Full text of Papers of Benjamin Strong, Jr. : Correspondence with other Organizations : Director, National Budget Committee, Stanley H. Howe, 1920-1922

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October 18, 1920.

Mr. Stanley H. Howe, Director,
National Budget Committee,

7 ePt 8th Street,
Now York.Clty.
Dear Sir:

Ple-se accept thanks for copy of the draft
el' the Introduction to ycur survey of the Executive Depart-

ments, enclosed in your letter of October 16th addressed to
Mr. Strong.

Mr. Str.-mg is absent in the Far Fast, end is

not expected back until the end of December.

it which time

I will be pleased to place yJur letter before him for attention.

Yours very truly,

Secretary.

May 3, 191n.

My dear Mr. Howe:

I am in receipt of your favor of the 2nd instent, and have read the
enclosure with much interest.

When the plan for budget legislation was first proposed, I strongly
favored having the budget a direct responsibility of the President's, and would

still feel that that plan would insure constructive results if one could be sure
that the President would actually make it his personel responsibility.

If the

chief of the Budget Bureau is a strong man of sound ideas, no doubt he could
d

succeed in interesting the President in actually insuring that the Presidentwould
give it personal attention.

If he were nut a man of such character, the prepara-

tion of the budget would be no more effective in promoting economy in appropriation
than is the present plan, or lack of plan.

It war for tht reason that I rather

inclined toward having the budget organization in the Treasury Department, and
directly under the Secretary - of the Treasury.

In other words, I feared thet the

President, whether willing or not, wculd be literally unable to give the neceetary
time to form an underetendieg of the business project or each appropriation year.

I et still uncertain on this point, and would hive no definite opinion
until I had e better knowledge of the attitude of the President himself.

I have less fear than was expressed in the memorandum, of the possibility
of conflict between Cabinet efficers,end it well might be th,lt in the course of
years the most efficient control of finance would be developed by having, the

Secretary of the Treeeury exercise a certain supervisory authority or influence
over the scheme of expenditure by the other departments.




May 3, 1921.

Itaaley H. Hone, Esc.

Like all problems of this character, they will resolve themselves
if the President can get a good man as

eventually to questions of personality.

hie personal representative, and will beck him and fortify his repref-entative's

program with his own personal support and good knowledge of what is proposed, then
I think your prograa is a sound one.

If the Prefident cannot get a good

an and

will not actively interest himself in the work of his business manager, then
think the Secretary of the Treasury should be made responsible for the preparation
of the budget, under the general direction of the President.

The best *ay to

reach a conclusion in this matter, it seems to Me, is to go direct to the President
and tell him frankly how we feel about it.

I hope you arvi the members of the

committee share this view.
Yours very truly,

Stanley H. Hoot', Eso.,
c/O National budget Committee,
7 West 8th Street,
New YorK, A. Y.







May ?4, 1921

My dear Mr. Howe:
Mr. Jc.mes S. Alexander kldVifieF me, that he is

sending you a check for *100.00 fcr the Committee's
expense account.
Tours very truly,

Stanley H. &we,
c/o A.4.tional Ludg6t Cionvdttee,

7 Mist 8th St.,
NOA York, N. Y.
8S:MM




V

September 13, 19'1.

icy dear kr. Howe:

Replying to your favor of the 8th instant, I have somewhat changed
the draft of letter to go to my aseociates in the reserve btliks, and am en-

sassing a copy of one of them so that you may be familiar with what I am
writing them.

It seems to me unwise at the outset to ask them to endeavor to
secure the acceptance of the ap,:ointments, ,:rincipally because I do not
think that they are yet in possession of sufficient infor: :ation to enable
them to do so.

I have, therefore, suggested that a memorandum will be en-

closed -pith my letter describing the work which will be expected from these

chairmen, which memorandum, it seems to me, should include something in regard
to finance.

If you can send no an outline such as will enable these gentlemen

to act with full knowledge, I will then enclose it with letters of

a

char-

acter similar to the enclosed, and will then advise you of the replies.As to
this district,

I will submit a list of names as soon as I hear from the

other Governors.
Yours very truly,

Stanley H. Howe, Esc.,
c/o National Budget Comittee,
7 Zest 8th St.,
New York, N. Y.
}3St



enc.










0

October 24, 1921.

Dear Mr. Howe:
The attached lti,tter from Governor Calkins of the

Federal Reserve bank of San Francisco, is referred to you for
your attention.
Yours very truly,

Stanley H. Howe, Esq.,
c/O National Budget Committee,
7 West 8th St.,
New York City.
Enc.










C;ctober ?9,

Dear Mr. Howe:
I thank you for your letter of October f'7.

It is perfectly agreeable to me to 'nave you communicate

directly with the Governors of

the

Federal Reserve banks,

with regard to appointing city chairmen in their
I shall Five some thought to
ments in the

the

possible appoint-

Second Federal Reserve District, and shall

communicate with yuu again.

Yours very truly,

Stanley H. Howe, Es,:!.,

c/o National Budget Committee,
7 West 8th St.,
New York City.
GB:M1M

districts.




November 2, 1921.

Dear Mr. Howe:

The enclosed is a list of names of bankers
which I have selected to acs, as city chairmen for the

various cities mentioned in the Second Federal Reserve
District, in connection with the work of the National
Budget Committee.
After you have written to these gentlemen will

you be good enough to let me know how many have accepted
their appointment, and whether you desire additional
names to take the place of those who may be unable to
accept.

Yours very truly,

Stanley H. Howe, Esq.,
c/o National Budget Committee,
7 West 8th St.,
New York City.

November 17, 1921.

My dear Mr. McMabon:

I thank you for the report contained in your letter
of Novembar 15, with respect to the appointment of City Chairman in the Second Federal Reserve District.
It is gratifying to learn of the favorable responses
received by you in connection with the appointments, and that the
Governors of the other districts are giving the movement splendid
cooperation and support.
Yours very truly,

H. H. McMabon, ?'sq.,
National 3udget Committee,
7 West 7ighth Street,
Nes York, N. Y.




0

a

November 23, 1sU21

dII7

Dear tir.

At the reouest of Mr. Strong, I am enclosing letter
received from Mr. J. J. Rowe, Vice President, of the First
National Bank, Cincinnati, which is i: answer to
telegram G f November 17,

Strong's

of which is herewitl. enclosed.

In the absence of Mr. Pratt, Mr. Strong felt that
you would like to ht.ve this fur your infc.rmation.
our

very truly,

Secretary.

H.

H. Mas.hon, Esq.

c/o National Eudget Committee,
'I

:it-)w York City.
GE:MM

ci+Aid










C
June 19, 19,!.2.

My dear Mr. Hove:
2fte letter of June 16 from Governor Yellsorn,

and appended coot' of my reply, is enclosed for your information and attention.
Yours very truly,

Stnnley H. Hale, Esq.,
National 3udget GOMMItta,
340 Madison Avenue,
New York, N. Y.




a
August 4, l92?.

Dear Ur. HOle:

I enclose check for !'E01.00 payable to the order of

the Nation71 Fudget Committee, as a temporary loan to replenish
the treasury in order to meet current expenses as per your
telephone conversation of to-day.
Kindly acknowledge receipt.
Yours ver:, truly,

Stanley H. Ha re, Esq.,
c/o National Fud-7et Committee,
341 Madison Ave..
New York City.
enc.

QE. &




August 11, 199?.

Dear Mr. Howe:
Thank you for your note of the '.7th.

I vex very glad

to advance the t500.00, and Mr. Beyer told me of your difficulty.
The committee named in your letter IR certainly a good
one.

Have you ever tried to get Senator Pepper of Pennsylvania?

He is a splendid speaker and much interested in matters of this
kind.
1r,urs sincerely,

Stanley H. Howe, E80.,
c/o National hudtpilt Committee,

341 Madison Ave.,
Nal York City.
BS.MM




September 5, 19?2.

Dear Yr. Hods:

I &Jail be pleased to attend th3 luncheon cf the
directors of the fictional i-udget Committee to be held at the
Down Town Association it one o'clock on 4ednesday, September

6th, which ie in anexer to your letter of Au.,_,.uet 31.
Yours sincerely,

Stanley H. it, te,
c/o National budget Committee,
340 Madison Ave., Nab York. City.
GB. MM





http://fraser.stlouisfed.org/
DIRECTORS
Federal Reserve
Bank of St. Louis

NATIONAL BUDGET COMMITTEE
SEVEN WEST EIGHTH STREET
NEW YORK CITY




-2-

Or

went of work to the various departments and by the President in the e.7:ercise

1111

of e=eoutive direction and control.

These are perhaps the primary defects of the present day organization
of the Executive branch of the Government.
lesser consequence.

There are others, of course, of

Dut it is the common sentiment of public men, of students

of government, and of the great body of citizens that the Government is not no-7
organi zed for the most economical and effective prosenuten of the vork it is

required to do; and that a redistribution of activities must be bought about,
if we are to have scientific administration, with a minimum cf duplication between departments, of overlapping of authority, and of needless e=penaitare of
public funds.

Limitations of *a Reorganization Prugyam.

'Many suggestiOns have been made for changes in our institutions

as a part of the reorganization program, which reach to the fundamentals of our
form of soverrnent as given emnression in the Federal Constitution.

It must be

conceded that errors have been comittea in building anon the framework laid
down in our organic law, but it would seem to be both rata° and irrelevant to
propose the aaPrdenment of the original plan on that account.

It will be wise

to reject all such suggestions, whatever intrinsic merit they may have, on the
ground that the present need is merely for a realignment of the agencies of

goverment, a need which may be net at once in a very practical way, without
raising Constitutional questions which might require years for settlement.

No

better illustration of suggestions of this sort may be found than the claim often
put forward that in reorganivins tts departmental service the United States
should have regard to the governmental systems of Enc.lana and other Euronean

states, end should perhaps borrow from those systems the theory of cabinet re-

sponsibility, to be aplied in the Anerican Government in the place of our own
peculiar theory of the individual resnonsibility of the chief emecutive.
The English cabinet, which is fairly tynical of all European
cabinets, is made un of those 7ersons occupying the highest emenative offices
in the state, who in concert direct the Government and are jointly and severally
responsible for its acts.

It always includes the Individuals occupying the

follorins positions, who are, therefore, called. "cabinet ministers"; The First

Lord of the Treasury, the Lord Chancellor of Lugland, the Lord President of the
Council, the Lord Privy Seal, the five Secretaries of State, the Chancellor of
the accheqaer, and the First Lord of the Admiralty.

Although not necessarily

so, other important e::ecutive officers, including the Postmaster General, the




-3-

411

First Commissioner of Works, the Chief Secretary for Ireland, the President of
the Board of Agriculture, and the President of the Board of Education are frequently members of the English cabinet.
Two Constitutional ;principles are recognized in England as underlying

the cabinet form of Government; First, that the Government should be composed
of statesmen holding the same nolitical views and identified with each other;
anl second, that it should stand upon a 'parliamentary basis and be compelled to
Obtain and holdnthe support of the Parliament.

The cabinet is the Government.

It e=ercises all the powers vested in the sovereign.

At the same time all its

members are also members of the Parliament, the cabinet being effectually a standing committee oe the legislative body.

Members -of the cabinet are jointly and

severally responsible for all its legislative nronosals as well as for the enecutive conduct of the-various functions of government.

They are selected

.prililarily as advisers and invariably out of consideration of their value as oabi.-

net ministers.

Incidentally only they are or may be heads of the several ON:-

ecutive establishments.

In the Government of the United States, on the other %and, there is no
such thing as a cabinet in the British or European sense of the term.

The word

ig used, however, to describe a council called by the President, without any
legal status whatever, coll;Posed of the heads of the principal enecutive depart1:ents.

Although political considerations often weigh, heavily to influence the

President in his selections, the members of this council are nevertheless selected primarily as departi.lant heads and only secondarily out of consideration of

their value as cabinet members.

The so-called cabinet is in reality a group of

per sons, each individually answerable to and dependent upon the President.
body has no collective responsibility and rarely even a joint policy.

The

Decisions

on arl questions rust be made by the President, since his responsibility is .72ersonal and emolusive.

The members of the Anerican cabinet are, of course,

°laded under the Constitution from membership in Congress.

They are entirely

independent of the legislature, so that, theoretically, the American cabinet has
nothilv: to do with the preparation of 'pills or the formultttan of

It is not

government in.

