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4
AN EXECUTIVE BUDGET

g-

SYSTEM
E-

g.

-g

NEW YORK, MARCH, 1919




WHAT THE COUNTRY HAS
DONE, WHAT THE COUNTRY
CAN, AND SHOULD, DO

I

ra

[
1

L.

BY

JOHN T. PRATT




INTRODUCTION

A war debt of over twenty billion dollars,
the necessity of raising annually over three
billion dollars in taxes, and the tendency to
constantly increase the number and scope of
governmental activities, has led to the publi-

cation of this little pamphlet. Up to a few
years ago the United States Government had

plenty of money and very loose financial
methods in consequence. When the war came
to an end we were spending over $50,000,000

a daya burden upon your child and mine
If we are going to pass through the troubled

waters of the reconstruction period and
emerge on the calm of peaceful and contented
days, we must get the financial system of our

national government on a sound business
basis.

To accomplish this successfully some effort

must be made to turn the thoughts of the
people toward the matter of our national
finances. The debt made necessary by the war
must be reduced by saving on the part of the
people.

Particularly, the national govern-

ment must do its part in reducing the present

obligations by operating the affairs of this
country on a plan that is sound and businesslike.
3

DEFINITION OF THE BUDGET OF A STATE
"A budget of the state is a document containing
a preliminary approved plan of public revenues and
RE/CE STOURM.
expenditures."

"A budget is a statement of the estimated re-

ceipts and expenses during a fixed period ; it is a

comparative table giving the amounts of the receipts to be realized and of the expenses to be
incurred ; it is, furthermore, an authorization or a
command given by the proper authorities to incur
the expenses and to collect the revenue."
M. LERoY BEAULIEU.

of the Treasury, and a large number of industrial and commercial interests of the country
have urged that this action should be taken.

A budget system is the only system under
which the President can effectively discharge

his duties of laying before the fund-raising

and fund-granting authorityCongressa
complete statement of the financial condition
and work-plan of the Government, so itemized

and classified as to enable Congress to see
clearly what the Administration proposes to
do, and the estimated cost of doing it.

The general opinion in this country is, that
a budget is a document of a state containing
a work-plan of the Government, estimates of
revenue and expenditure, and needs of revenue and expenditure, supported by a system
of accounts, of audits and of reports.
WHY A FEDERAL BUDGET IS DEMANDED

A Federal budget is the only system under
which an efficient administration of the finan-

cial affairs of our Government can be obtained. We are the only country in the world
claiming to have a modern government that
does not make use of such a system.

It is not merely the only system under
which the President can be held to a rigid
responsibility for the manner in which the
funds of the Government have been expended,
but it is the only system under which Congress

can properly discharge its duty of making
intelligent provision for the needs of the
Government. It is the only system that will
bring to light all cases of duplication of organization and activities of the Government,
and lay the basis for building, in Congress, an
organization to conform to the organization
which Congress itself has set up for the executive and administrative branch.

The leading political parties in their platforms, President Taft, President Wilson, and
their predecessors in office, many Secretaries




4

5

WHAT THE COUNTRY HAS DONE
A

IN WASHINGTON

Conception and Development of Present Financial
System of the National Government

The Act of September 2, 1789, recognized
the principle that the Administration should
furnish Congress an estimate of the revenue
and expenditure needs of the Government.
This Act, however, directed the Secretary of
the Treasury, and not the President, to prepare the report. It was supplemented by an
Act passed May 10, 1800, which gave further
directions to the Secretary of the Treasury.
The duties thus placed on the Secretary of the
Treasury were confirmed by the Act of August
26, 1842.

Unfortunately, the jealousy and hostility
engendered between the legislative and execu-

tive branches of the Government was such
that Congress in the early days encouraged
the executive decentralization in budgetary
matters. After the time of Alexander Hamilton, the idea that the Secretary of the Treasury, should present a real budget as an admin-

istrative measure, as had been originally intended, was lost sight of.




6

In the revision of the statutes of 1873, the
Secretary of the Treasury was simply to submit, and no idea of revision or amendment
was incorporated in the statute. The wording
of this law was slightly changed by the Act of
July 7, 1884, and there are a number of provisions of law regarding the form and contents of estimates. None of these, however,

changed the idea that the Secretary of the
Treasury was merely the channel of transmission from the Departments to Congress.
The first official action looking to a change
was the insertion in the Sundry Civil Appropriation Act of March 4, 1909, of a clause imposing upon the President the duty of recom-

mending what action should be taken in the

way of securing increased revenues or in
cutting down appropriations, where the estimates as submitted by the Secretary of the
Treasury show estimated appropriations in
excess of estimated revenues. Secretary of
the Treasury Franklin MacVeigh, in his report for the year 1909, strongly recommended
the adoption by Congress of a budget system.
He again did this in the reports for 1910, 1911
and 1912.

By Act of June 25, 1910, President Taft
was authorized to create a Commission on
Economy and Efficiency. The report of this
7

Committee in 1913, showed the weakness of
the present system, and laid much stress on
the necessity of establishing a scientific budget
system.

Mr. Fitzgerald, for many years Chairman
of the House Committee on Appropriations,
in his speech before the House on March 4,
1913, advocated the preparation of all appropriation bills in one committee. In his testimony before the New York Constitutional
Convention, Committee on Budget, he expressed himself as being in favor of a national
budget system.

On April 30, 1917, Senator Kenyon, of
Iowa, introduced in the Senate a joint resolution, calling for the creation of a commission,

"to report a plan for the adoption of a

national budget system". This was substantially the same as the similar resolution introduced by him in 1915. The same resolution
was introduced in the House April 25, 1917,
by Mr. Goodwin of Arkansas.
Mr. Kenyon again sought, on February 22,
1917, and on May 19, 1917, to obtain some reform in financial matters by centralizing the
responsibility in a single committee, to prepare

all appropriation bills in harmony with a
scientific and modern budget system.
Action in the same direction, but of a differ-




ent character, was proposed by Mr. Anderson,
of Minnesota, on February 16, 1917.

Mr. Medi11 McCormick, of Illinois, presented an interesting series of bills and resolu-

tions, providing far a budget system, during

the Congress which has just adjourned
House Document No. 1006, 65th Congress,
Second Session.

On February 28, 1919, the Senate passed a

resolution, proposed by Senator Kenyon
S. J. Res. 121and the House passed the
rider, prepared by Mr. Sherley, Chairman of
its Committee on Appropriations. Each of
these called for the appointment of a commission to report a plan for the adoption of a national budget system. Neither bill was passed
by both houses.

The above indicates that there has been
some considerable thought given to the matter
of reforming the financial system of our Government by various members of the Cabinet,

and of Congress; but that practically no real
progress has been made.
IN OUR STATES

Since 1911, forty-one states in the Union
have taken some steps looking to the reform
of their financial methods. With the excep9

8

tion of Florida, Idaho, Kentucky, Mississippi,
Nevada, Oklahoma and Texas, all the states
of the Union have given serious thought to the
matter of budget reform.

The actual reforms have taken various
forms, running all the way from a system
which puts the entire responsibility upon the
Governor, to systems putting the entire responsibility for the preparation of the budget
on one legislative committee.
Whatever may be said in favor of or against
any particular system now existing in these
forty-one states, it can truthfully be said that

the possibility of establishing a scientific
budget system in American political life is no
longer a theory, but an established fact.
WHAT THE COUNTRY CAN AND
SHOULD DO

I. Organization of Our National Government.

No clear conception of a budget system can
be had without briefly considering the organization of our national Government. Omitting
the judicial branch, our Federal Government
is organized as follows :

(a) Executive and administrative branch.
The executive head of our Government is
the President of the United States. He car-




10

ries out the activities of the Government
under a plan of organization which corresponds roughly to the kinds of work done.
The Executive and Administrative Branch
has been divided into ten Departments : State,

Treasury, War, Justice, Post Office, Navy,
Interior, Agriculture, Commerce, and Labor,
and a number of so-called independent establishments, such as the Civil Service Commis-

Interstate Commerce Commission,
Smithsonian Institution and Isthmian Canal
Commission. Each of these units has been
further subdivided into bureaus, and these in
turn into a number of subordinate units
sion,

Under our scheme of Government, the
President is the executive and administrative
leader of the nation. Assisted by his Cabinet,
he is supposed to see that the policies set forth
in his party platform are carried out, and to

formulate all other general policies of our
nation. This is shown by the Constitution,
which prescribes that the President shall,
"from time to time give to the Congress in-

formation of the state of the Union and

recommend to their consideration such meas-

ures as he shall judge necessary and expedient".

11

(b) Legislative branch.
The Legislature, consisting of the Senate
and the House of Representatives, has,
roughly, these duties to perform

committee organization with the idea in mind,

primarily, of a law-making body. This is
shown by comparing the workings of the
executive and administrative branch, and the
committee organization of Congress.

FirstTo determine, subject to constitutional limitations, how the government shall

Executive

be organized.

SecondTo make laws having to do with
rights, duties and remedies, and the manner
of their enforcement.
ThirdTo determine what work the Government shall undertake; how it shall be performed; sums of money to be appropriated
and raised to carry out this work; and how the

work undertaken and the money spent shall
be reported and accounted for to them.
FourthTo follow up the activities of the
Government, to the end that abuses in the
administration may be corrected.

4116

Congress

State Department
Treasury Department
War Department
Department of Justice
Post Office Department
Navy Department
Department of the Interior
Department of Agriculture
Department of Commerce
Department of Labor

House: 61 Committees,
14 of which have power to
originate
appropriation
bills ; no one of which has
complete control of any of
the executive units, and to
each of which is referred

The various Independent
Establishments

propriations.
Senate: 74 Committees,
15 of which have power to
originate
appropriation
bills ; and no one of which
has complete control of
any of the executive units.

In all there are 29 com-

II. Administrative Organization of Con-

mittees working independently of each other and of
the executive branch of
the Government, which re-

gress.

One would suppose that Congress would
have organized itself so as to conform to the

port out bills carrying demands on the Treasury.

organization Congress had set up for the
executive branch, as shown above. As a
matter of fact, instead of setting up the same
kind of organization, Congress has made its




bills that may carry ap-

12

13

III. Weakness of the Present Organization.

There are two glaring weaknesses in the
present organization of Congress:

FirstBecause of its failure to set up an
organization in conformity with its organization of the executive and administrative
branch, the two branches are in no respect corelated. One example will suffice: The War
Department has to go to four different committees to get necessary legislative and financial assistance. They are the Committee on
Military Affairs, the Committee on Appropriations, the Committee on War Claims and

the Committee on Claims. No one of these
committees has entire charge of any part of

the business of the War Department. For
example, all deficiency appropriations must
go to the Committee on Appropriations ; but
the Committee on Military Affairs, which
originates the laws referring to military matters, and to which is referred the greater part
of the regular annual estimates for the Department, is never consulted as to deficiency
appropriations. During the war, when no-

body could know exactly what the future
would be, the Committee on Appropriations
had almost as much to do with the affairs of




14

our Army as the Committee on Military Affairs. Yet the Committee on Appropriations
has no power to pass on bills calling for general legislation.

To obtain the money to operate the War
Department, the sums necessary are split up
among ten different Appropriation Acts.
They are called, ArmyFortificationsMili-

tary AcademySundry CivilLegislative,

Executive and JudicialGeneral Deficiencies
Urgent DeficienciesGeneral ClaimsSpecialand War Claims. The result is that
we keep prepared for, and wage, war in the
most wasteful manner possible. Both in 1898
and 1917-18 there was no one Committee that
had the entire charge of the work of the War

Departmentsuggesting necessary legisla-

tion, stating the needs of the Department, having complete control of financial matters, and
following the reports it should have received,

to check up the work of the Department.
There is such a division of the work of the
War Department in Congress that responsibility is fixed nowhere.

The same is true of all the other nine Departments and the so-called independent establishments.
SecondThere are but two kinds of

"laws", or "statutes". One kind has to do
15

III. Weakness of the Present Organization.

There are two glaring weaknesses in the
present organization of Congress :

FirstBecause of its failure to set up an
organization in conformity with its organization of the executive and administrative
branch, the two branches are in no respect corelated. One example will suffice: The War
Department has to go to four different committees to get necessary legislative and financial assistance. They are the Committee on
Military Affairs, the Committee on Appropriations, the Committee on War Claims and

the Committee on Claims. No one of these
committees has entire charge of any part of

the business of the War Department. For
example, all deficiency appropriations must
go to the Committee on Appropriations ; but
the Committee on Military Affairs, which
originates the laws referring to military matters, and to which is referred the greater part
of the regular annual estimates for the Department, is never consulted as to deficiency
appropriations. During the war, when no-

body could know exactly what the future
would be, the Committee on Appropriations
had almost as much to do with the affairs of




14

our Army as the Committee on Military Affairs. Yet the Committee on Appropriations
has no power to pass on bills calling for general legislation.

To obtain the money to operate the War
Department, the sums necessary are split up
among ten different Appropriation Acts.
They are called, ArmyFortificationsMilitary AcademySundry CivilLegislative,
Executive and JudicialGeneral Deficiencies
Urgent DeficienciesGeneral ClaimsSpecialand War Claims. The result is that
we keep prepared for, and wage, war in the
most wasteful manner possible. Both in 1898
and 1917-18 there was no one Committee that
had the entire charge of the work of the War
Department-suggesting necessary legisla-

tion, stating the needs of the Department, having complete control of financial matters, and
following the reports it should have received,
to check up the work of the Department.

There is such a division of the work of the
War Department in Congress that responsibility is fixed nowhere.

The same is true of all the other nine Departments and the so-called independent establishments.
SecondThere are but two kinds of

"laws", or "statutes". One kind has to do
15

with rights, duties and remedies, and the
mariner of their enforcement. These are
general and permanent in character. The
Sherman Act, Bankruptcy Act, the Federal
Reserve Act, are examples of this kind The
other kind has to do with "running the Gov-

ernment". These are, practically, merely
administrative orders. The major part of
them have only a temporary end in view. All
II

the appropriation acts, acts authorizing the
construction of bridges or public buildings,
are examples of this kind of "statute".
The weakness consists in the confusion that
results from not giving different designations

to these two kinds of "laws" or "statutes".
Had the first kind, those having to do with the
law-making functions of Congress, been called
"statutes", and the second kind, those having

to do with "running the Government", been
called "votes", or some such term, both Congress and the public would have had a much
clearer idea of the functions of Congress.
One of the evils resulting from this con-

fusion in the nature

of

"statutes" and

"votes", has been a tendency on the part of
Congress to attach "riders" to Appropriation
Bills. These riders generally have nothing to

do with the bill to which they are attached,
but usually embody some general or special




16

law-making feature. Since the Appropriation Bill must be passed, or some Department
stop certain, or all, of its activities, .Congress
has made use of the necessity of the occasion
to have passed general legislation which could
not otherwise have been passed. Examples of
this practice are unfortunately but too well
known.

National Budget a

IV. Essentials of
System.

There are four main schools of thought in
this country on the subject of Governmental
Budgets. They are:

FirstThe school that believes the Executive should not only prepare the budget, but
that no change should be made in the budget
he presents without submitting the matter to
him. This is the English system, and practically the system in operation in the -United
States Territory of Porto Rico.
SecondThe school that believes the Executive should be responsible for preparing
the budget, and the Legislature act on it under
various limitations as to procedure and
amendments.
This is the system which has been proposed

or is in effect in Arizona, California, Colo17

rado, Connecticut, Delaware, Illinois, Indiana,

of the Government, he should be made re-

Iowa, Kansas, Louisiana, Maine, Maryland,

sponsible for preparing the budget.
The bill, known as the Smith amendment,

Massachusetts, Michigan,

Minnesota, Ne-

braska, New Hampshire, New Jersey, New
Mexico, New York, Ohio, Oregon, South
Dakota, Utah, Virginia and West Virginia.

passed in 1909, gives him power to recommend

how the estimated appropriations, if they exceed the estimated revenues, might be reduced.

