A-84220, APRIL 24, 1937, 16 COMP. GEN. 960

A-84220: Apr 24, 1937

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INTEREST PAYABLE THERE IS NO LEGAL OBJECTION TO THE OPENING OF SAVINGS DEPOSIT ACCOUNTS WITH THE UNITED STATES BY ENLISTED MEMBERS OF THE MARINE CORPS RESERVE WHILE ON EXTENDED ACTIVE DUTY IN TIMES OF PEACE AND CHARGING THE APPROPRIATION "PAY. THERE IS NO AUTHORITY FOR DEPOSITS AFTER RELIEF FROM ACTIVE DUTY. MARINE CORPS" MAY BE CONSIDERED LEGALLY AVAILABLE FOR PAYMENT OF INTEREST ON SUCH AMOUNTS AS MAY HAVE BEEN DEPOSITED BY HIM WHILE ON ACTIVE DUTY. WAS PLACED ON ACTIVE DUTY THE SAME DAY AND THAT HE IS STILL ON ACTIVE DUTY WITH THE UNITED STATES MARINE CORPS RESERVE AVIATION UNIT. IT IS STATED THAT ON THE VOUCHER WHICH PAID THIS MARINE CORPS RESERVIST FOR THE MONTH OF JANUARY 1937. A DEDUCTION OF $10 WAS MADE AS A DEPOSIT AND THE QUESTION WHICH ARISES IS WHETHER THE DEPOSITS OF A MEMBER OF THE MARINE CORPS RESERVE (CREATED BY THE ACT OF FEB. 28.

A-84220, APRIL 24, 1937, 16 COMP. GEN. 960

SAVINGS ACCOUNTS WITH THE UNITED STATES - MARINE CORPS RESERVE MEMBERS - WHETHER AUTHORIZED, AND INTEREST PAYABLE THERE IS NO LEGAL OBJECTION TO THE OPENING OF SAVINGS DEPOSIT ACCOUNTS WITH THE UNITED STATES BY ENLISTED MEMBERS OF THE MARINE CORPS RESERVE WHILE ON EXTENDED ACTIVE DUTY IN TIMES OF PEACE AND CHARGING THE APPROPRIATION "PAY, MARINE CORPS" WITH THE INTEREST ALLOWED BY LAW, BUT THERE IS NO AUTHORITY FOR DEPOSITS AFTER RELIEF FROM ACTIVE DUTY, NOR THE CONTINUANCE OF INTEREST ON DEPOSITS MADE WHILE ON ACTIVE DUTY AFTER RELEASE FROM ACTIVE DUTY.

ACTING COMPTROLLER GENERAL ELLIOTT TO THE SECRETARY OF THE NAVY, APRIL 24, 1937:

THERE HAS BEEN RECEIVED BY YOUR DIRECTION A LETTER FROM THE PAYMASTER, UNITED STATES MARINE CORPS, DATED FEBRUARY 11, 1937, REQUESTING DECISION WHETHER, IF TECHNICAL SERG. THOMAS W. CALDWELL, CLASS IV, FLEET MARINE CORPS RESERVE, BE PERMITTED TO OPEN A SAVINGS DEPOSIT ACCOUNT, THE APPROPRIATION "PAY, MARINE CORPS" MAY BE CONSIDERED LEGALLY AVAILABLE FOR PAYMENT OF INTEREST ON SUCH AMOUNTS AS MAY HAVE BEEN DEPOSITED BY HIM WHILE ON ACTIVE DUTY.

