Page images
PDF
EPUB

Basis on which issued.

Proviso.

Interest rate, etc.

Denominations.

Holdings.

Issuance of stamps, etc., to evidence partial payments.

Denominations.

36 Stat. 815.

Tax exemption, existing savings bonds.

40 Stat. 291.

31 U. S. C. § 747.

transfer, as the Secretary of the Treasury may from time to time prescribe.

"(b) Savings bonds and savings certificates may be issued on an interest-bearing basis, on a discount basis, or on a combination interest-bearing and discount basis and shall mature, in the case of bonds, not more than twenty years, and in the case of certificates, not more than ten years, from the date as of which issued. Such bonds and certificates may be sold at such price or prices, and redeemed before maturity upon such terms and conditions as the Secretary of the Treasury may prescribe: Provided, That the interest rate on, and the issue price of, savings bonds and savings certificates and the terms upon which they may be redeemed shall be such as to afford an investment yield not in excess of 3 per centum per annum, compounded semiannually. The denominations of savings bonds and of savings certificates shall be such as the Secretary of the Treasury may from time to time determine and shall be expressed in terms of their maturity values. The Secretary of the Treasury is authorized by regulation to fix the amount of savings bonds and savings certificates issued in any one year that may be held by any one person at any one time.

"(c) The Secretary of the Treasury may, under such regulations and upon such terms and conditions as he may prescribe, issue, or cause to be issued, stamps, or may provide any other means to evidence payments for or on account of the savings bonds and savings certificates authorized by this section, and he may make provision for the exchange of savings certificates for savings bonds. The limitation on the authority of the Postmaster General to prescribe the denominations of postal-savings stamps contained in the second paragraph of section 6 of the Act of June 25, 1910, as amended (U. S. C., title 39, sec. 756), is removed; and the Postmaster General is authorized, for the purposes of such section and to encourage and facilitate the accumulation of funds for the purchase of savings bonds and savings certificates, to prepare and issue postal-savings stamps in such denominations as he may prescribe.

"(d) The provisions of section 7 of this Act, as amended (relating to exemptions from taxation), shall apply to savings bonds issued before the effective date of the Public Debt Act of 1941. For purposes of taxation any increment in value represented by the difference between the price paid and the redemption value received (whether at or before maturity) for savings bonds and savings certificates shall Circulation privi- be considered as interest. The savings bonds and the savings certificates shall not bear the circulation privilege.

lege.

Availability of

funds.

40 Stat. 292.

No further original

issue.

36 Stat. 817.

Fiscal agency serv ices.

"(e) The appropriation for expenses provided by section 10 of this Act and extended by the Act of June 16, 1921 (U. S. C., title 31, secs. 760 and 761), shall be available for all necessary expenses under this section, and the Secretary of the Treasury is authorized to advance, from time to time, to the Pastmaster General from such appropriation such sums as are shown to be required for the expenses of the Post Office Department and of the Postal Service, in connection with the handling of savings bonds, savings certificates, and stamps or other means provided to evidence payment therefor, which sums may be used for additional employees or any other expenditure, wherever or in whatever class of post office incurred, in connection with such handling.

"(f) No further original issue of bonds authorized by section 10 of the Act approved June 25, 1910 (U. S. C., title 39, sec. 760), shall be made after July 1, 1935.

"(g) At the request of the Secretary of the Treasury the Postmaster General, under such regulations as he may prescribe, shall

require the employees of the Post Office Department and of the Postal Service to perform, without extra compensation, such fiscal agency services as may be desirable and practicable in connection with the issue, delivery, safekeeping, redemption, or payment of the savings bonds and savings certificates, or in connection with any stamps or other means provided to evidence payments."

SEC. 4. (a) Interest upon, and gain from the sale or other disposition of, obligations issued on or after the effective date of this Act by the United States or any agency or instrumentality thereof shall not have any exemption, as such, and loss from the sale or other disposition of such obligations shall not have any special treatment, as such, under Federal tax Acts now or hereafter enacted; except that any such obligations which the United States Maritime Commission or the Federal Housing Administration has, prior to the effective date of this Act, contracted to issue at a future date, shall when issued bear such tax-exemption privileges as were, at the time of such contract, provided in the law authorizing their issuance. For the purposes of this subsection a Territory, a possession of the United States, and the District of Columbia, and any political subdivision thereof, and any agency or instrumentality of any one or more of the foregoing, shall not be considered as an agency or instrumentality of the United States.