ThirdThe school that believes that the

What is needed, therefore, is to provide him
with machinery whereby such recommendations can be made really effective, and to require him to submit a real budget.
This could be done, under the existing plan
of operations, by creating a special Budget

budget should be prepared by a committee
consisting of representatives of the Executive
and of the Legislature and acted upon by the

Legislature under various limitations as to
procedure and amendments.
This is the system proposed or in effect in
Wisconsin, North Dakota, Pennsylvania, Vermont, Tennessee, Arkansas, Washington and
Illinois.

FourthThe school that believes that the
Legislature should prepare, as well as pass
upon, the budget. This is the systemso far
as there is anyof our Federal Government

4

Staff from the force now employed in the
Treasury Department, in preparing the annual Book of Estimates. This Budget Staff
could be under the immediate jurisdiction
either of the President, or, as at present, of
the Secretary of the Treasury. In either
event, the Staff should be a permanent one,
and be given the same power to revise, modify

at the present time.

or amend the estimates of the departments,
that the department heads have to revise the

SUGGESTED NATIONAL BUDGET. SYSTEM

estimates of their respective bureau chiefs.

(1) Preparation of budget.
A

Since the President represents all the people, and is responsible for the administration




18

The budget should be a consolidated document in which are brought together full and

detailed statements of the condition of the
Treasury on the date on which the budget is
19

prepared; the revenues and expenditures of
the Government during the last one, two or
three completed years, and during the year
in progress; and the revenues and expendi-

tures to be provided for the year to be
financed. The budget should be prepared in

accordance with some logical principles of
classification, which should be rigidly adhered
to in order that adequate comparisons can be

made from year to year. Preferably this
should be that of organization units rather
than the system now employed, where, among
other things, the work of each Department in

Washington is considered in one Appropriation Bill, and the work of the ten Departments
in the field is considered in other Appropriation Bills. At present, there is no consolidated statement, showing for example, the
entire cost to the Government of running any

one of the Departments for any one fiscal
year.
The Budget should be accompanied by supporting tables, one for each organization unit

Congress have expressed their conviction that

Congress should adopt some reform in its
financial methods. The one reform most
frequently suggested is that of creating a
single committee in each House to consider
financial matters, rather than splitting them
up among fourteen or more committees, as is
now done.

The advantages of doing this are clear and
unmistakable.

First :It would enable a single committee
to consider the whole financial program of the
Administration as a unit This committee
could compare and balance the needs of one
Department against the others and could see
clearly the relation of each to the whole question of the resources and the revenues of the
Government.

Second :Such a committee would bring
more closely together the administrative and
legislative branches of our Government by
having but one committee before whom all
Cabinet members could appear, and to whom
each could appeal.

Third :It would lay the foundation for
The budget in Congress.

(1) As shown above, since 1909, various
Presidents, Cabinet officers and members of




20

further reforms in the administration of our
National Government. No such reforms are

possible without first getting Congress to
21

agree to concentrate its responsibilities in

and the report of the single committee can be

financial matters in single committees.
Fourth : It is not the intention of this
pamphlet to raise controversial questions in an

made.

Procedure regulating the rights of individual members to introduce bills calling for
the expenditure of money.
Procedure to produce effective co-ordination between the two single committees of
the House and Senate.
The right and obligation, if requested,

argumentative manner. It is, nevertheless,
important to refer briefly to certain collateral
matters in connection with reforms in handling the financial affairs of our Government.
They are :

(1)

If the President submits a real budget to a
single committee in each House, the report of
that committee should be considered by each

House sitting as a committee of the whole.
The country should at least know whether the
Administration or the Congress is responsible

for advocating any particular appropriation
or revenue bill.
If this is done, it raises the following questions:

Providing for the membership of the
single committee.

Setting a definite time for the consid-

eration of the budget and the report of the
single committee.

Regulating the procedure whereby
amendments or modifications of the budget




of the Budget Staff, and of members of the

Consideration of the budget.

29

AIN

President's Cabinet to appear before the committee of the whole.
Consolidating and redrafting the present acts and rules having to do with the pow-

ers of certain bureaus, and audits, accounts
and reports, so that the logical system of classification, used in the preparation of the President's Budget, may be followed in the auditing, accounting, reporting and other bureaus
of the Executive and Legislative branches of
our Government.

Procedure for conforming all deficiency and other appropriations to the classifi-

cation plan of the annual budget, and to the
machinery Congress sets up to consider the
same.

23

(2) Following the appropriations.
While not always appreciated by our people,

the main function of Congress is not to administer the affairs of the Government, but to
see that they are properly managed by the administrative branch.
Put yourself in the place of a member of the
Committee on Naval Affairs. You are trying
to serve the country to the best of your ability.
You are earnestly seeking information as to
how the Department is doing its work. Here
is what happened for the fiscal year 1916-17:
The hearings on the Navy Bill began January
5, and extended to April 5, 1916. More than
sixty witnesses were examined and the printed
testimony covered 3,860 octavo pages. The
Bill was finally ready by May 4. How intelli-

gently do you think the members of that
Committee could follow the workings of the
Navy Department that year ? How well could
you have done it ?

The remedy is to give the President the
necessary machinery, and put the burden upon

him to present a well thought-out work-plan
and estimated costs. He ought to be made
responsible for having all necessary witnesses examined and presenting a finished
budget. 'Congress ought to make his Secre-

tary of the Navy justify any item that may




24

be questioned. All the burden ought to be
on the Executive. It should be the business
of Congress to see that the Navy Department
is properly administered. It is not its busi-

ness to administer it ; but to supervise its
administration by a complete, but not
cumbersome-, system of audits, and reports.
If once a scientific budget system were installed, much of the time of Congress that is
now spent without profit in rambling about,
seeking information as to what the Administration wants and is doing, could be spent in
the far more helpful and constructive work of
intelligently following and checking up the
work of the Administration.
SUMMARY

While our national Government cannot be
said to be the leader of American thought on
the subject of scientific budget systems, in
point of time, it may still be the leader in more
nearly approaching the ideal system. There
is nothing in the suggestions the writer has
advanced that in any way conflicts with the
present conception of our political organization. Congress now spends a very large portion of its time in the consideration of financial matters. Much of this time is poorly
25

spent, owing to the lack of a budget system.

What can be done is to have the matter of
financial requirements of the Government presented to the members of Congress in a form
which will not only enable them to pass more
intelligent judgment upon the question of the

raising and expenditure of money, but also
enable them to perform their duty of following
the work of the Government more effectively.

The states have led the way. Let Congress
follow by establishing a system which does
four things :
First: Definitely fix the responsibility upon

the President to prepare and furnish Congress a complete work-plan of the Administra-

tion, with estimates of revenue and expenditures to carry it out.
Second : Fix the responsibility upon Congress of creating single committees to consider

the budget and all financial matters ; and of
having the reports of such committees considered by a committee of the whole before
considering any other financial matters.

Third: Fix the thought in the minds of
the people of this country that in the executive

Fourth : Put the responsibility upon Congress of enforcing a system of audits and reports, which will enable Congress intelligently
to supervise the work of the Administration.
AN ILLUSTRATION

Perhaps no better idea of what can be done
in financial reform in American political life,
can be given than a digest of the constitutional
amendment, ratified by the State of Maryland
in November, 1916.
Its provisions are as follows :
Estimates to Governor

The governor shall require from all executive and administrative offices, itemized estimates and other information in such form and
at such times as he shall direct.
Public Hearings

The governor may provide for public hearings on the estimates, and require the attendance of representatives of all agencies and institutions applying for state moneys.

administration of governmental activities,
Congress is a critic,-not an actor. It supplies

Revision of Estimates

the money, but is not responsible for administrating its expenditure.

his discretion.




26

The governor may revise the estimates in
27

Legislative, Judicial, and Education Estimates
not Subject to Revision

The estimates for the legislative department, the judicial department, and the estimates for the public schools, shall be transmitted to the governor in such form and at
such times as he may direct, for inclusion in

Debts and funds of the state ;
Estimates of the state's financial condition

the budget without revision.

as of the beginning and the end of each ensuing fiscal year; and
Any explanation which the governor may
desire to make as to the important features of
any budget, and any suggestion as to methods
for the reduction or increase of the state's

Governor to Submit Budgets to General Assembly

revenues.

Within twenty days after the convening of
the general assembly, or within thirty days

Form of Budget

in the case of a newly-elected governor, unless

such time shall be extended by the general
assembly for a particular session, the governor
shall submit two budgets, one for each of the
two succeeding fiscal years ; also a bill for all
proposed appropriations, clearly itemized and
classified.
Content of Budget

Each budget shall contain a complete plan
of proposed expenditures and estimated revenues, and shall show the estimated s.urplus or
deficit at the end of the year. Accompanying
each budget shall be a statement showing:
Revenues and expenditures for each of the
two preceding fiscal years;
Current assets, liabilities, reserves, and surplus or deficit of the state;




28

Each budget shall be divided into two parts,
"governmental appropriations" and "general
appropriations".
Governor May Amend Proposed Budget

Before final action upon either budget by
the general assembly, the governor may amend
or supplement it to correct an oversight, or in
case of emergency, with the consent of the
general assembly, by delivering such amend-

ment or supplement to the presiding officers
of both houses.
Action of General Assembly Limited

In its action upon the budget bill the general
assembly shall not amend it so as to affect the
guarantees of the constitution or statutes for
the establishment and maintenance of a system
29

of public schools or constitutional provisions
as to salaries ; it may, however, increase or
diminish items relating to the general assembly
and increase items relating to the judiciary.
In no other particular shall it alter the bill
except to strike out or reduce items, providing
no salary of any public officer is reduced during his term of office.
Governor's Final Approval Unnecessary

When passed by both houses, the budget bill

shall be a law immediately without further

Supplementary Appropriation Bills
Must Provide Revenue

Other appropriations must be embodied in
separate bills, each limited to a single purpose
and containing provision for revenues necessary for that purpose.
Governor's Veto of Supplemental Bills

Such bills may be passed only by majority
vote of the whole number of members elected
in each house, and when passed shall be subject to the governor's approval or veto.

action by the governor.

Governor May Compel Action on Budget Bill

Governor and Designated Executive
Officers to be Heard

The governor by proclamation may extend
the session in case of failure of the general

The governor and representative of the departments of the executive branch of the gov-

ernment designated by him, shall have the
right, and when requested by either house it
shall be their duty, to appear and be heard and

answer questions relating to any budget bill
under consideration.
Governor's Measures to Have Priority

Until after final action upon the budget bill,
neither house shall consider any other appropriation.




30

assembly to take final action upon the budget

bill three days before the expiration of the
regular session; and during such extended
period no other matter than such bill shall be
considered except provision for the cost of the
period.
SHORT LIST OF AUTHORITIES AND
ARTICLES

The author wishes to express his thanks to
the officers of the Institute for Government
Research, Washington, D. C., and the Bureau
of Municipal Research, New York City, for
31

U.

the assistance they have given him in the
preparation of this pamphlet.
Publications of the Institute for Government
Research, by D. Appleton & Co., New York.

Stourm, ReneThe Budget.
Willoughby, W. F. & W. W., and others :
The Problem of a National Budget ;
Financial Administration of Great

Britain;
The Canadian Budgetary System;
The Movement for Budgetary Reform in
the States.
Collins, Charles W.The National Budgetary
System and American Finance, The Macmillan Co.
Publications of the Bureau of MuniCipal Research, 261 Broadway, New York City:
A State Budget. No. 58.
Budget Systems No. 62.
Budget Legislation in Two States. No. 70.

The Elements of State Budget Making.
No. 80.

The Recent Movement for State Budget
Reform. No. 91.
The New York State Legislative Budget
and Financial Measures for 1918.
No. 93.

Proceedings of the Academy of Political
Science, Vol. VIII, No. 1.




32

CAM PBELL, HAP DING & PRATT
COu N E L LO RS AT LAW
43 WALL STREET - 43 EXCHANGE PLACE
NEW YORK

DOUGLAS CAMPBELL
WARD HARDING
JOHN T. PRATT
EDWARD N.GOODVVIN

ARTHUR E. BRISTOL




P".
March 5, 1919.

Hon. Benjamin strong,
Federal Reserve Bank of New York,
15 Nassau Street,
New York City.
<"?

Dear Ben:

I have no narticular evidence that the

enclosed will strike you as in any way resembling
your style of letter; however, I send it for what
it is worth.

Yours very truly,

3-C

Enclosure.

NATIONAL BUDGET COMMITTEE

LIBRARY

TEMPORARY OFFICES

43 EXCHANGE PLACE
ROOM 1505

MAY 9

1919

NEW YORK CITY

FEDERAL RESERVE BANK

ORGANIZATION COMMITTEE
BENJAMIN STRONG
PAUL M. WARBURG
JOSEPH P. COTTON
HENRY L. STIMSON
JOHN T. PRATT

May 7/1919.

TO THE ME1BERS OF THE 0RGOIIZA5ION COMMITTEE:




There

will

be a mee

ng of the Committee on Monday,

May 12th, at 1:00 P. IL, at the Recess Club, when the

Chairman will re

rt the results of his trip to Washington,

and also the r sults of his recent trip west with Mr. Warburg.
Please advi e
time an

KEI

to your ability to attend at the above

place.

JOHN T. PRATT,

Chairman.

MEMORANDUk FOR ORG BIZITION

COMMITTEELIBRA
JUN

I

ou enclosing herein d draft of the bills which Professor Chamberlain

and 1 heve worked over for the lest two ueuks.

F.4114 IA

terburg and I are going to Chicago Sunday, epril 26, in hn endeavor
to organize a Committee in that city to handle not only the State of Illinois,
but possibly adjoining States.
At) dre then going to St. LOUi6 and shell
endeavor while there to get s numoer of men interested in the proposition
of organizing various States of the Union.
I have made arrangements with kr. Pierson of the Chautauqua Circuit, of
Chautauqua CirPenesylvania, to meet the Governors of
cuits in Chicago on eonday, May 5, to present to them the question of whether
they will take up wieth their lecturers budgetary reform legisletion as pert
air. Pierson thinks they probably will
of their talks on current topics.
accede to the request.

all the

Swarthmore

I enaeivored to see Mr. Gillett two weeks ago and received a letter from
him stating that he wee on a lecture Lour nd that it would be very difficult
for him to see me before April 29.
I saw kr. Tinkham on Easter Sunday, who suggested thct if it was possible
based 'on the ideas we had in mind that
If not, he, Mr. Tinkham, would
that would be the eimplest way to proceed.
be very glad to prepare bills based on the enclosed draft, take them up with
the Republican Steering Comeittee, and if they pproved, to introduce the
bills into the House.
to get 'el.. Goode to introduce

bills

As it seems likely thet Congress may be convened in the latter kert of
May, I am very anxious not to lose any time in the preperetion of bills to
I should like,
be introduced shortly .after the convening of Congress.
therefore, very much to get your criticism as to the enclosee letter to
sir. Gillett ;.nd also es to the enclosed draft of

bills.

JOHN T. PRATT.
April 23, 1919.

I should like to have a meeting of the Organization Committee on
Please let me know
Friday, April 25, at 1:00 P.M., at the Recess Club.
at once if you can attend.




