Transactions

statements.

1289. Transactions relating to sales shall be entered in the entered in money monthly and quarterly accounts current. The gross receipts shall be shown, and, under expenditures, shall be stated separately the expenses of sale, the repayment to successful bidders of unused balances of deposits, and the deposits to "Miscellaneous receipts, proceeds of sale." Repayments shall be made by check. Vouchers covering the expenditures shall be forwarded with the quarterly account current, reference to them being made by number in the account of sale.

Effects of deceased persons and deserters.

1290. (1) The effects of deceased persons and deserters shall be disposed of as provided in articles 544 and 546.

(2) The pay officer shall have an account taken of such sales, which account shall show the articles belonging to each individual, the prices realized, and the number, name, and rank of each purchaser. From this account of sale the pay officer shall credit the account of the original owner, under the head of "Sale of effects" in the column of the pay roll for "Sundry credits," with the amount realized from the sale of his effects. The total amount shall be entered on the account current as "Sale of D. M. and D. effects," and the money accounted for under "General account of advances." The account of sale shall be forwarded as a voucher with the pay roll containing the credit.

CHAPTER XXVIII.

MONEY.

SECTION 1.-RESPONSIBILITIES AND PENALTIES.

1291. All officers, agents, or other persons receiving public moneys shall render distinct accounts of the application thereof, according to the appropriation under which the same may have been advanced to them. (Sec. 3623, R. S.)

Distinct accounts required.

1292. A disbursing officer has no right to make any transfer Transfer in acof funds in his accounts from one appropriation to another. Such counts between appropriations transfers never have been recognized by the accounting officers of prohibited. the Government. This does not apply, however, to disbursements where all moneys received are on account of "General account of advances."

check not re

1293. (1) No payment to a public creditor shall be evidenced Receipts for by a receipt (except when receipt is required either by law or payments by contract) unless such payment is made in cash, i. e., currency. quired, etc. Therefore, no receipt for a payment made by a disbursing officer's check shall be required or taken. In no case shall receipt for a payment be taken in duplicate, triplicate, etc., but by single receipt only.

(2) In all cases where receipts are taken the exchange of currency and the receipt therefor shall be simultaneous. Practices requiring receipt in advance of actual payment are prohibited.

Expenses of commissions and

1294. No accounting or disbursing officer of the Government shall allow or pay any account or charge whatever growing out inquiries. of, or in any way connected with, any commission or inquiry, except courts-martial or courts of inquiry in the military or naval service of the United States, until special appropriations shall have been made by law to pay such accounts and charges. 3681, R. S.)

(Sec.

1295. (1) No money shall be paid to any person for his compensation who is in arrears to the United States, until he has accounted for and paid into the Treasury all sums for which he may be liable. (Sec. 1766, R. S., and arts. 1086 and 1088.)

(2) Money accruing from commuted rations and from the commutation for quarters may be paid regardless of the person's indebtedness.

Person in ar

rears.

cers.

1296. It shall not be lawful for any pay officer to advance or Loans to offloan, under any pretense whatever, to any officer in the naval cers by pay offservice any sum of money, public or private, or any credit, or any article or commodity whatever. (Sec. 1389, R. S., and arts. 1086 and 1088.)

1297. No money which may be placed in charge of a pay No payments officer by order of, or authority from, his commanding or superior to be made unless approved by officer, or of the Treasury or Navy Departments, shall be used or paid without the sanction or approval of either his immediate ity.

proper author

Commanding officer to be informed of all

money received or paid.

Objection to order for illegal or unauthorized payments.

commanding officer, the commander-in-chief of the fleet, the commander of the squadron, division, or station to which he belongs, the Auditor for the Navy Department, the Comptroller of the Treasury, or the Secretary of the Navy.

1298. When a pay officer has received, or has been authorized or directed to pay over, any public money without the previous knowledge or sanction of his immediate commanding officer, it shall be the duty of such pay officer to report to him forthwith the amount received or paid, and the authority under which he acted. 1299. When ordered by his commanding officer to make an expenditure of money or stores which the pay officer believes to be illegal or contrary to regulation, the latter shall state in writing the grounds on which he objects to obeying the order, and request that the order be reiterated in writing. On the receipt of such order the expenditure shall be made.

Disbursements 1300. (1) Disbursement of public moneys, or disposal of pubby order of com- lic stores, made by a disbursing officer pursuant to an order of manding officers. any commanding officer of the Navy, shall be allowed by the proper accounting officer of the Treasury in settlement of the accounts of the officer, upon satisfactory evidence of the making of such order, and of the payment of money or disposal of stores in conformity with it; and the commanding officer by whose order such disbursement or disposal was made shall be held accountable for the same. (Sec. 285, R. S.)

Accountability begins on the receipt of funds.

Transfer of

funds.

(2) The foregoing, however, does not authorize an advance of public money by the pay officer to the commanding officer, or to any other person by his order. The disbursement presupposes an indebtedness, and whether the objects for which the indebtedness accrued were sanctioned or not by law or regulation, the pay officer would be entitled to a credit for payment therefor, when made by order of the commanding officer; but the disbursement must be for some service or article furnished, in accordance with law.

(3) The commanding officer will be held accountable by the Navy Department for every expenditure of funds or property made by his authority; but in order to charge a commanding officer with pecuniary responsibility for a payment made by his order, under paragraph 1 of this article, it is necessary that there should be a compliance with article 1298, for, in the absence of such written order from the commanding officer, after a statement of objections has been duly made, the pay officer, and not the commanding officer, will be held responsible.

1301. (1) Although an officer may be charged on the books of the Treasury with the amount of requisitions made in his favor, yet he is not held accountable for money until it shall have come to his hands.