Taxation of obligations.

Exception.

Provisions con. sidered amendatory,

(b) The provisions of this section shall, with respect to such obligations, be considered as amendatory of and supplementary to the etc. respective Acts or parts of Acts authorizing the issuance of such obligations, as amended and supplemented.

SEC. 5. This Act, except sections 2 (b) and (c), shall become effective on the first day of the month following the date of its enactment.

Approved, February 19, 1941.

[CHAPTER 8]

AN ACT

To provide for the establishment, administration, and maintenance of a Coast
Guard Auxiliary and a Coast Guard Reserve.

Effective date.

February 19, 1941
[S. 187]
[Public Law 8]

Coast Guard Auxof 1941.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may iliary and Reserve Act be cited as the "Coast Guard Auxiliary and Reserve Act of 1941”. TITLE I-REPEAL OF COAST GUARD RESERVE ACT OF 1939, AS AMENDED, AND ESTABLISHMENT OF COAST GUARD AUXILIARY

SEO. 1. The Coast Guard Reserve Act of 1939 (53 Stat. 854; U. S. C., Supp. V, title 14, ch. 9), as amended by Public Law Numbered 564, Seventy-sixth Congress, third session, is hereby repealed and in lieu of the United States Coast Guard Reserve provided for in such Act there is hereby created and established a United States Coast Guard Auxiliary (hereinafter referred to as the "Auxiliary"). SEC. 2. It is hereby declared to be the purposes of the Auxiliary (a) to further interest in safety of life at sea and upon the navigable waters, (b) to promote efficiency in the operation of motorboats and yachts, (c) to foster a wider knowledge of, and better compliance with, the laws, rules, and regulations governing the operation of motorboats and yachts, and (d) to facilitate operations of the Coast Guard.

SEC. 3. The Auxiliary shall be composed of citizens of the United States and of its Territories and possessions, except the Philippine

14 U. S. C., ch. 9. 54 Stat. 246.

Purposes of Auxil

iary.

Composition.

Administration.

Membership other organizations.

Use

in

of members' craft by Coast Guard.

Motorboat, etc., assigned to Coast Guard duty.

14 U. S. C. § 71.

Operating expenses; payment restrictions.

"Actual necessary

Islands, who are owners (sole or part) of motorboats or yachts, and who may be enrolled therein pursuant to regulations prescribed under the authority of this Act.

SEC. 4. The Auxiliary shall be a nonmilitary organization administered by the Commandant of the Coast Guard (hereinafter referred to as the "Commandant") under the direction of the Secretary of the Treasury, and the Commandant shall, with the approval of the Secretary of the Treasury, prescribe such regulations as may be necessary to effectuate the purposes of this title.

SEC. 5. Subject to regulations prescribed under the authority of this Act, members of the Auxiliary may also be enrolled in the Coast Guard Reserve established by title II of this Act, and membership in the Auxiliary shall not be a bar to membership in any other naval or military organization.

SEC. 6. The Coast Guard is authorized to utilize in the conduct of duties incident to the saving of life and property, in the patrol of marine parades and regattas, or for any other purpose incident to the carrying out of the functions and duties of the Coast Guard which may be authorized by the Secretary of the Treasury, any motorboat or yacht placed at its disposition for any of such purposes by any member of the Auxiliary. No such motorboat or yacht shall be assigned to Coast Guard duty unless it is placed in charge of a commissioned officer, chief warrant officer, warrant officer, or petty officer of the Coast Guard or the Coast Guard Reserve established by title II of this Act during such assignment.

SEC. 7. Any motorboat or yacht, while assigned to Coast Guard duty as herein authorized, shall be deemed to be a public vessel of the United States, and within the meaning of the Act of June 15, 1936 (49 Stat. 1514; U. S. C., Supp. V, title 14, sec. 71), shall be deemed to be a vessel of the United States Coast Guard.