European

sense of the term, but l_nre-

1: a grou-p of '.1eax1s of departments 'hou no Dlesident often brings together for

a:17ice on 7qoations of administration, or in order to settle matters -,ihich Lrile
in tha 'borde:1-nd between_ two de-partments.







-4.

-4-

III

These differences between the American and the

T.:nglish cabinets are, of

i,course, fundamental - not merely the result of historical circumstance.

The Presi-

dent may seek advice there and how he will - he can compose his cabinet of five membens, of ten members, of twenty members, heads of departments or not, but he cannot,
under the Constitution, share his responsibility with any 'floc :1.y of advisers however

constituted.

'-,. practical plan for the reorganization of the executive branch of

the Federal Government will, therefore, leave strictly alone all questions affecting the form or size of the cabinet, or the relationahip which exists between that
body and the President.
Furthermore, reorganization does not prirraryly contemplate expansion, or
the addition of new functions.

neither is it a necessary nart of reorganization to

curtail activities or cut off functions.

And yet many of those advocating a re-

organization of the Government either seek to confine its powers and its jurisdiction within narrower bounds, or recommend that the Government shoull r.ctend 'ts

jurisdiction or at least give greator prominence to activities that have heretofore
been allotted a minor place.

Without attempting to reconcile these divergent views, it may be accented
as a matter of principle that all questions of the addition of new functions or the
curtailment of e: :isting powers fall definitely outside the scone of the problem of

reorganization, and must eventually be settled, each
pendently of that problem.

on

own mcrits,inde-

The need for reorganization, awaking rrecisely, sprints

wholly out of the fact that the executive departments, as they exist today, arc not
in any sense the product of intelligent planning, but the result of piecemeal building by successive Congresses practically -iithout a plan; and the prime purpose of

reorganization will be to effect such a regrouping of the agencies that have been
brought into existence

in this piecemeal fashion, and such a reassignment of the

activities which from time to time have been authorized by Congress, as will insure
the most economical and

effective possible prosecution of the prover objects

of

Government as they have been determined by Congress and given exTresslon i.n the
statutes.

This does not necessarily mean, however, that it -all be impossible, or
improper, to rroposo tho establishment of new agencies or even of new Executive
Departmentz (or, on the other hand, the discontinuation of (misting agencies or
or de-artments in their present form).

IC it coup be demonstrated, for example,

that a considerable number of service units are scattered through the several
depdrtments, all dealing with various aspects of the general problem of promoting
and protecting the nubile health

if it could. be damonst-ated that these units

could be more effectively administered if grouped under the same de-eartmental




lir direction, and that such a conbin,ltion would be so large of itself that it could be
effectively administered only if maintained separately from the jurisdiction of any
onisting executive department - under such an hypothesis, the establishment of an
independent department of public health would be
roorganizatiOn program.

unobjectionable as a part of the

But it is not a part of that program to expand the nubile

health activities of the Govornmant, or to provide machinery for the conduct of
enterprises in this field which have not been authorized by legislative action.

Re-

organization deals with ways and mews, with machinery - not with purposes or objocts
and it will, thoroforo, n.ovido new donartmento
only when necessary to the more,
_
... _

effectivc conduct of enternrisos already authorized; never in answer to a demand of
this svoup of that groun for the entry of the Government upon a new field of
endeavor.

It will nevertheless be necessary to take cognizanco of the tendencies
or the times, and to provide means whereby the various funotions

t)

uovernment may

steadily bo extended and developed acoord!.mr to those tendencios, and With the least

possible strain upon the executive organization.

It weu10. be a narrel-minded re-

organization policy indeed that would ignore the quootion of what requirements the

machinery of the Government will bo called upon to serve in the future.
Al though
those requirements cannot bo forecast with absolute accuracy it is




possible to build for the future at least to tha extent of Iprovidi

place in the organization of the dopartmaats for the location and
each najor function and object of governnont.

Not the smallest of

of souping analogous activities in a single department will be the

srowth and. dovolopmat, not of particular bureaus and ofnces,but o
fields 0? govermnent operation.

And while the present program o

_amid cook only to provide the means of a more effective and econ

tration of oxiJting onerprises, it will novortheloss clear the wa
Aevolopment or particular functions in response to popular demand.

A Practical Reorganization Program

If in attemptin:;, a reorganization of the enocutive branc

Government it is to be assumed that no consideration will be given

to o.'foot changes in the rundamamtal principles upon whilh our gov

ure has boon erected, and that no effort will be nade to curtail o

powers c,:nd functions which were delegated to the Federal Governmen

ution, or whach have been assumed un to the present 1)7 the Federal
the moot libarcc.l interpretation of the Constitution,
I.1110 -1-o-ea of renganization is

it is at onc

-6-

restricted to a careful consideration of the proper grouping of existing services
and a proaer distribution of the functions of Government among those services.
In carrying out this program, it will be necessary to lay the eaisting organiz
ation upon the dissecting table, to minutely analyze the activities of each governmental agency, and to effect the regrouping of services thdt will bast lend. itself

to an economical and efficient administration of public affairs.

Reorganization is,however, something more than a more transfer of
agencies from one jurisdiction to anOther, or a mere statutory shifting of lines
of authority.

Real reorganization means eliminations, consolidations, cutting

down overhead, reduction of foroe,improvement of service.
be accomplished by statute.

These things cannot

They are essentially matters for administrative act-

_

ion.

But the great obstacle in the nay of executive action of this sort lies in

the heterogeneous character tC Vno most lorportan% trretatav

akm

in the

statutory location in different denartments of units whose work is similar, or
at least in similar fields.

This condition is the result of legislative action,

and an effective bar against real reorganization rhich only legislaeLva action
The General Land Office, the Geological Survey, The Coast and Geo-

can remove.

detio Survey, the Lakes Survey, and the Navy Hydrographio Office, for instance,
are separate agencies engaged in surveying operations on land an -water,

That

there are duplications in their equipment and work and much needless overhead
expense, there can be no doubt.

But so long as they are nermitted to maintain

their existence in four separate executive departments, duplications and waste
must continue.

To obtain the benefits of real reorganization, all services operating
in the same field, services conducting operations of a sim.lar character, must,

by law, be placed under one general direction; and conversely, the field of each
department must, so far as possible, be restricted to a single class of closely
related activities.

Reorganization will then follow natexally.

Effective co-

operative relations will spring up between services engaged in an1-.:Ecus lines of
work.

Duplications 0C equipment, plant,and activities will aisalcsar,

%/hose -:cork is sufficiently similar in character will be co.4solidLie:I..

aarvaao

Uaaecessala

services will be eliminated, and duties nill be more logically assigned among the
working units which remain.

Reorganization legislation,however, can accomplish only three things or more nronerly saeakina, that part of the work of reorganization which can lie
accomnlished by statute consists of three things:

First, the grouping

together

of services of like character, or chose work is analogous; second, the restriction






--7-

of the field of each defartment, so far as 'cracticable, to a single class of

closely related activities; and third, the investment of the

Chief Executive with

authority to make such organization changes within the respective derartmental
jurisdictions as may be necessary in the interest of economical administration end
improved service.

Controlling Principles.

In formulating reorganization legislation it will be necessary at the
outset to lay down certain principles upon which to base any specific grouping of
agencies which may be determined upon.

Two standards have been suggested by which

service units may be measured in order to determine their respective places in the
organization as a whole.

The first is that agencies performing analogous funct-

ions or having analogous objects should be grouped together.
ions

The second is that

agencies requiring the same variety of mechanical equipment, usi,, .ne sarLe methods
and procedures, and employing personnel of similar qualifications, should be
placed under the sane management without regard to the general functions rhich
they variously perform or to the objects which they respectively seek to attain.

irbilass to say, the functional standard and the Achanical standard are often,
although not usually, in sharp conflict.

Under the theory of grouping Federal

a gencies according to the major objects of government, a unit created to foster
thrift among our citizens, and particularly among industrial workers, would certainly never have been located in the Post Office Department, whose major object is
to carry the mail.

But that department is the sole pederal establishment main-

taining offices in all sections of the country, however remote; and, quite correctly, the mechanical standard was permitted to prevail against the functional standard in the establishment of the Postal Savings Bank under the jurisdiction of the
Postmaster General.

But the reverse is usually true.

Whether approrriately or

not, the War Department, the Navy Department, and the Post Office Department
separately maintain aerial services, on the theory that regardless of questions
of mechanics there should be no suggestion of confusing the three major governmental objects involved, national defense by land, national defense by sea, and
carrying the mail.

It is obvious, of course, that neither of these standards can be
applied to the exclusion of the other.

Indeed, in most cases they run parallel.

Where they are in conflict, it is well to follow the general princirleethat services should be grouped according to the nharacter of the major objects or. functions for which they were created.




But it 'viii always be necessary to make







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TELEPHONE STUYVESANT 8172

NA.T1ON AL BUDGET COMM I rm. IKE
SEVEN WEST EIGHTH STREET

NEW YORK CITY

DIRECTORM
JOHN T. PRATT. CHAIRMAN
SAMUEL MCCUNE LINDSAY, VicECHAIAHAno
DR. NICHOLAS MURRAY BUTLER
JOSEPH P. COTTON

CHARLES F. NESBIT
ALTON B. PARKER
HENRY L. STIMSON

MAY

792.1

May 2, 1921

MANNY STRAUSS
BENJAMIN STRONG

WILLIAM HOWARD TAFT
PAUL M. WARBURG

- --

STANLEY H. HOWE.
DIRECTOR OF ORGANIZATION

Mr. Benjamin Strong,
15 Nassau Street,
New York, N. Y.

My dear Mr. Strong:

I am informed that another deadlock has developed in
Nashington between the Senate plan of placing the Budget
Bureau in tae office of the Secretary of the Treasury and
the House plan of placing the Bureau in the d'fice of the
President.
This time the House is not likely to compromise
with the Senate on this issue, and the question will have to
be settled Anally by the President himself.
I enclose herewith a brief prepared for our Committee
by Mr. -Z. L. Potter, Vice-President and Business Manager of
the New York Evening Post, in which he sets forth the arguments to be advanced publicly by the Evening Post in favor
of pleing the Budget Bureau in the office of the President.
Mr. Potter inforn me that officers of the United States
Chamber of Commerce have recently expressed their approval
of the house plan, and that the Chamber may go on record in
this regard. He also reports that Mr. Hoover is strongly in
favor of the House plan but cannot take an active part in the
fight on this issue, as he is at this time more intimately
concerned with the struggle on reorganization.
The Evening Post has asked. our Committee to organize
a delegation to visit the President in the interest of the
House plan of placing the Budget Bureau in the President's
office.
Of course, this is a matter of policy which must
be detr,r,mined by a vote of our Board of Directors. loo
meeting of the board has been arranged, but I am advising
you of the matter now, so thqt you may be prepared if you
are called upon for your own convictions.




Sincerely yours,

IIrec

TREASURY DYPLRTMENT
BE A SERIOUS MISTAKE IF THE BUDGET BUREAU IS LOCATED IN THE
OF
IN
THE
EXECUTIVE DEPARTAFNT.
AS PROVIDED IN THE BILL THAT HAS PASSED THE SENATE, INSTEP])
IT

SL

cut the Departmental estimates
Jane most important task of the Budget Bureau will be.to
Officer
submitted by the various Cabinet Officers. To act effectively the Chief Budget

Cabinet Officers
should, if possible, have a position that will permit him to meet the
of
the Treasury it obIf he holds a position under the Secretary
on a basis of equality.
estimates than
viously will make it more difficult for him to act with courage in cutting
And courage is
if he is located in the Executive Office immediately under the President.
essential to the success of his work.

with the
2. Intelligent planning of the budget mast rest upon intimate year round contact
The
Chief
Budget
Officer
must
know not
eork of the smallest divisions of every department.
know
how
only how "I h was sekeinded for each nativity the previous year, but he must also
effectivsei the work vies carried on, whether staff and expense allowances were too large or
too mnall.the value of the services rendered, whether the field for service is expanding
cooperation
or contracting, etc. To gather this information he must have the most cordial
of all bfanohes of the Gevernment.
Since the establishment of the Government there hove been conflicting plans and jealousies between the Departments. The Treasury has not been exempt from these and will not be
in the future. For over a century the Treasury has been on a basis of equality with the
other Departments. There can be little doubt that its representatives, delving into the
At any rate it is certain that a
work of the other Departments will often be resented.
Chief Budget Officer representing the President would gain more cordial cooperation and get
more information from the Departments than each an officer representing the Secretary of
the Treasury.

