Finance Corps History

United States Army Finance Corps

The United States Army Finance Corps originated on 16 June 1775, when the Second Continental Congress introduced a resolution appointing a Paymaster General of the Army. Since that day, the United States Army has always been provided financial services by Finance soldiers who were either organized in separate elements or integrated into existing units of the Army.

In 1816, the Pay Department became a separate department. Paymasters usually with the rank of Major, had the principal duty of paying soldiers in the regiments. The Paymaster at Army headquarters computed monthly payrolls in his office and went to the field with his "box" of gold and a military guard. Obviously, payday was not the last day of each month at every site, but once a routine was established, the soldiers could expect payday to fall on approximately the same day each pay period.

The Pay Department remained unchanged until 1912, when, in a major reorganization, it joined the Quartermaster Corps. During World War I, the Quartermaster Corps expanded to such a degree that it had a difficult time controlling disbursing and logistical activities. In October 1918, Congress authorized the Finance Service and in June 1920, it approved the Finance Department to become a separate branch of the War Department under Brigadier General Herbert M. Lord. Unlike its predecessors, the Finance Department handled not only military pay and travel expenses, but also all financial activities of the War Department, including centralized disbursing, auditing, and budgeting. In 1933, President Roosevelt directed that the Finance Department assume the obligation of paying the Civilian Conservation Corps.

The Finance Department remained a separate entity until World War II, when it joined the office of the Fiscal Director, Army Services Forces. Under this structure, it took on additional responsibilities such as the sale of War Bonds and the promotion of National Service Life Insurance. After the war, the Office of the Fiscal Director was dissolved and the Finance Department again became an independent Army staff agency. The Army Organizational Act of 1950 redesignated the Finance Department as a basic branch of the Army, the Finance Corps. The Finance Corps underwent further change when, on 7 May 1987, the Finance Corps Regiment was activated.

Progress has been an important element of the Finance Corps' history. Today's Finance Corps has advanced immeasurably over the first Paymaster General's Office, not only in size but also in quality of service provided. The Defense Finance and Accounting Service is currently building sophisticated systems to enhance finance support in the future, both in garrison and on the battlefield. The United States Army Finance School will continue to train the highest quality soldiers in the Army to operate these systems and provide the best finance support possible to soldiers, families, and DoD civilians, wherever they may be. These organizations, together with our many field finance units, work together "To Support and Serve" the Army, other services, and our great nation.

For more information about the Finance Corps, visit the following links:

U.S. Army Finance School and Corps - http://www.finance.army.mil

U.S. Army Finance Corps Association - http://www.fincorps.org

Society of Retired U.S. Army Finance Corps Officers - http://www.rafino.org

Society of Retired U.S. Army Finance Corps Noncommissioned Officers - http://www.arches.uga.edu/~asturgil/

Facts and Figures

About Army Paymasters and Finance Corps Soldiers

Military Posts Named/Renamed for Paymasters

1. Fort Randall, South Dakota (Established 26 June 1856) was named for Lieutenant Colonel Daniel D. Randall (23 May 1790 to 17 December 1851). Located on the right bank of the Missouri River on a plateau one-quarter of a mile from the river, just north of the point where the river crosses the Nebraska line. The post was re-built in 1870 - 1872, about one-quarter of a mile farther from the river and slightly downstream from the original site. Established to keep peace among the Sioux, Ponca, and other warlike tribes and to protect the advancing line of settlement. The Yankton Sioux Reservation was established north and east of the post in 1878 and the Ponca Reservation south and east at a later date. Established by First Lieutenant George H. Paige, 2nd U.S. Infantry, on a site selected by Colonel William S. Harney, 2nd U.S. Dragoons. Most of the military reservation was relinquished on 22 July 1884, and the garrison of the post was reduced in size after that date. Fort Randall was abandoned on 7 December 1892. The military reservation was transferred to the Interior Department on October 1893. Lieutenant Colonel Daniel D. Randall was serving as Deputy Paymaster General at the time of his death.

2. Fort Larned, Kansas was renamed for Colonel Benjamin Franklin Larned (6 September 1794 to 6 September 1862). Just prior to the completion of the sod buildings and earth works, the post was given its third and lasting name, Fort Larned. On 29 May 1860, pursuant to General Order Number 14, the post was named Fort Larned, in honor of Colonel Benjamin F. Larned, paymaster of the United States Army. The reservation was four miles square, but the official survey was never carried out. Colonel Larned was serving as Paymaster General at the time of his death.

