A-9074, APRIL 15, 1925, 4 COMP. GEN. 856

A-9074: Apr 15, 1925

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THE PROPOSED PROCEDURE IS TO FURNISH THE PAYMASTER WITH THE REQUISITE AMOUNT OF MONEY IN NEW UNITED STATES GOLD COIN TO BE EXCHANGED BY HIM FOR AUSTRALIAN MONEY UPON THE ARRIVAL OF THE FLEET IN AUSTRALIA. IT IS SHOWN THAT ARRANGEMENTS HAVE BEEN MADE BY THE TREASURY OF THE UNITED STATES FOR THE IMMEDIATE EXCHANGE OF THE MONEYS UPON TENDER OF THE UNITED STATES GOLD COIN TO THE AUSTRALIAN MINT. UNDER SECTION 3620 OF THE REVISED STATUTES FURNISHING A DISBURSING OFFICER WITH FUNDS IS PRIMARILY A FUNCTION OF THE TREASURY DEPARTMENT AND UNDER THE PROVISIONS OF THIS STATUTE . AMENDED AND SUPPLEMENTED" WAS ISSUED ON JANUARY 24. - * * * ALL FUNDS ADVANCED TO GOVERNMENT DISBURSING OFFICERS FOR DISBURSEMENT WILL BE PLACED TO THEIR CREDIT.

A-9074, APRIL 15, 1925, 4 COMP. GEN. 856

EXCHANGE OF GOLD COIN OF UNITED STATES FOR FOREIGN MONEYS GOLD COIN OF THE UNITED STATES ADVANCED TO A DISBURSING OFFICER OF THE NAVY FOR DISBURSEMENT WHILE IN AUSTRALIAN WATERS MAY BE EXCHANGED FOR AUSTRALIAN GOLD COIN AT PAR INCLUDING A DEDUCTION FOR MINT CHARGE, BUT MAY NOT BE EXCHANGED FOR ANY OTHER FORM OF AUSTRALIAN MONEY.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF THE NAVY, APRIL 15, 1925:

THERE HAS BEEN RECEIVED YOUR LETTER OF APRIL 13, 1925, RELATIVE TO THE CONTEMPLATED ARRANGEMENTS OF THE TREASURY AND NAVY DEPARTMENTS FOR FURNISHING THE UNITED STATES FLEET WITH THE NECESSARY FUNDS FOR DISBURSEMENT DURING THE COMING AUSTRALIAN CRUISE. THE PROPOSED PROCEDURE IS TO FURNISH THE PAYMASTER WITH THE REQUISITE AMOUNT OF MONEY IN NEW UNITED STATES GOLD COIN TO BE EXCHANGED BY HIM FOR AUSTRALIAN MONEY UPON THE ARRIVAL OF THE FLEET IN AUSTRALIA, SUCH AUSTRALIAN MONEY TO BE USED IN PAYING THE CREWS AND FOR OTHER EXPENSES INCURRED WHILE IN AUSTRALIAN PORTS. IT IS SHOWN THAT ARRANGEMENTS HAVE BEEN MADE BY THE TREASURY OF THE UNITED STATES FOR THE IMMEDIATE EXCHANGE OF THE MONEYS UPON TENDER OF THE UNITED STATES GOLD COIN TO THE AUSTRALIAN MINT, THE ONLY EXPENSE CONNECTED THEREWITH BEING THE CUSTOMARY MINT CHARGE. IN THIS CONNECTION YOU SUBMIT THREE QUESTIONS AS FOLLOWS:

(A) MAY THE THE EXCHANGE OF UNITED STATES GOLD COIN FOR AUSTRALIAN GOLD COIN BE EFFECTED?

(B) MUST THE EXCHANGE BE MADE FOR GOLD SOVEREIGNS, OR MAY THE EXCHANGE BE MADE FOR (1) GOLD CERTIFICATES; OR (2) SILVER CERTIFICATES; OR (3) OTHER CERTIFICATES AUTHORIZED OR ISSUED BY THE AUSTRALIAN GOVERNMENT?

(C) SHALL THE AUSTRALIAN GOLD COIN OR CURRENCY RECEIVED BE ACCOUNTED FOR AT COST PRICE OR AT PAR ($4.8665/?

UNDER SECTION 3620 OF THE REVISED STATUTES FURNISHING A DISBURSING OFFICER WITH FUNDS IS PRIMARILY A FUNCTION OF THE TREASURY DEPARTMENT AND UNDER THE PROVISIONS OF THIS STATUTE ,DEPARTMENT CIRCULAR NO. 195, AMENDED AND SUPPLEMENTED" WAS ISSUED ON JANUARY 24, 1921, PROVIDING THAT---

* * * ALL FUNDS ADVANCED TO GOVERNMENT DISBURSING OFFICERS FOR DISBURSEMENT WILL BE PLACED TO THEIR CREDIT, SUBJECT TO THEIR OFFICIAL CHECK, WITH THE TREASURER OF THE UNITED STATES IN WASHINGTON, EXCEPT IN CASES WHERE THE SECRETARY OF THE TREASURY BY SPECIAL AUTHORITY PERMITS DISBURSING OFFICERS TO CARRY OFFICIAL DISBURSING ACCOUNTS WITH DEPOSITARY BANKS LOCATED BEYOND THE CONTINENTAL LIMITS OF THE UNITED STATES, AND WITH THE FURTHER EXCEPTIONS THAT---