3. Located in the Treasary Depertment the Chief Budget Officer will have to review the estimates not only of the other Departments, but of his own chief. This will, in effect,
create the very unsatisfactory situation of the Treasury reviewing its own estimates, - a
situation that will not be corrected even if the Treasury be divested of non-fiscal functions.
'ith the internal Revenue Bureau, the Customs Service, the Treasurer's Office, the Division
of Loans and Currency, and other Bureaus the Department will still remain an important administrative and spending agency of the Government.
The Treasury in Great Britain, that is the fiscal control agency akin to the proposed
Budget Bureau, has been divested of the tasks of collecting revenues, disbursing monies end
handling the public debt. Its only remaining administrative duty is to handle pensions,
and the Select Committee on the Budget in 1918 recommended that it be relieved of this
task also, because the fiseal control agency should not have administrative functions.
No advocate of locating our Budget Bureau in the Treasury has even suggested that the
Department be relieved of its fiscal administrative functions.
It is to remain an important
administrative and spending agency, but is to review its own estimates; a sitzetion likely to.give rise to much bitterness when the Treasury cuts the estimates of other Departments.
The Budget Bureau, if it does its work properly, will be in intimate touch throughout
the year with the progress of work in every Department and independent agency.
The facts
that it gathers will be of very great value, if the. Bureau is located in the Executive Office, in keeping the President in touch with problems of edmiristration.
At present he
hes almost no conteot with the sctivities of the dieferent departments, and there can be
little doubt that as a result the quality of the service suffers. He gets no periodic reporte of any sort from any branch of the government; yet he is the only General Manager that
the United States Government has.
4.




Wer the Budget located in the r'100iIiille Office many a brewing conflict or duplication between different depertments would be ironed out at its inception, and many
a failure to secure efficiency in administration could be correoted before it beasts
eoreever, the fact thet the President w)s aanstantly in eentaot with the progserious.
ress of Depertmentel -cork would be a oonstent stimulus to_ettioionoy.

b

cated the President will in the and have
tio matter where the Budget Bureel
item
the Budget
to :act
as bete_cn
final :.rbitsr
in aBureau end the Deprtments.
er for him to settle them if the Budget Bureau is a part of his

The Chief Budget effioer outs an item from a Departmental esheee protests. After discussion the Chief Budget Office hole
ment heed protests to the Secretary of the ereesury, end the
ordinate. The Department head then tykes the case to the Presprepared his case. The Budget Officer who has the detailed in
He ts represe-ted by
t should not be granted, is not present.
easury. As likely es not the matter ks by this time become a
President, in rendering, hie decision, must seriously disappoint
the Treasury or the opposition Secretary.

the whole process would be if the Chief Budget Officer were a
In the first place, being close to the court
personal steff.
d be much more likely to be able to re-:oh an agreement with the
oeever, agreement were not possible the matter 'would be brought
who before the matter had been allowed to become a personal issue
tive decision had been reeohed, would call a conference and
eesly, it will save muoh hard feeling and much tie-le, and make
much easler if tee Budget Bureau is Located in the Peecetive

ts terve been offered in favor of placing the Budget Bureau in
.

ry wants it.

The answer is:

naturally.

that the Chief Budget efficer would have too much po,ar if
e Office.,
"He would be a super-Cabinet Officer."

Jf course he would have e good deal of poer; but there
in its abuse if he is given no original ruthority, but reede to
y throarh the President.

:




NATIONAL BUDGET COMMITTEE
SEVEN WEST EIGHTH STREET
NEW YORK CITY
411/fELEPHONE. STUYVESANT
B172
DIRECTORS
JOHN T. PRATT. CHAIRMAN
SAMUEL MCCUNE LINDSAY. VICE.DHAIRMAN

DR. NICHOLAS MURRAY BUTLER
JOSEPH P. COTTON
CHARLES F. NESBIT
ALTON B. PARKER
HENRY L. STIMSON
MANNY STRAUSS
BENJAMIN STRONG
WILLIAM HOWARD TAFT
PAUL M. WARBURG

May
16

1921

STANLEY H. HOWE
DIRECTOR OF ORGANIZATION




Mr. Benj. Strong,
15 Nassau §treet,
New York City.
My dear Mr. Strong:

It was very good of you to respond
so promptly and effectively to our cell for
subscriptions to the work of the National Budget
Committee.
I enclose herewith a clipping from
ye-sterday's Times regarding the Convention of
the New Jersey Bankers' Association held in
Atlantic City, at which a resolution was unanimously adopted authorizing the association to
take out a membership in our Committee and
urging individual members of the association to
join our committee personally.
Thanking; you foi\your help,

Very sincerely yours,

Dire

I am

VANCIAL.
NEW JERSEY BANKERS
FAVOR BUDGET PLAN
State Aspociation Pledges Support
to Reorganization of Federal
Departments.
Special to The New York Times.

ATLANTIC CITY, N. J., May 14.Members of the New Jersey State Bankers' Association, individually and collectively, will support the nationwide move-

ment for a reorganization of the Federal Government departments now before the Smoot Reavis Committee of

Congress. The organization, at its closing session today, voted unanimously to
join with the National Budget Committee,

of which John T. Pratt of New

York Is Chairman, in sponsoring the
plan as a policy of goverinmental retrenchment and economy.

Opposition to the Branch bill now before Congress, which would permit national banks throughout the country to
open branches, was voiced in resolutions.

United States Senator Frelinghuysen
of New Jersey, sponsor of the measure,
was requested by the bankers to amend
the bill so that It would not apply to
this State.
Investigation of the encroachment of
private bankers upon the legitimate
banking interests was authorized in a
resolution that directed attention to the
unfair competition of private banks that
do not observe regularly recognized
banking hours or other regulations. Another resolution asked Congress to use
all haste in getting the railroads of
the country back on a normal footing.
Bankers of the State probably will
arrange to take over $17,000,000 worth
of State bonds which are to be issued
next month, as a result of a conference

held here today between leading representatives of the New Jersey Bankers' Association and State

Controller

Newton A. K. Bugbee.
Soldiers' bonus bonds will make up
$12,000,000 of the issue. The balance
of $5,000,000 will be " Series A " of
the $28,000,000 of bridge and tunnel

bonds.

Bankers of the State were appealed to

by the Controller on the ground that
it would be fine for the New Jersey
financial institutions to make a special
effort to absorb the entire issue. A

committee of bankers was appointed to
consider the proposition.




MEMORANDUM
411

FROM

Mr. McMahon

TO 41

Mr. Howe

SUBJECT

Organization Plans

DATE

August 24, 1921.

The plan of extendin7 our organization by securing
a leading banker to act as Chairman in each city is progressing and we now have
over forty city chairman at work extendin7 our propaganda and securing new
members. Even where the men selected have found it impossible for some reason
to serve)as has often happened, they have generally expressed sympathy with and
approval of our work.

The larger the city, the more difficult it proves
to secure a banker to act as Chairman. In only one city of over 100,000
have we secured a banker chairman: Houston, Texastwith a tentative chairman
in Lowell, Mass. The others are all in cities from 5000 to 100,000.
This experience confirms a suggestion before made that
we should have a committee of bankers in each of the larger cities, even in
those where we already have city chairmen: New York, Buffalo, Pittsburg, Cleveland, Cincinnati and Chicago.
If these comnittees could be selected by the Governors
or Directors of the Reserve Banks in each District, it would be most helpful
and expdite the work of organization. We would get better men and they would
be more likely to serve.
This su7gesticn calls for committees of three or
four members in 62 cities, with chairmen in all but about 8 of them. It may
seem like a good deal to ask of the busy men in the Reserve banks, but ire
feel that they would do it, especially if Governor Strong should ask it.



MEMORANDUM

FROM
TO

DATE

0

-2-

SUBJECT

We would ple pare the letters for Governor Strones
signature and mail them. When the sugestions are received we would of
course conduct all the correspondence.
The cities to be covered by this plan are:
First District:

Boston, Bridgecort,.Cambridge, Fall River, Lowell,
ingfield, and -iorcesters

Second District:
lo, Jersey City, Newark,
e and Yonkers.

Third District:
n and ilmington. Erie,

Fourth District:
d,Columbus, Dayton,
n.

Fifth District:
, Tashington.

Sixth District:
le, New Orleans,

Seventh District:
s, Indianapolis,







MEMORANDUM

TELEPHONE, STUYVESANT 8171

NATIONAL BUDGET COMMITTEE
DIRECTORS

SEVEN WEST EIGHTH STREET
NEW YORK CITY

JON T. PRATT, CHAIRMAN
SAMUEL MCCUNE LINDSAY, VICE-CHAIRMAN
WM. M. CHADBOURNE, TREASURER
DR. NICHOLAS MURRAY BUTLER
JOSEPH P. COTTON
R. C. LEFFINGWELL
ALTON B. PARKER
HENRY L. STIMSON

August 25,

1.C,21

MANNY STRAUSS
BENJAMIN STRONG

WILLIAM HOWARD TAFT
PAUL M. WARBURG
STANLEY H. HOWE
DIRECTOR OF ORGANIZATION

SAM A. LEWISOHN
NEW YORK CITY CHAIRMAN

My dear Mr. Strong:

Knowing how busy you have been of late, particularly in
connection ith the splendid battle you have been waging in
Washington, I have hesitated to intrude upon you with the affairs
of the National Budget Committee. But in the absence of Mr. Pratt
two problems make it necessary for me to ask for your advice and
help.
1.
Mr. Walter F. Brown, representing the President
on the Smoot Reorganization Commission, has asked the National
Budget Committee to come out publicly in favor of a combination
of the Army and Navy Departments into one department of National
Defense, both in the interest of national economy and of better
team work in our military affairs. He wishes us to make this
subject the theme of one of our weekly editorials, an to stimulate as much publicity as possible on the question.
It is evident that Mr. Brown intends to push this matter vigorously, and
it would appear that he muFt have the tentative support of the
President, with whom he is working closely.
I am anxious to
know whether as a member of our Board of Directors you would
favor such a combination, andwhether you would approve of my
plan to publish a debate on this question, with an authority
like General Goethals taking the affirmative side, and some one
like Mr. Stimson (though I do not yet know his views) taking the
opposite side.
It seems very difficult to get our Board of Directors together particularly at this time, and it will evidently
be necessary to get their opinions individually.

2.
You will be interested to know that our National
Budget Guard has been developing very rapidly even in this usually
unproductive month of Aucust. We have secured the cooperation of
185 Mayors as honorary local chairmen and 41 bankers as active
cnairmen in cities of more than 5,000 population. We find a very
responsive attitude on the part of bankers generally, but it is a
rather slow and tedious process to get every city in the country
organized under the present methods. The enclosed memorandum from
my associate, Mr. McMahon, explains the situation in more detail.
Of course, I recognize how productive a letter from you to the




ELL.

S
Hon. Benj. Strong...2...

O
various Federal Reserve Governors, asking for suggestions regarding local chairmen, would be, but it seems to me that this is
asking a great deal.
If such a letter is for any reason inappropriate, could you give me a counter suggestion as to the best
means of discovering a "live-wire" and patriotic banker in the
more important cities to receive the designation of local chairman.
Very sincerely yours,

Director

Hon. Benj. Strang,
Federal Reserve Bank,
New York, N. Y.




TELEPHONE, STUYVESANT 8171

NATIONAL BUDGET COMMITTEE
SEVEN WEST EIGHTH STREET
NEW YORK CITY

Jet

DIRECTORS

T. PRATT, CHAIRMAN
SAMUEL MCCUNE LINDSAY, VICE.CHAIRMAN
WM. M. CHADBOURNE, TREASURER
DR. NICHOLAS M URRAY BUTLER
JOSEPH P. COTTON
R. C. LEFF INGWELL
ALTON B. PARKER
HENRY L. STIMSON
MANNY STRAUSS
BENJAMIN STRONG

September 6, 1921.