J. T. P.

,

DRY,..1 LETTER

Z:,e,r kr. Gilkett:

Osr. Warourg
I ore going to Chicago Aid St. Louis the
L7t6 of Aprii'to orgonizo, if possible, Stott. ComMottees of the Notional
Liudget Committee in o number of Stotes, it sin not be poseibie for me to
see you on or out the rciith of April, 66 suggested in your letter to me
of Airli 11.
I &Ai very eorry indeed thot I shoA. not hove the op,ortunity
of conferring with you on to enclosed droft of legielotive ottion ..a the
ti oce you f:lrat rood it, ,but oe I aa very anxious to moio every do4 count
ootwoon now ond the convening of Congrees, i sholl hole to rely on the mails.
briefly, the Orgenitation Committee believe the enclosed droft
o greotdeoi of good in reforming the methods of tondling
oor ootiooal finoncoe. it is os oeor ideol h4a we feel it possible to
persurode Congress to. adopt at the present time.
would accomplish

We believe the enclosed draft provides 7, bosis for one of the
most constructive pieces of iegislotion possible ot the present time.
would ilie very ouct to hove your judgment '

First: As to whether the enclosed dr,ft should be modified

K

in any way; ond

As to wOom you would suggeet os the beet member of
the FicikovJ to have Uh t?,90 to dreft the nilla And toke up the ousetion with
the Ropublicoo Steering Comoittee. We hove boon in consuottion wita
Seoondo

Tinichom, yao would be very giod to introduce t4e bills pere000lly, bot 1
Oelieve he is perfectly sincere in his et,tement thot your judgment is the
beet we could obtoin end tho,t he would be very giCt to obide by it.

Thera is coosiderooie interest throughout the country in the
itttor of Oudgat-ry reformo und I bolievo wo coo ,rouao ioci ioteroct Ahonever opooeitiea is mode.
i hope very much, therefore, thot you will study tha enclosed
droft Ind give oe the opportunity of conferring with you os soon fter my
return from the west us koesiole. I a,il probobly DO in New Yoro on or
bout




7th.

With .triy th.nks for your interest in the matter, 1 om,
Yours, very truly,

,711

tazta,&---

There io hereby crieeted e Budget St,ff to conaiet of five mambere

appointed ei the President (eith the advice end consent of the SonAo).
e.

The membors of tha Budget Stiff shell hold office for a term of five yeers
unease eooner remeved for ceuee, except that of the memoors firet eiepeinted

one sha.L eerve for five
for oight yis$.9.rs

yeare,6..,

for eix yeers, oae for soven Jeers, one

end ono for bine yeers.

annunlly desigtited by

One of the members sheil be

the Presieent to act

es Cneirmen end executive

officer .r the Budget Staff.
The 'eudot Staff shall appeint ,eid fix the com,onsetion of such
cieres and other o ployeea end of ell such accenntents and other experts
may be epproprieted for by Congroen.

The 5udget Stet? shell be reaponsible to the President And eh..11,
under his direction, prep,ro froai the eetilletee 1,ereisafter reAuired to be
submitted, e. conaolideted estimate end budget for submission by

the

itesident

to Congrese ene shell prepare such supplementarl estimates end supporting
meteriel and steiei perform such other duties in regerd to tte budget

he he.

may request.

The heeds of ell depertments, end of ell offices, oureeue, boards

end coueeiselone of the Un1td

t t.s Government, not under the jurifeAction

of any Copertment, eball file with the 3udget Staff ennueliy on or before the

first del of ectober eetimAas of ull expendituree in their judgment rouired
for the conduct of their reepective depertments, offices, bureeus, boards and

co e ipeiene during the next ensuing fiscel yeer, for the deficiencies, if eny,

in exiating appropriations for tte current fiecel yeer, for meeting obligetions
incurred under ,Tior epprepriations which heve lapsed, for the completion of

projects elroedy undertaken mad for new activities to be

undertaken.

The

estimetes snail be submitted in euch deteil fld with Much supplementery




explanatory and supporting

data

as mgy be required by the President and,

together with the estimates, there may be submitted such statements

and in-

formetion as the efficers submitting the estimates believe should be considered in connection therewith.

The Secretary of the Treesury shall file with his estimate of
expenditure a statement of the receipts end expenditures or the United Stetes

for the pest fiscal year, receipts and estimated receipts for the current
year, the present condition of the appropriations and funds and the estimated
coaditionW ot appropriations and funds as of the beginning and end of the

period to be financed, and such other information in regard to the financial
affeire of the government es the President may request.

Within thirty days after the convening of

each

regular session of

8

Congrese, the President shall submit to the Senate and the House of Representatives a consolidated estimate end budget which shall set forth the
amounts and the su.porting items thereof which in his judgment ere needed:
To meet by new appropriations the requirements for the next

ensuing fisc,1 yeer of each department, office, bureau, boerd or commiseion
established by law;

To meet deficiencies, if any, in the

appropriations for the

current fiscal year of any department, office, bureau, board or commission
established by law;

To complete undertakings authorized during previous fiscal

years by the reeppropriation of unexpended balances of authorizations which
had been encumbered by contracts before the fiscel term of the original
lpprepriation expired;

activity



To meet by new approprietions the requirements of any additional
of the public service recommended by the President and not thereto-

3
zy
fore authorized by law.

In that part of the consolidated estimated and budget which sets
forth the needs of the ensuing fiscal ye 'e" of departments, offices, bureaus,

boards and commissions established by law, the President shall show in comparison opposite each total end each supporting item the amount eppropriated
or authorized for the current fiscal year end the amounts expended for the

last two completed fiscal years.
The President shall compare and submit as a part of the consolidated
estimate and budget summery supperting statements, showing:
(1)

Actual and estimeted expenditures and revenue for a period of

not less than two fiscel years immediately
.(2)

preceding the period to be financed;

The (present) assets, liabilities end surplus or deficit (as of

the end of the previous financial year)

and the

estimated asset.", liabilities

and surplus or deficit of the governatent as of the beginning and the end of
the period to be financed;
(Present) condition of appropriations and funds (es of the end,

of previous financial year) and the estimeted conditions of eppropriations and
funds as of the beginning and the end of the period to be financed;
Such revenue measures and measures for borrowing as he deems'
necessary;

Estimeted revenues from all sources for the period to be
financed;

Such other information and

suggestions

respecting the finances

of the government as he may deem expedient.

The consolidated estimate snd budeet shell be

printed

and a copy

eistributed to each member of both Houses of Congress within fourteen days



-4-

from the date of its submission.

Immedietely upon the receipt in the House of Representatives of the
President's conselideted estimate end budget, the part thereof

revenues shall

be referred t9, the Committee on Ways and

which deals with

Means, and that part

which deals with estimates for appropriations shall be referred to

the

Appro-

(In the Senate the consolidated estimate

priation Committee of the House.

and budget shall be referred to the Finance Committee and

the Appropriation

Committee of the Senate.)
(SUGGESTED ALTERNATIVE FOR THE ABOVE PARAGRAPH)
(Immediately upon the receipt in the House of Representatives of the

President's consolidated estimate and
revenue shall be referred

budget, the part thereof which deals with

to the Committee of Ways and Means, and

the parts

which deal with estimates for appropriations shall be referred to the appropriate committees of the House and to the Committee of Appropriations.

Each Committee to which a part of the estimates for appropriations
has been referred shall prepare and introduce in the House of Reprasentetives,

etc.)
The Appropriation Committee shall prepare and introduce in the House
of Representatives an eppropriation

bill itemized in

accordance

with the seme

classification scheme employed in the President's consolidated estimate and

budget, and before the introduction of the
and introduce a bill to supply

deficiencies

appropriation bill may prepare
in the eppropriatione of the

current fiscal year.
0

The Committee on Ways and Means shall prepare and introduce in the

House of Representatives a finance bill which shall be
in accordence with
solidated



as nearly as possible

the clssificetion scheme employed in the President's con-

estimate and budget.

The epproprietion bill and the revenue bill

shall be introduced on the same day.
(CdeNGE, IF THE FOREGOING ALTERNATIVE IS ACCEPTED)
(All approprietion bills

except

blue

to supply the deficiencies

and the revenue bill shall be introduced on the same day.)

No emaual appropriation bill shall be introduced by any committee until
after the Committee on Ways and Meens has submitted to such committee its proposed revenue bill.

Each committee shell meke e report to the House setting forth in
parallel columns the totals and titles as recommended by the President and the
changes mede by the Committee

end showing

items added by the Committee and also

reasons for the changes made.

The report shal

tributed to each representative.

Until the pessege by Congress of the appreprietion bill the President
may at any time submit to the Appropriation Committee of the House, until the
bill has been passed by the House, and then to the Appropriation Committee of
the Senate, until the bill has peen passed by the 'Senate, new or revised esti-

mates increesing, reducing or

eliminating any item in

the original consolidated

estimate end budget and adding new items or modificetions of items of expenditure.

Until the passage of the revenue bill by Congress, he may submit new,

or modifications of former, recommendations with respect to revenues to the
Comeittee on Ways and 2eans of the House until the bill has been passed by the
House and then to the Finance Committee of the Senete.
The appropriation bill and any deficiency eppropriation bill reported.

to the douse of Representatives shell be subject in either House of Congress to
endments to eliminate or reduce eny item or to substitute for it the proposal
in the President's estimate; but any other proposal introduced in either House



-8-

for an increase in any item or for new items

of expenditure, shall be mede

subject of a separate bill which shall be for a single work or object

.11d

the

shall

not be considered or referred to any committee in either house until the ap;xoprietion bill has been paseed Oy both Houses.
The revenue bill stall be subject in either House of Congrese to
nneadment to reduce or to eliminete any item of taxetion, or to substitute for
any item or to add to the bill any proposal contained in the President's con-

solidated estimate aud budet, but shall not be subject to any amendments to
increase the 'rate of taxation or to add nee taxes

The Comptroller of the Treesury shell submit to the Committee on Audit
an annual report of the condition of the

ccounts of the government.

The Comthittee on Audit in the House of Representatives shall

exemine and

review all reporto received from the Treasury Department end make such independent
iniairies and such reports to Congress as it may deem desireble deeling with
estimeted or ectuel revenues, expenditures, custodianship or custody of funds,

weste, or inefficiency in administration or other financial condition of the
government.

For these purposes the committee may meet and conduct hearings

in Washington or elsewhere end may request the Secretary of the Treasury to

assist in its investietions.

The committee may in its discretion subpoena

witnesses and examine them under oath, reiuisition puolic records or, have

access to any and all governmental records and decuments.

report annuily to Congress.




The committee shall

.

DIRECTORS

TELEPHONE. BEEKMAN 1981

WOODROW WILSON

HONORARY CHAIRMAN

JOHN T. PRAT
e

ARMAN

McCUNE LINDSAY

,CHAIRMAN

:AMIN STRONG
PAUL M. WARBURG
HENRY L. STIMSON
JOSEPH P. COTTON
CHARLES F. NESBIT
IAM HOWARD TAFT
_

AI

,N B. PARKER

JOHN PRICE JONES

NATIONAL BUDGET COMMITTEE
INCORPORATED WASHINGTON. D. C. 1919

150 NASSAU STREET
NEW YORK CITY

TREASURER

GEORGE W. WHITE

ASSISTANT TREASURER

WALTER J. CLOSSEY
SECRETARY

STANLEY H. HOWE
DIRECTOR OF ORGANIZATION

Honorary State Chairmen:
HON. THOMAS E. CAMPBELL

April 19, 1920.

PHOENIX, ARIZ.

HON. OLIVER H. SHOUP
DENVER, COLO.

HON. W. L. HARDING
DES MOINES. IOWA

HON. CARL E. MILLIKEN
AUGUSTA, ME.

HON. E. C. HARRINGTON
ANNAPOLIS. MD.

HON. SAMUEL R. McKELVIE
LINCOLN, NEB.

HON. WILLIAM N. RUNYON
TRENTON, N. J.

HON. JAMES M. COX
COLUMBUS, OHIO

Mr. Benjamin Strong,
Federal Reserve Bank,
New York City.

HON. PETER NORBECK
PIERRE, SO. OAK.

HON. A. H. ROBERTS
NASHVILLE, TENN.

My dear Mr. Strong:

HON. PERCIVAL N. CLEMENT
MONTPELIER, VT.

HON. WESTMORELAND DAVIS
RICHMOND, VA.

HON. EMANUEL L. PHILIPP
mAmsori.wm

Active State Chairmen:
HON. H. B. WILKINSON
PHOENIX, ARIZ.

BENJ. IDE WHEELER

UNIVERSITY OF CALIFORNIA.
BERKELEY, CALIF.

C. A. LEMMERS
DENVER, COLO.

HENRY P. SCOTT

WILMINGTON, DEL.

We wish to acknowledge
and thank you for ynur application
for membership in the Na ional Budget
Committee and the accompanying-- -ck
itr-rT7rent of dues, which we shall en
deavor to utilize to the very best advantage in our efforts to secure the
installation of a proper budget system
in the Federal Government.

ALEXANDER W. SMITH
ATLANTA, GA.

SILAS H. STRAWN
CHICAGO, ILL.

JOHN E. BRINDLEY
IOWA STATE COLLEGE,
AMES, IOWA

HON. LEON F. HIGGINS
BANGOR, ME.

PROF. FRANK J. GOODNOW
JOHNS HOPK INS UNIVERSITY.
BALTIMORE, MD.

WALTER S. DICKEY

KANSAS CITY, MO.

HON. ARTHUR N. PIERSON
WESTFIELD, N. J.

R. FULTON CUTTING

We are placing your
name en the mailing ]ist for our fortnightly publication, "The Budget", and
would bespeak your earnest and continued cooperation in connection with our
endeavor to arouse throughout the nation an intelligent conception of the
duties and responsibilities of American
citizenship.

NEW YORK CITY

R. G. RHETT
CHARLESTON, S. C.

ROBERT L. SLAGLE

UNIVERSITY OF SOUTH DAKOTA.

With appreciation for
your interest and support, we remain,

VERMILLION, 5. D.

COL. LE ROY HODGES
PETERSBURG. VA.

Very truly yours,

HON. B. A. KIEKHOFER
MADISON, WIS.

City

Chairmen:

LEE H. RANCK
CHICAGO. ILL.

IRVIN F. WESTHEIMER
CINCINNATI, OHIO

SAMUEL PRICE WETHER ILL. JR.
PHILADELPHIA. PA.

MRS. FRANKLIN P. IAMS
PITTSBURGH. PA.




Chairman.

DIRECTORS

TELEPHONE, BEEKMAN 1981

WOODROW WILSON
HONORARY CHAIRMAN

JOH

T. PRATT

...e4AIRMAN

EL McCUNE LINDSAY

S.

VICE-CHAIRMAN

UN STRONG
M. WARBURG
HENRY L. STIMSON
JOSEPH P. COTTON
CHARLES F. NESBIT
LIAM HOWARD TAFT
ON B. PARKER
PA._

NATIONAL BUDGET COMMITTEE
INCORPORATED WASHINGTON, D. C. 1919

150 NASSAU STREET

s

NEW YORK CITY

JOHN PRICE JONES
TREASURER
GEORGE W. WHITE
ASST. TREASURER

September 1, 1920.

