IS REQUESTED THAT THE FOLLOWING QUESTIONS BE PRESENTED TO THE COMPTROLLER GENERAL OF THE UNITED STATES FOR DECISION:

(1) MAY TRAVEL ALLOWANCE ON DISCHARGE OR EXTENSION OF ENLISTMENT IN THE CASES OF ENLISTED MEN, UNDER THE PROVISIONS OF THE ACT OF SEPTEMBER 22, 1922 (42 STAT. 1021), BE INCLUDED IN THE COMPUTATION OF THE BENEFITS AUTHORIZED BY THE ACT OF MARCH 26, 1934, AND THE EXECUTIVE ORDER ISSUED PURSUANT THERETO, WHERE SUCH DISCHARGE OR EXTENSION OF ENLISTMENT WAS EFFECTED WHILE IN SERVICE IN A FOREIGN COUNTRY ON OR AFTER JULY 15, 1933?

(2) MAY THE ACCUMULATED CLOTHING ALLOWANCE IN THE CASES OF ENLISTED MEN OF THE MARINE CORPS PAID ON DISCHARGE BE INCLUDED IN THE COMPUTATION OF THE BENEFITS AUTHORIZED BY THE ACT OF MARCH 26, 1934, AND THE EXECUTIVE ORDER ISSUED PURSUANT THERETO, WHERE SUCH DISCHARGE WAS EFFECTED WHILE IN SERVICE IN A FOREIGN COUNTRY ON OR AFTER JULY 15, 1933?

(3) MAY SAVINGS DEPOSITS OF ENLISTED MEN WHEN REPAID ON DISCHARGE, TOGETHER WITH INTEREST THEREON, UNDER THE PROVISIONS OF THE ACTS OF FEBRUARY 9, 1889 (25 STAT. 657), AND JUNE 29, 1906 (34 STAT. 579), OR WHEN ADJUSTED ON EXTENSION OF ENLISTMENT, UNDER THE PROVISIONS OF ARTICLE 1781 (6), UNITED STATES NAVY REGULATIONS, BE INCLUDED IN THE COMPUTATION OF THE BENEFITS AUTHORIZED BY THE ACT OF MARCH 26, 1934, AND THE EXECUTIVE ORDER ISSUED PURSUANT THERETO, WHERE SUCH DISCHARGE OR EXTENSION OF ENLISTMENT WAS EFFECTED WHILE IN SERVICE IN A FOREIGN COUNTRY ON AND AFTER JULY 15, 1933?

(A) IF THE ANSWER TO QUESTION (3) IS IN THE AFFIRMATIVE, MAY SUCH DEPOSITS AS WERE DEDUCTED FROM THE ENLISTED MAN'S PAY PRIOR TO JULY 15, 1933, BE INCLUDED?

(B) IF THE ANSWER TO QUESTION (3) IS IN THE AFFIRMATIVE, MAY DEPOSITS OF CASH BY ENLISTED MEN BE INCLUDED IN THE COMPUTATION?

THE ACT OF MARCH 26, 1934, 48 STAT. 466, PROVIDES:

