Section 17A. The state treasurer shall receive all funds given to the commonwealth for the use of the military forces as provided in section one hundred and four A of chapter thirty-three. The said funds, if in cash, shall be invested safely by the state treasurer, or, if in securities, he may hold them in their original form or, upon the approval of the governor and council, sell them and reinvest the proceeds in securities which are legal investments for the commonwealth sinking funds. Upon the request of the adjutant general, approved by the governor and council, he shall expend such funds or any part thereof for the use of the military forces of the commonwealth. He shall be held responsible for the faithful management of said funds in the same manner as for other funds held by him in his official capacity.