PART XI. COMMUTATION MONEY.* The 13th section of the original enrolment act, March 3, 1863,† provided that a drafted man might secure exemption from service under the draft, by paying to such person as the Secretary of War might designate to receive it such sum, not exceeding three hundred dollars, ($300,) as the Secretary might determine. In June, 1863, preparatory to the first draft, the Secretary of War fixed three hundred dollars ($300) as the sum to be paid, and designated the Provost Marshal General as the person to receive it. It was collected in accordance with the following plan: By direction of the Secretary of War and the Secretary of the Treasury, the collector of internal revenue in each district was required to collect the commutation money from drafted men who desired to pay it, for the purpose of securing the exemption authorized by law. Receipts given to the drafted men by the collector for the money so paid were presented by the drafted man to the board of enrolment, who gave him in return a certificate of exemption, according to form subscribed by the bureau. The board of enrolment was required to make to this office weekly abstracts of exemptions, and to accompany the same with the receipts for the commutation, in consideration of which the men named in the abstract had been exempted. The receipts thus obtained, through the board of enrolment, acquainted the bureau with the exact liability on this account of the different collectors. The collectors were required, by the orders of the Secretary of War, to deposit these funds to the credit of Colonel James B. Fry, Provost Marshal General, in the designated United States depositories, according to the rules governing them as collectors of internal revenue, and to forward to this office weekly summary statements of commutation moneys received and deposited, accompanying the same by a copy of the certificate of deposit and an abstract, showing the names of the drafted men who paid the money, the date and amount of payment, with such remarks as were pertinent. These returns were compared with those received from the boards of enrolment, and it thus appeared whether or not the collectors had deposited all the money received by them. Deeming it proper to make myself accountable to the Treasury Department for this money, the same as if I had receipted to that department for it, I forwarded to the Treasury weekly returns of the funds, showing the collectors through whom it had been received, the United States depositories in which it was placed, and the amount disbursed and remaining on hand. The sum of fifteen million six hundred and sixty-five thousand four hundred and seventy-five dollars and ninety-five cents ($15,665,475 95) was received and deposited to my credit § prior to February 23, 1864. The accounts relating to the receipt and disbursement of this sum have been examined and finally approved by the Comptroller of the Treasury. On that date a joint resolution of Congress was approved, requiring that the money which had been paid by drafted persons under the enrolment acts, or which might thereafter be paid under any act for like purposes, should be paid into the treasury of the United States, and drawn out on requisitions like other public moneys, and should be used for the expenses of the draft and for the procura *For details as to this fund, see Appendix, Doc. 9. + See Appendix, Doc. 35, Art. 4. See Appendix, Doc., 24. § For full statements of accounts of this fund and their settlement by the Treasury Depart tion of substitutes, for which purposes this resolution especially appropriated it. Subsequent to the announcement of this resolution, the money was collected by the same process as theretofore, but it was deposited to the credit of the Treasurer of the United States. The whole amount of commutation money received was : This sum was collected by the bureau at an expense of less than seven-tenths (7) of one per cent., and without the loss of a dollar through neglect, accident, fraud or otherwise. It has been disposed of as follows: Disbursed on account of enrolment and draft, procuration of substitutes, &c, $16,976,211 14. For details, see Appendix, Doc. 9. Balance to the credit of the bureau in the Treasury of the United States, January 1, 1866, $9,390,105 64. There are yet outstanding accounts to be paid from this fund. The act of February 24, 1864, required that a just compensation be allowed from this fund to each loyal person to whom a colored volunteer owed service at the time he entered the army. The amount necessary for this purpose is not known. The appropriations for the regular supply departments of the army, subsistence, quartermaster's department, &c., being properly applicable only to the support of soldiers after they have been fully received into the military service, could not be used to defray the expenses of this bureau for raising troops. The small annual appropriation for the recruitment of the regular army was only sufficient to meet the demands upon it for that purpose. In August, 1861, an appropriation of twenty million dollars ($20,000,000) was made by Congress for "collecting, drilling, and organizing volunteers." Further appropriations for this purpose were subsequently made, as shown hereafter. The enrolment act was passed March 3, 1863, without an appropriation of money for its support. The small sums found to be immediately necessary in putting the bureau into operation were obtained by temporary transfer from the contingent fund of the War Department. In May, 1863, the volunteer recruiting service, including the control of the fund for "collecting, drilling, and organizing volunteers," and the appropriation for "pay of bounty," (made July 5, 1862,) and by subsequent acts, was transferred to this bureau. Under the first draft, which commenced July 7, 1863, the commutation money paid by drafted men to secure exemption began to accumulate, and soon became available for the expenses of enrolment and draft and the procuration of substitutes. The funds, therefore, which have been under the control of the bureau are the following: 1. The fund for collecting, drilling, and organizing volunteers. Appropriation for fiscal year ending June 30, 1862.... Total appropriation for collecting, drilling, and organizing 2. The fund for pay of advance bounty." Appropriation for fiscal year ending June 30, 1863...... Appropriation for