Paymasters Related to Notable Americans

1. Major Hugh Reid Belknap (1 September 1860 to 12 November 1901). Son of Brigadier General William Worth Belknap, who later became Secretary of War from 25 October 1869 to 2 March 1876.

2. Major John Ewing Blaine (26 April 1840 to 21 April 1887). Brother of James Gillespie Blaine who was U.S. Representative, Speaker of the United States House of Representatives, U.S. Senator from Maine, a two-time United States Secretary of State, and 1884 Presidential Candidate.

3. Major George Edward Pickett, Junior (17 July 1864 to 18 April 1911). Son of Confederate Major General George Edward Pickett, who led “Pickett’s Charge” on the third day of the Battle of Gettysburg.

4. Lieutenant Colonel James Wilde (died 16 January 1815). Brother of Congressman and American poet, Richard Henry Wilde.

Buffalo Soldiers Awarded the Medal of Honor for Defending Army Paymaster Major Joseph Wham

Shortly after midday on 11 May 1889, a band of robbers ambushed U.S. Army Paymaster Major Joseph Washington Wham (pronounced Wham, as in bomb) (18 January 1840 to 21 December 1908) and his military escort along the Fort Grant-Fort Thomas Road about fifteen miles west of Pima in the Gila River Valley. Following a hard-fought gun battle, the bandits made off with more than $28,000 in gold and silver coins. The daring robbery and the subsequent trail of suspects in the heist created a sensation throughout the Southwest. Questions of guilt and innocence, and of what happened to the money, still linger more than a century later. The great Wham Paymaster Robbery has almost disappeared from the public mind, but it remains one of Arizona's great mysteries. For courageously defending the Paymaster, Major Joseph Wham, and the other enlisted men involved their bravery, Sergeant Benjamin Brown and Corporal Isaiah Mays were awarded the Medal of Honor

Sergeant Benjamin Brown’s Medal of Honor Citation

Rank and Organization: Sergeant, Company C, 24th U.S. Infantry

Place and Date: Arizona, 11 May 1889

Birth: Spotsylvania County, Virginia

Date of Issue: 19 February 1890.

Citation:

Although shot in the abdomen, in a fight between a paymaster's escort and robbers, did not leave the field until again wounded through both arms.

Corporal Isaiah Mays’ Medal of Honor Citation

Rank and Organization: Corporal, Company B, 24th U.S. Infantry

Place and Date: Arizona, 11 May 1889

Entered Service At: Columbus Barracks, Ohio

Born: 16 February 1858, Carters Bridge, Virginia

Date of Issue: 19 February 1890

Citation:

Gallantry in the fight between Paymaster Wham's escort and robbers. Mays walked and crawled two miles to a ranch for help.

All in the Family

1. Brewer: Paymaster Major Anson Lorenzo Brewer and his son Pay Clerk Robert F. Brewer aboard the Steamer Ruth when Confederate saboteur Robert Louden destroyed it on 5 August 1863. Major Brewer died from his injuries. Robert F. Brewer’s body was never recovered.

2. Larned: Paymaster-General Colonel Benjamin Franklin Larned and his son Paymaster Colonel Charles Trowbridge Larned (7 March 1834 to 17 March 1882). Finance Corps’ Integrity Value is based on Colonel Charles Larned’s fiscal responsibility.

Prisoners of War

1. Civil War: Major David Colden Ruggles (died 10 February 1865) is the only known Prisoner of War.

2. World War II: Sixty-one Finance Corps soldiers were taken as Prisoners of War during World War II; one by Germany (returned to Military Control, Liberated or Repatriated) and 58 by Japan (25 returned to Military Control, Liberated or Repatriated; 17 died while a Prisoner of War; and 16 are listed as Missing-In-Action).