THAT THERE ARE AUTHORIZED TO BE APPROPRIATED ANNUALLY SUCH SUMS AS MAY BE NECESSARY TO ENABLE THE PRESIDENT, IN HIS DISCRETION AND UNDER SUCH REGULATIONS AS HE MAY PRESCRIBE, AND NOTWITHSTANDING THE PROVISIONS OF ANY OTHER ACT AND UPON RECOMMENDATION OF THE DIRECTOR OF THE BUDGET, TO MEET LOSSES SUSTAINED ON AND AFTER JULY 15, 1933, BY OFFICERS, ENLISTED MEN, AND EMPLOYEES OF THE UNITED STATES WHILE IN SERVICE IN FOREIGN COUNTRIES DUE TO THE APPRECIATION OF FOREIGN CURRENCIES IN THEIR RELATION TO THE AMERICAN DOLLAR, AND TO COVER ANY DEFICIENCY IN THE ACCOUNTS OF THE TREASURER OF THE UNITED STATES, INCLUDING INTEREST, ARISING OUT OF THE ARRANGEMENT APPROVED BY THE PRESIDENT ON JULY 27, 1933, FOR THE CONVERSION INTO FOREIGN CURRENCIES OF CHECKS AND DRAFTS OF OFFICERS, ENLISTED MEN, AND EMPLOYEES FOR SALARIES AND EXPENSES: PROVIDED, THAT SUCH ACTION AS THE PRESIDENT MAY TAKE SHALL BE BINDING UPON ALL EXECUTIVE OFFICERS OF THE GOVERNMENT: PROVIDED FURTHER, THAT NO PAYMENTS AUTHORIZED BY THIS ACT SHALL BE MADE TO ANY OFFICERS, ENLISTED MEN, OR EMPLOYEES FOR PERIODS DURING WHICH THEIR CHECKS OR DRAFTS WERE CONVERTED INTO FOREIGN CURRENCIES UNDER THE ARRANGEMENT HEREINBEFORE REFERRED TO: PROVIDED FURTHER, THAT ALLOWANCES AND EXPENDITURES PURSUANT TO THIS ACT SHALL NOT BE SUBJECT TO INCOME TAXES: AND PROVIDED FURTHER, THAT THE DIRECTOR OF THE BUDGET SHALL REPORT ALL EXPENDITURES MADE FOR THIS PURPOSE TO CONGRESS ANNUALLY WITH THE BUDGET ESTIMATES.

THE EXECUTIVE ORDER OF MARCH 27, 1934 (NO. 6657-A), PROVIDES IN PART AS FOLLOWS:

2. THE PURPOSE OF THESE REGULATIONS IS TO PROVIDE FOR REIMBURSEMENT TO OFFICERS, ENLISTED MEN, AND EMPLOYEES OF THE UNITED STATES (HEREINAFTER REFERRED TO AS EMPLOYEES), FOR LOSSES SUSTAINED FROM APPRECIATION OF FOREIGN CURRENCIES IN THEIR RELATION TO THE AMERICAN DOLLAR, AS AUTHORIZED UNDER THE AFORESAID ACT.

3. (A) THE LOSS ABOVE REFERRED TO IS THAT CALCULATED ON THE BASIS OF CONVERSION INTO FOREIGN CURRENCY OF THE EMPLOYEE'S NET SALARY AND NET ALLOWANCES, EXCEPT AS PROVIDED IN PARAGRAPHS (B) AND (C) OF THIS SECTION.

(B) IN THE CASE OF EMPLOYEES SERVING UNDER THE WAR AND NAVY DEPARTMENTS (WITH THE EXCEPTION OF MILITARY AND NAVAL ATTACHES AND OTHER EMPLOYEES ATTACHED TO THEIR OFFICES, WHO SHALL BE GOVERNED BY PARAGRAPH (A) OF THIS SECTION), THE LOSS IS THAT CALCULATED ON THE BASIS OF CONVERSION INTO FOREIGN CURRENCY OF THE EMPLOYEE'S NET PAY AND ALLOWANCES.

(E) AS USED IN THIS SECTION:

THE TERM "NET SALARY" MEANS THE BASE SALARY LESS ANY DEDUCTION FOR CONTRIBUTION TO THE RETIREMENT OR OTHER FUND, OR ON ACCOUNT OF PERCENTAGE DEDUCTIONS IN COMPENSATION.

THE TERM "NET ALLOWANCES" MEANS ALLOWANCES PAID TO THE EMPLOYEE.

THE TERM "NET PAY AND ALLOWANCES" MEANS THE EMPLOYEE'S FULL PAY, INCLUDING EXTRA OR ADDITIONAL PAY, AND ALL ALLOWANCES (OTHER THAN THOSE FURNISHED IN KIND) LESS DEDUCTIONS THEREFROM ON ACCOUNT OF ALLOTMENTS,FINES, AND FORFEITURES, CLOTHING, HOSPITAL, CIVIL-SERVICE RETIREMENT FUND, PERCENTAGE DEDUCTIONS IN COMPENSATION, AND OTHER SUNDRY CHECK AGES.