fiscal year ending June 30, 1865.. Total appropriation for pay of advance bounty..... $20, 000, 000 00 5, 000, 000 00 10, 700, 000 00 5, 000, 000 00 $40, 700, 000 00 $7,500, 000 00 5, 000, 000 00 20, 000, 000 00 5, 000, 000 00 $37, 500, 000 00 $10, 518, 000 00 3. The fund for enrolment and draft and procuration of substitutes. Received from payment by drafted men of commutation money up to October 31, 1863.. Received from payment by drafted men of commutation money from November 1, 1863, to October 31, 1864....... Received from payment by drafted men of commutation money from November 1, 1864, to December 31, 1865.... Total fund for enrolment and draft and procuration of 15, 188, 399 25 659, 917 53 $26, 366, 316 78 By section 17 of the act approved February 24, 1864, members of religious denominations who fulfilled the conditions prescribed in the act secured exemption from service under the draft by paying three hundred dollars ($300) each. This money was collected in the manner heretofore explained for collecting commutation money, but, as required by law, it was deposited in the treasury for the benefit of sick and wounded soldiers, and in order that it might be applied to that purpose it was placed subject to the requisitions of the medical department of the army. The total amount of this fund collected and deposited by this bureau was four hundred and sixty-three thousand nine hundred and eighty-seven dollars and fifty-three cents, ($463,987 53.) The disbursements from these funds have been as follows: $13, 779, 897 27 From the fund for collecting, drilling, and organizing volunteers: Disbursed during the fiscal year ending September 30, 1862, (prior to the organization of this bureau)... Disbursed during the months of October, November, and December, 1862, and January, February, March, and April, 1863, (prior to the organization of this bureau)... 6,732, 802 40 Total disbursed prior to the organization of this bureau. $20, 512, 699 67 Disbursed during the months of May, June, July, August, and Disbursed during the fiscal year ending September 30, 1864, Total disbursed subsequent to the organization of this bureau.. $1, 086, 891 00 4, 164, 741 51 1, 422, 281 73 231,278 00 6,905, 192 24 Fund for pay of advance bounty: Disbursed during the fiscal year ending June 30, 1863.... Total bounty fund disbursed by this bureau.... $2, 175, 975 00 18, 000, 897 00 6, 176, 696 43 26, 353, 568 43 This bureau paid only the first instalment of bounty due the recruit at date of muster into service. The remaining instalments were paid by the pay department as they became due. The fund (arising from commutations) for enrolment and draft, and procuration of substitutes: Disbursed during the years 1863, 1864, and to December 31, 1865..... Total disbursements from the fund for enrolment P G7 $16, 976, 211 14 16, 976, 211 14 Total amount of funds which have been subject to control of the bureau, on all accounts.. Total disbursements on all accounts. Total unexpended balance of all funds..... $104, 566, 316 78 70, 747, 641 49 33, 818, 645 29 The disbursements from the first two named appropriations, to wit, "Collecting, organizing, and drilling volunteers," and "Pay of advance bounty," were made by officers of the regular army, assigned especially to that duty, and stationed at convenient points in the different States. They were supplied with funds by requisitions on the treasury, and made their returns to that department in a manner similar to that of disbursing officers in the regular supply departments of the army, acting under the direction of the Adjutant General until May 1, 1863, and of the Provost Marshal General from that date to the present time. In organizing the bureau of the Provost Marshal General, it was of course foreseen that the business would require in every district the expenditure of money for a great variety of purposes. There were many strong reasons why the accounts should, if possible, be paid without putting money into the hands of the provost marshals as disbursing officers. Accordingly, a plan differing from that pursued by other bureaus was adopted. Provost marshals were instructed as to what indebtedness they could properly incur, and were furnished with the forms of vouchers and returns to be used. They were directed, after preparing and certifying the vouchers, to send them for payment to the Provost Marshal General at Washington. With a view to their prompt settlement, a special branch was established in this office, consisting, besides the necessary clerks, &c., of one officer in charge, and four assistants, as disbursing officers, each in charge of a division. The accounts of the bureau were distributed for examination and payment, as fast as received, among these four divisions, as follows: 1st division, payment of employés; 2d division, payment of employés; 3d division, payment of travel-pay to drafted men, postage, telegrams, advertising, subsistence and lodging of employés not in military service, and expenses of arrest of deserters; 4th division, payment of expenses in purchase of public property, and of rents and transportation. The officers in charge of these four disbursing divisions were furnished with funds by requisition on the treasury. They kept deposits in the various United States depositories throughout the region of country in which they had to make payments. As soon as the accounts received from provost marshals were examined and found to be correct, the disbursing officers paid them by checks on the most convenient depository, drawn in favor of the party entitled to the money. For details, see Appendix, Doc. 9. This system had various advantages, among which may be mentioned the following, viz: 1. No accounts were paid until the Provost Marshal General (who was required by law to audit them) was satisfied that they were correct. An immense saving of money unquestionably resulted from this. As the accounts had to be examined in Washington, and pronounced correct and just according to the rules of this bureau and the Treasury Department, before they could be paid, the officers and parties interested were thereby stimulated to promptness and accuracy in their preparation. 2. The Treasury Department had to keep accounts with only four officers, instead of nearly two hundred, as would have been the case if provost marshals had been made disbursing officers. Uniformity in the payments was secured |