3. Korean War: Corporal Vernon D. Smith (circa 1929 to 28 February 1951) is the only known Prisoner of War.

Maritime Disasters That Took the Lives of Paymasters, Pay Clerks, and Soldiers

1. 25 April 1838: The new and elegant steamboat, Moselle, Captain Perkin left the wharf in Cincinnati, Ohio on 25 April 1838 (full of passengers) bound for Louisville and St. Louis; and, with the view of taking a family on board at Fulton, (Fulton was located opposite Brooklyn Kentucky) about a mile and a half above the quay, proceeded up the river and made fast to a lumber raft for that purpose. The Moselle had but just parted from the lumber raft to which she had been fast, her wheels had scarcely made their first revolution, when her boilers burst with an awful and astounding noise, equal to the most violent clap of thunder. The explosion was destructive and heart-rending in the extreme; heads, limbs and bodies were seen flying through the air in every direction, attended with the most horrible shrieks and groans from the wounded and dying. Eighty-one were known to be killed, fifty-five were missing, and thirteen badly wounded. One of the missing is Paymaster Lieutenant Colonel John Fowle.

2. 5 August 1863: On the night of 4 August 1863, shortly before midnight, after a refueling stop at Cairo, Illinois, the steamer Ruth burned. The Ruth was enroute to Vicksburg with eight Union payroll masters and $2.6 million dollars in army payroll on board. The money was reported destroyed. Twenty-six of the one hundred fifty passengers, military and civilian, were killed. Confederate saboteur is Robert Louden who is later convicted of the incident and ultimately confesses. Among the dead were three Army Pay Clerks; Simeon Martin and two unknown Pay Clerks.

3. 30 July 1865: The Brother Jonathan was a paddle steamer that crashed on an uncharted rock near Point St. George, off the coast of Crescent City, California. It was carrying 244 passengers and a large shipment of gold. Only 19 survived the wreck, making it the deadliest shipwreck on the Pacific Coast of the United States up to that time. The ship lay undiscovered until 1993. The remains lie 250 feet (76 m) below the surface and are easily visible on sonar. A memorial for the deceased, registered as California Historical Landmark #541, sits at Brother Jonathan Vista Point in Crescent City. The shipwreck is listed in the National Register of Historic Places. The St. George Reef Lighthouse was built in response to this disaster and the rock that the ship ran aground upon is now known as "Jonathan Rock". Paymaster Major Ellery Wilbour Eddy (who was one of the 225 that died) came on board the Brother Jonathan with $200,000 to pay the troops at Fort Vancouver, Walla Walla, and other posts in the Northwest.

4. 2 February 1866: Thirty-five miles north of Vicksburg, Mississippi (near Island 98), the boilers on the Steamer W. R. Carter exploded killing 125. Among the dead was Paymaster Major Anson L. Brewer. Major Brewer’s son and his Pay Clerk, Robert Brewer, was also aboard the Steamer W. R. Carter. However, Robert’s body was never recovered.

5. 27 January 1873: Despite the warnings, the captain of the George S. Wright put out to sea in a heavy snowstorm on 27 January 1873. It is believed that the steamer struck a rock 40 miles northeast of the extreme northern point of Vancouver Island, British Columbia, Canada and nearly 250 miles from Victoria, British Columbia, Canada (the steamer was reported to have been seen near Cordova Bay, on the south end of Prince of Wales Island, Alaska). There were no known survivors. In July 1875, human remains (with a coat and other clothing) were discovered on Bazan Bay, Prince of Wales Island, Alaska and recovered by the U.S. Revenue Cutter Oliver. After reviewing the clothing and steamship losses in the area, it was determined that they recovered the remains of Paymaster Major John Stevens Walker. The remains were transferred to the steamship California and left for Nanaimo, British Columbia, Canada. After arriving in Nanaimo on 18 July, Adjutant General H. Clay Wood ordered that Major Walker’s remains be placed in a casket, be placed back aboard to the steamship California, and return to Portland for burial. The California arrived in Portland on 26 July, at which time the U.S. Flag was ordered to half-mast. Major Walker just completed a pay mission at Sitka, Alaska and other numerous outposts in the region. Major Walker’s wife was also aboard the George S. Wright.

6. 3 February 1943: The U.S. Army Transport (USAT) Dorchester was bound for the American base at Nararssuck, Greenland from St. John's, Newfoundland; as part of Convoy SG-19. With 902 passengers and crew on board, the ship was attacked at 0355 hours about 150 miles south of Cape Farewell. Of the passengers, most were U.S. troops. In addition she carried 1,000 tons of cargo. Escort ships of the Greenland Patrol rescued 229 persons from the stricken vessel, 132 by the U.S. Coast Guard cutter USCGC Escanaba, and another 97 rescued by a sister ship, the USCGC Comanche. In all, 672 souls were lost including 404 soldiers. Hundreds of dead bodies, kept afloat by their lifejackets, were picked up from the sea. Aboard the USAT Dorchester and listed as missing are Finance Corps soldiers Private George E. Eliopoulous and Private Harry J. Sherbondy.