WILLIAM HOWARD TAFT
PAUL M. WARBURG
STANLEY H. HOWE
DIRECTOR OF ORGANIZATION

SAM A. LEWISOHN
NEW YORK CITY CHAIRMAN

My dear Mr. Strong:

Thank you very much for your willingness
to help with the Governors of the Reserve Banks.
I
enclose herewith a draft of the proposed letter.
I do not kno.; yet how Secretary Vieeks and

Secretary Denby feel about the proposed combination
of the Army and Navy Departments.
I shall undertake
to get as much information on this subject as I c an.
I do know that General Dawes and Mr. Brown are in accord
In fact, Col. George
with this one proposal at least.
Van Horn Mosely has sent us a proposed editorial on
the subject w'ich he would like to have us use as one
Doubtless, you have
of our regular weekly bulletins.
already discussed this matter with Mr. Pratt and we
can take it up at the meeting of the Board of Directors
when we have more information at hand.
Very sincerely yours,

Hon. Benj. Strong,
15 Nassau Street,
New York City.




ELI

TELEPHONE, STUYVESANT 8171

y.

r,,

TELEPHONE STUYVESANT 0172

NATIONAL BlUnG ET COMMITTEE
SEVEN WEST EIGHTH STREET

NEW YORK CITY

DIRECTORS
T. PRATT, CHAIRMAN
EL MCCUNE LINDSAY. VICECHAIRMAN
DR. NICHOLAS MURRAY BUTLER
JOSEPH P. COTTON
R. C. LEFFINGWELL
ALTON B. PARKER
HENRY L. STIMSON
J

S.

October 6, 1921

MANNY STRAUSS
BENJAMIN STRONG

WILLIAM HOWARD TAFT
PAUL M. WARBURG

STANLEY H. HOWE,
DIRECTOR OF ORGANIZATION

State Chairmen:
ALABAMA

JOHN L. KAUL

ARIZONA

HON. H. B. WILKINSON

ARKANSAS

VAN B. SIMS

Dear Governor strong:

CALIFORNIA

IDE WHEELER
RALPH P. MERRITT
BENJ.

Mr. kratt has asked me to write

CHAIRMAN. EXECUTIVE COMMITTEE
COLORADO

C. A. LEMMERS

you to attend a meeting of the Hoard of

DELAWARE

HENRY P. SCOTT

GEORGIA

ALEXANDER W. SMITH

IDAHO

B. W. OPPENHEIM

Directors of the National Budget Committee
at the Downtown Association on Monday,

ILLINOIS

SILAS H. STRAWN

IOWA

JOHN E. BRINDLEY

October 10th, at one o'clock.

Mr. eratt

MAINE

HON. LEON F. HIGGINS

MARYLAND

is in Washington toaay in conference with

PROF. FRANK J. GOODNOW

MASSACHUSETTS

HOWLAND TWOMBLY

General Dawes and other officials, and will

MISSOURI

WALTER S. DICKEY

NEVADA

have some very important matters for you to

PROF. C. W. SPENCER

NEW JERSEY

HON. ARTHUR N. PIERSON

consider.

NEW MEXICO

HON. JOHN S. CLARK

NEW YORK

R. FULTON CUTTING

NORTH DAKOTA

HON. DORR H. CARROLL

OHIO
R.

We hope that you will make a
special effort to come.

E. MILES

Sincerely yours,

SOUTH CAROLINA

R. G. RHETT

SOUTH DAKOTA

ROBERT L. SLAGLE

VERMONT

JOHN S. BRANCH. SR.

VIRGINIA

COL. LE ROY HODGES

WEST VIRGINIA

JOHN J. CORNWELL

WISCONSIN

HON. B. A. KIEKHOFER
City Chairmen:

BUFFALO, N. Y.

JOHN LORD O'BRIAN

CHICAGO, ILL.

LEE H. RANCK

CINCINNATI,

0.

IRVIN F. WESTHEIMER

PITTSBURGH, PA.

MRS. FRANKLIN P. IAMS

WASHINGTON. D. C.

CHARLES F. NESBIT

Hon. Benj. Strong,
15 Nassau Street,
New York, N. Y.

TELEPHONE, STUYVESANT 0170

NATIONAL BUDGET COMMITTEE
SEVEN WEST EIGHTH STREET
NEW YORK CITY

DIRECTORS
OIL T. PRATT, CHAIRMAN
SAMUEL MCCUNE LINDSAY, VICE-CHAIRMAN
WM. M. CHADBOURNE, TREASURER
DR. NICHOLAS MURRAY BUTLER
JOSEPH P. COTTON
R. C. LEFFI N GW ELL
ALTON B. PARKER
HENRY L. STIMSON
MANNY STRAUSS
BENJAMIN STRONG
WILLIAM HOWARD TAFT
PAUL M. WARBURG

\o (`

S se's

STANLEY H. HOWE
DIRECTOR OF ORGANIZATION

October 14, 1921.

Mr. George Beyer,
Secretary to Governor Strong,
Federal Reserve Bank,
15 Yessau St., 7.$,C.

My dear Mr. Beyer:

Enclosed herewith is a copy of our weekly bulletin, together with copy of extracts from P. letter
7.ritten to Mr. Oliver C. Fuller, President of the First 711sconsin National Bank, Milwaukee, Wisconsin, which explain
briefly the need for continued work of this organization.

We hope to have on Monday a report for
Mr. Strong regarding the Suggestions for Chairmen sent to
the Governors of the several Federal Reserve Districts.
Very tinily yours,

NliTIONAL 3UDGET COM:TITTEE
7 West 8th st.,
New York.

ORGANIZATION BULLETEN No. 50-A.

October 14, 1921.

Hon.

1. B. Farquhar, of York, pa., has just accepted the
Active State Chairmanship for the State of Pennsylvania.
Mr.Parquhar was 83 years old on the 28th day of September and is one of the leading business men and citizens of the
state. Having long ego contracted "the habit of unselfish public
service", he now enthusiastically throws the fill weight of his
great influence and experience into the movemPnt for Government
economy, efficiency and retrenchment.
The Governors of the following st at es have recently announced their approval of the mar ement and accepted Honorary State
Chairmanship;
Alaska
Delaware
Georgia
Indiana

Idaho
Kansas

Louisiana
Mississippi
Missouri

New Hampshire
Ohio
Oregon
vermont

Our newest City Chairmen are:
J.Lionberger Davis
Eugene R.Black,
Thomas H.West, Jr.,
Clay H.Hollister,

gt.Louis ,Mo.

Atlanta, Ga.
Providence, R.I.
Grand Rapids, Mich.

The immediate effort should be to swell the membership.
If all the convinced advocates of Government economy and sound
budgetary practise once get together and enroll in the Budget
Guard, Congress will hear and heed the demand for retrenchment
end reduced taxes.
The course of events in -riashinEton during the past few
weeks indicates that without such united action, success is
doubtful or will be postponed.

The enemies of the budget system and of retrenchment
are not idle, and the; voice their ol-mosition in the Halls of
Congress.
MORE MEMBERS

MORE INFLUENCER

ITTI'ACTS FRr" 1.717rR TO MR. OLI7TT C. FUTLIM,
P"SI1ETT, -ilavrsTIT NA' TOTAL BA71{4

ts

MIL7A7777, IISCOVSINs

"October 13, 1921.

"I can assure you that the busy men rho ere giving of their time
and means to this work would not do so if the,, were not convinced that it
In this conviction they agree with the President, General
is necessary.
hares, Chrirman Frown and othor leading statesmen. Close Observation of
the course of events in Washington discloses the fact that the retrenchment policies meet with determined opposition in many quarters.
"Recent senatorial criticism of General names' course suggests the
Strongly
need of further reform in Congressional budgetary procedure.
supported demands for large, and someti-es increased, appro-riations for
specific purposes demonstrete that many, even of our best citizens, still
fail to realize the necessity for retrenchment and increased efficiency.
"If the convinced advocates of budgetary reform, government reorganization, economy and efficiency will get together, there can be no doubt of
If, however, they continue to stand idle while the organized
the result.
forces of liberal-spenders are busy, the old methols will certainly prevail.

"In planning this movement, we have tried to reduce to a minimum
the necessary work of the City Chairmen, all of -hon. are busy men and volunThe fact that so many or them are cooperating with us proves that
teers.
In many cases they have accomplished splendid reit is not impossible.
suits by writing a personal letter to a selected liFt of inf7uential
zees.

T

00

PHONE. STUYVESANT 8171

NATIONAL BU DGET COMM IT'TEE
SEVEN WEST EIGHTH STREET
NEW YORK CITY

DIRECTORS
N T. PRATT. CHAIRMAN
SAMUEL MCCUNE LINDSAY. VICE-CHAIRMAN
WM. M. CHADBOURNE. TREASURER
DR. NICHOLAS MURRAY BUTLER
JOSEPH P. COTTON
R. C. LEFFINGWELL
ALTON B. PARKER
HENRY L. STIMSON

October 19, 1921

MANNY STRAUSS
BENJAMIN STRONG

WILLIAM HOWARD TAFT
PAUL M. WARBURG
STANLEY H. HOWE
DIRECTOR OF ORGANIZATION

SAM A. LEWISOHN
NEW YORK CITY CHAIRMAN

My dear Mr. Strong:

I enclose herewith c preliminary report of the
results secured through the letter, which you were good
enough to send out to the various Governors of the Federal
Reserve Districts.
gratifying.

I think that the response is very

Of course, we will continue to follow the

work up.

Very sincerely yours,

Hon. Benj. Strong,
15 Nassau Street,
New York, N. Y.

ELEPHONE, STUYVESANT 8170

NATIONAL. BUDGET CONIMECTISE
SEVEN WEST EIGHTH STREET
NEW YORK CITY

DIRECTORS

T. PRATT, CHAIRMAN
.1,
SAMUEL MCCUNE LINDSAY, VICE-CHAIRMAN
WM. M. CHADBOURNE. TREASURER
DR. NICHOLAS MURRAY BUTLER
JOSEPH P. COTTON
R. C. LEFFINGWELL
ALTON B. PARKER
HENRY L. STINSON
MANNY STRAUSS
BENJAMIN STRONG

WILLIAM HOWARD TAFT
PAUL M. WARBURG
STANLEY H. HOWE

Oct. 26, 1921.

Mr.George Beyer,_
federal Reserve bank,
15 Nassau St., City.
Dear Dir.Beyer:

DIRECTOR OF ORGANIZATION

Enclosed herewith is a
detailed statement of the status of the
recommendations of the Federal Reserve
Governors.
In order to relieve lar.

Strong of the details of following up
these suggestions,
do you think it wculd
be advisable to suggest to him that Yr.
Howe communicate with the Governors directWe could thereby alleviate the corly?
respondence which Mr.Strong might considr
it necessary to do and also save time in
keeping the Governors advised concerning
whatever action may be taken.
This suggestion is prompted by your last letter to Mr.Howe enclosing
a communication from Governor Calkins where_
in you state that the letter is referred to
Mr.Howe for attention.
In all cases we would,of course,
state that we are writing at the suggestion
of Mr.Strong, or that he had referred the
matter to us for reply, etc.
be agreeable to

If you think this plan would
1"r.Strong, I will recommend

to Mr.Hoe that he write Mr.Strong to this
effect.

Under other cover, I am sending you a few specimens of our latest material.
Very truly yaIrs,

PS.

I believe Li...Strong stated that after

hearing from the other Governors he might have
some suggestions to make regarding recommendations in the 2nd 1-district, This explains the
status of New York and New Jersey.

0

TELEPHONE, STUYVESANT 8170

S
J.1

NATIONAL BUDGET COMMITTEE
SEVEN WEST EIGHTH STREET
NEW YORK CITY

DIRECTORS

T. PRATT. CHAIRMAN
SAMUEL MCCUNE LINDSAY. VICE-CHAIRMAN
WM. M. CHADBOURNE, TREASURER
DR. NICHOLAS MURRAY BUTLER
JOSEPH P. COTTON
R. C. LEFFINGWELL
ALTON B. PARKER
HENRY L. STIMSON
MANNY STRAUSS
BENJAMIN STRONG

WILLIAM HOWARD TAFT
PAUL M. WARBURG

October 27, 1921

STANLEY H. HOWE
DIRECTOR OF ORGANIZATION

Hon. I5enjamin Strong,
Federal Reserve Pan'7,
15 rassau Street,
New Yer7: City.
near 'Sr. Strong:

In order to relieve you nf the detail work
of followlnr, up the recommendatiens of the Governors cf the
several Federal Reserve Districts, nay I sugest that you permit us to communicate lirectly with the Federal Reserve Governors.
This plan 7111 also enable us to more exnelitiously
handle the arrangements for appointments of City Chairmen and
refer declinations to those Governors who h^,re -esponded to
year suggestion for recommendation.
inclosed herewith a tabulation cf the status
up-to-date in the varirels districts.
When :i0.1 have an opportunity to rive it considerat7or, we
he pleased to receive your suggestions for
any recommendations you care to make in the Second District.