SEC. 8. Appropriations of the Coast Guard shall be available for the payment of actual necessary expenses of operation of any such motorboat or yacht when so utilized, but shall not be available for the payment of compensation for personal services, incident to such operation, to other than personnel of the regular Coast Guard or the Coast Guard Reserve established by title II of this Act. The term "actual necessary expenses of operation", as used herein, shall expenses of opera include fuel, oil, water, supplies, provisions, and any replacement or repair of equipment or any repair of the motorboat or yacht where, upon investigation by a board of not less than three commissioned officers of the regular Coast Guard, it is determined that responsibility for the loss or damage necessitating such replacement or repair of equipment or such repair of the motorboat or yacht rests with the Coast Guard.

on

Restriction rights, etc., of members.

capacity.

SEC. 9. No member of the Auxiliary, solely by reason of such membership, shall be vested with or exercise any right, privilege, power, or duty vested in or imposed upon the personnel of the Coast Guard, Service in advisory except that any such member may, under such regulations as the Commandant shall prescribe, act in an advisory capacity to the Commandant in the administration of the Auxiliary. Any member performing such service shall, upon authorization by the Commandant, be entitled to actual expenses of travel and to a per diem allowance not exceeding $5 per day while performing such travel from and to his home and while engaged upon such service.

Post, p. 587.

Existing orders, benefits, etc., made

iary.

53 Stat. 854.

SEC. 10. All orders, rules, regulations, enrollments, privileges, or applicable to Auxil- other benefits made, issued, or granted pursuant to the Coast Guard Reserve Act of 1939, as amended, and in effect on the date of the enactment of this Act, shall be applicable to the Coast Guard Auxiliary and shall continue in effect hereunder until modified or revoked in accordance with the provisions of this Act.

14 U. S. C. ch. 9.

TITLE II-ESTABLISHMENT OF NEW COAST GUARD

RESERVE

SEC. 201. There is hereby created and established a United States Coast Guard Reserve (hereinafter referred to as the "Reserve"), the purpose of which is to provide a trained force of officers and men which, added to regular personnel of the Coast Guard, will be adequate to enable that service to perform such extraordinary duties as may be necessitated by emergency conditions.

SEC. 202. The Reserve shall be composed of male citizens of the United States and of its Territories and possessions, except the Philippine Islands, between the ages of seventeen and sixty-four, who are physically and otherwise qualified for the performance of duty with the Coast Guard, and who, through appointment or enlistment therein, obligate themselves to serve in the Coast Guard in time of war or during any period of national emergency declared by the President to

exist.

SEC. 203. The ranks, grades, and ratings in the Reserve shall be the various ranks, grades, and ratings, not above lieutenant commander, prescribed by law for the Coast Guard.

SEC. 204. The Reserve shall be a military organization administered by the Commandant, under the direction of the Secretary of the Treasury, and the Commandant shall, with the approval of the Secretary of the Treasury and the concurrence of the Secretary of the Navy, prescribe such regulations as may be necessary to effectuate the purposes of this title.

SEC. 205. Any member of the Reserve may be ordered to active duty by the Commandant in time of war or during any period of national emergency declared by the President to exist and be required to perform active duty throughout the war or until the President declares that such national emergency no longer exists; but in time of peace, except for disciplinary purposes as provided in section 209 hereof, no such member shall be ordered to or continued on active duty without his consent: Provided, That the Commandant may release any member from active duty either in time of war or in time of peace. Members of the Reserve while engaged on active duty shall be vested with the same power, authority, rights, and privileges as members of the regular Coast Guard of similar ranks, grades, or ratings.

Purpose.

Composition.

Post, p. 587.

Ranks, grades, and ratings.

Administration.

Active duty provi sions.

Post, p. 587.

Proviso.

Pay and allowances.
Post, p. 588.

Longevity, service included.