7. 7 September 1944: On 20 August 1944, 750 American prisoners of war who had been on work details near Lasang, Mindanao were loaded into the cargo holds of a freighter marked only as "86" for transport to Manila. The 3,801 gross ton Japanese Army transport No. 86, Tateishi Maru, made a slow and devious trip arriving at Zamboanga, Mindanao on 5 September 1944. The prisoners remained in the holds of transport No. 86 for two more days. On 7 September, the prisoners were moved to the Shinyo Maru. The Shinyo Maru left Zamboanga in convoy on 7 September; however, the USS Paddle was waiting near Sindangan Point, Mindanao where it torpedoed the Shinyo Maru late on the same day. The ship sank quickly, trapping most prisoners in the holds. During the scramble to evacuate the ship or while in the water awaiting rescue, Japanese guards executed some of the prisoners. Eventually 82 survivors swam to shore to be rescued by Filipino civilians and hidden onshore until they could be evacuated by submarine. Aboard the Shinyo Maru and listed as missing is Finance Corps soldier Captain Robert James Ashdown.

8. 24 October 1944: On 11 October 1944 the Arisan Maru left Manila with about 1,800prisoners of war in the cargo holds. That ship turned south to Palawan Island and anchored off Palawan until 20 October, when it returned to Manila to join Convoy MATA-30 which sailed on 21 October 21. On 23 October, when the convoy was about 200 miles northwest of Luzon, two packs of US submarines (total of nine submarines) began their attacks on this convoy. About 5:30 p.m. on 24 October1944 the USS Shark sent three torpedoes into the Arisan Maru. The ship broke in two pieces which floated for a while; however, the net result was death for all except nine of the POWs. This was the largest loss of American lives in a single disaster at sea. Aboard the Arisan Maru and listed as missing are Finance Corps soldiers Private First class Herbert K. Ballew, Technician Grade Fourth Class Robert Lee Cohen, Staff Sergeant Meridith L. Hough, Private Paul Henry Miller, Staff Sergeant Paul F. Moyer, and Staff Sergeant Harold M. Williams.

9. 15 December 1944: The Oryoku Maru left Pier 7, Manila late on 13 December 1944 with 1,619 prisoners of war crammed into the three cargo holds. Japanese civilians occupied the passenger cabins. Aircraft from the USS Hornet sighted the Oryoku Maru on 14 December as it moved north along the west coast of Bataan Peninsula and attacked it many times that day. On the morning of 15 December 1944, aircraft from the USS Hornet again attacked the Oryoku Maru as it was moving across Subic Bay toward Olongapo Point. This time, one bomb made a direct hit on the hatch of the aft cargo hold killing about 250 prisoners. Later that morning the surviving prisoners were allowed to jump off and swim to shore. The surviving prisoners from the Oryoku Maru were held for six days on a single tennis court at the former Olongapo Naval Base and then taken by truck to San Fernando, Pampanga. Next they were taken by rail to San Fernando, La Union on Lingayan Gulf where they arrived about 2:00 a.m. on Christmas morning 1944. Aboard the Oryoku Maru and listed as missing as a result of the attack are Finance Corps soldiers Lieutenant Colonel Kenneth S. Olson, Lieutenant Colonel Melvin B. Underwood and Staff Sergeant Joseph E. Wilkes. Surviving the attack on the Oryoku Maru and transferred to the Brazil Maru were Finance Corps soldiers Captain Raymond Earl Bibee, Captain Stephen R. Franks, and Captain James Kabakow.

10. 9 January 1945: On 27 December 1944 the prisoners of war that survived the attacks on the Oryoku Maru, were loaded into the cargo holds of two ships (the Enoura Maru and the Brazil Maru) for the voyage to Takao, Formosa where they arrived on 31 December. On 6 January 1945, the Japanese consolidated all surviving prisoners into the holds of the Enoura Maru. On 9 January the Enoura Maru was still in the harbor at Takao (and moored to the same buoy with a Japanese tanker making them a prime target) when aircraft again from the USS Hornet attacked. This time one of the bombs hit the forward hold killing about 350 prisoners. Aboard the Enoura Maru and listed as missing is Finance Corps soldier Staff Sergeant Paul Leroy Long.