Thanking you for your cooperation,
Very truly yours,

FTPST -.17V^Pr 9'.

GOV^PYOR /Arms - BrY7TON.

Providence

-

Thos. H. 7est,Jr. has accepted.

Boston

-

naniel C.

New Haven

-

7. P. Curtis offers to serve on committee but declines
chairmanship.

Fall River

-

John S. Brayton offers to serve on committe
clines chairmanship.

Springfield -

Wing will confor with Governor Norss.

but de-

H. A. Woodrard. declines and recommends Henry H. Bowman, WM.
E. Gillx,rt or George A. I`Oponald.

Portland

-

Worcester

-

W. Thomas declines.

F. A. Drury declines.

New Bedford -

Irving W. Conk declines any recommends 7m.5. Cook.

No 7ord from:

Bridgeport

-

Chas. G. Sanford

Hartford

-

Leon P. Broadhurst

Cambridge

-

Walter 7. Earle

We need chairmen in
Lawrence,Nass.
Manchester,N.H.

Somerville,Mass.
Waterbury, Conn.

7717) -)ISTPIOT.

YOPPIS

-

MILOTPHTA.

Philadelphia

-

Arthur V.norton has the matter under eensieeration; rill
consult Governor Yorris et al.

Wilmington

-

Otho Yorlane declines and recommends Philip Burnett.

le have no word from
Camden

-

F. C. Harrell

Trenton

-

H. A. Smith

Peaeing

-

R. S. tech

Scranton

-

D. P. Atherton.

We need a chairman in
Harrisburg.

FrUPTIT DTSTPIcT.

GrT-7,'N013 FAYCH7P

Toledo

-

Columbus -

Akron

-

7. H. Cady

t CI1 V7LAND.

)

) have the mattlr under consideration.
P. H. Schryer)
Harry rrilliams, declines and recommends Cranell l!organ,
F. M. Harphan, George 7. Crouse or T. 7. Smith.

Yo word from
Dayton

-

W. P. Crayon

Youngstown- H. W. Grant

Y.R.

Please select chairnen for Cleveland and 7rie, also
Canton, Ohio

FIFTH nISTRICT

^L777NTH

1

0

TELEPHONE, STUYVESANT 8170

NATIONAL BUDGET CommyrrEE
SEVEN WEST EIGHTH STREET
NEW YORK CITY

DIRECTORS
T. PRATT, CHAIRMAN
SAMUEL MCCUNE LINDSAY, VICE-CHAIRMAN
WM. M. CHADBOURNE, TREASURER
DR. NICHOLAS MURRAY BUTLER
JOSEPH P. COTTON
R. C. LEFFINGWELL
ALTON B. PARKER
HENRY L. STIMSON
MANNY STRAUSS
BENJAMIN STRONG

WILLIAM HOWARD TAFT
PAUL M. WARBURG
STANLEY H. HOWE
DIRECTOR OF ORGANIZATION

November 4, 1921

Governor Benjamin Strong,
Federal Peserve Bank,
15 Nassau Street, N.Y.C.
My dear Governor Strong:

Many thanks for yours of November 2nd enclosing recommendations for City Chairmen in New York and New Jersey cities in the Second listrict

We shall rep7
cess with your selections.

to you on our progress and suc-

In accoria ce with yours of October 2°th, we
sent to each of the Governor of the Peserve Banks a detail reThe assistance given
port on our prprress with t eir selections.
by you and your fellow Gove'rnors is of the greatest value.
the acceptance of P. H.
e ha4e just received
Schryver, President of the Citizens Trust & Savings Bank, Columbus,
Ohio, and the declination of Thomns Hildt, President of the Merchents
National Bank, Baltimore, and have reported same to the respective
Governors.
Very truly yours,

J....31,v.
Director of Organization

ELEPHONE. STUYVESANT 8170

TELEPHONE STUYVESANT 8171

At. CP

""

.4("6A.
4-`'

4-

1921

BUSINESS

NOVEMBER
1921
SUN MON TUE WED THU FRI SAT

Bakers-Wholesale

11111012131 4

Products and Fruits

El 8 9

6

Hogg

11314[1E0ga 18 19
20 gEME 24

fa 26

Nov. 2 Trade Meeting.

Nov. 8 Election Day.
Nov. 9 Executive Meeting.
Nov. 14 National Tour of 88
C i t ies-Starts from N .Y.
NOV. 16 Trade Meeting.

Nov. 23 Executive Meeting.
Nov. 24 Thanksgiving Day.
Nov. 30 Trade Meeting.
DECEMBER
1921
SUN MON TUE WED THU FRI SAT

1921

Children's and Infants' Wear

1111111111111M111
Laces and Embroideries
Yarns and Thread
8 9 10

CHAIRMEN

Confectioners-W holesale
Butchers and Packers
Grocers-W holesale
Fish

Hay, Feed and Grain
Coffee and Sugar Exchange
Butter and Eggs Exchange
Produce Exchange
Advertising

Corrugated Paper Products
Paper Boxes
Paper and Twine
Printing and Stationery
Publishers and Newspapermen
Chain Stores
Clothing Manufacturers
Clothiers' Linings and Converters
Rain Coats

,.

Sponging, Etc.

Buttons -Mena'
Coat Fronts and Pads
Woolens and Worsteds

Woolens and Worsteds-Men's Wear
Woolens -Women's Wear
Belts and Suspenders
Caps

Hats-Men's
Men's Neckwear
Fifth Ave. Merchant Tailors
Merchant Tailors
Tailor Trimmings
Retail Clothiers and Furnishings
Shirts
Umbrellas and Canes

0

Silks
Ribbons

Women's Silk Underwear
Women's Cotton Underwear
Petticoats
Kimonos and House Dresses

44
1=i

Corsets

imp
Gloves

Veilings

Eagan MOM
Hoisery and Underwear
Women's Neckwear
Knit Goods and Sweaters
Women's Dress Trimmings
Notions and Novelties

18 19 20
01/5

ga 28 29 30 BB

111.10 fP'
IMMMI

MEM 24

Dec.

7 Executive Meeting.

iMPI
Dec.

eD

14 Trade Meeting.
Dec. 21 Executive Meeting.
nionome
Dec. 26 Christmas.
PIM°
Dec. 28 Trade Meeting.

____V

1922

JANUARY

1922

SUN MON TUE WED THU FRI SAT

BEng 4 Mae
8 9 10 01010ffl 14
aggio 19 20FM
M24226[11 28
29 30

Jan.
Jan.
Jan.
Jan.

MINNIE

2 New Year.
4 Trade Meeting.
11 Executive Meeting.
18 National Budget Bay.

Reprint from the N. Y. Evening Mail)

"ARMY" TO ENFORCE
NATIONAL ECONOMY
Thousands Join "National

Budget Guard."

A nationwide army of taxpayers,
sands of members of the National
Budget Committee, is being mobilized
by that organization to protect the
with its nucleus recruited from thou-

United States Treasury from Invasion
by enemies of governmental economy

and thrift. The special function of
the National Budget Guard, as the
new association is known, will be to
maintain a close watch upon federal
appropriations and to enforce strict
observance of the provisions of the
national budget bill which was passed
last week and which the budget committee originated.

Through Chairman John T. Pratt
the committee, which has its head-

quarters at 7 West Eighth Street, has
enlisted the co-operation of thousands

of members of the organization in
every large city in the country and
an army of taxpayers is being recruited under direction of Manny

Strauss, chairman of the committee's
finance committee, to pledge their
active interest and support by urging
their representatives in Congress to
curtail governmental expenditures.
Taxpayers who are interested in reducing the cost of running the government are invited to join the guard
to present a solid front in favor of
eliminating from the budget every
item of unnecessary expense. Taxpayers have been asked to demonstrate their support of this policy by
enrolling and signing the following
pledge:
WILL GUARD TREASURY

"I hereby pledge myself to become
in the National Budget
Guard and to stand ready to be mobilized upon notice from the commanding officer at any time to help protect
the budget of Uncle Sam and to guard
the treasury of the United States
against invasion from the many enea soldier

mies of economy and thrift in the
government."

ADDRESS

el°

gill

TEL. NO.

TELEPHONE STUYVESANT 8171

er

NATIONAL BUDGET CONINIITTEE
../EF1 WEST EIGHTH STREET
NEW YORK CITY

DIRECTORS
JOHN T. PRATT. CHAIRMAN
SAMUEL MCCUNE LINDSAY. VICE-CHAIRMAN
WM. M. CHADBOURNE. TREASURER
DR. NICHOLAS MURRAY BUTLER
JOSEPH P. COTTON
R. C. LEFF INDWELL
ALTON B. PARKER
HENRY L. STIMSON
MANNY STRAUSS
BENJAMIN STRONG
WILLIAM HOWARD TAFT
PAUL M. WARBURG

STANLEY H. HOWE
DIRECTOR OF ORGANIZATION

ti

November 28, 1921

SAM A. LEWISOHN
NEW YORK CITY CHAIRMAN

Yr. George Beyer,
Secretary to Governor Strong,
Federal Pe serve Bank,
13 Nessau St., N.Y.C.
dear Mr. Bever:

Your letter of November 23rd enclosing
correspondence between Governor Strong and Mr. J. J. Rowe,
Vice President of the First National Bank of Cincinnati,
was duly received. Acknowledgment has been delayed by intPrvening holiday.
I am preparine a report of progress on
the bankers recommended by the various Governors and will
send it to you in a day or two for your information.
I nay say that of those recommended by
Governor Strong, Leslie Sutherland accepted. J. H. Herzog
of Albany accepted and later resigned. C. A. Cl-'se of S7rrecuse, half accepted but desired to get out of it if possible.
C. L. Farrell of Newark, C. B. Rogers of Utica and
74. C. Heppenheimer of Hoboken declined. 72:,,
(;,'

7-

Very trnly y6urip

Transcontinental Tour of Prominent Busin. Me n Behalf of the National Budget Committee
Leaving New York Novemiser T4, 192T, *turning December 22, 1921.
''n'ePu

Colville

segltou

International Fall

inot

Crookston

endive
DiDickinson

ry
Jamestown. "'fp

Bismarck.

i

Fargo

Moorhead

Marquette
Ishporunag

nor
Wahpeten

l'ersms Falls .Brainerd

Brdtingt.

St.Cloud

Aberdeen
Watertown.

AUL

MINNEAPOL1

Eau Claire

Pierre
Ctiadron

'Huron

Mitchell
Sioux Fall;
Alliance

Colby

ToledoSituth
Bend
Sendai; y

ilArrisbnr%.

ew

Fort War..
Kankakee.

rowia..613.8
0000

Madison.

owlott00111°

SOatingtoa

Garden City
Grand Tower

E insvi

IbboriS

o

1.
Roanoke
Dan,D1°.
galom

Atib villa
g

Ch..*
'son

ri 0

Gainesville.

na

Colunabif

*Rome

Columbus

ille

ttiesburg.

0,..ogebur6

rirmineaam

;Coma..

Chat 1.gon

eaufort

SeD'ut

M0.050.007

Jackson
urg. Meridian

ouge

it/

Cairo

Flo

wen

or
&SHIN°

,eruewdiurg

eon

'Scott.

.ne6erst.

Wheeling
onvib.ti"
Colarabus
AprangDela Danville. oisu011t

ieackpotas

ton
CLEVa-451
oungstown
AkrOn
Begin

1.1..rsstavall

Bloomington

QuincyDecatur
St.Joseph
Springfield
CINCINNATI
Banta

rdia

CHICA

Rock

.Ottumwa

Alba./

r,

wick

Way
D.

than

elxsosvlaz
T

Lake Ca?
Gaineseril

Sanford.

Tam?a

n.

s the Price of economy),
-WARREN G. HARDING

DETROIT.

aloe*

Jackson
Erie

Beatrice
Man 90Peoria
Burlington.
Kea

mister
Sarin

Des Moines. Rockford

Lincoln. Muscatine
Lima
Fai rbury.

Dubuque

Waterloo

Clinton
OMAHADavenport
Council Bluffs

Rearney

Jmesvffle.

tatami

Sir."'°.