SEC. 206. Commissioned officers, chief warrant officers, warrant officers, and enlisted men of the Reserve when engaged on active duty, or on active duty while undergoing training, or when engaged in authorized travel to or from such duty, shall receive the same pay and allowances as are received by commissioned officers, chief warrant officers, warrant officers, and enlisted men of the regular Coast Guard of the same rank, grade, rating, and length of service. In determining length of service for the purposes of this section, there shall be included (a) all periods of active duty under this Act, except active duty while undergoing training, and (b) all other service for which credit is given by law to members of the regular Coast Guard. When members of the Reserve perform active duty or active duty while undergoing training for a period of less than thirty days, such duty performed on the thirty-first day of any month shall be paid for at the same rate as for other days: Provided, That members of the Reserve while engaged on active duty which involves the actual flying volves actual flying. in aircraft in accordance with regulations prescribed by the Commandant shall receive the same increase of pay of their ranks, grades, or ratings as may be received by members of the regular Coast Guard in similar ranks, grades, or ratings, for the performance of similar duty.

Pay for less than 30 days.

Proviso.

Pay where duty in

Temporary mem

bers.

SEC. 207. The Commandant, with the approval of the Secretary of the Treasury, is hereby authorized to enroll for active duty, as temporary members of the Reserve, such owners, regular officers, and members of the crew of any motorboat or yacht placed at the disposal of the Coast Guard as are citizens of the United States or of its Territories or possessions, except the Philippine Islands, define their powers and duties, and confer upon them, appropriate to their qualifications and experience, the same ranks, grades, and ratings as are provided for the personnel of the regular Coast Guard Reserve. Pay and allowances. When on active duty with the Coast Guard, as herein authorized, temporary members of the Reserve shall be entitled to receive the pay of their respective ranks, grades, or ratings, and such allowances, not to exceed those prescribed for members of the regular Coast Guard, as the Commandant may deem appropriate: Provided, That temporary membership in the Reserve and the other benefits conferred by this section as a result thereof shall extend only for such period as the motorboat or yacht to which such members are attached is utilized in the service of the Coast Guard.

Proviso.

Period of membership.

Exemption from registration, training and service.

SEC. 208. Members of the Reserve, other than temporary members as provided for in section 207 hereof, shall receive the same exemption from registration and liability for training and service as Membership in members of the Naval Reserve, and no member of the Reserve, other

other organizations.

Proviso.

Temporary mem

bers.

Coast Guard laws to govern active duty.

Provisos.

Disciplinary action for offenses.

than temporary members thereof, shall be a member of any other naval or military organization except the Auxiliary or the Coast Guard as provided for in sections 214 and 215 of this title: Provided, That temporary members of the Reserve who may be members of any other military reserve, if ordered to active duty therein, shall be forthwith released from all active duty with the Coast Guard, and their status as temporary members of the Reserve terminated.

SEC. 209. All members of the Reserve when employed on active duty, or when employed in authorized travel to or from such duty, or while wearing a uniform prescribed for the Reserve, shall be subject to the laws, regulations, and orders for the government of the Coast Guard: Provided, That disciplinary action for an offense committed while subject to the laws, regulations, and orders for the government of the Coast Guard shall not be barred by reason of release from duty status of any person charged with the commission Retention or return thereof: Provided further, That for the purpose of carrying the provisions of this section into effect, members of the Reserve may be retained on or returned to a duty status without their consent, but not for a longer period of time than may be required for disciplinary action.

to duty.

Uniform, etc., allow

ance.

Post, p. 588.

Benefits for sickness or death in line of duty.

SEC. 210. Members of the Reserve may be allowed the cost of or issued such items of uniform, bedding, and equipment, as may be prescribed by the Commandant, with the approval of the Secretary of the Treasury: Provided, That the value of such allowances or of items so issued to any one person during any three-year period shall not exceed $100.

SEC. 211. Members of the Reserve, other than temporary members thereof, who suffer sickness, disease, disability, or death in line of duty shall be entitled to the same benefits as are or may hereafter be prescribed by law for members of the Naval Reserve who suffer sickness, disease, disability, or death under similar conditions. SEO. 212. When any temporary member of the Reserve is physically injured in line of duty while performing active Coast Guard service, or dies as a result of such physical injury, he or his beneficiary shall Jurisdiction of Em- be entitled to all the benefits prescribed by law for civil employees of the United States, and the United States Employees' Compensation Commission shall have jurisdiction in such cases and shall perform

Injury, etc., benefits for temporary members.

ployees' Compensa

tion Commission.

« PreviousContinue »