(C) ANY DISBURSING OFFICER OF THE NAVY DEPARTMENT, OR MARINE CORPS, WHO IS SERVING AFLOAT OR WHO IS ASSIGNED TO DUTY OUTSIDE THE CONTINENTAL LIMITS OF THE UNITED STATES, OR AT PLACES FAR REMOTE FROM DEPOSITARIES OF PUBLIC MONEYS, MAY WHEN AUTHORIZED BY THE SECRETARY OF THE NAVY, KEEP AT HIS OWN RISK SUCH MONEYS AS MAY BE INTRUSTED TO HIM FOR DISBURSEMENT. QUARTERLY REPORTS SHALL BE MADE BY THE SECRETARY OF THE NAVY TO THE SECRETARY OF THE TREASURY, DIVISION OF BOOKKEEPING AND WARRANTS, SHOWING SO FAR AS POSSIBLE THE NAMES AND STATIONS OF THE DISBURSING OFFICERS SO AUTHORIZED TO KEEP MONEYS AT THEIR OWN RISK, THE AMOUNTS WHICH THEY ARE AUTHORIZED TO KEEP, AND THE AMOUNTS SO KEPT.

SECTION 3651, REVISED STATUTES, PROVIDES THAT---

NO EXCHANGE OF FUNDS SHALL BE MADE BY ANY DISBURSING OFFICER OR AGENT OF THE GOVERNMENT, OF ANY GRADE OR DENOMINATION WHATSOEVER, OR CONNECTED WITH ANY BRANCH OF THE PUBLIC SERVICE, OTHER THAN AN EXCHANGE FOR GOLD, SILVER, UNITED STATES NOTES, AND NATIONAL-BANK NOTES; AND EVERY SUCH DISBURSING OFFICER, WHEN THE MEANS FOR HIS DISBURSEMENTS ARE FURNISHED HIM IN GOLD, SILVER, UNITED STATES NOTES, OR NATIONAL-BANK NOTES, SHALL MAKE HIS PAYMENTS IN THE MONEYS SO FURNISHED; OR WHEN THEY ARE FURNISHED TO HIM IN DRAFTS, SHALL CAUSE THOSE DRAFTS TO BE PRESENTED AT THEIR PLACE OF PAYMENT, AND PROPERLY PAID ACCORDING TO LAW, AND SHALL MAKE HIS PAYMENTS IN THE MONEYS SO RECEIVED FOR THE DRAFTS FURNISHED, UNLESS, IN EITHER CASE, HE CAN EXCHANGE THE MEANS IN HIS HANDS FOR GOLD AND SILVER AT PAR.

THE MATTER MAY BE UNDERSTOOD AS AN ARRANGEMENT BY THE TREASURY OF THE UNITED STATES TO PLACE THE PAYMASTER IN FUNDS FOR THE PARTICULAR CRUISE RATHER THAN A TRANSACTION OF THE PAYMASTER, OR AS A GENERAL PROCEDURE, AND THAT IN SO FAR AS THE CONTEMPLATED PROCEDURE PERTAINS TO THE EXCHANGE OF GOLD FOR GOLD IT IS NOT PROHIBITED BY THIS STATUTE, BUT AS THE STATUTE SPECIFICALLY PROHIBITS THE EXCHANGE OF GOVERNMENT FUNDS IN THE POSSESSION OF A DISBURSING OFFICER FOR ANYTHING BUT GOLD, SILVER, UNITED STATES NOTES AND NATIONAL-BANK NOTES THE EXCHANGE CAN NOT BE MADE FOR ANY FORM OF AUSTRALIAN MONEY SAVE GOLD COIN. THE EXCHANGE WITH THE DEDUCTION OF THE MINT CHARGE TO BE MADE IN CONVERTING THE MONEY WILL BE CONSIDERED AS AN EXCHANGE AT PAR, AND, THEREFORE, YOUR FIRST QUESTION IS ANSWERED IN THE AFFIRMATIVE, AND THE ANSWER TO THE SECOND IS THAT THE EXCHANGE MUST BE MADE FOR GOLD SOVEREIGNS. THE NECESSARY AMOUNT OF SILVER FOR MAKING CHANGE MAY, OF COURSE, BE SECURED BY EXCHANGING AUSTRALIAN GOLD COIN FOR SILVER.

THE AUSTRALIAN COIN RECEIVED MUST BE ACCOUNTED FOR AT PAR, ALL DISBURSEMENTS BEING MADE UPON THE BASIS OF $4.8665, AT WHICH RATE THE PAYMENTS MADE WILL BE CREDITED AND THE CASH BALANCE ON HAND IN AUSTRALIAN COIN WHEN ACCOUNTS ARE RENDERED WILL BE CONVERTED INTO UNITED STATES MONEY FOR ACCOUNTING PURPOSES. CREDIT FOR THE MINT CHARGE INCURRED IN THE EXCHANGE WILL BE ALLOWED UPON A PROPERLY SUPPORTED VOUCHER.