IT APPEARS THAT CALDWELL REENLISTED IN CLASS IV, FLEET MARINE CORPS RESERVE, AT KANSAS CITY, ., ON AUGUST 20, 1936, WAS PLACED ON ACTIVE DUTY THE SAME DAY AND THAT HE IS STILL ON ACTIVE DUTY WITH THE UNITED STATES MARINE CORPS RESERVE AVIATION UNIT, NAVAL RESERVE AVIATION BASE, FAIRFAX AIRPORT, KANSAS CITY, KANS. IT IS STATED THAT ON THE VOUCHER WHICH PAID THIS MARINE CORPS RESERVIST FOR THE MONTH OF JANUARY 1937, A DEDUCTION OF $10 WAS MADE AS A DEPOSIT AND THE QUESTION WHICH ARISES IS WHETHER THE DEPOSITS OF A MEMBER OF THE MARINE CORPS RESERVE (CREATED BY THE ACT OF FEB. 28, 1925, 43 STAT. 1080), IN AN ENLISTED RATING WHILE ON ACTIVE DUTY COME WITHIN THE PROVISIONS OF THE ACTS OF FEBRUARY 9, 1889, 25 STAT. 657, AND JUNE 29, 1906, 34 STAT. 579, PERTAINING TO DEPOSITS OF ENLISTED MEN OF THE REGULAR NAVY AND REGULAR MARINE CORPS.

THE ACT OF FEBRUARY 9, 1889, 25 STAT. 657, PROVIDES:

THAT ANY ENLISTED MAN OR APPOINTED PETTY OFFICER OF THE NAVY MAY DEPOSIT HIS SAVINGS, IN SUMS NOT LESS THAN FIVE DOLLARS, WITH THE PAYMASTER UPON WHOSE BOOKS HIS ACCOUNT IS BORNE; AND HE SHALL BE FURNISHED WITH A DEPOSIT -BOOK, IN WHICH THE SAID PAYMASTER SHALL NOTE, OVER HIS SIGNATURE, THE AMOUNT, DATE, AND PLACE OF SUCH DEPOSIT. THE MONEY SO DEPOSITED SHALL BE ACCOUNTED FOR IN THE SAME MANNER AS OTHER PUBLIC FUNDS, AND SHALL PASS TO THE CREDIT OF THE APPROPRIATION FOR "PAY FOR THE NAVY," AND SHALL NOT BE SUBJECT TO FORFEITURE BY SENTENCE OF COURT-MARTIAL, BUT SHALL BE FORFEITED BY DESERTION, AND SHALL NOT BE PERMITTED TO BE PAID UNTIL FINAL PAYMENT ON DISCHARGE, OR TO THE HEIRS OR REPRESENTATIVES OF A DECEASED SAILOR, AND THAT SUCH DEPOSIT BE EXEMPT FROM LIABILITY FOR SUCH SAILOR'S DEBTS: PROVIDED, THAT THE GOVERNMENT SHALL BE LIABLE FOR THE AMOUNT DEPOSITED TO THE PERSON SO DEPOSITING THE SAME.

SEC. 2. THAT FOR ANY SUMS NOT LESS THAN FIVE DOLLARS SO DEPOSITED FOR THE PERIOD OF SIX MONTHS OR LONGER, THE SAILOR, ON HIS FINAL DISCHARGE, SHALL BE PAID INTEREST AT THE RATE OF FOUR PERCENTUM PER ANNUM.

SEC. 3. THAT THE SYSTEM OF DEPOSITS HEREIN ESTABLISHED SHALL BE CARRIED INTO EXECUTION UNDER SUCH REGULATIONS AS MAY BE ESTABLISHED BY THE SECRETARY OF THE NAVY.

THE ACT OF JUNE 29, 1906, 34 STAT. 579, PROVIDES:

* * * THAT HEREAFTER ENLISTED MEN OF THE MARINE CORPS SHALL BE ENTITLED TO DEPOSIT THEIR SAVINGS WITH THE UNITED STATES, THROUGH ANY PAYMASTER, IN THE SAME MANNER AND UNDER THE SAME CONDITIONS AS IS NOW OR MAY HEREAFTER BE PROVIDED FOR THE ENLISTED MEN OF THE NAVY: PROVIDED, HOWEVER, THAT THE SUMS SO DEPOSITED SHALL PASS TO THE CREDIT OF THE APPROPRIATION FOR PAY OF THE MARINE CORPS.

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 FIVE 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.

