I believe it is a judgement call of the leadership. If you relieve an officer from a position because of duty performance and depending on the circumstances you do not place him back into the ranks with his former subordinates. It does not help foster a good command climate and especially when the man came from the same community as his subordinates. He would have essentially been a very disgruntled employee that could have potentially caused problems in the ranks. Again, it would have had to be an assessment of the leadership. I have occassionally seen men that did go back into the ranks but often they would desert shortly thereafter. Transferring to another regiment could have been an option but as you will see from the excerpts from the regulation below, it was compilicated. If he had been transferred then you still had to deal with his willingness to serve in the ranks.

Regulation for the Army of the Confederate States, 1863. Richmond, Virginia: J.W. Randolph, 1863. This regulation would have been effect upon its signing by the Secretary of War, January 28, 1863.

ARTICLE V.
RESIGNATIONS OF OFFICERS.
23. No officer will be considered out of service on the tender of his resignation, until it shall have
been duly accepted by the proper authority.
24. Resignations will be forwarded by the commanding officer to the Adjutant and Inspector-
General of the army for decision of the War Department.
25. Resignations tendered under charges, when forwarded by any commander, will always be
accompanied by a copy of the charges; or, in the absence of written charges, by a report of the
case, for the information of the Secretary of War.
26. Before presenting the resignation of any officer, the Adjutant and Inspector-General will
ascertain and report to the War Department the state of such officer’s accounts of money, as well
as of public property, for which he may have been responsible.
27. In time of war, or with an army in the field, resignations shall take effect within thirty days
from the date of the order of acceptance.
28. Leaves of absence will not be granted by commanding officers to officers on tendering their
resignation, unless the resignation be unconditional and immediate.

ARTICLE VI.
EXCHANGE OR TRANSFER OF OFFICERS.
29. The transfer of officers from one regiment or corps to another will be maple only by the War
Department, on the mutual application of the parties desiring the exchange.
30. An officer shall not be transferred from one regiment or corps to another with prejudice to
the rank of any officer of the regiment or corps to which he is transferred.

ARTICLE XV.
TRANSFER OF SOLDIERS.
138. No non-commissioned officer or soldier will be transferred from one regiment to another
without the authority of the commanding general.
139. The colonel may, upon the application of the captains, transfer a non-commissioned officer
or soldier from one company to another of his regiment-with consent of the department
commander in case of change of post.
140. When soldiers are authorized to be transferred, the transfer will take place on the first of a
month, with a view to the more convenient settlement of their accounts.
141. In all cases of transfer, a complete descriptive roll will accompany the soldier transferred,
which roll will embrace an account of his pay, clothing, and other allowances; also, all stoppages
to be made on account of the government, and debts due the laundress, as well as such other acts
as may be necessary to show his character and military history.

I have personal experience relieving both officers and non-commissioned officers. It is not always a task to enjoyed. Individually, a soldier may be a great human being but it does not always mean that they need to be leading soldiers. Leadership challenges and human behavior amazingly enough changes little overtime.

For discussion of examinations you may want to read the following resource. Haughton, Andrew. Training, Tactics and Leadership in the Confederate Army of Tennessee: Seeds of Failure. Portland, Oregon: Frank Cass, 2000. Examinations: p. 86-88, 114-115.

I hope this helps.

Respectfully,

Gerald D. Hodge, Jr.
M.A. Military History - Civil War Concentration
War Between the States Historian
Historian: 39th Georgia Volunteer Infantry Regiment