00050

Fort Huron
'Flint TV/Chester
1311TE AL
tanning
Ithaca'

nand Rapids

Cedar Rapids.

Columbus
Fremont

Grand Island.
San

la
.Fort Dodge

Norfolk.

North Platte

g.

Winona*

Elk Point
Sioux City

Yankton

Madison.

Cashkosh

Nankato

nc
RoKinaw

nakegon

Green 13.1.

Rod Win

don

5radiord
segee.ton.
W.

cse Apituae
.,ighatalt"'

e

WHY YOU SHOULD ENROLL IN THE BUDGET GUARD
General Dawes, the fearless Champion of Government economy, after comparing the present

crisis to the crisis of the war, declared :"I am, therefore, accepting the position of Director of the Budget only with the

idea that the patriotism of the bureau chiefs and the country as a whole can be so
aroused in this emergency that it will be met as was the emergency of war four
years ago. Unless the bureau chiefs of the departments and the leading business
men of the country respond to the call of the President, as they did four years ago,
the situation is hopeless so far as any material relief for two years is concerned from
this source."

r
It

NATIONAL BUDGET COMMITTEE
(Incorporated, Wash., D. C., 'gig)

7 West 8th Street
New York City

DIRECTORS
JOHN T. PRATT, Chairman

ALTON B. PARKER

SAMUEL McCUNE LINDSAY, Vice-Chairman

HENRY L. STIMSON

WILLIAM M. CHADBOURNE, Treasurer

MANNY STRAUSS

NICHOLAS MURRAY BUTLER

JOSEPH P. COTTON

BENJAMIN STRONG
WILLIAM HOWARD TAFT

RUSSELL C. LEFFINGWELL

PAUL M. WARBURG

STANLEY H. HOWE, Director of Organization
SAM A LEWISOHN, New York City Chairman

loo

BASIC

TRUTHS

As long as millions of citizens fail to realize that the Government must economize,
they constitute a real menace to the business world and to the Government itself.
All business men and other thinking citizens agree upon these fundamental propo-

e

sitions:

It is clearly evident that there is still much to do in educating the people, in crystallizing public sentiment and in organizing popular support for sound economy policies.

axation to permit a revival of busi-

ntil there is a substantial reduction of

Government expenditures without the
e perfection of the Budget System for

THE
NATIONAL
BUDGET
COMMITEE

The Budget Guard has been organized (I) to secure the widest expression of public
opinion upon the matter of Government economy ; (2) to line up the convinced advocates
of the Budget System and business methods to back up the President's budget in Congress
and make effective the great work of General Dawes; and (3) to win new supporters of
those policies, to the end that the Budget System may be safeguarded against all its enemies and perfected by new legislation, as experience shows the needs.

ame a law June io, 1921. Under its
organizedTHE
and equipped. This bureau

budget forPRESSING
the fiscal year commencing
ing estimates,
NEEDall to be transmitted to

commencing July I, 1921, had already
e budget bureau has been able to effect
hose appropriations. In September
gs would aggregate at least 35o million

MEMBERSHIP

approval.

It is not necessary to keep pestering your Representatives with letters on all
occasions; it will be sufficient to let them know that you are enrolled in the Budget Guard.

ll an experiment. The amazing develstrative control has been a surprise to
inct shock to its enemies. Congress
ns and recommendations of the Presiord is therefore with your Representa-

TASK
AHEAD

essary in order to make the system a
y in methods of appropriation. The
duplications and unnecessary offices;

de for business methods.

orm was won against prolonged and

fish politicians, who put district above

o all other sound business methods.
en the new system. Their opposition

Enrollment is essential. By that simple but significant act the member throws his
influence on the side of economical and efficient administration of public affairs. With the
aid of his committee he can keep in close touch with the course of legislation and govern-

ment action, and be ready in any emergency to raise his voice in effective protest or

developed system of administrative
inistrative improvements initiated by

the Nation, Congress did little more
ns and compromises which may well
THE

The National Budget Committee was organized originally to promote the adoption of
the Executive Budget System. At the request of leading members of Congress it took up
the problem of the reorganization of the administrative branch of the government and the
question of Congressional budgetary procedure, as necessary steps in budgetary reform.

The first real budget in our history furnishes the citizen his first opportunity for a
really intelligent consideration of the activities and financial transactions of his Government ;
and through his own committee, each member will be able to secure a careful, systematic,
impartial, non-partisan discussion of the same.

DO YOUR
SHARE

Finally, but not least important: In all public matters numbers count. Each always
counts one ; but when many are united in opinion, purpose and action, the influence of each
is multiplied and the organized many are irresistible.
We have often seen how an organized minority can dominate. Let us demonstrate that
an organized majority can enforce its will.

TELEPHONE STUYVESANT 8171

NATIONAL BUDGET COMMITTEE
SEVEN WEST EIGHTH STREET
NEW YORK CITY
IIIIRECTORS
JOHN T. PRATT. CHAIRMAN
SAMUEL MCCUNE LINDSAY, VICECHAIRMAN
WM. M. CHADBOURNE. TREASURER
DR. NICHOLAS MURRAY BUTLER
JOSEPH P. COTTON
R. C. LEFFINGWELL
ALTON B. PARKER
HENRY L. STIMSON

ApN0.9

MANNY STRAUSS
BENJAMIN STRONG

WILLIAM HOWARD TAFT
PAUL M. WARBURG
STANLEY H. HOWE
DIRECTOR OF ORGANIZATION

SAM A. LEWISOHN
NEW YORK CITY CHAIRMAN

necember 3rd, 1921

Mr. George Beyer,
Secretary to Governor Strong,
Federal Reserve
15 Nassau Street, T. 7.C.
15T dear 1).r. Beyer:

Many thanks for your letter of Ilecember 2nd, containing suggestions for elairmen in
,rite Yr. Taber and Yr.
Utica and 7oboken.
Jagals at once.

Unce I 77rote ypa ^n the 20th, Mr.
C. A. Chase of Syracuse and T.Ir,,Spencer S. 7jarsh of

Neark, Yew Jersey, have ago6pted.
Thanes also for the clipping from
the Post.

Very truly yours,

J1W.

ef4^ta^-e,'J

0M40

NOVEMBER
1921
SUN MON TUE WED THU FRI SAT

1921

6

7 8

9 10 00 19

ap8ga)

ag 14

20 MONNE

Nov. 2 Trade Meeting.
Nov. 8 Election Day.
Nov. 9 Executive Meeting.
Nov. 14 National Tour of 888
Cities-Starts from N .Y.

Nov. 16 Trade Meeting.
Nov. 23 ExecutiveMeeting.
Nov. 24 Thanksgiving Day.
Nov. 30 Trade Meeting.
DECEMBER
1921
1921
SUN MON TUE WED THU FRI SAT

111111111111111113
4
8 9 10
ao 12 LER4googa
19 20 [022EHE
25 26 27 28 29 30 31
Dec. 7 Executive Meeting.

e60

Dec. 14 Trade Meeting.
Dec. 21 Executive Meeting.
Dec. 26 Christmas.
Dec. 28 Trade Meeting.
JANUARY
1922
SUN MON TUE WED THU FRI SAT

1922

EOM 4
8 9 10 610g1116303
ga16gi 18 19 20 EC
MEEEEE 26 28

ai

Jan.
Jan.

2 New Year.
4 Trade Meeting.

Jan. 11 Executive Meeting.

Jan. 18

National Budget Day.

(Reprint from the N. Y. Evening Mall)

"ARMY" TO ENFORCE
NATIONAL ECONOMY
Thousands Join "National

Budget Guard."

A nationwide army of taxpayers,
with its nucleus recruited from thousands of members of the National
Budget Committee, is being mobilized
by that organization to protect the
United States Treasury from invasion
by enemies of governmental economy

and thrift. The special function of
the National Budget Guard, as the
new association is known, will be to
maintain a close watch upon federal
appropriations and to enforce strict
observance of the provisions of the
national budget bill which was passed
last week and which the budget committee originated.

Through Chairman John T. Pratt
the committee, which has its head-

quarters at 7 West Eighth Street, has
enlisted the co-operation of thousands
of members of the organization in

every large city in the country and
an army of taxpayers is being recruited under direction of Manny

Strauss. chairman of the committee's
finance committee, to pledge their
active interest and support by urging
their representatives in Congress to
curtail governmental expenditures.
Taxpayers who are interested in reducing the cost of running the government are invited to join the guard
to present a solid front in favor of
eliminating from the budget every
item of unnecessary expense. Taxpayers have been asked to demonstrate their support of this policy by

enrolling and signing the following
pledge:
WILL GUARD TREASURY

"I hereby pledge myself to become

a soldier in the National Budget
Guard and to stand ready to be mobilized upon notice from the commanding officer at any time to help protect
the budget of Uncle Sam and to guard
the treasury of the United States
against invasion from the many enemies of economy and thrift in the
government."

CHAIRMEN

BUSINESS

Bakers-Wholesale
Confectioners-Wholesale
Butchers and Packers
Grocers-Wholesale
Products and Fruits
Fish

Hay, Feed and Grain
Coffee and Sugar Exchange
Butter and Eggs Exchange
Produce Exchange
Advertising

H. W. Stimpson

Corrugated Paper Products
Paper Boxes
Paper and Twine
Stationery
Printing
Lithographers, Engravers.
Publishers and Newspapermen
Paper
Chain Stores
Clothing Manufacturer,
Clothiers' Linings and Converters
Rain Coats
Sponging, etc.
Buttons

Coat Fronts and Pads
Woolens and Worsteds
Woolens-Women's Wear
Belts and Suspenders

Chas. A. Lent
Nelson Macy
W. 1. L. Adams
W. E. Pulsifer
Chester W. Lyman
Edward Wise

L. H. Rothschild

John H. Love

Caps

Hats -Men's
Men's Neckwear
Merchant Tailors
Tailor Trimmings
Retail Clothiers and Furnishings
Shirts
Umbrellas and Canes
Silks
Ribbons
Women's Silk Underwear

E. Twyeffort

SCHEDULE
New York
Boston
Pittsburgh

Laces and Embroideries
Yarns and Thread
Veilings

A. Keeney Clarke

Chas. A. Sherman
August Goldsmith

Benjamin Fox
A. S. Somers

Boots and Shoes-Retail
Leather Goods, Trunks and Bags
Beverages

Real Estate, Bronx
Plumbers and Plumbers' Supplies
Insurance
Surety Companies
Architects and Const. Engineers
Lumber

Lawrence B. Elliman
Geo. W. Short
J. Clarence Davies

Joel Rathbone

Oil

J. B. Tisdale
Henry Fletcher

Electrical Supplies

E. B. Latham

Electrical Contractors
Sheet Metal Workers

W. J. L. Benham

Builders
Plate Glass
Lighting Fixtures

Alex. S. Williams

Furniture and Allied Lines
Specialty Shops
Ladies Tailors and Dressmakers
Department Stores
Art Shops and Allied Trades
Pianos, Phonographs. Musical Instru.
Display Fixtures
Metals and Smelting
Ice and Coal
Moving Pictures
Theatres
Music Publishers
Bankers and Brokers
Cotton Exchange
Retired Business Men
China and Glassware, Etc.
Dry Colors
Exporters and Importers
Forwarding and Shipping Agents
and Custom House Brokers
Hardware and Cutlery

A. Wahle

Ancell H. Ball

M. J. deRochemont

S. L. Rothafel
S. L. Rothafel

G. A. C. Christiancy
H. W. Stimpson
Marcus M. Marks
W. E. Peck

Lawyers
Accountants
Sporting Goods
Dentists
Physicians
Educators and Judges
Automobiles and Auto Trucks
Auto Sundries
Garages and Auto Repairs

A. Parker Nevin
H. W. Cook
H. B. Spalding

Tranllortation

John A. Ritchie
John A. Ritchie

Storage and Moving Vans
Rubber Goods
Bags and Burlaps
Auctioneers
Florists

Hotels and Restaurants
Laundries
Photographers
Funeral Supplies and Undertakers

Milwaukee
Minneapolis

Superior
Duluth
Grand Forks
Minot
Seattle
Tacoma

Cigars and Cigarettes
Leaf Tobacco
Engineers
Painters and Wall Paper

Real Estate-General
Real Estate-Brokers

Cincinnati
Indianapolis
St. Louis
Kansas City
Chicago

Jewelry-Retail Up-Town-Down-Town
Opticians and Optical Goods
Pawnbrokers
Drugs - Wholesale
Retail Druggists
Chemicals
Varnishes
Paints and Oils
Hides and Skins
Leather
Boots and Shoes-Wholesale

Men in Behalf of
National Budget
Committee
November-December

Herbert S. Martin

Gloves

Jewelry Mfrs. and Kindred Lines
Diamonds and Precious Stones

of Prominent Business

1921

Iron, Ornamental and Architect.
Petticoats
Kimonos and House Dresses
Children's and Infanta' Wear
Corsets

Hoisery
Women's Neckwear
Knit Goods and Sweaters
Women's Dress Trimmings
Notions and Novelties
Buttons, Women's
Toys
Hair Goods
Cloaks, Suits and Skirts
Dresses
Waists
Furs
Millinery Flowers and Feathers
Wholesale Merchandise, Dry Goods, etc.