(2) In each transfer of funds, the receiving officer must state on the receipt given that he holds himself accountable to the United States for the sum received. The officer making the transfer shall state whether the funds transferred were in cash, i. e., currency, or by check. If by check, the date, number, and depositary on whom drawn must be stated.

(3) When transfers have been made to, or funds received from, more than one officer, the amounts so transferred or received from each officer shall be stated separately.

failing to safely

1302. Every officer or other person charged by any act of Custodian of Congress with the safe keeping of the public moneys who fails to public money safely keep the same, without loaning, using, converting to his keep, without own use, depositing in banks, or exchanging for other funds than loaning, etc. as specially allowed by law, shall be guilty of embezzlement of the moneys so loaned, used, converted, deposited, or exchanged, and shall be imprisoned not less than six months nor more than ten years, and fined in a sum equal to the amount of money so embezzled. (Sec. 5490, R. S.) 1303. Every officer or agent of the United States who, having Failure of ofreceived public money which he is not authorized to retain as, salary, pay, or emolument, fails to render his accounts for the' same as provided by law, shall be deemed guilty of embezzlement, and shall be fined in the sum equal to the amount of the money embezzled, and shall be imprisoned not less than six months or more than ten years. (Sec. 5491, R. S.)

ficer to render accounts, etc.

etc.

Penalty for

1304. Every officer of the United States, civil, military, or naval, and every sutler, soldier, marine, or other person, who embezzlement, false returns, takes or causes to be taken into a State declared to be in insurrection, or to any other point to be thence taken into such State, or who transports or sells, or otherwise disposes of therein, any goods, wares, or merchandise whatsoever, except in puruance of license and authority of the President, as provided in this Title, or who makes any false statement or representation upon which license and authority is granted for such transportation, sale, or other disposition, or who, under any license or authority obtained, willfully and knowingly transports, sells, or otherwise disposes of any other goods, wares, or merchandise than such as are in good faith so licensed and authorized, or who willfully and knowingly transports, sells, or disposes of the same, or any portion thereof, in violation of the terms of such license or authority, or of any rule or regulation prescribed by the Secretary of the Treasury concerning the same, or who is guilty of any act of embezzlement, of willful misappropriation of public or private money or property, of keeping false accounts, or of willfully making any false returns, shall be deemed guilty of a misdemeanor, and shall be fined not more than five thousand dollars and im prisoned in the penitentiary not more than three years. Viola tions of this section shall be cognizable before any court, civil or military, competent to try the same. (Sec. 5306, R. S.)

Exchange of

1305. No exchange of funds shall be made by any disbursing officer or agent of the Government, of any grade or denomination funds restricted. 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 to 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 money so received for the drafts furnished, unless in either case he can exchange the means in his hands for gold and silver at par; and it shall be the duty of the head of the proper department immediately to suspend from duty any disbursing officer or agent who violates the provisions of this

Premium on sales of public

counted for.

section, and forthwith to report the name of the officer or agent to the President, with the fact of the violation and all the cir cumstances accompanying the same, and within the knowledge of the Secretary, to the end that such officer or agent may be promptly removed from office, or restored to his trust and the performance of his duties, as the President may deem just and proper. (Sec. 3651, R. S.)

1306. No officer of the United States shall, either directly or moneys to be ac- indirectly, sell or dispose of to any person for a premium any Treasury note, draft, warrant, or other public security not his private property, or sell or dispose of the avails or proceeds of such note, draft, warrant, or security in his hands for disbursement, without making return of such premium, and accounting therefor by charging the same in his accounts to the credit of the United States; and any officer violating this section shall be forthwith dismissed from office. (Sec. 3652, R. S.)

Evidence of conversion.

Funds to be deposited by disbursing officers.

Statement of

be rendered.

1307. If any officer charged with the disbursement of the public moneys accepts, receives, or transmits to the Treasury Department, to be allowed in his favor, any receipt or voucher from a creditor of the United States, without having paid to such creditor, in such funds as the officer received for disbursement or in such funds as he may be authorized by law to take in exchange, the full amount specified in such receipt or voucher, every such act is an act of conversion by such officer to his own use of the amount specified in such receipt or voucher. (Sec. 5496, R. S.)

SECTION 2.-DEPOSITS AND CHECKS.

1308. (1) It shall be the duty of every disbursing officer having any public money intrusted to him for disbursement to deposit the same with the Treasurer or some one of the assistant treasurers of the United States and to draw for the same only as it may be required for payments to be made by him in pursuance of law, and draw for the same only in favor of the persons to whom payment is made; and all transfers from the Treasurer of the United States to a disbursing officer shall be by draft or warrant on the Treasury or an assistant treasurer of the United States. In places, however, where there is no treasurer or assistant treasurer, the Secretary of the Treasury may, when he deems it essential to the public interest, specially authorize in writing the deposit of such public money in any other public depository, or in writing authorize the same to be kept in any other manner, and under such rules and regulations as he may deem most safe and effectual to facilitate the payments to public creditors. (Sec. 3620, R. S.)

(2) In no case are certificates of such deposits required to be such deposits to filed with accounts rendered by government officers to the accounting officers of the Treasury. In making credit in their accounts, however, for deposits made, officers shall state specifically the date of the deposit and the designation and location of the depository, as well as the source from which the money was derived.

Failure to de

1309. Every person who, having moneys of the United States posit as required. in his hands or possession, fails to make deposit of the same with the Treasurer or some assistant treasurer or some public depository of the United States, when required to do so by the Secretary of the Treasury, or the head of any other proper department, or