WALTER. -I. CLOSSEY
SECRETARY

STANLEY H. HOWE

DIRECTOR OF ORGANIZATION

My dear Sir:

Honorary State Chairmen:
HON. THOMAS E. CAMPBELL
ARIZONA

HON. OLIVER H. SHOUP
COLORADO

HON. W. L. HARDING
IOWA
HON. CARL E. MILLIKEN
MAINE

HON. E. C. HARRINGTON
MARYLAND

HON. SAMUEL R. McKELVIE
NEBRASKA

HON. EMMET D. BOYLE
NEVADA

HON. WILLIAM N. RUNYON
NEW JERSEY

HON. JAMES M. COX
omo
HON. PETER NORBECK
SO. DAKOTA

HON. A. H. ROBERTS
TENNESSEE

HON PERCIVAL N. CLEMENT
VERMONT

HON. WESTMORELAND DAVIS
VIRGINIA

HON. EMANUEL L. PHILIPP
WISCONSIN

Active State Chairmen:
HON. H. B. WILKINSON

I am writing this letter to advise you of the plans of
the National Budget Committee for future work.
At the last session of Congress a bill was adopted providing for a national budget. At the same time the House of
Representatives changed its rules so that in the future all
money bills will be reported by a single committee on approThe Budget Bill was vetoed by the President on
priations.
account of a technicality, at so late a date that Congress
was unable to amend it to meet the President's objection
before adjournment. It is considered certain, however, that
soon after Congress convenes in December, the Budget Bill will
become a law, and that the Senate will follow the example set
by the House of Representatives and give to a single committee
the sole power to report appropriation bills.

ARIZONA

VAN B. sIMS

ARKANSAS

BENJ. IDE WHEELER
CALIFORNIA

C. A. LEMMERS
COLORADO

HENRY P. SCOTT
DELAWARE

ALEXANDER W. SMITH
GEORGIA

B. W. OPPENHE1M
IDAHO

SILAS H. STRAWN
ILLINOIS

It is, of course, exPected that the procedures contemplated under these measures, which will involve the annual submission to Congress by the Chief Executive of a definite financial program and a definite work program in place of the
present uncoordinated "departmental estimates," will bring
about a very marked improvement in the Government service and
a material reduction in the cost of its administration.

JOHN E. BRINDLEY
IOWA

HON. LEON F. HIGGINS
MAINE

PROF. FRANK J. GOODNOW
MARYLAND

HOWLAND TWOMBLY
MASSACHUSETTS

WALTER S. DICKEY
MISSOURI

HON. ARTHUR N. PIERSON
NEW JERSEY

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

The National Budget Committee actively assisted in the
budget movement by distributing to individuals, societies and
associations, timely information concerning various aspects
of the problem, and it did much to arouse public interest
and to place public opinion squarely behind the movement
for budgetary reforms in the national Government.

NEW YORK

HON. DORR H. CARROLL
NORTH DAKOTA

E. MILES
omo
R. G. RHETT
R.

S. CAROLINA

ROBERT L. SLAGLE
S. DAKOTA

JOHN S. BRANCH, SR.
VERMONT

COL. LE ROY HODGES
VIRGINIA

HON. B. A. KIEKHOFER
WISCONSIN

City Chairmen:
LEE H. RANCK

CHICAGO, ILL.

IRVIN F. WESTHEIMER
CINCINNATI. o.

MRS. FRANKLIN P. IAMB
PITTSBURGH. PA.
CHARLES F. NESBIT
WASHINGTON, D. C.




As a corollary of budgetary reform the question of
reorganization of the executive departments of the Federal
Government is now uppermost in the minds of public men everywhere, and particularly of the leaders in Congress. A number
of reorganization measures were introduced at the last session,
each one designed to bring about a better alignment of certain
activities among the executive departments, and to eliminate
duplications, overlappings and waste. Congress will certainly
be in the mood to consider these important matters when it
convenes in December.

'7ECTORS

TELEPHONE. BEEKMAN 19 81

VILSON
TT

CHAIRMAN

,UNE LINDSAY
IRMAN

"RONG
RBURG

IMSON
OTTON
NESBIT

NATIONAL BUDGET COMMITTEE
INCORPORATED WASHINGTON, D. C. 1919

150 NASSAU STREET

OWARD TAFT
ARKER

NEW YORK CITY

IN .110E JONES
TR, %. SURER

GEORGE W. WHITE
ASST. TREASURER

WALTER. .1. CLOSSEY

-2-

SECRETARY

STANLEY H. HOWE
DIRECTOR OF ORGANIZATION

Honorary State Chairmen:
HON. THOMAS E. CAMPBELL
ARIZONA

HON. OLIVER H. SHOUP
COLORADO

HON. W. L. HARDING
IOWA

HON. CARL E. MILLIKEN
MAINE
HON. E. C. HARRINGTON
MARYLAND

HON. SAMUEL R. McKELV1E
NEBRASKA

HON. EMMET D. BOYLE
NEVADA

HON. WILLIAM N. RUNYON
NEW JERSEY

HON. JAMES H. COX

omo

HON. PETER NORBECK
SO. DAKOTA

HON. A. H. ROBERTS
TENNESSEE

HON. PERCIVAL N. CLEMENT
VERMONT

HON. WESTMORELAND DAVIS
VIRGINIA

HON. EmANUEL L. PHILIPP
WISCONSIN

Active State Chairmen:
HON. H. B. WILKINSON
ARIZONA

VAN B. SIMS
ARKANSAS
BENJ. IDE WHEELER
CALIFORNIA

C. A. LEMMERS
COLORADO

HENRY P. SCOTT
DELAWARE

ALEXANDER W. SMITH
GEORGIA

B. W. OPPENHEIM
IDAHO

SILAS H. STRAWN
ILLINOIS

JOHN E. BRINDLEY
IOWA

HON. LEON F. HIGGINS
MAINE

PROF. FRANK J. GOODNOW

At the request of certain leaders of the Senate, and
after conferences with Senators Harding and McCormick, the
National Budget Committee has agreed to make an independent
survey of the work of the Federal departments, and to submit
recommendations for the reorganization of the executive branch
of the Government.
Since the National Public Works Department Association, the National Education Association, and
Public Health Association are societies whose aims are to
all 'intents and purposes identical with those of our organization, the National Budget Committee has associated itself
with these groups to form what will be known as the National
Committee for Governmental Economy. This enlarged Committee
has already begun work on this project. In doing this work
the National Committee will have the cooperation of the United
States Bureau of Efficiency, a Government agency which has
collected much material on the subject of duplication of
work in the Federal departments.
From time to time as the work proceeds, progress reports will be submitted by our investigators, and it is my
intention to submit these reports to all members of the
National Committee who are actively interested, for their
comment.
I shall take the liberty to send copies of these
reports to you, and I hope that you will find it possible
to study them and to let ma have the benefit of your criticisms.

MARYLAND

HOWLAND TWOMBLY
MASSACHUSETTS

WALTER S. DICKEY
MISSOURI

HON. ARTHUR N. PIERSON
NEW JERSEY

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

HON. DORR H. CARROLL
NORTH DAKOTA

R. E. MILES
omo

At an early date I shall send to you a statement, brie flys
describing the functions, duties, and activities of each unit
in the executive branch of the Government. You will find this
very helpful as you later receive the reports describing the
proposals which will be incorporated in our final recommen: dations.

R. G. RHETT
S. CAROLINA

ROBERT L. SLAGLE
S. DAKOTA

JOHN S. BRANCH, SR.
VERMONT

COL. LE ROY HODGES
VIRGINIA

HON. B. A. K1EKHOFER

trust that you will recognize in this work an opportunity to render an important public service and that you
will give your careful attention to the various matters that
are from time to time presented to your consideraticn.

WISCONSIN

City Chairmen:
LEE H. RANCK

Sincerely yours,

CHICAGO. ILL.

IRVIN F. WESTHEIMER

CINCINNATI, o.
MRS. FRANKLIN P. IAMS
PITTSBURGH. PA.
CHARLES F. NESBIT

WASHINGTON, D. C,




Chairman.

TELEPHONE STUYVESANT 817 2

\

NATIONAL BUDGET COMMITTEE
SEVEN WEST EIGHTH STREET
NEW YORK CITY

DIRECTORS
JOHN T. PRATT. CHAIRMAN
SAMUEL MCCUNE LINDSAY, VICE-CHAIRMAN
H P. COTTON
JI

CHARLES F. NESBIT
ALTON B. PARKER
HENRY L. STIMSON
MANNY STRAUSS
BENJAMIN STRONG

WILLIAM HOWARD TAFT
PAUL M. WARBURG

5

TV21),Apt

STANLEY H. HOWE.
DIRECTOR OF ORGANIZATION




1921
T

Mr. J. Herbert Case,

"'if 1340

15 Nassau F;treet,
ow York uity.

dekr Mr. Case:

Thank 7-11 verY much for your contribution toward th, work of the National Budget
Committee.

W:11 share with me the
subscription we may make
to an- of th public or, semi-publin enterprises
in vilich we re interested, will prove of
greater her -fit to the country as a whole.
T

ope

r(DLI

mnviction th t no

Budget
ot the

As one of the members of the National
iittee, -ou will be kept informed
ogress we are making.
T sincerely trust that your interest

will indle interest among your associates and
se membership earls for your use. Other
enc
a ,empts to establish a budget system have failed

for lack of popular sup,ort.

72r-

truly 7ours,

Chairman.

MEMORANDUM FOR DIRECTORS OF THE
NATIONAL BUDGET COMMITTEE
MARCH 31

1921

At a conference held yesterday between Mr. Magnus W. Alexander, Managing
Director of the National Industrial Conference Board, Mr. Sisson, a member of
the Executive Committee of the Board, and myself, Mr. Alexander stated that the
Directors of the Board has put up to him rather strongly the proposition of the
Board's making a scientific investigation as to the costs of Government.
a representative of the Institute for Government Research present the ability of'
the Institute to carry on such an investigation
to the Board, but
somewhat in doubt as to the ability of the Institute to make such investigation.
He suggested the possibility (providing the National Budget Committee
went forward with its programme of a vigorous propaganda movement in favor of
Governmental economy) of an arrangement being made under which the Board should
make such investigation for the primary use of such propaganda.

Speaking generally, Mr. Alexander guessed that it might cost about
$25,000, which would have to be supplied by the National Budget Committee.
Mr. Alexander desired a statement covering generally the lines along which
I therefore suggest the following line
such an investigation should proceed.
of investigation:

Commence with the existing Government Organization, as shown by the charts
Graves has prepared and supplemented by the report Graves has made as to the
functions of each of the Bureaus and Departments.
Prepare a budget, based upon this organization and the appropriations requested in the Book of Estimates.

A study of the reports, which should be available through the cooperation
of our friends in the Treasury Department, of the estimated income of the Government.
An analysis of the cost of carrying out such legislative acts as are now on
the statute books, appropriation for which has not yet been made, and also such
new bills as may be introduced from time to time, which, from the advice of our
friends in Congress, seem likely to be seriously considered.
An analysis of the Deficiency Appropriation Bills as compared with the
estimates contained in the Book of Estimates.

In brief, the preparation of an actual Budget, running back from two to ten
years, and keeping such budget figures constantly accurate by a study of the
Deficiency Appropriation Bills and new bills calling for the expenditure or
raising of money.

.

If possible, can you attend a meeting of the National Budget Committee
Directors to discuss these matters, at the Down Town Association, at 12:45 P.M.,
Monday, April 4th?




JOHN T. PRATT,

CHAIRMAN,

43 Exchange Place, New York City.

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BUSINESS MEN, MOBILIZE!
The following are excerpts from letters received by John T. Pratt, Chairman of the National
Budget Committee, from Hon. James W. Good, Chairman of the Appropriations Committee in the
House of Representatives:

February 19, 1921

"It is important that a great deal of work be done
immediately, to create the right kind of public
sentiment. There ought to be newspaper editorials
in all the leading papers of the country, calling
upon the new Members of Congress to see to it that
the will of the people is carried out by budgetary
legislation, and that in order to have real budgetary
legislation there can be but one Committee on
Appropriations. There is so much to do in this
respect and so short a time to do it, those of us
who are interested must get busy and work incessantly
from now until after Congress convenes."
March 3, 1921

"I thank you for the work you have been doing along
the line of stirring up public sentiment in favor
of a single Committee on Appropriations. The budget
system will die if members of Congress place personal
ambition to work on committees having appropriating
powers above the general good of the country. We
must keep the matter before organizations of men
and women everywhere."

From an editorial in the Philadelphia, Pa. Public Ledger, February 26,

"This is an emergency that should immediately enlist the efforts of the business men
of the country, the chambers of commerce, banking organizations, etc., to prevent what
would be a national calamity."




TELEPHONE STUYVESANT 6172

NATIONAL BUDGET COMMITTEE
SEVEN WEST EIGHTH STREET
NEW YORK CITY

DIRECTORS

W.IT

T. PRATT. CHRMAN
AI
SAMUEL MCCUNE LINDSAY. VICE-CHAIRMAN
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

Jc.,

#4 ,,,,,

V...,

FEB

OW

"-S&

lmut
URGENCY WARNING

STANLEY H. HOWE,
DIRECTOR OF ORGANIZATION

State Chairmen:
HON. H. B. WILKINSON

TO THE MEMBERS OF THE NATIONAL BUDGET COMMITTEE AND
OTHER SINCERE ADVOCATES OF A NATIONAL BUDGET SYSTEM

ARIZONA

VAN B. SIMS
ARKANSAS

BENJ. IDE WHEELER
CALIFORNIA

C. A. LEMMERS
COLORADO

HENRY P. SCOTT
DELAWARE

ALEXANDER W. SMITH,
GEORGIA

B. W. OPPENHEIM
IDAHO

SILAS H. STRAWN
ILLINOIS

JOHN E. BRINDLEY

We have positive advice that an attempt will be made in
the House of Representatives to abolish the new single Committee on
Appropriations and return to the old discredited system of parceling
out appropriation bills among a number of Committees. Such a step
would be fatal to real budgetary reform and every influence should be
exerted on your member of Congress to prevent such a public calamity.
The Republican Caucus on February 28th may decide the question. Act
promptly and decisively.

IOWA

HON. LEON F. HIGGINS
MAINE

PROF. FRANK J. GOODNOVV
MARYLAND

HOWLAND TWOMBLY
MASSACHUSETTS

The enclosed reprint from the "Brooklyn Eagle" also points
out the fact that the Budget system has "struck a snag," declaring
that:

WALTER S. DICKEY
MISSOURI

HON. ARTHUR N. PIERSON
NEW JERSEY

HON. JOHN S. CLARK
NEW MEXICO

R. FULTON CUTTING

"*

* * the plans of Congress to put the Government
on something approaching a real business basis are
threatened with grave delay, if not disaster."

NEW YORK

HON. DORR H. CARROLL
NORTH DAKOTA

R. C. MILES
OHIO

R. G. RHETT
S. CAROLINA

ROBERT L. SLAGLE
S. DAKOTA

JOHN S. BRANCH. SR.
VERMONT

This condition constitutes a serious emergency which calls
for redoubled effort by the National Budget Committee, each of its
members, and every other sincere advocate of a National Budget System.
It would be a public calamity to lose the advantage already gained by
great effort, and to permit the present movement to fail as President
Taft's great work did a decade ago for lack of popular support.

COL. LE ROY HODGES
VIRGINIA

HON. B. A. KIEKHOFER
WISCONSIN

City Chairmen:
LEE H. RANCK

CHICAGO, ILL.

IRVIN F. WESTHEIMER
CINCINNATI, 0.

MRS. FRANKLIN P. IAMS
PITTSBURG, PA.

CHARLES F. NESBIT
WASHINGTON, D. C.




To meet this emergency and to be ready to exercise the
greatest possible influence at the coming siDecial session of Congress,
your committee should speak for a largely increased number of citizens.
That can be done only by express authority as evidenced by memberships
in the committee. We must therefore hold all of our old members and
get new ones at once.
If you can possibly interest some of your friends
in this movement send in their subscriptions now. Members receive
due notice of expiration of subscriptions.
This is distinctly and intentionally an urgency warning and
appeal, as we want you to realize the gravity of the situation, and act
accordingly.
JOHN T. PRATT, Chairman.

