B-123098, JUL. 20, 1955

B-123098, JUL. 20, 1955

TO MR. JOHN H. DRISCOLL:

FURTHER REFERENCE IS MADE TO YOUR LETTER OF JANUARY 24, 1955, RESPECTING YOUR CLAIM FOR INTEREST ON YOUR SAVINGS DEPOSITS FROM JUNE 5, 1950, TO MARCH 30, 1954, THE DATE OF YOUR LAST DISCHARGE FROM THE UNITED STATES AIR FORCE.

THE RECORDS SHOW THAT YOU WERE DISCHARGED ON JUNE 4, 1950, THAT YOU AFTERWARD REENLISTED AND THAT YOU WERE AGAIN DISCHARGED ON MARCH 30, 1954. YOUR DEPOSITS TOTALING $780, ALL OF WHICH WERE MADE BEFORE JUNE 4, 1950, WERE REPAID BY THE AIR FORCE FINANCE CENTER IN JULY 1954 AND YOUR CLAIM FOR INTEREST WAS FORWARDED TO OUR CLAIMS DIVISION. BY SETTLEMENT DATED NOVEMBER 29, 1954, YOU WERE ALLOWED THE SUM OF $32.84, REPRESENTING INTEREST ON YOUR DEPOSITS COMPUTED TO JUNE 4, 1950. YOU CONTEND THAT INTEREST SHOULD HAVE BEEN COMPUTED TO MARCH 30, 1954, YOUR LAST DISCHARGE DATE.

SECTIONS 1305, 1306, AND 1307, REVISED STATUTES, 10 U.S.C. 906, 907, AND 908, APPLICABLE TO THE ARMY AND AIR FORCE AT THE TIME, PROVIDED THAT ANY ENLISTED MAN COULD DEPOSIT HIS SAVINGS, IN SUMS NOT LESS THAN $5, WITH ANY FINANSE OFFICER, WHO SHOULD FURNISH HIM A DEPOSIT BOOK IN WHICH THERE SHOULD BE ENTERED THE NAMES OF THE FINANCE OFFICER AND THE DEPOSITOR, AND THE AMOUNT, DATE, AND PLACE OF SUCH DEPOSIT. THE STATUTES FURTHER PROVIDED THAT ANY AMOUNT SO DEPOSITED SHOULD BE HELD DURING SUCH PERIOD OF HIS SERVICE AS MIGHT BE PRESCRIBED BY THE SECRETARY, AND THAT FOR ANY SUMS NOT LESS THAN $5 SO DEPOSITED FOR A PERIOD OF SIX MONTHS, OR LONGER, THE DEPOSITOR, ON HIS FINAL DISCHARGE OR AT SUCH TIME OR TIMES PRIOR THERETO AS MIGHT BE PRESCRIBED BY THE SECRETARY, SHOULD BE PAID INTEREST AT THE RATE OF 4 PERCENT A YEAR, THE SYSTEM OF DEPOSITS SO ESTABLISHED TO BE GOVERNED BY REGULATIONS PRESCRIBED BY THE SECRETARY.

THE GOVERNING REGULATIONS IN EFFECT DURING THE PERIOD HERE INVOLVED PROVIDED FOR THE REPAYMENT OF DEPOSITS UPON DISCHARGE OR RETIREMENT FROM THE SERVICE, AND THAT UPON REPAYMENT INTEREST SHOULD BE PAID AT THE RATE OF 4 PERCENT A YEAR ON THE AMOUNT REPAID TO INCLUDE DATE OF DISCHARGE OR RETIREMENT. SUCH REGULATIONS ALSO PROVIDED THAT A DISCHARGED SOLDIER OR AIRMAN, WHO AFTER REENLISTMENT DESIRED THAT ALL OR A PART OF THE MONEY (INCLUDING DEPOSITS AND INTEREST THEREON) DUE HIM ON DISCHARGE BE REDEPOSITED, MUST FURNISH A DISBURSING OFFICER HAVING CUSTODY OF HIS MILITARY PAY RECORD A WRITTEN ORDER REQUESTING THAT SUCH PART OF THE AMOUNT DUE AS HE MIGHT DESIRE TO DEPOSIT BE TRANSFERRED TO HIS NEW MILITARY PAY RECORD.

THESE STATUTES AND REGULATIONS CONTEMPLATED THAT THE DEPOSITS WOULD BE MADE DURING THE TERM OF THE ENLISTED MAN'S ENLISTMENT AND WOULD BE PAID TO HIM UPON HIS DISCHARGE. THE RULE HAS BEEN ESTABLISHED AT LEAST SINCE 1885 THAT WHERE AN ENLISTED MAN FAILS TO RECEIVE HIS DEPOSITS AT THE TIME OF DISCHARGE HE IS ENTITLED TO INTEREST FROM THE DAY FOLLOWING THE DATE OF DEPOSIT UP TO AND INCLUDING THE DATE OF HIS DISCHARGE ONLY. IN A DECISION DATED APRIL 21, 1902, 8 COMP. DEC. 739, 741, THE COMPTROLLER OF THE TREASURY CITED WITH APPROVAL A DECISION DATED SEPTEMBER 30, 1885, TO THE EFFECT THAT AFTER DISCHARGE AND REENLISTMENT A SOLDIER'S DEPOSITS REMAIN IN THE POSSESSION OF THE UNITED STATES WITHOUT INTEREST UNTIL DRAWN AND REDEPOSITED.

IN THE CASE OF AN ENLISTED MAN WHO WAS DISCHARGED AND SUBSEQUENTLY REENLISTED, THE REGULATIONS DID NOT REQUIRE THAT THE AMOUNT TO HIS CREDIT AS A DEPOSIT BE WITHDRAWN AND REDEPOSITED, BUT BEFORE THE AMOUNT OF THE DEPOSITS MADE IN HIS FORMER ENLISTMENT COULD BE TRANSFERRED TO A NEW ACCOUNT THE REGULATIONS REQUIRED THAT HE FURNISH THE APPROPRIATE DISBURSING OFFICER A WRITTEN ORDER REQUESTING SUCH TRANSFER. OTHERWISE THE MONEY WOULD NOT BE REDEPOSITED FOR THE ENSUING TERM OF ENLISTMENT BUT COULD BE WITHDRAWN ON DEMAND AT ANY TIME BY THE ENLISTED MAN. HENCE IT WOULD NOT BE A TIME DEPOSIT, AGREED TO BE LEFT ON DEPOSIT FOR THE ENTIRE PERIOD FIXED BY THE REGULATIONS, WHICH WAS A CONDITION TO THE PAYMENT OF INTEREST. SINCE IT APPEARS THAT THE AMOUNT STANDING TO YOUR CREDIT AT THE TIME OF YOUR DISCHARGE ON JUNE 4, 1950, WAS NOT SUBSEQUENTLY DEPOSITED IN A NEW ACCOUNT, THERE IS NO AUTHORITY FOR THE PAYMENT OF INTEREST FOR THE PERIOD COVERED BY YOUR CLAIM.

CHECK NO. 26,547,255, DATED DECEMBER 7, 1954, IN THE AMOUNT OF $32.84, WHICH ACCOMPANIED YOUR LETTER OF JANUARY 24, 1955, IS ENCLOSED.