Before the establishment of the Army Pay Department in 1878, the
financial side of the soldier's service was administered almost without
system, this being carried out for the greater part according to the
whim or skill of each commanding officer. So many people "had a finger
in the pie" in handling the soldier's pay that the wonder is that any
ever reached him at all, whilst the loss to the nation was enormous.
After the abolition of the system under which each Colonel paid his
men or did not, as he thought fit, Army Agents were made more or less
responsible for paying the troops, and these appointed their own
paymasters in each regiment. This system was open to abuse, and the
troops suffered until the whole system of pay was taken over by the War
Office and the Pay Department established. This Department also took
over the payment for all the needs of the regiments and corps, and so
well has it arranged its duties that every man in the army is now sure
of every penny due to him, whilst the nation has been saved vast sums
by preventing fraud and overcharging.