New York--February 21, 1921.

TELEPHONE STUYVESANT 8172

NATIONAL BUDGET COMMITTEE
SEVEN WEST EIGHTH STREET

i

NEW YORK CITY

DIRECTORS
JO' " -T. PRATT, CHAIRMAN
BA,, C.L MCCUNE LINDSAY, VICE-CHAIRMAN
DR. NICHOLAS M URRAY BUTLER
JOSEPH P. COTTON
CHARLES F. NESBIT

ALTON B. PARKER

APR

5

9Z1

April
1

HENRY L. STI MSON
MANNY STRAUSS
BENJAMIN STRONG
WILLIAM HOWARD TAFT
PAUL M. WARBURG

1921

STANLEY H. HOWE,
DIRECTOR OF ORGANIZATION

State Chairmen:
ALABAMA

JOHN L. KAUL

ARIZONA

HON. H. B. WILKINSON
ARKANSAS

VAN B. SIMS

CALIFORNIA

BENJ. IDE WHEELER
RALPH P. MERRITT

Mr. Benjamin Strong,
Federal Reserve Bank,
New York City.

CHAIRMAN, EXECUTIVE COMMITTEE
COLORADO

C. A. LEMMERS

DELAWARE

HENRY P. SCOTT
GEORGIA

ALEXANDER W. SMITH
IDAHO

B. W. OPPENHEINI
ILLINOIS

SILAS H. STRAWN

IOWA

JOHN E. BRINDLEY
MAINEHON. LEON F. HIGGINS
MARYLAND

PROF. FRANK J. GOODNOW
MASSACHUSETTS

HOWLAND TWOMBLY
MISSOURI

WALTER S. DICKEY

NEVADA

PROF. C. W. SPENCER

NEW JERSEY

HON. ARTHUR N. PIERSON

NEW MEXICO

HON. JOHN S. CLARK

NEW YORK

R. FULTON CUTTING

NORTH DAKOTA

HON. DORR H. CARROLL

OHIO

R. E. MILES
SOUTH CAROLINA

R. G. RHETT

SOUTH DAKOTA

ROBERT L. SLAGLE

My dear Mr. Strong:

In April of last year you were good enough to take
out a membership in this Colanittee and contributed toward
the support of the work.
You have received reports of our activities from
time to time. I now enclose a printed copy of excerpts
of letters received by our Chairman from Hon. James W. Good,
Chairman of the Appropriations Committee in Congress, showing the situation which faces us at the present moment.
President Harding is committed to a budget system
and will do everything possible to speed up the proper
legislation, but the time-honored struggle between the
legislative and executive branches of the government may

make it very difficult for him to put it in operation on
the right basis, unless he has strong and solid .support.
This support must continue to express itself through

our organization until we have achieved what we set out to

accomplish.

VERMONT

JOHN S. BRANCH, SR.

VIRGINIA

COL. LE ROY HODGES

WISCONSIN

HON. B. A. KIEKHOFER
City Chairmen:

BUFFALO, N. Y.

JOHN LORD O'BRIAN

Can you not make your 1921 subscription at this time,
so that we may be ready to meet the situation in the Special
Session of Congress which has been called for April 11?
Very sincerely yours,

CHICAGO, ILL.

LEE H. RANCK

CINCINNATI. 0.

IRVIN F. WESTHEIMER

PITTSBURGH. PA.

MRS. FRANKLIN P. IAMB

WASHINGTON, D. C.

CHARLES F. NESBIT




Vice-Chairman.

JOINT SECURITIES CORPORATION
TEMPORARY OFFICES

TELEPHONE

43 EXCHANGE PLACE. NEW YORK

HANOVER 5695

(ADDRESS AFTER MAY Is r 52 BROADWAY)

C. FICE OF THE PRESIDENT




April 6, 1921.

Hon. Benjamin Strong,
15 Nassau Street,
New York City.
Dear Ben:

Thank you for your letter o41April 5th
and for the suggestions,thich I t,tik are very
good.

I hops you will be wit1L us at the luncheon

on Friday, by which time Itexpect we will have a
definite plan of procedure fir consideration.

With regard to Dr. Lindsay's letter, $100
will be fine - don't bathe

sending any more.

Yours 14Dry truly,

2-C




A.

oof'

TO'eii4Lf-s-t41

TELEPHONE STUYVESANT 8172

NATIONAL BUDGET COMMITTEE
SEVEN WEST EIGHTH STREET

NEW YORK CITY

DIR ECTORS
T. PRATT, CHAIRMAN
SAMUEL MCCUNE LINDSAY, VICE-CHAIRMAN
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

STANLEY H. HOWE,
DIRECTOR OF ORGANIZATION

May 4, 1921

State Chairmen:
ALABAMA

JOHN L. KAUL

ARIZONA

HON. H. B. WILKINSON

ARKANSAS

VAN B. SIMS

CALIFORNIA

BENJ. IDE WHEELER
RALPH P. MERRITT
CHAIRMAN. EXECUTIVE COMMITTEE

COLORADO

C. A. LEMMERS

Mr. Benjamin Strong,
Federal Reserve Bank,
New York City.

DELAWARE

HENRY P. SCOTT

GEORGIA

ALEXANDER W. SMITH

My dear Mr. Strong:

IDAHO

B. W. OPPENHEIM
ILLINOIS

SILAS H. STRAWN

IOWA

JOHN E. BRINDL EY

Thank you very much for your cortribution toward the 1921 wor', of the National 'Budget Committee.

MAINE

HON. LEON F. HIGGINS

MARYLAND

PROF. FRANK J. GOODNOW

MASSACHUSETTS

HOWLAND TWOMBLY
MISSOURI

WALTER S. DICKEY

NEVADA

I hone you will share with me the
conviction thnt no subscription we may make to any
of the public or semi-public enterprises in which
we are interested, will prove of greater benefit
to the country as a whole.

PROF. C. W. SPENCER
NEW JERSEY

HON. ARTHUR N. PIERSON

NEW MEXICO

HON. JOHN S. CLARK

NEW YORK

R. FULTON CUTTING

As one of the members of the National
Budget Com ittee, you will be kept informed of the
progress we are making.

NORTH DAKOTA

HON. DORR H. CARROLL
OHIO
R.

E. MILES

SOUTH CAROLINA

R. G. RHETT

Very truly yours,

L)

SOUTH DAKOTA

ROBERT L. SLAGLE

VERMONT

JOHN S. BRANCH, SR.
VIRGINIA

COL. LE ROY HODGES

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




Chairman.

JOINT SECURITIES CORPORATION
52 BROADWAY

TELEPHONE

HANOVER 5635

NEW YORK
OFFICE OF THE PRESIDENT




Aay 12, 1921.

hon. Benjamin Strong,
15 Nassau Street,
Lew York City.
Dear Ben:

if
There are a nunber of matters curvffintly arising

in connection with the work of the Nati96a1 Budget Committee,

aAlefinite

and I think we ought to try to fix

I have accordingly

monthly meetings of the Committee
settled on the last Thursday

date for

of the

month, at the Down Town

Association, at 1:00 o'ciccii4

Will you therefo/e try to be present on May 26th,
at that time and

lacey

7

2-C

Yours very truly,

Chairman,
National Budget Committee.

A




TELEPHONE STUYVESANT 8172

NATIONAL BUDGET COMMITTEE
7 WEST EIGHTH STREET

New York City

Directors
-. PRATT, Chairman
SAML MCCUNE LINDSAY, Vie-Chairman
Jo p-

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

May 17, 1921

STANLEY H. HowE
Director of Organ tzation

My dear Fellow-member:

As a member of the National Budget Committee, you
are entitled to receive an accounting of our stewardship from
time to time in the constructive educational work you are
helping to carry on in the movement to bring about real
economy and better business in our government services. As

you know, the purposes we set out to accomplish are
threefold:
The establishment of an Executive Budget System in our
national government.
The attainment of this object now seems secure, as President

-7-47

Harding is committed to an Executive Budget plan, and both
the Senate and the House have passed a Budget bill in this session. Our only obstacle here seems to be the possibility of delay
because of the firm insistence of the House that the Budget
Bureau must be placed in the Office of the President, and the
equally determined stand of the Senate in favor of placing it
with the Secretary of the Treasury. In the hope of bringing
about an agreement on this issue, the following Conference
Committee of the Senate and the House has been appointed:
McCormick, of Illinois
FOR THE SENATE Moses, of New Hampshire
Underwood, of Alabama

Good, of Iowa
Campbell, of Kansas
{
FOR THE HOUSE Madden, of Illinois
Byrnes, of Tennessee

Garner, of Texas

The reorganization of the Federal Executive Departments
along the line of economy and better service.




At the suggestion of members of the Senate, and with a
view to cooperating with our leaders in Washington and
strengthening the arms of those who sincerely desire to bring
about economy, we have during the past year made a study of
the present organization of departments and bureaus of the
government, and sent to each member of the Senate and House
a proposed plan for reorganization, as a working basis to start
in the task of getting rid of superfluous overlapping, duplication and waste. This report will be sent to you for your consideration as a member of our Committee. As every one realizes,
no change in the organization of our national administrative
departments can be brought about without some opposition
from the Bureau chiefs. Undesirable results are inevitable, unless some one makes it his business to counteract this opposition.
This is just what we are trying to do, and you are helping to do
it. We will be on the lookout for you, and we will tell you when

your action will help the most.

3. The focusing of public attention upon government appropriations, for the purpose of conserving our financial resources and
reducing the tax burden for all the people.

This work we have been doing during the past two years
through the organization of public meetings, debates, government studies, publications, and through the issuance a year ago
of the fortnightly bulletin called "The Budget." We are now
preparing a series of two-minute editorial talks on subjects in
harmony with our general purpose. The first of these editorial
talks on "Planning the Cost," I am enclosing herewith for your
use. Will you help us to get the maximum value out of them ?
YOU CAN DO THIS BY READING IT YOURSELF, AND
THEN PASSING IT ON TO THE FIRST FRIEND YOU
SEE. If he is interested, he will join the National Budget
Guard which we are now organizing through our membership, and mobilize with us to help protect the Treasury.
Thanking you for your cooperation, I am,
Yours for National Economy,

Chairman.




MEMORANDUM
FROM
TO

:

National Budget Committee

DATE

October 19, 1921

*Governor Strong
1'

On the recommendation of the Governors of eleven Federal Reserve Banks
we have written to 52 bankers asking them to serve as City Chairmen of the National Budget Committee, as shown by the attached list "A" and the attached copy
of letter marked "B".
We have received twenty-four replies in all, Including six acceptances
and eighteen declinations,
The acceptances are from Atlanta,Ga., Birmingham,Ala., Grand Rapids,Mich.,
Providence,R.I., St.Louis,Mo. and qoledo,Ohio, the last named being tentatiVe.
Of those declining, four offer tn serve on committees or otherwise than
as chairmen: Fall River,Mass., Indianapolis, New Haven and Kansas City,MO.
Six decline and recommend substitutes: Akron, Detroit, New Bedford, ass.
Springfie10,Mass., Inlmington,Del. and Boston. Mr. Ting write that he would see
Governor Morss and try to secure a substitute.
Eight decline without any specific offer of assistance: Denver, Louisville,
Milwaukee, New Orleans, Portland,Me., Richmond,Va., St. Paul and Worcester.
Note 1.
,

We have not written to any of the persons recommended by those
declining, as we, felt we would lose the influence of the Governor of the District by writing to any one not recommended by
him.

Tote 2.

The twenty-four answers did not bring a single contribution.

Note 3.

The attached schedule marked "C" gives the answers In detail.




MEMORANDUM

4

DATE

Natioral Budget Committee

October 19, 1921

Governor Strong,

iUBJECT

2

we aid not ask for recommendations in Des Moines,
107a and San Antonio, Texas; and 1ocaied rie, Pa. in the
wrong district.

Yote 4. By oversight

Since we requested the recommendations our City Chairman in
Cleveland, Ohio, has been forced to resign in order to go

abroad with his sick wife.

0)_1




NATIONAL BUDGET COMMITTEE
-1 Association of Taxpayers Organized to fight and prevent Waste
ravagance in National Expenditure :
1. ...hrough an Executive Budget.
2 Through the Reorganization of the Federal Executive Departments.

and

By keeping Public Attention focused upon Government Appropriations.
ASSOCIATE MEMBERSHIP BLANK

CLASSES OF
MEMBERSHIP

AMOUNT

Imilleigx..
Name of Member

Charter

$100.00

Address

Contributing

$25.00

City

Annual

810.00

State

Average

$5.00

Make all Checks payable to
NATIONAL BUDGET COMMITTEE, Inc.
7 WEST 8th STREET, NEW YORK CITY

NATIONAL BUDGET COMMITTEE
Waste
Association of Taxpayers Organized to fight and prevent
ravagance in National Expenditure :
and
hrough an Executive Budget.
1.
of the Federal Executive Departments.
2 Through the Reorganization
Appropriations.
By keeping Public Attention focused upon Government
ASSOCIATE MEMBERSHIP BLANK

CLASSES OF
MEMBERSHIP

AMOUNT

mam...m.

$100.00

Charter
Name of Member
Contributing
Address
City

$25.00

Annual

$10.00

.,

Average

$5.0(

State

NATIONAL BUDGET COMMITTEE,

Make all Checks payable to
7 WEST 8th STREET, NEW YORK CITY
Inc.

APP7N17. "A".

FIRST DISTRICT

-

Daniel G. *Wing,

Boston
Bridgeport
Cambridge
Pall River
Hertford
New Bedford
New Haven
Providence
Springfield
Worcester
Portland

pres.

Charles G.Sanford,Chrmn
Walter 7. 7arle, Pres.
Pres.
John S. Brayton,
Leon P. Broadhurst,Pres.
Irving N. Cook,
Pres.
Pres.
W. P. Curtis
Thomas H.7est,Jr., Pres.
Pres.
H. A. Woodward
Pres.
F. A. Drury
Pres.
William W.Thomas

THIRD DISTRICT

Camden
Trenton
Wilmington
Reading
Scranton
Philadelphia

-

FIFTH DISTRICT

Pres.
Pres.
Pres.

v_p

V-P
V-P

-

V-P
Pres.
Pres.

V-P
Pres.

GOv7RNOR STAY,

Pres.

Jno.M.Miller
W. A. Godwin
John Poole

Free.

SIXTH"DISTRICT
Atlanta
Birmingham
Nashville
New Orleans

GO

Pres.
Pres.

National Exchange Bank
First National Bank
Norfolk National Bank
Federal National Bank

NOR -7LLBCPN,_ ATLANTA.

Eugene R. Black
Col.Ton O.Smith
P. D. Houston
L. M. Pool

S7V7ITTH DISTRICT

Detroit
Grand Rapids
Indianapolis

-

National City Bank
Citizens Trust & Savings Bank
Dayton Savings & Trust Co.
Commerce Guardian T.&.S.Bank
City Trust & Savings Bank

RICHMOND.

Wldo Newcomer

Baltimore
Richmond
Norfolk
Washington

Camden National Bank
Trenton Trust Co.
7quitable Trust Co.
Farmers National Bank
Traders National Bank.
The Pennsylvania Co.for Incurance on Lives & GrantIng
Annuities.

GOV7RNOP PANCHER, CLWELAND.

Harry Williams
P. H. Schryer
W. R. CrPven
7. H. Cady
H.W. Grant

Akron
Columbus
Dayton
Toledo
Youngstown

First National Bank
First National Bank
Harvard Trust Co.
B.M.C.Durfee Trust Co.
Phoenix National Bank
First National Bank
Union & New Haven National Bank
R.I. Hospital Trust Co.
Chapin National Bank
Merchants National Bank
Canal National Bank

GCV77NOR NORRIS, PHILAnELPHIA.