THE LAST CLAUSE OF THE CITED REGULATION APPEARS TO HAVE BEEN USED UPON A DECISION OF THE FORMER COMPTROLLER OF THE TREASURY, DATED JULY 3, 1917, WHICH CONSIDERED THE QUESTION PRESENTED BY THE SECRETARY OF THE NAVY IN CONNECTION WITH A PROPOSED REGULATION CONCERNING THE DEPOSIT OF SAVINGS BY MEMBERS OF THE RESERVE FORCES OF THE NAVY AND MARINE CORPS, WHEN ORDERED TO ACTIVE DUTY IN TIME OF WAR OR NATIONAL EMERGENCY, THE SPECIFIC QUESTION INVOLVED BEING WHETHER, FOR ACCOUNTING PURPOSES, THE TERMINATION OF THEIR ACTIVE DUTY IN TIME OF WAR OR NATIONAL EMERGENCY MAY BE CONSIDERED AS A DISCHARGE WITHIN THE MEANING OF SECTION 1 OF THE ACT OF FEBRUARY 9, 1889, FOR THE PURPOSE OF REPAYMENT OF DEPOSITS WITH ACCRUED INTEREST.

IT WAS HELD IN THE DECISION OF JULY 3, 1917, THAT NO PROVISION OF LAW EXISTED FOR MEMBERS OF SAID RESERVE FORCES TO MAKE DEPOSITS UNDER THE ACT OF FEBRUARY 9, 1889, PRIOR TO THEIR ENTRY UPON ACTIVE DUTY OR AFTER THEIR RELEASE THEREFROM; THAT UPON RELEASE FROM ACTIVE DUTY THEIR STATUS TERMINATED SO FAR AS CONCERNS ASSIMILATION OF RIGHTS TO THOSE MEMBERS OF THE REGULAR NAVY AND THAT SO FAR AS DEPOSITS ARE CONCERNED, THE STATUS OF EACH WAS EQUIVALENT TO THAT OF A MEMBER OF THE REGULAR NAVY DISCHARGED BY EXPIRATION OF ENLISTMENT.

THE ACT OF FEBRUARY 28, 1925, 43 STAT. 1080, CREATING THE NAVAL RESERVE AND THE MARINE CORPS RESERVE AS COMPONENTS OF THE REGULAR NAVY AND THE REGULAR MARINE CORPS OF THE UNITED STATES CONTAINS NOTHING WHICH WOULD REQUIRE DENYING TO ENLISTED RESERVISTS ON EXTENDED ACTIVE DUTY THE SAME RIGHT TO MAKE DEPOSITS OF THEIR PAY AND RECEIVE INTEREST THEREON AS WAS HELD TO BE AUTHORIZED FOR MEMBERS OF THE NAVAL RESERVE FORCE ON EXTENDED ACTIVE DUTY, UNDER THE CITED ACTS PROVIDING FOR SAVINGS DEPOSITS BY ENLISTED MEN OF THE NAVY AND MARINE CORPS.

IN THIS CONNECTION IT WILL BE OBSERVED FROM THE CURRENT APPROPRIATION FOR THE MARINE CORPS, ACT OF JUNE 3, 1936, 49 STAT. 1398, 1414, THAT THE ITEM FOR PAY AND ALLOWANCES OF THE MARINE CORPS RESERVE IS INCLUDED UNDER THE BROAD TITLE "PAY, MARINE CORPS" WHICH SPECIFICALLY AUTHORIZES ,INTEREST ON DEPOSITS BY ENLISTED MEN" AND FURTHER PROVIDES THAT THE WHOLE SUM THEREIN APPROPRIATED SHALL BE DISBURSED AND ACCOUNTED FOR IN ACCORDANCE WITH EXISTING LAW AND SHALL CONSTITUTE ONE FUND.

THIS OFFICE PERCEIVES NO LEGAL OBJECTION TO PERMITTING THE OPENING OF SAVING DEPOSITS BY ENLISTED MEMBERS OF THE MARINE CORPS RESERVE WHILE ON EXTENDED ACTIVE DUTY IN TIMES OF PEACE AND CHARGING THE APPROPRIATION "PAY, MARINE CORPS" WITH THE INTEREST ALLOWED BY LAW--- BUT THERE IS NO AUTHORITY FOR DEPOSITS AFTER RELIEF FROM ACTIVE DUTY NOR THE CONTINUANCE OF INTEREST ON DEPOSITS MADE WHILE ON ACTIVE DUTY AFTER RELEASE FROM ACTIVE DUTY.