Transcontinental
Tour

Chas. T. Terry
Glenn Tisdale

A. L. Viles
Benj. Riegel

Portland
San Francisco
Los Angeles
Phoenix

Albuquerque
El Paso
New Orleans
Baton Rouge
Jacksonville
Atlanta
Athens
Charlotte
Raleigh
Richmond
Washington
Baltimore
Philadelphia
New York

TELEPHONE.

STUYVESANT 8171

NATIONAL BUDGET COMMITTER
SEVEN WEST EIGHTH STREET

NEW YORK CITY

J.

DIRECTORS

T. PRATT. CHAIRMAN
SAMUEL MCCUNE LINDSAY. VICE-CHAIRMAN
WM. M. CHADBOURNE. TREASURER
DR. NICHOLAS MURRAY BUTLER
JOSEPH P. COTTON
R. C. LEPPINGWELL
ALTON B. PARKER
HENRY L. STIMSON
MANNY STRAUSS
BENJAMIN STRONG
WILLIAM HOWARD TAFT
PAUL M. WARBURG

December 13, 1921

STANLEY H. HOWE
DIRECTOR OP ORGANIZATION
SAM A. LEWISOHN
NEW YORK CITY CHAIRMAN

My dear Governor Strong:
By direction of the Chairman, a luncheon meeting of the
Board of Directors is called for Wednesday, December 21st, at
1:00 p.m., Downtown Association, 60 Pine Street.
The meeting is called for the transaction of routine
business, and to hear a report from Mr. Pratt on his transcontinental tour.

Sincerely yours,

For the Secretary
Hon. Benj. Strong,
15 Nassau Street,
New York, N. Y.

TELEPHONE

STUYVESANT 8171

N ATI( )N A I. BUDGET COMMITTEE
SEVEN WEST EIGHTH STREET

*"

NEW YORK CITY

J.

DIRECTORS

T. PRATT. CHAIRMAN
SAMUEL MCCUNE LINDSAY. VICE-CHAIRMAN
WM. M. CHADBOURNE, TREASURER
DR. NICHOLAS MURRAY BUTLER
JOSEPH P. COTTON
R. C. LEPPINGWELL
ALTON B. PARKER
HENRY L. STIMSON

December 16, 1921

MANNY STRAUSS
BENJAMIN STRONG

WILLIAM HOWARD TAFT
PAUL M. WARBURG
STANLEY H. HOWE
DIRECTOR OF ORGANIZATION
SAM A. LEWISOHN
NEW YORK CITY CHAIRMAN

Deer Governor Strong:

The luncheon meting of the Board of Directors called
for Jednesdey, December 21st, Ni11 be held ^t the Recess Club,
60 Broadway, instead of the Drwntown Pssociiltion.
Sincerely yours,

Dir

Hon. Benj. Strong,
15 Nassau Street,
New York, N. Y.

NATIONAL BUDGET COMMITTEE
340

MADISON AVENUE
AT 43RD STREET

NEW YORK CITY

LEP.E.

1713
DIRECTORS

VANDERBILT 1049

JOHN T. PRATT, CHAIRMAN
SAMUEL MCCUNE LINDSAY, VICE-CHAIRMAN
WM. M. CHADBOURNE, TREASURER
DR. NICHOLAS MURRAY BUTLER
JOSEPH P. COTTON
R. C. LEFFINGWELL
ALTON B. PARKER
HENRY L. STIMSON

AC NOW LE DaFq.
FEB 7
r)
F

MANNY STRAUSS
BENJAMIN STRONG

WILLIAM HOWARD TAFT
PAUL M. WARBURG

1922
t'41..

February 4, 1922

STANLEY H. HOWE
DIRECTOR OF ORGANIZATION

SAM A. LEWISOHN
NEW YORK CITY CHAIRMAN
JOHN H. LOVE
CHAIRMAN, TRADES COMMITTEE

Hon. Benj. Strong,
15 Nassau Street,
New York, N.Y.
My dear Governor Strong:

Mr. Pratt has asked me to advise you that there will be a meeting of our
Board of Directors at our new headquarters at 340 Madison Avenue (neer 43d Street)
on Wednesday, February Pth, at four p.m. The following matters will be considered
at the meeting:

Present plans for national organization, and proposed legislative chang
in Washington. (see memorandum attached)
1.

2.
New personnel. Mr. Walter G. Miller has been emplcyed as head of the
publicity deportment and editor of our monthly magazine.
The copy for the first issu
of the magazine, to be published this month, will be ready for the consideration of t
directors at the Wednesday meeting. Mr. Frank L. Jones has been employed as a field
organizer, and the services of Mr. David Helm have been secured as our Washington
representative.

3.
New Jersey and Southern trips. Mr. A. Parker Nevin has agreed to give a
week of his time as a volunteer, to help us complete our organization in the States
cf Maryland, Virginia, North Carolina and South Carolina. A series of public meeting
have been arranged in Baltirbore, Richmond, Raleigh, Charlotte and Camden, S.C.,which
will be addressed by Mr. Nevin.
Mr. Frank L. Jones has begun work in the State of
New Jersey to assist Mr. Arthur N. Pierson, our State Chairman, in working out an intensive state organization by Congressional districts.
4.
New forms for increasing the membership. rnclosed herewith are the new
forms of invitation cards, acceptance blanks, and explanatory folders, which we are
sending out thru the country in our campaign for membership.
The name of the state
chairman is filled in in each case.

We hone that it will be possible for you to be present at this meeting. If
not, I know that Mr. Pratt would appreciate it very much if you could write us a letter,to reach us in time for the meeting, indicating your approval (or otherwise) of
these matters to be considered.
Sincerely yours

Director

ganization

MEMORANDUM ON EDITORIALS

-2-

1713

TELEPHONE, VANDERBILT

jil 6

zEig

AT 43RD STREET

NEW YORK CITY

NATIONAL BUDGET DIRE
COMMITTEE
CTORS
340

MADISON AVENUE

JOHN T. PRATT, CHAIRMAN
SAMUEL MCCUNE LINDSAY, VICE-CHAIRMAN
WM. M. CHADBOURNE. TREASURER
DR. NICHOLAS MURRAY BUTLER
JOSEPH P. COTTON
R. C. LEFFINGWELL
ALTON B. PARKER
HENRY L. STIMSON

March

MANNY STRAUSS
BENJAMIN STRONG

WILLIAM HOWARD TAFT
PAUL M. WARBURG
STANLEY H. HOWE
DIRECTOR OF ORGANIZATION

SAM A. LEWISOHN
NEW YORK CITY CHAIRMAN

Hon. Benj. Strong,
15 Nassau Street,
New York, N. Y.

My dear Governor Strong:

A special meeting of the B

N-tional Budget, Committee will be held
T. 'Pratt, 52 Broadway,
1922.

York,

10

If you cannot attend, will you

the enclosed proxy.

The purpose of the meeting
the following state 'Ind city chairmen

of Directors:

Walter S. Dickey
Arthur N. Pierson
A. B. 7arquhar
LeRoy Hodges
John P. Burke
Albert L. Ordean

M. A. !mold

Sincerely yours,

7

dfrNATIONAL BUDGET COMMITTEE

TELEPHONE. VANDERBILT 1713

340 MADISON AVENUE
AT 43RD STREET

NEW YORK CITY

DIRECTORS

40

JOHN T. PRATT. CHAIRMAN
SAMUEL MCCUNE LINDSAY, VICE-CHAIRMAN
HENRY L. STIMSON. TREASURER
WM. M. CHADBOURNE, SECRETARY
DR. NICHOLAS MURRAY BUTLER
JOSEPH P. COTTON
R. C. LEFFINGWELL
ALTON B. PARKER

:ay 23, 1922

MANNY STRAUSS
BENJAMIN STRONG

WILLIAM HOWARD TAFT

PAUL M. WARBURG /

ncerely yours,

STANLEY H. HOWE

DIRECTOR OF ORGANIZATION

SAM A. LEWISOHN

NEW YORK CITY CHAIRMAN

Director of Organization
Ol,

on. Benj. Strong,
15 Nassau Street,
New York, N. Y.
P.

M

o7;Stronfz:

be willing to si7n the attached
L,C1 wonder if you wou
/letter to governor Norris, ecause I will need it very in
Philadelphia.
cAl.151-1irk

C'r
/

A C, NOW

AT 43RD STREET

NEW YORK CITY

OGEE)

DIRECTORS
TELEPHONE. VANDERBILT 1713

AUG 1 1 1922

JOHN T. PRATT. CHAIRMAN
SAMUEL MCCUNE LINDSAY. VICECHAIRMAN
HENRY L. STIMSON. TREASURER
WM. M. CHADBOURNE, SECRETARY
DR. NICHOLAS MURRAY BUTLER
JOSEPH P. COTTON
R. C. LEFFINGWELL
ALTON B. PARKER

t.

1.1-71-1st

t!.

10, 1922

MANNY STRAUSS
BENJAMIN STRONG

WILLIAM HOWARD TAFT
PAUL M. WARBURG
STANLEY H. HOWE
DIRECTOR OF ORGANIZATION

SAM A. LEWISOHN

NEW YORK CITY CHAIRMAN

Governor Benj. Stron7,
15 Nassau Street,
New vork, N. Y.
Dear Governor Strong:

It was very good of you to advance the check for
::,300 to the order of the National Budget Committee as a
temporary loan, to make it possible for us to meet our
current expenses. I hesitated very much to ask it, as
you have already done so much for the committee. But I
did not know what else to do in the emergency, is all
of our underwriters were out of town.

You will be interested to know that we are organizing a very strong speakers committee for an educational campaign throughout the country durinq the list week in
Among those
September ',rid the first two weeks in October.
who have consented to speak for us are:
General Charles G. Daewes
Senator Medill McCormick of Illinois
Governor Henry J. Allen of Kansas
Governor E. Lee Trinkle of Virginia
Francis H. Sisson,
Governor R. A. Young of 17.intleapolis
Mil. A. Prendrgast, Chairman, Public Sertice
Commission
Dr. J. T. Holdsworth, Vice-President, Bank or
Pittsburgh

dith kindest regards, I am,
Sincerely yours,

NATIONAL BUDGET COMMITTEE

AC KNOW LE1,010

340

MADISON AVENUE
NEW YORK CITY

SEP 5- :422

D.REcToR..

41

<4

1.4

JOHN T. PRATT. CHAIRMAN
SAMUEL MCCUNE LINDSAY. VICECHAIRMAN
HENRY L. STIMSON, TREASURER
WM. M. CHADBOURNE- SECRETARY
M. A. ARNOLD
JOHN P. BURKE
NICHOLAS MURRAY BUTLER
WALTER S. DICKEY
A. B. FARQUHAR
LEROY HODGES
R. C. LEFFINGWELL
ALBERT L. ORDEAN
ALTON B. PARKER
ARTHUR N. PIERSON
MANNY STRAUSS
BENJAMIN STRONG
PAUL M. WARBURG

August 31, 1922

Deer Governor Strong:
STANLEY H. HOWE
DIRECTOR OP ORGANIZATION

Mr. Pratt has asked me to inquire whether
STATE CHAIRMEN
ALABAMA

JOHN L KAUL

ARIZONA
H. B. WILKINSON
ARKANSAS
VAN B. SAAB
CALIFORNIA
JOHN P. BURKE
COLORADO

C. A. LEMMERS
GEORGIA
ALEXANDER W. SMITH

IDAHO
B. W. OPPENIIEIM
INDIANA
0. B. ILES
IOWA
JOHN E. BITINDLEY
LOUISIANA

it would be possible for you to have luncheon with

him at the Down Town Association, 60 Pine Street,

at one o'clock on Wednesday, September 6th.