Francis C. Howell
H.Arthur Smith
Otho Nowland
R. S. Mock
D. P. Atherton
Arthur V.Morton

FOURTH DISTRICT


http://fraser.stlouisfed.org/
!1_17,7t,1
Federal Reserve Bank of St. Louis

GOV7PNOR MORSS, BOSTON.

Pres.

V-P
Pres.
Pre s.

Atlanta Trust C.O.
Birmingham Trust Co.
American National Bank
Marine Bank & Trust Co.

GCV7PNOR M6DOITGAL, CHICAGO.

John W. Staley
Clay Hollister
Evans Woollen,
Oliver C.Fuller

Pres.
Pres.
Pre s.

Pres.

The Peoples State Bank
Old National Bank
Fletcher Savings & Trust Co.
First Wisconsin Nat'l Bank.

- 2 -

Appendix. "A"

EIGHTH DISTRICT

-

GOVERNOR RIGGS, ST. LOUIS.

J.Lionbercer navis

St. Louis
Louisville
tbmphis

NINTH lISTPICT

Minneapolis

-

Nathan Adams
Warren P. Andrews

Fort :,WOrth

TWELFTH 7iISTRICT

Los Angeles
Salt Lake

Seattle

City

James J. Fagan
TENTH1

City, Mo.
Kan.

Pros.

Pres.

TPICT

V-P
V-R

-

Pres.

V-P
Pres.

Chrmn
Pres.

Chrmn
V-P

American Exchange Nat'l Rank
Bank

First National

First National Bank
Central National Bank
Laid & Tilton Bank
Board, Walker Pros.
First National Rank
Board, Old National Bank
Crocker National Bank

GOVERNOR MILLER, KANSAS CITY

J. W. Perry
Peter 7. Goebel

Pres.
Pres.

Commercial Trust Co.
Commercial National Bank

nenver National Bank

Omaha

F. H. lavis

Pr s.

nenver

J. C. Mitchell

Pr's.




Northwestern National Bank
First National Bank

GOVERNOR CALKINS, SAY FRANCISCO

D. W. l'wohy

Spokane
San Francisco

Kansas

-

Henry H. Robinson
P. M. Fitzgerald
Edward Cookingham
L. H. Farnsworth
M. A. Arnold

Oakland

Arkansas Joint Stock Land

V-P

GOVERNOR VAN ZANnT, DALLAS

ELEVENTH nISTRICT?-

Dallas

Reserve Bank Bldg.

GOVERNOR YOUNG, MINNEAPOLIS

E. W. necker
Cyrus P. Brown

St. Paul

Portland

Federal

P.M. Sackett
P. Brinkley Snowden

First National Bank

October 3, 1921.

Mr. Clay Hollister, President,
Old Va1,ir7nal Bank,

Grand Papi's, 7isconsin.
My r'ear Mr. Hollister:

Governor McDougal of the ''Illoago Federal Peserve rank he
sugrested your name to Governor 7trong of Vie rew York reloral Poserve
Bank for City Chairman in Grand Papids of the Fation-wide movement to
organize public support for the programme of Government economy and
efficiency, now being prodecuted by the WaVoral Budget Committe- of
The main purpose is to secure
which Governor-Strong is a )irector.

that solidarity of opinion and unity of action necessary to insure the
permanent sucoess of the National Budget System reoently inaugurated
under the direction of General nawes.

Other representative bankers throughout the country have
consented to cooperate in this civic undertaking, and some of them are
already at work. I am sure that mdth your ramiliarity with the National
needs an local conditions, and with your experience an-1 influence, you
can add great strength to the movement.

am Sending you under sear to cover some of the literature
and material employed by our chairmen In various cities which will more
.fUlly inform you of the activities of the committee and the methods
Your even experience will -suggest other methods best suited
employed.

to your city.

Governor McDougal may himself write you about the matter but

on the motion of Governor Strong, I extend to you an invitation from
our board of directors to join with us in this important undertaking.

Trusting that we may count on your enthusiastic cooperation,
ar,




Very truly yours,
Chairman.

APPENDIX

FIPST DTSTPICT

TmPss,

GO7TEPYriP

-

No answer from:
Bridgeport, Cambridge, Hartford.
Boston. Daniel C.Wing cannot serve but will consult Gov.Morss and try to secure
substitute.
New Haven. W. P. Curtis declines but will serve on committee.
Sprinrfield. H. A. Woodward declines and recommends either Henry H.Bowman, William
E. Gilbert or Geo.A.MCDonald.

THIED DTSTPTCT
No answer Prom:
Camden, Trenton,
Wilmington, Delaware.

Peading,

POT_TPTF DISTPTC42

Accepts:

GO7EPTTP NOPPTS.

-

Scranton, Philadelphia.
Otho Nowland declines and recommends Philip Burnett.

PTCEEP.

-

Toledo - 2.H.Cady accepts tentatively.

Have not heard from: Columbus, Dayton, Youngstown.
Akron - Harry Williams declines and recommends Cranell Morgan,
George W. Crouse or T. E. Smith.

FTFTH D7STETCT

F. M. Harphan,

GOVEPNOR SEAY.

Have not heard from: Baltimore, Norfolk, Washinrton.
Declines. Richmond - John M. Miller (N.B. Gov.Seay made alternative recommendations).
SIXTH 1ISTPTCT
Accepts.

GOVEPNr"E 17ELLBOHN

Eugene P. Black, Atlanta;

Tom O. Smith, Birmingham

Have not heard from: Nashville,

Declines: New Orleans, M.L.Poolm.
SE'r""H TILTrt)ToT

1O1)-EYCE McDOUCAL.

Accepts. Grand Papids, Clay H. Hollister.

Declines but wi1l serve on committee: Indianapolis, Evans Woollen.
Detroit - John 7. Staley declines and recommends Palph Stone.
Declines: Milraukee,Oliver C. Fuller.
EIGHTH 11STPTT,
Accepts: St.Louis,

- GOv71770P BIGGS.

J.Lionberger Davis.

Declines: Louisville, F.M. Sackett.



mennhis, P.Brinkly Snowden.

Appendix "C"

NINTH DISTPTCT

Declines: St.Paul,

-

-2-

GOVDPNOR YOUNG.

Cyrus P. Brawn.

No answer: Minneapolis,E.W.Decker (N.B. Has written

ITYTE DTSTPTCT

Gav.Strong).

GOI/DPNOP T7LL7P.

No answer: Kansas City, Kan., Peter M.Goebel; Omaha,F.H.Davis.

Declines; but has used literature an
Declines:

Denver,J.CasMitchell.

MINT= OISTPICT
A.

-

GO1T7RNOP VAN ZANDT.

No answers; Dallas, Fort Worth.
777LFTH 1TSTPTCT

A.

will help - Kansas City,Mo., J.W.Perry.

No answers (NOe not t4me).




- G(77,-PITR CALKINS.

JOHN T. P RATT

TELEPHONE WHITEHALL 2130

,2 BROADWAY
NEW YORK

November 7, 1921.

To The Directors of the National Budget Committee:
There will be a meeting ofthe Directors of the National
Budget Committee at the "Recess Club", 60 Broadway, New York, N. Y.,
on Monday, November 14th at 12:45 P.M.

As matters of importance will come up for discussion at this
meeting will you kindly make every effort to attend.




JOHN T. PRATT.

JOHN T. P RATT

TELEPHONE WHITEFiALL 2130

2 BROADWAY
NEW YORK

0
November 7, 1921.

To The Directors of the National Budget Committee:
There will be a meeting ofthe Directors of the National
Budget Committee at the "Recess Club", 60 Broadway, New York, B. Y.,
on Monday, November 14th at 12:45 P.M.

As matters of importance will come up for discussion at this
meeting will you kindly make every effort to attend.




JOHN T. PRATT.

"A:03s

6

cuk.13n0D

Arm!

'51




CLASS OF SEI1VICE SYMBOL
Telegram
Day Letter

Blue

Night Message

Nite

llt.t 1.,-Ater

WEIPTELlaN4 UNION

N

WESTERN UNIO

If none 'or 'these three symbols
appears after the check (number of
words) this is a telegram. Otherwiseits character is indicated by the
symbol appearing after the check.

TEL -;.,Trce AM

NEWCOMB CARLTON,

PRESIDENT

GEORGE W. E. ATKihiS, FIRST VICE-PRESIDENT

Telegram
Day Letter

Blue

Night Message

Nite

NL
Night Letter
If none of these three symbols
appears after the check (number of
words) this is a telegram. Other. I
wiseits character is indicated by the
symbol appearing after the check.

RECEIVED AT

192I NOIF 17

A3 9C 82 NL

2a

Am 5

SI CINCINNATI OHIO 16
HON BENJAMIN STRONG

8552

GOVERNOR FEDERAL RESERVE BANK OF NEWYORK 15 NASSAU ST NEWYORK NY
DR LINDSAY AND I INTERVIEWED MR CHARLES TAFT TODAY AND BELIEVE WE
CAN GET HIM INTERESTED IN THE COMMITTEE WORK "ERE IF im JACK ROWE
OF THE FIRST NATIONAL BANK WHO SAYS HE KNOWS ,YOU WILL TAKE UP THE
.TTER VIGOROUSLY WITH MR TAFT WILL YOU NOT WIRE MR ROTE URGING

HIM TO SE MR TAFT AND HIMSk? TAKE AN ACTIVE PART IN TiiE BUDGET
IN CINCINNATI WE HAD A FINE MEETING YESTERDAY IN PITTSBURG AND A
SpUINDID-MEETING HERE TODAY



JOHN T PRATT.

I

WORK




St_Gis41;!"
p-

Staffer
BUFFALO -450 Rooms, 450 Batfis

DETROIT -.t000Roosts.l000Batlis

CLEVELAND -.Woo Ruoms, l000 Bath's

NEW YORK Mite( iPennsyCVania

S,LOVIS

850 ROOMS. 650

November 16, 1921

Han, Benjamin Strong,
Federal Reserve Bank of N.Y.,
15 Nassau Street, New York.
-

Dear Ben:
,)(

Thank you for your bully telegram,
which I received this morning.

Things seem to be moving very
rapidly and we are having a most interesting
,




time.

There will be a lot of things that
Sam Lindsay will take up with the Committee
when he gets back on Monday - we both feel
that the trip is more than worth while.

The group in Indianapolis yesterday
I begin to realize where
was just fine.
Will got all his "pep" from, for, believe
me, when they once "get aboard" they swallow
the whole proposition, hook, line and sinker;
but I like the bunch immensely.
will drop you a line later.
Cordially yours,

P -C

?ate( WennsylVarcia, the reorCdi3 Cargest hot.", 22oo 1(ooms. 22oo Baths, is Staffer- operated
SINN.




r")

-

2,-,11f,

'

41;3

1,el*1.s
00

-

CP

%

I

A.

'




OWNED AND OPERATED BY

HOTEL RADISSON CO

SIMON KRUSE. P R

Alio MOR

Ii

TEL

ON

SEVENTH ST. NEAR NICOLLET AVENUE

EAPOLllS,

11

MN.
Iiki

November 22, 1921.

Hon, Benjamin Strong,
15 Naspan Street,
New York City,
Dear Ben:

We had a bully meeting here at
the West Hotel today, presided over by
J. A. Ellison, President of the Civic
and Commerce Association, under whose
auspices the meeting was held.
I met Mr, E, W. Decker of the
Northwestern National Bank, who is a
wonder, and who has accepted the chairmanship of the State of Minnesota, Mr,
James E. Neville, Assistant Cashier of
Mr. Decker's bank is going to be actually
The Civic and
charge of the work,
in
Commerce Association, through Mr, Decker's
secretary, will take care of the mailing
of the literature, which will consist of
a personal letter by Mr. Decker, copy of
the enclosed statement (which I think you
may not have seen) and a pledge card.
I think from what Mr. Neville told me
that the thing will go through very satisfactorily here in Minnesota,
Governor Young has been a perfect
He gave all his morning to me
and a large part of the afternoon, and I

corker.




OWNED AND OPERATED BY

HOMEL RADISSON CO.
SIMON KRUSE. PRE, qtip Moe.

HOTEL RADISSOP
SEVENTH ST. NEAR NICOLLET AVENUE

MINNEAPOLIS9

Mr, Strong,

am dining with him tonight.

-2-

I think it

would be awfully nice if you could find the
time to write both Mr. Decker

and the

Governor.

The thing seems to 'sell very well
and I think the groups I am leaving behind
me will follow through,

I find that Paul Warburg is very
well liked and known in the mid-section that
I am not touching this trip,
It would be
an awfully good thing for us if he could
meet some of the banking groups in Chicago,
Iowa, Kansas and Nebraska.
I think he could
get things under way.
I hope you and Russell have seen
Gavitte and that he has sized up all right.
We ought to get our publication under way as
soon as possible.
Yours very cordially,
k

atlp,
GAN,
ww,s

,.411.2

.

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AUP ifTw 4011TRP4.

4141141

I ;Princ T;

r1r,

NATIONAL iiLIOGET UOMMITTEE
JOHN T. PRATT, CHAIRMAN

To help insure the success of the National Budget

System and Promote Government Economy

Enroll Me in the BUDGET GUARD
CLASSES OF
MEMBERSHIP

Charter

Name
$100.00

Annual

$10.00

Average

$5.00

Address




a business propsition

EVER since the war days have business men been asked to assist in
any civic enterprise that has meant as much to the individual, as to

deserving of public support, but few of real, direct benefit to the individiaI
whose assistance was sought.
ttliOV90
Business men particularly have been importuned from every side io aid

City

various movements in which, at best, they had but little more than a
purely altruistic interest. There is a wise saying that charity begins at

State

Make Checks Payable to
NATIONAL BUDGET COMMITTEE, Inc.

1,-2ZSONAL
puBLic PROFIT

the enterprise itselfif not more.
Following rapidly in the trail of the Liberty Loans has come a
succession of appeals on behalf of this, that and the other thingall

AMOUNT

Contributing $25.00

SERVICE

AND

7

West 8th Street, NEW YORK CITY

home, and here is a proposition which illustrates the proverb.

alga

le

For the first time in our history, the Government of the United States
the greatest business enterprise in the landhas adopted modern business
methods in the Budget System.
Whether that system proves to be a success or a failure, depends absolutely upon the interest manifested in it by the partners in the business.
Unless the country's business men support the efforts of General Charles
G. Dawes, Director of the Budget and head of the business Deparf')ent
of the Government, the enemies of retrenchment and economy will nullify
the only concrete progress made in the system of Federal expenditures in a
hundred years.
Individually, business men can do little, but organized and co-operating

with thousands of other citizens who are their partners and as keenly
interested as themselves, they can wield a greater force than the organized
minority who for selfish reasons oppose business methods in Government.
As a business man, you can no more escape responsibility for making a
success of this application of business methods to Government affairs than




you can escape your share of the burden of taxation resulting from .unbusinesslike methods.

YcOaave your free choice. You can continue to shoulder the unbear-

able burden of taxation without lifting a finger to lessen the load, or you can
help to insure the success of the Budget System and the economy programme.
Which is the more profitable, to continue to pour your money down a
rath02, or to invest a small portion of it in profitable investment?

our enrollment in the Budget Guard will be such an inVestment

because it will swell the ranks of Economy's forces, defeat Efficiency's foes,
and help in creating a sound public opinion which will become an irresistible
force for the elimination of Government waste and the reduction of taxation.