5. FROM AND AFTER THE EFFECTIVE DATE OF THIS ORDER, EACH EMPLOYEE SHALL BE ENTITLED TO RECEIVE IN FOREIGN CURRENCY SUCH AMOUNT AS HE WOULD HAVE RECEIVED BY CONVERTING INTO SUCH FOREIGN CURRENCY, AT THE BASIC RATES SPECIFIED IN SECTION 4, HIS NET SALARY AND NET ALLOWANCES, OR HIS NET PAY AND ALLOWANCES, AS PROVIDED IN SECTION 3.

INSTRUCTIONS ISSUED TO THE NAVAL SERVICE BY THE SECRETARY OF THE NAVY, JUNE 20, 1934, RELATIVE TO APPLICATION OF THIS ACT, CONTAIN THE FOLLOWING:

2. REIMBURSEMENT FOR LOSSES FROM AND INCLUDING 1 APRIL 1934 WILL BE MADE AS FOLLOWS:

(A) PAY-ROLL CREDITS--- MILITARY.--- COMPUTE THE "NET PAY AND ALLOWANCES" FOR THE PERIOD DURING WHICH THE EMPLOYEE IS ENTITLED TO RELIEF; CONVERT THIS AMOUNT TO FOREIGN CURRENCY AT BASIC RATE AND ALSO AT DISBURSING OFFICER'S COST RATE; THE DIFFERENCE REPRESENTS THE ADDITIONAL AMOUNT OF FOREIGN CURRENCY TO WHICH THE EMPLOYEE IS ENTITLED; THIS AMOUNT CONVERTED TO UNITED STATES DOLLARS AT DISBURSING OFFICER'S COST RATE IS THE AMOUNT TO BE CREDITED ON PAY ROLLS AND MARINE PAY VOUCHERS. BASIC RATES AND COST RATES USED IN COMPUTING THE ABOVE CREDIT WILL BE THOSE IN EFFECT FOR THE FOREIGN COUNTRY IN WHICH THE EMPLOYEE IS SERVING ON THE LAST DAY OF THE MONTH CONCERNED, OR ON DATE OF TRANSFER OR DISCHARGE, OR ON THE DATE OF DEPARTURE OF A VESSEL FROM "SERVICE IN FOREIGN COUNTRIES.' SUNDRY CREDITS COVERING PAY AND ALLOWANCES INCLUDING TRAVEL ALLOWANCE ON DISCHARGE OR EXTENSION ACCRUED AFTER 31 MARCH 1934 WHILE IN "SERVICE IN FOREIGN COUNTRIES" WILL BE INCLUDED IN THE COMPUTATION OF THE CREDIT FOR THE MONTH OR FRACTION THEREOF IN WHICH THE SUNDRY CREDIT IS MADE. COMPUTATION OF RELIEF AND THE CREDIT THEREOF WILL BE MADE AT THE END OF EACH MONTH, EXCEPT UNDER THE FOLLOWING CONDITIONS, IN WHICH CASES, COMPUTATION AND CREDIT WILL BE MADE AS OF THE DATE OF SUCH OCCURRENCE: * * *

TRAVEL ALLOWANCE ON DISCHARGE OR EXTENSION OF ENLISTMENT IS INCLUDED IN THE TERM "NET PAY AND ALLOWANCES" AS USED IN PARAGRAPH 3 (B) OF THE EXECUTIVE ORDER AND IS PROPERLY INCLUDED IN THE COMPUTATION OF THE BENEFITS AUTHORIZED BY THE ACT, AS DIRECTED TO BE MADE IN THE QUOTED INSTRUCTIONS, WHERE THE DISCHARGE OR EXTENSION OF ENLISTMENT BECOMES EFFECTIVE WHILE THE MAN IS IN THE SERVICE IN A FOREIGN COUNTRY ON OR AFTER JULY 15, 1933.

AN ENLISTED MAN OF THE MARINE CORPS IS ENTITLED TO ISSUE IN KIND OF CLOTHING OF A LIMITED MONEY VALUE FOR EACH YEAR OF HIS ENLISTMENT AND THE VALUE OF CLOTHING ALLOWANCE NOT ISSUED TO HIM IN KIND DURING HIS ENLISTMENT IS PAYABLE TO HIM ON DISCHARGE. SINCE SUCH ACCUMULATED CLOTHING ALLOWANCE CANNOT BE PAID UNTIL THE MAN IS DISCHARGED, IT MAY REASONABLY BE CONSIDERED AS A PART OF THE MAN'S "NET PAY AND ALLOWANCES" CONTEMPLATED IN PARAGRAPHS 3 (B) AND (E) OF THE EXECUTIVE ORDER. ACCORDINGLY, QUESTION 2 IS ANSWERED IN THE AFFIRMATIVE.