He

has asked the other directors of the National
Budget Committee to be present, to discuss important plans for our work prior to the coming Congress-

CHAS. DEB. CLAIBORNE

MAINE

CHAS. SUMNER COOK
MARY LA NO

ional election.

FRANK J. GOODNOW

MICHIGAN

CLAY H. HOLLISTER
MINNESO TA
EDWARD W. DECKER

Sincerely yours,

MISSOURI

WALTER S. DICKEY
MONTANA

W. J. JOHNSON
NEW JERSEY
ARTHUR N. PIERSON
NEW MEXICO
JOHN S. CLARK
NEVJ YORK
R. FUL.TON CUTTING

NORTH DAKOTA
DORR H. CARROLL
OHIO
R. E. MILES
OREGON

EDWARD COOKINGHAM

PENNSYLVANIA

A. D. FARQUHAR

RHODE ISLAND

THOMAS H. WEST, JR.

SOUTH CAROLINA
R. G. RHETT

SOUTH DAKOTA

ROBERT L. SLAGLE
U. AR
JOHN C. CUTLER

VIRGINIA

LEROY HODGES

WASHINGTON
M. A. ARNOLD
WEST VIRGINIA

JOHN J. CORNWELL

WISCONSIN
LEE PHILLIPPS
WYOMING
ARTHUR K. LEE

Direct()

Hon. Benj. Strong,
15 Nassau Street,
New York, N. Y.

Organization

NATIONAL BUDGET COMMITTEE
340

MADISON AVENUE
NEW YORK CITY

IPDIRECTORS

September 5,

JOHN T. PRATT, CHAIRMAN
SAMUEL MCCUNE LINDSAY, VICECHAIRMAN
HENRY L. STIMSON. TREASURER
WM. M. CHADBOURNE. SECRETARY
M. A. ARNOLD
JOHN P. BURKE
NICHOLAS MURRAY BUTLER
WALTER S. DICKEY
A. B. FARQUHAR
LEROY HODGES
R. C. LEFFINGWELL
ALBERT L. ORDEAN
ALTON B. PARKER
ARTHUR N. PIERSON
MANNY STRAUSS
BENJAMIN STRONG
PAUL M. WARBURG

1922

STANLEY H. HOWE
DIRECTOR OF ORGANIZATION

STATE CHAIRMEN
ALABAMA
JOHN L. KAUL
ARIZONA
H. B. WILKINSON
ARKANSAS

VAN B. Sims
CALIFORNIA

JOHN P. BURKE

COLORADO
C. A. LEMMERS
GEORGIA
ALEXANDER W. SMITH

IDAHO

B. W. OPPENHEIM

IOWA
JOHN E. BRINDLEY

LOUISIANA

Dear Governor Strong:

Among other things, Mr. Pratt is anxious
to consider tomorrow the program described in the
enclosed folder, and the more detailed objectives
outlined in the typewritten sheet.

you will find time to

loot

over before the

meeting.

CHAS. DEB. CLAIBORNE

MARYLAND

Sincerely yours,

FRANK J. GOODNOVV

MICHIGAN

CLAY H. HOLLISTER

MISSOURI

WALTER S. DICKEY

NEW JERSEY
ARTHUR N. PIERSON

NEW MEXICO
JOHN S. CLARK
NEW YORK
R. FULTON CUTTING

NORTH DAKOTA

DORR H. CARROLL
OHIO
R. E. MILES

PENNSYLVANIA
A. B. FARQUHAR

SOUTH CAROLINA
R. G. RHETT

SOUTH DAKOTA

ROBERT L. SLAGLE

WEST VIRGINIA

JOHN J. CORNWELL

VIRGINIA

LEROY HODGES

WISCONSIN
LEE PHILLIPPS
WYOMING
ARTHUR K. LEE

Hon. Benj. Strong,
15 Nassau Street,
New York, N. Y.

I hope that

AU

A038

iiiA031/

t'.110}111109

43s
nsi 9

The work that must be done by the National Budget Committee is eo imperative
et'e it is of the utmost importance that a program, s definite as it is constructive,

should be set before the aireotors,officers, state and local, and all members of the
reittee.

1. To bring thin about eithin as short a time as possible, it will be necessary
to educate the people all over the country as to -

The need and the expansion of the National Budget.
(b) The enlistment of national lefitators in upholding the National
(a)

Budget in making appropriations in Congress.

2. A thorough reorganization of the oxeoutive eersrtments along the lines of
strict economy and more efficient service. imphasis should be lsid upon the necessity of having the rational government restore to he care of the states those m tters
which it) nearly Ware more properly handled by the states -- education, maternity, health,
eta. The confusion ftrisi ng by the failure to differentiate between the constitutional
function of the national government and those of the state governments has resulted in
much waste and dut-lication end a vast saving is possible.

3. sitting before the Senate the advantage ana necessity of adopting the same
program as carried out by the How a Appropriations Committee under Chairman Martin
B. Madden, i.e., making the maximum figures presented bythe Budget Bureay fbr any
department the maximum to be &lifted that department when the appropriation is voted.

4. The enactment of a arm whereby the heads of the Executive Departments shall
he permitted to sit rith Congress and lave a voice though not a vote, in the proceedings
which touch, directly or indirectly, the oondu3t of the Government.
5. The establishment of permanent positions, such as Under-Secretaries, for
each o f the execut ive oepartments, the incumbents to administer the routine duties of
the departrents. thereby enabling the enibers of theCabinet to have their time free
fo r the consideration of problems of policy.
The carrying out of the plan for the uniformity of acme. nting systems in
6.
the v ariou departments as was oonteoplated in the Budget law.

7. Calling upon Ccnerose to rake the Tariff Coesnission tat, under the
law, it ve.sintended to be - a Jody to which all tariff matters should to submitted
for advice and apprdyal. hen the iolicy of a tariff has been determined by Con-

zrees, the Tariff Cotemi es ion should work out the s ohedu les called for by such
policy and its expert conclusiofes should be strictly adhered to by Congress.
8.

Making the international relations of this country vital to

every citizen

and arousing his interest in the a) neuct of the se re let ions. Esy ecial stress should
be laid upon:
(a) The machinery to be used by the United States in carrying on
Internet/oriel cooperation.
(a) The manner of funding the foreign debts rite to this country.
(c) The restoration ofrsoneys valu3s so necessary to our fbreign
trade.

(d) ImmierAtion - its control; its taxation and its relation to
the

turning oo

.mer Jeans.

the raw

material into one hundred per cent.

NATIONAL BUDGET COMNIITTEE
340

MADISON AVENUE
NEW YORK CITY

D112 ECT ORS
JOHN T. PRATT. CHAIRMAN
SAMUEL MCCUNE LINDSAY. VICE-CHAIRMAN
HENRY L. STINSON. TREASURER
WM. M. CHADBOURNE. SECRETARY
M. A. ARNOLD
JOHN P. BURKE
NICHOLAS MURRAY BUTLER
WALTER S. DICKEY
A. B. FARQUHAR
LEROY HODGES
R. C. LEFFINGWELL
ALBERT L. ORDEAN
ALTON B. PARKER
ARTHUR N. PIERSON
MANNY STRAUSS
BENJAMIN STRONG
PAUL M. WARBURG

September

STANLEY H. HOWE
DIRECTOR OF ORGANIZATION

STATE CHAIRMEN
ALABAMA
JOHN L. KAUL
ARIZONA
H. B. WILKINSON
ARKANSAS
VAN B. SIMS
CALIFORNIA
JOHN P. BURKE
COLORADO

C. A. LEMMERS
GEORGIA
ALEXANDER W. SNIT II

IDAHO
B. W. OPPENIIEIM
INDIANA
0, B. ILES
IOWA
JOHN E. BRINDLE?
LOUISIANA

CHAS. DEB. CLAIBORNE

MAINE

J. F. Case,
c/o Federal Heser

-fi Bank,

15 'jail St.,

New York Cit
L

.

dear Mr. Case:
As a member of the .rational 73udget.Committee,

you are especially invited to meet General Charles
G. Jawes, former Director of the Budget, at dinner
at the Waldorf Astoria Hotel on -riday evening,

CHAS. SUMNER COOK

MARYLAND

FRANK J. GOODNOW

October 13th at 7:00 p.m.

A formal invitation will

MICHIGAN

CLAY H. HOLLISTER

MINNESOTA

be mailed to you later.

EDWARD W. DECKER

MISSOURI

WALTER S. DICKEY
MONTANA
W. J. JOHNSON
NEW JERSEY
ARTHUR N. PIERSON
NEW MEXICO
JOHN S. CLARK
NEW YORK
R. FULTON CUTTING
NORTH DAKOTA
DORR H. CARROLL
OHIO
R. E. MILES
OREGON

I am writing you now, so that you may set aside
this date on your calendar.
Sincerely yours,

EDWARD COOKINGHAM

Tic e- Chairman, Din er Committee

PENNSYLVANIA

A. B. FARQUHAR

RHODE ISLAND

THOMAS H. WEST. JR.

SOUTH CAROLINA
R. G. RHETT

SOUTH DAKOTA

ROBERT L. SLAGLE

Uri AH

JOHN C. CUTLER

VIRGINIA

LEROY HODGES

WASHINGTON
M. A. ARNOLD
WEST VIRGINIA

JOHN J. CORNWELL

WISCONSIN
LEE PHILLIPPS
WYOMING
ARTHUR K. LEE

Ladies invited.

NATIONAL BUDGET COMMITTEE

'

NATIONAL BUDGET COMNIIVFEE.
340 MADISON AVENUE
NEW YORK CITY

0

DIRECTORS

JOHN T. PRATT. CHAIRMAN
SAMUEL MCCUNE LINDSAY. V10ECHAIRMAN
HENRY L. STIMSON. TREASURER
WM. M. CHADBOURNE. SECRETARY
M. A. ARNOLD
JOHN P. BURKE
NICHOLAS MURRAY BUTLER
WALTER S. DICKEY
A. B. FAROUHAR
LEROY HODGES
R. C. LEFFINGWELL
ALBERT L. ORDEAN
ALTON B. PARKER
ARTHUR N. PIERSON
MANNY STRAUSS
BENJAMIN STRONG
PAUL M. WARBURG

4:)tve,

bkL

'404
hafftir

December 13, 1922

STANLEY H. HOWE
DIRECTOR OF ORGANIZATION

STATE CHAIRMEN
ALABAMA
JOHN L. KAUL
ARIZONA
H. B. WILKINSON
ARKANSAS
VAN B. SIMS
CALIFORNIA
JOHN P. BURKE
COLORADO

C. A. LEMMERS
GEORGIA
ALEXANDER W. SMITH
B. W. OPPENHEIM

Governor Benjamin Strong,
15 Nassau Street,
New York City
My dear Governor Strong:

Mr. Pratt has asked me to notify you
that the luncheon )" the National Budget Committee

INDIANA
0. B. ILES
IOWA
JOHN E. BRINDLEY

on Thursday, December twenty-first, at 1 P.M., will

LOUISIANA

CHAS. DEB. CLAIBORNE

MAINE

take place at the Recess Club, 60 Broadway, instead

CHAS. SUMNER COOK

MARYLAND

FRANK J. GOODNOW

of at the Downtown Xsspciation.

MICHIGAN

CLAY H. HOLLISTER

MINNESOTA

EDWARD W. DECKER

MISSOURI

WALTER S. DICKEY
MONTANA

W. J. JOHNSON
NEW JERSEY
ARTHUR N. PIERSON

NEW MEXICO
JOHN S. CLARK
NEW YORK
R. FULTON CUTTING
NORTH DAKOTA
DORR H. CARROLL

OHIO
R. E. MILES
OREGON
EDWARD COOKINGHAM
PENNSYLVANIA
A. B. FAROUHAR

RHODE ISLAND

THOMAS H. WEST. Jr,

SOUTH CAROLINA
R. G. RHETT

SOUTH DAKOTA

ROBERT L. SLAGLE
UTAH
JOHN C. CUTLER

VIRGINIA

LEROY HODGES

WASHINGTON
M. A. ARNOLD
WEST VIRGINIA

JOHN J. CORNWELL

WISCONSIN
LEE PHILLIPPS
WYOMING
ARTHUR K. LEE

Very truly yours,
c-174-GcA-4_

Assistant Secretary