As a business proposition, isn't that Good Business ? Turn, now, to
the back page and sign on dotted line.
NATIONAL BUDGET COMMITTEE
7 WEST EIGHTH STREET, NEW YORK CITY




NATIONAL
BUDGET
COMMITTEE

National Budget Committee

(I ncor pora ted , Washington, D. C., 1919)

DIRECTORS
JOHN T. PRAT I'
SAMUEL MCCUNE LINDSAY

HENRY L. STIMSON

.

WILLIAM M. CHADBOURNE

.
.

Chairman
Vice-Chairman
Treasurer
Secretary

OBJECTS
.

(t) To promote independent, non-partisan
and constructive inquiry concerning
the revenues and expenditures of

NICHOLAS MURRAY BUTLER

JOSEPH P. COTTON
RUSSELL C. LEFFINGWELL
ALTON B. PARKER

(z)

the National Government
To develop a Budget procedure and
other measures for visible and
responsible government

MANNY STRAUSS
BENJAMIN STRONG

WILLIAM HOWARD TAF1

PAUL M. WARBURG

STANLEY H. HOWE Director of Organization

11111Idli

gzeT 6 833

'Ala oral n IA

NATIONAL BUDGET COMMITTEE
340 Madison Ave., N Y City
Dated January 5, 1922

ve




denying ordinances covering the folloyv:-_; points :

Why Join the

The consideration by the House
and by the Senate, sitting as committees of the whole, of the entire financi()plan contained in the President's

National Budget Committee
first step in developing

yid

THE procedure was taken by
budget

budget and in the report of a single

the Congress of the United States in

Appropriations

the passage of the Budget Act of June,

1921, which provides the machinery
under which the President may have

been created by the House, but not

at the opening of the Session, the first
Monday in each December, accurate

estimates of the real needs of the
PURSUANT

to this

as

the

Such a

single Appropriations Committee has

prepared for his submission to Congress

national government,
revenues and expenditures.

Committee in

House and in the Senate.

both

to

yet by the Senate.
A rule by which the members of
both houses of Congress deny themselves the right to introduce any bills
calling for the appropriation of moneys

until the President's budget is acted
the first

Budget ever submitted to the Congress of the United States was sub-

mitted by the President on December
s, 1921. Under this Budget
estimated expenditures for the fiscal

year, July I, 1922 to July I,

1923,

were, in round figures, $3,505,000,000.

THE EXPENDITURE of the time and
money in the preparation of this first
centralized plan of governmental revenue and expenditures will have been

wasted unless the Budget is utilized
by Congress as the basis of its deliberations and votes, both as to revenue
measures and as to appropriation
bills.

THE ONLY WAY this ,can be brought

about is by Congress passing self-

Act,

upon and disposed of.
A rule by which the members of
the President's Cabinet may have the
opportunity of defending the estithe
mates contained, both as to revenue

and expenditure, in the President's
budget before the House and the
Senate.

IN ORDER to develop these changes

in the rules of procedure and to de-

velop measures for visible and respon-

sible government, the National Budget Committee is seeking to enlist the
support of every citi,zen in this country who is interested in the effective,
efficient and economical administration of governmental affairs.




NATIONAL
BUDGET
COMMITTEE
(Incorporated, Washington,

C.. it9i9)

OBJECTS
(I) To promote independent, non-partisan
and constructive inquiry concerning
the revenues and expenditures of

the National Government

(2)

To develop a Budget procedure and
other measures for visible and
responsible government

avg

01S111

itfintni

Id6T 6 814

1

'10 9 ti) n I 44

NATIONAL UDGET COMMITTEE
340 Madison Ave., N.Y. City
Dated

January 1, 19,

Why Join the
National Budget Committee
first step in developing s;id

THE procedure was taken by
budget

denying ordinances covering the follow,
points:
The consideration by the House
and by the Senate, sitting as committees of the whole, of the entire financi,_ plan contained in the President's

budget and in the report of a single

the Congress of the United States in
the passage of the Budget Act of June,
1921, which provides the machinery
under which the President may have

Appropriations Committee

prepared for his submission to Congress

yet by the Senate.
A rule by which the members of
both houses of Congress deny themselves the right to introduce any bills
calling for the appropriation of moneys

at the opening of the Session, the first
Monday in each December, accurate

estimates of the real needs of the

national government, both as to
revenues and expenditures.
PURSUANT to this Act, the first

Budget ever submitted to the Congress of the United States was submitted by the President on December
5, 1921. Under this Budget the
estimated expenditures for the fiscal

year, July I, 1922 to July

1,

1923,

House and in the Senate.

in

the

Such a

single Appropriations Committee has

been created by the House, but not

until the President's budget is acted

upon and disposed of.
A rule by which the members of

the President's Cabinet mahave the
opportunity of defending 'the estimates contained, both as to revenue
and expenditure, in the President's
budget before the House and the

were, in round figures, $3,5o5,000,000.

Senate.

THE EXPENDITURE of the time and

IN ORDER to develop these changes

money in the preparation of this first
centralized plan of governmental revenue and expenditures will have been
wasted unless the Budget is utilized
by Congress as the basis of its deliberations and votes, both as to revenue
measures and as to appropriation
THE ONLY WAY this .can be brought

about is by Congress passing self-




in the rules of procedure and to develop measures for visible and respon-

sible government, the National Budget Committee is seeking to enlist the
support of every citizen in this country who is interested in the effective,
efficient and economical administration of governmental affairs.




National Budget Committee
DI RECTORS
Chairman

JOHN T. PRATT
SAMUEL MCCUN E

Li NDSA 1'

HENRY L. STimsoN

.

.

.

Vice-Chairman
Treasurer

WILLIAM M. CHADBOURNE

.

Secretary

NICHOLAS MURRAY BUTLER

JOSEPH P. COTTON
RUSSELL C. LEFFINGWEL

ALTON B. PARKER
MAN N Y STRAUSS

BENJAMIN STRONG

WILLIAM HOWARD TAFT

PAUL M. WARBURG

STANLEY H. HOWE

Director of Organization

REMINDER NOTICE
To Members of the National Budget Committee:
Our annual dinner for 1922 will be held at the Hotel Astor on Friday evening, April
28th. Congressman Martin B. Madden, Chairman of the Committee on Appropriations,
"Ad Nicholas Murray Butler, President of Columbia University, will be the principal speakers.
."-1 he general topic will be "Taxation and the Executive Budget." Our state Chairmen from New Jersey, Pennsylvania, Rhode Island, Virginia, Missouri, and some other states will be present, as well as many of our city chairmen. We are
anxious to make the New York representation as large as possible.
Congressman Madden will have a real message for the members of the National Budget Committee. Let us have as strong a New York representation as possible.
Fill out the enclosed card and mail it today.




JOHN T. PRATT
Chairman




National Budget Committee
340 Madison Avenue
New York City

41)

Date

I HAVE the honor to inform you that
upon the nomination of
you have been duly elected an Associate
Member of the NATIONAL BUDGET COM-

MITTEE by the Board of Directors.

Upon receipt of the enclosed acceptance of this election, together with your
first year's annual dues, your membership certificate- Will be issued.

,A4,1

g

.4114;491,--

I.

NATIONAL BUDGET COMMITTEE
WASHINGTON. D. C.NEW YORK CITY

I am pleased to accept the nomination by the State
Chairman, and the election by the Board of Directors of the National Budget Committee, as an asso-

ciate member for my Congressional District.
ASSES
'MEMBERSHIP

=..sa
Charter

Name

$100.00

Contributing $25.00
Annual
Annual
Average
Annual
Minimum

fr.

AMOUNT

r-

LNJ

Address

$10.00
City

$5.00
$2.00

State

sr,-4

Congr. Dist.

Acceptance should be acc,mpanied by check and mailed to NATIONAL BUDGET COMMITTEE,




340 Madison Avenue, NEW YORK CITY

Is

POSTAL TELEGRAPH - COMMERCIAL CABLES
RECEIVED AT
EVANS BUILDING
141F -'7.W YORK AVENUE

WAL

TEL:.

NGTON, D. C.
IONE: MAIN 6800

CLARENCE H MACKAY, PRESIDENT.

TELEGRAM

DELIVERY NO.

This Ls a fast 7- sgram uniessotherwise indicated by signal after the number of words:--.Illue"(Day Letter)... N .L." (Night Letter)or. Nile" (Night Telegram)
STANDARD TIME INDICATED ON THIS MESSAGE.i

90cbhw 34 235p
cb ffewyork May

3

1922.

TTon Benj Strong

1709 H St, Washn DC
Would you be willing to wire governor Morse of Federal

Deserve bank Boston to help

as city chairman for Boston
see you next week.




Iohn T Pratt

us get former governor Aiken
Hope you can do this

16-64993

May 15, 1922.

Mr. George Beyer,
Federal Reserve Bank of New York,
15 Nassau Street,
New York City.
Dear Mr. Beyer:

Thank you very much for your letter
of May 16th, sending me lettei from Governor Morss

to Governor Strong, which/I am returning.
if

YouA very truly,
/-

PC




Vciu Allaz

InTvairMID

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4-11CYr

GIINmuALUMEARILIES G.
9

INiR

:213EFI3AM-77

RA?

IFILZIIIDAVY lEvNHN(D cl:Dualmia aa

vmar co.stpacim
ENT'

1,WAILIDID1tav,..-A7ramirA IFITTYTmx,
Wm. M. CHADBOURNE, CHAIRMAN
A. PARKER NEVIN, TREASURER
SAM A. LEWISOHN, VICE-CHAIRMAN
GENERAL DANIEL APPLETON, VICE-CHAIRMAN
MANNY STRAUSS, VICE-CHAIRMAN
STANLEY H. HOWE. VICE-CHAIRMAN
GEORGE T. WILSON, VICE-CHAIRMAN.

co.mukTmnAs..m. cut)DruxuanrIEN
W. I. LINCOLN ADAMS
ANGELL H. BALL
W. J. L. BANHAM

J. CLARENCE DAVIES
LAWRENCE B. ELLIMAN
D. G. EVANS

NICHOLAS MURRAY BUTLER
GEORGE A. C. CHR1STIANCY
A. KEENEY CLARKE

BENJAMIN Fox

H. B. Cook

HENRY FLETCHER
SAMUEL MCCUNE LINDSAY
GOODHUE LIVINGSTON
JOHN H. LOVE

NELSON MACY
HERBERT S. MARTIN
R. C. LEFFINGWELL
DR. ARTHUR H. MERRITT
JOHN T. PRATT
W. E. PUSLIFER
JOHN A. RITCHIE
S. L. R07"HAFEL

R.S.V.P.
Wm. NI. CHAOBOURNE.CHAIRMAN DINNER COMMITTEE. 340 MADISON AVENUE. NEW YORK




CHARLES A. SHERMAN
A. S. SOMERS
H. BOARDMAN SPALDING
BENJAMIN STRONG
CHARLES THADDEUS TERRY
E. TWYEFFORT
PAUL M. WARBURG

I-1 N T. PRATT

TELEPHONE WHITEHALL 2130

52 BROADWAY
NEW YORK




November 22, 1922.

,ienjamin Strong, Esq.,
15 Nassau Street,
New York City.

Dear Ben:

Will you lunch with me at the Down Town Association
On Wednesday, November 29th, at 1:00 P.M., to meet with several

of the Directors of the National Budget Committee, for the purpose
of acting on the plan of reorganization of tne Committee prepared
by

ir. Chadbourne?

Your presence is absolutely indispensable

if we are to have a quorum and as this matter must be settled
without delay, may I count on your being there?
the meeting a. short one.

Cordially yours,

-

PC

We will make

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Cy0 N T. P R ATT

TELEPHONE WHlTEHA4.jI3

2 BROADWAY
NEW YORK

December 21, 1922.
Hon. Benjamin Strong,
15 Nassau Street,
New York City.
Dear Ben:

I counted you present at the meeting of the Trustees of the
National Budget Committee today, although decision on all of the questions
discussed was naturally left for your approval.

We voted to approve the statement of the Principles and Purposes
of the National Budget Committee, copies of which are enclosed.
We elected as Directors the following men;

g. A. Arnold, Seattle, Washington
John P. Burke, Los Angeles, Calif.
Nicholas Murray Butler, N. Y. City
William M. Chadbourne,
Charles G. Dawes, Chicago, Illinois
Walter S. Dickey, Kansas City, Mo.
A. B. Farquhar, York, Pennsylvania
F. H. Fries, Winston-Salem, N. C.
Col. Edward M. House, N. Y. City
The present Trustees are;

Mrs. Francis L. Higginson, Boston, Mass.
Col. LeRoy Hodges, Richmond, Virginia
Frank 0. Lowden, Illinois
N. Y. City
George W. Norris, Philadelphia, Pa.
Albert L. Ordean, Duluth, Minnesota
Arthur N. Pierson, Westfield, N. J.
Henry L. Stimson, New York City
Frederick S. Whitwell, Boston, Mass.

John W. Davis
R. C. Leffingwell
Samuel McCune Lindsay
John T. Pratt
Benjamin Strong
Paul M. Warburg
The names of
I wanted to elect another Trustee, preferably a Democrat.
George Gordon Battle, William Church Osborn and Martin Vogel were suggested,
and if you can agree on one of them - or some other Democrat - I would like
to elect him as the seventh Trustee.

Certain formal changes in the By-Laws were approved, made necessary
by the fact of. our changing the controlling body from the Directors to the
Trustees.
Dr. Lindsay was appointed a Committee of One to consider the
proposition of endeavoring to interest officials of banks and industrial and
business organizations to subscribe to fifty or one hundred copies of the
Budget magazine for members of their forces, and to fix the price of the
It was thought that this might be possible in view of the
magazine.
experience Mr. Chadbourne and Dr. Lindsay have had in like matters.




a

Hon. Benjamin Strong,

-2-

12-21-1922.

DEC 26
-

A 922

4Stinfricr,,
In regard to the question of creating public opinion in favor
of the resolution enclosed, it was suggested that we make contacts in
Washington which would give us accurate information as to bills contrary
to the spirit of the resolution, which were apt to become dangerous, that
we then have interviewed some prominent man in business on that particular
bill, getting from him a statement based upon the analysis of the bill
which we would furnish him, which statement we would print in our Budget
magazine, sending out the article to the newspapers in advance of its
publication in our magazine, with the expectation that it would be carried
by a good many of the papers.
Will you please let me have your reaction to these various
matters, which were discussed, and your suggestion as to the seventh
Trustee?
Yours very truly,

0_
P-c

Enclosures.




.

Or/
DE0

CI

141/VP.

(3
PURPOSES OF THE NATIONAL BUDGET COMMITTEE/929

/

cZ7tr
To promote independent, non-partisan, and constructive inquiry
concerning the revenue and expenditures of the United States Government.
To maintain the integrity of the National Budget System as
established under the Budget and Accounting Act of 1921.
To support such improvements in the National Budget System as
experience and changing conditions may make desirable.
To direct public attention to business and financial conditions

in the United States, with particular reference to their influence upon the
fiscal policies of the National Government.

To advocate the institution of efficient business methods throughout the administrative departments and independent establishments of the
Government in the interest of economy.

To disseminate information concerning legislative proposals which
affect the cost of government in the United States.




To encourage the study of public finance.