BY THE ACT OF JUNE 29, 1906, 34 STAT. 579, ENLISTED MEN OF THE MARINE CORPS BECAME ENTITLED TO DEPOSIT THEIR SAVINGS WITH THE UNITED STATES IN THE SAME MANNER AND UNDER THE SAME CONDITIONS AS PROVIDED FOR ENLISTED MEN OF THE NAVY. BY THE ACT OF FEBRUARY 9, 1889, 25 STAT. 657, ENLISTED MEN OF THE NAVY ARE ENTITLED TO DEPOSIT THEIR SAVINGS WITH PAYMASTERS AND RECEIVE INTEREST THEREON AT 4 PERCENT PER ANNUM, THE DEPOSIT AND INTEREST TO BE PAID THEM ON DISCHARGE. PARAGRAPH (1), ARTICLE 1781, NAVY REGULATIONS, PROVIDES:

(1) ENLISTED MEN OF THE NAVY AND MARINE CORPS SERVING AFLOAT OR ASHORE MAY, WITH THE APPROVAL OF THE COMMANDING OFFICER, DEPOSIT WITH THE OFFICER UPON WHOSE BOOKS THEIR ACCOUNTS ARE BORNE, ANY PORTION OF THE SAVINGS ACCRUING FROM THEIR PAY AND SAVINGS FROM OTHER SOURCES, IN SUMS NOT LESS THAN 5 DOLLARS, THE SAME TO REMAIN SO DEPOSITED UNTIL FINAL PAYMENT ON DISCHARGE OR WHEN AN ENLISTED MAN IS FURLOUGHED IN ACCORDANCE WITH THE ACT OF AUGUST 29, 1916.

PARAGRAPH (2) OF ARTICLE 1781 PROVIDES FOR DEPOSIT BY A CHARGE AGAINST THE MAN'S PAY ACCOUNT AND CREDIT TO HIS DEPOSIT ACCOUNT, AND PARAGRAPH (3) PROVIDES FOR CASH DEPOSITS.

PARAGRAPH (7) PROVIDES:

(7) UPON FINAL DISCHARGE OR UPON FURLOUGH IN ACCORDANCE WITH THE ACT OF AUGUST 29, 1916, THE OFFICER HAVING THE ACCOUNT OF DEPOSITORS SHALL MAKE PAYMENT IN FULL, WITH INTEREST, OF ALL SUMS DEPOSITED DURING ENLISTMENT.

THE TRANSFER OF A MAN'S PAY TO HIS SAVINGS DEPOSIT ACCOUNT IS IN EFFECT A PAYMENT OF SO MUCH PAY, AND PAY SO TRANSFERRED CEASES TO BE PAY WITHIN THE TERM "NET PAY AND ALLOWANCES" AS USED IN THE EXECUTIVE ORDER. ACCORDINGLY, SAVINGS DEPOSITS AND INTEREST THEREON OF ENLISTED MEN OF THE MARINE CORPS BEING NEITHER PAY NOR ALLOWANCES, ARE NOT, AS SUCH, INCLUDED IN THE ACT OF MARCH 26, 1934, AND THE EXECUTIVE ORDER OF MARCH 27, 1934, ISSUED PURSUANT THERETO. HOWEVER, SINCE ALL NET PAY AND ALLOWANCES ACCRUING ON AND AFTER JULY 15, 1933, ARE WITHIN THE ACT, THE MAN HAS BEEN OR WILL BE CREDITED WITH THE EXCHANGE LOSS WHICH OCCURRED ON AND AFTER JULY 15, 1933, AND OBVIOUSLY DEPOSITS MADE IN CASH AND DEPOSITS OF PAY WHICH ACCRUED PRIOR TO JULY 15, 1933, ARE NOT WITHIN THE BENEFITS OF THE ACT.