Whereas, it is the purpose of the National Budget Committee to
maintain the integrity of the National Budget System as established under
the Budget and

ccounting Act of 1921, and

Whereas, it is the purpose of the National Budget Committee to direct
public attention to business and financial conditions in the United States,

with particular reference to their influence upon the fiscal policies of
the National Government, and

Whereas, it is the purpose of the National Budget Committee to
disseminate information concerning legislative proposals which affect the
Cost of government in the United States, and
Whereas

there are now pending before the Congress of the United

States, a number of legislative proposal S involving large expenditure of

the public money, Now, Therefore, be it

Resolved, by the Trustees of the National Budget Committee that in
view of the present financial conditions in the world there is a strong
presumption against the undertaking, by the United States Government, of
any new enterprise involving the expenditure of money, which is not
provided for in the Annual Budget.




grofeHN T. PRATT

TELEPHONE WHITEHALL 2130

52 BROADWAY
NEW YORK




January 15, 1923.

"Now
Hon. Benjamin Strong,
15 Nassau Street,
New York City.
Dear Sir:

Yours of January 13th to Mr. Pratt, with
enclosures from Col. Le Roy Hodges, Director of the
Budget in Virginia, is received during Mr. Pratt's
absence trim town.

He will receive the same on

his return, the first of next week.
Yours very truly,

Secretary.

WdC-J

duty and to call upon them to organize so that candidates for Congress in

the coming election may have no

misunderstanding of their demands.
Briefly, the purpose of this movement
is:

FIRST: To bring the people to
realize the vital necessity of the
strictest economy in the conduct of

GovernmentNational, State and
Municipal. This economy to be
made possible by a rigid adherence

to the budget system of expenditure and accounting, by the postponing of all legislation involving
money until the condition of the
treasury will permit increased expenditure and by the agreement of
constituents not to press upon their

representatives measures, involving money, for relief from the ills

Program
for the

National Budget
Committee
DI RECTORS

JOHN T. PRATT
CHAIRMAN

-

SAMUEL MCCUNE LINDSAY
VICE-CHAIRMAN

M. A. ARNOLD. SEATTLE, WASH.

which at any given time may

JOHN P. BURKE. LOS ANGELES. CAL.

afflict one class or another of
society.

WM. M. CHADBOURNE. N. Y. CITY

SECOND: To organize the
leaders of every community possible

into Budget Guards, so that, as

NICHOLAS MURRAY BUTLER. N. y. CITY
WALTER S. DICKEY, KANSAS CITY. mo.
A. B. FARQUHAR, YORK. PA.

MRS. FRANCIS L. HIGGINSON, BOSTON
COL. LEROY HODGES, RICHMOND. VA.

R. C. LEFFINGWELL, N. V. CITY

members of the National Budget
Committee, they will become a
force for economy that cannot be

ALBERT L. ORDEAN. DULUTH. MINN.

disregarded.

MANNY STRAUSS, N. Y. CITY

ALTON B. PARKER. N. Y. CITY
ARTHUR N. PiERSON, WESTFIELD. N. J.

HENRY L. STIMSON, N. Y. CITY
BENJAMIN STRONG. N. Y. CITY

THIRD: To have these leaders
and those under their influence present to all candidates for Congress
in the coming campaign a question-

PAUL M. WARBURG, N. Y. CITY

STANLEY H. HOWE
DIRECTOR OF ORGANIZATION

naire as to their position on economy and no further taxation. Such

placing of them on record will

leave no doubt of the wishes of the

National Budget Committee

constituents and will have a most

340 Madison Avenue
New York

beneficial effect upon legislation.




until we can afford it and must not
increase our taxes.

Senator Borah warned the Senate,
on July 6th, "Not a single one of the
measures upon the program which is

Program
for the

NATIONAL BUDGET
COMMITTEE

now before us but draws upon the
people for an additional sum and
weighs upon them in the form of
additional taxation and increases the

obligations of the Government not
only by millions but by billions of
dollars."

HARDING stated

at the recent
pRESIDENT meeting of the
Business Organization of the
Government in Washington that there
was an unprovided-for deficit for the
present fiscal year estimated at $697,-

If Great Britain fails to
pay the interest due the United
000,000.

States on war loans this deficit will
approximate $900,000,000.

"I will not send to Congress," said
the President to the chief officials of
the Government, "estimates exceeding the probable receipts of the
, Government

and I must warn you
that unless you use your pruning

knives, the Executive will be compelled to cut deeply the estimates
presented. Our country is one of the
few in the world which is now paying

its way as it goes and I must regard
with disfavor any tendency to interfere with this condition or to increase
taxes."

The people must get behind the
President and must insist that Congress stop the spending of more money




"It is evident," he added, "that
the burdens which governments continue to impose upon the people are
becoming intolerable. The most pro-

lific source of misery and crime is
oppressive taxation and when you
stop to think of the load now carried
by the masses we cannot be surprised
at the disorder and lawlessness everywhere prevailing. In some countries
it seems to be believed that this discontent and hunger can be relieved by
repression and executions. In other
countries, particularly our own, the
belief seems to prevail that the
remedy is in still greater appropriations, increased national obligations
and, necessarily, higher taxes.
"There are measures enough before
the Congress and, lately, in State legis-

latures to bankrupt this, the richest
Nation on the globe."

The National Budget Committee,
in full understanding that the remedy
lies entirely in the hands of the voters,

is preparing to arouse the people of
this country to a keen sense of their

H N T. PRATT

TELEPHONE WHITEHALL 2130

5, BROADWAY
NEW YORK

March 8, 1923.

Hon. Benjamin Strolag,
15 NassauStireet,
New pork City.

Dear Ben:

In talking kith Miller and Jones at the Budget office the
day before yesterday about the Budget Committee, Miller showed me a
letter from our WashinAton correspondent, Mr. Helm, dated March 3rd.
"--------""*

I am enclosing a Copy dthat portion of the letter which covers the
matter of the Comptrollen,General, about which we spoke.
The question is

s4

take any stand editorially
General's office.

to whether the Budget Committee ought to

4 regard to the operations of the Comptroller

While i believe any airing of the facts would not be

to General Lord's liking, there\can be no doubt, I believe, of the fact
that the office under Mr. McCarl\is not functioning properly.

I am sending a copy of

tag

extract to Messrs. Davis, Leffingwell,

k

Lindsay and Warburg, with the req4st that they let me know what they
think, as a matter of policy, our
let me know your attitude.

uty should be.

1
Sincerely yours,

P-C

Enclosure.




47-

I hope you will

EXTRACT FROM dile. 4ELeils LETTER OF eARCB 3, 192Z

"In one of your letters last month you wrote about the
I don't
desirability of having A piece on the Comptroller General.
know the policy of the comedttee in that respect, but things are
getting to the point down here where if we don't pring a piece within
The Comptroller
the next fa* months, we are going
General simply isn't there, as I found out and. wrote you early in the
game.
I understand that he has even neglected to obey the law
requiring him to submit certain reports to Congress. There is a
mess of rottenness - or,
dishonest, I am convinced - to be uncovered in his office and Lord is

to be beat on it.

rather, inefficiency, for there is nothing

trying to sit on the lid to the extent of smoothing things over, at
least.

the fact that

cCarl and
"Almost all the trouble is due to
his fathead assistant Ginn are unfitted by training, experience and
Further, they havelnt enough brains.
temperament for their jobs.
I know positively that they are slowing down the budget machinery

through their failure to furnish data that the budget bureau needs
to function most efficiently. It is a question, it seems to me, of
policy - whether we want to crack the story or not. if you want it,
the Lord knows it's there and I have a 'ide-open pipe line into the
whole mess and can write the story. I do not think Lord will specially
like it, but that needInt matter; it might be well to let the General
I think
see that the NBC is an independent orgenizetion, anyhow.
sometimes that he is

inclined to regard us as a "praise" agency to take for granted that it is our function to pay nice things about
He is always as nice and courteous to me as he can be, and I can
him.

have the works of his watch if I want it, but just the

se I sort of

sense his attitude that we simply give him good publicity.

If we came

out with a bang-up criticism and expose of his twin collaborator it
might be salutary in his case."




NATIONAL i3ITIF"T
340 MAAION A
NEW YORK CITY

kfri ITT E E

gt

TELEPHO4CZ114413

,FFICERS

DIRECTORS

JOHN 1. PRATT, CHAIRMAN
SAMUEL MCCUNE LINDSAY, VICE-CHAIRMAN
HENRY L. STINSON. TREASURER
WM. M. CHADBOURNE, SECRETARY

?RURAL RESERVE BANA
NEw Yen

TRUSTEES
JOHN W. DAVIS
R. C. LEFFINGWELL
SAMUEL MCCUNE LINDSAY
JOHN T. PRATT
BENJAMIN STRONG
PAUL M. WARBURG




March 10, 1923.

M. A. ARNOLD. SEATTLE,WASH.
JOHN P. BURKE, Los ANGELES. CAL
NICHOLAS MURRAY BUTLER. N. Y. CITY
WILLIAM M. CHADBOURNE. N. Y. CITY
CHARLES G. DAWES, CHICAGO, ILL.
WALTER S. DICKEY. KANSAS CITY. MO.
A. B. FARQUHAR. YORK, PA.
H. FRIES. WINSTON-SALEM, N. C.
MRS. FRANCIS L HIGGINS°, BOSTON. MASS,
LEROY HODGES. RICHMOND. VA.
FRANK 0. LOWDEN. OREGON, ILL.
W. NORRIS. PHILADELPHIA, PA.
ALBERT L. ORDEAN, DULUTH, MINN.
ARTHUR N. PIERSON. WESTFIELD, N. J.
HENRY L. STINSON, N. Y. CITY
FREDERICK S. WHITWELL. BOSTON. MASS

Mr. $enjamin Strong,
15 Nassau St.,
New York City.
Dear Sir:

Application has been filed with the Treasury Department at Washington for the exemption from income
tax of all contributions to the National Budget Committee.
We have been hoping for a favorable decision and still have
reason to believe that one will be rendered in the near
future.

Mr. William M. Chadbourne, our Secretary
and Counsel, advises us that such contributions should be
tested for exemption.
Yours very truly,

NATIONAL BUDGET COMMITTEE

NATIONAL BUDGET COMMITTEE
340 MADISON AVENUE
NEW YORK CITY
TELEPHONE VANDERBILT 1713

TRUSTEES

NEW YORK CITY COMMITTEE
SAM A. LEwisoHN,

JOHN W. DAVIS

R. C.

LEFFINGWELL

CHAIRMAN

SAMUEL MCCUNE LINDSAY
JOHN T. PRATT

ACA(NOWIJF1141131)

BENJAMIN STRONG
PAUL M. WARBURG

JAN - 2 1c194
OFFICERS

December 31, 1923

JOHN T. PRATT. CHAIRMAN
SAMUEL MCCUNE LINDSAY, VICE-CHAIRMAN
HENRY L. STIMSON, TREASURER
WM. M. CHADBOURNE. SECRETARY

DIRECTORS
M. A. ARNOLD,

SEATTLE. WASH.

Governor Benjamin Strong
Federal Reserve Bank
15 Nassau Street
New York City

JOHN P. BURKE.
LOS ANGELES, CAL.
NICHOLAS MURRAY BUTLER.

N. Y. CITY

,,ely

dear Governor Strong:

WILLIAM M. CHADBOURNE,

N. Y. CITY

CHARLES G. DAWES.
CHICAGO, ILL.
WALTER S. DICKEY,
KANSAS CITY, Mo.
A. B. FARQUHAR,
YORK, PA.
H. FRIES,
WINSTON-SALEM, N. C.
LEROY HODGES,
RICHMOND, VA.

FRANK 0. LOWDEN,
OREGON. ILL.
W. NORRIS,
PHILADELPHIA. PA.
ALBERT L. ORDEAN,
DULUTH, MINN.
ANDREW J. PETERS,
BOSTON, MASS.
ARTHUR N. PIERSON,

WESTFIELD, N. J.

HENRY L. STIMSON.

N. Y. CITY

FREDERICK S. WHITWELL,
BOSTON, MASS.




I am planning to have General Lord, Director of the Bureau of the Budget, at a luncheon
on January 30th at one of the downtown clubs, and I
am particularly anxious to be assured of yo-yr presence as my guest upon that occasion.
I at first contemplated a dinner along
the lines of that givp to General Dawes but reflection has oonvinced me that it will be much more effedtive to have him in closer contact with representative
New Yorkers than would be possible at a dinner.
General Lord has set aside January T)th
and 31st and I am most anxious to learn at this time
if we can count upon your being with us.
May I hope that you will accept for the
30th, with the proviso that should it become necessary a little later the date will be changed to the
31st?

Sincerely yours,

42e,-.7:1"7"
Chairman

-

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4TOKTOCKWYA
TELEPHONE WHITEHALL 2130

,PHN T. pRATT
52 BROADWAY

MAYA/1,44Am

NEW YORK

teoruLr"

To the Trustees.
AhtioutI 3o4got Coomittte.
Gettivatas

4r. Jhoes /Ati 1bed e long /Aaron/ace vitt Wt. Otto T. gellery,

cof i14104044144 this aornisig, 4xr. hailiery reireseht4 certwis austosoring
soolotiog watch 140 interested in ussin4 a Devartmoat of iloolte Oorge

ers4te4 la the Fs:,erel govorheont.

*Ililry i$ to krossot thee* geuerel iro,ositiose to his

ooiiistertot; friends)

(I) Tett tut teadinore 4.4ty us 4600 a sonth for ti4 mat for mouth*,
to got out la4ts 4a1 iiil.e.tos to the ik,weieoers (s14114r to tile work the
Coo4i.tteo i* oos doiht for tno jaint Sfoidal CosAittto or the StrehmAt
Aosoolttion .uadtt Cheat/or of Oosowroo), aavorlog #artioultrly tbat kart
of the irogres of tho Cosuittse bovtog.to do with toe ..Nevessity of ro-

arganitetiou - etressia taw Arbil* to64 Dsprttont 407, otsioxily.

(t) To suggest tLe jp/osibtlity of LAsiog Leo engisocrs oo our kwartt

.or Trustees.

Ts suggest Vivo roveiSiitty of 44sing a est. StlestU by tte
sudisears,
u tri,ktOreughout cort4io'iorti4o* uf tto country, tit tho
.01at saiants of the ComAittov Nol. the 604/leers, with Us 14ot or
istorestiag keukie to the wort of t40 644tOt CosAttso,), cad of ttle ongitleena
jointly, euti also ix get sisabere ror the Budiet Coimaittes, os well am to*
rutee t4siv% %Oriat l'or the entasores fuud.
'!'j 44NW ths eogirmerser5,-ro 40 ertielo for the almt .1.0441 of L'e

waudgstA, ooverleglerticulerly the TOWIOLIVO of tho ?labile %Gets DeiArtweat.

gr. Mallory eial er*44oly ba able to
eithin the owxt ssot .i4 tee ntysi

bArt

tflo sttove Stig4,414t1240

ondsowored, gepAr*ily sow/thing, to aot4110000 0140 Lit
w000rd 'Pith lane ou'the Wen. of tS0 velue *f Li eogineors 4.ad ourselves
tosttitg together. I told hits th.mt I 1140 nuito sure oothIng to the reorv,nipation limo voul4 bo brought *bout to t4th1oc,ton io ttlo Isterate of
etay 440 0014, 104 Aut. ustil this satire kits of roormanistion *kis roqdy
submiseion.
I tleo convinced aim, I b-oqiess, of the veloo of th* *ark
ve hors bekla loiog, cod 1.4Ut so ficr tAt the olltie41 or goverastital
ootivittoe of t4t to4inotrs were cotes:mod, I.thouzht they would be rartnorn1
4oro rtAdiy opd ereetiven by ow4lug into our orgehiecties thea by et-sqlmg
Q4 '.40 ol.0.414*.

It sus so4gssts4 ttitt ,o)26Ib1y ** slabt h4lt9 to :Auto tilts to
of our arstnizttiun ta so64 oats eittil$r to ,Sink4aity is Goverrasat
CosuiWveRs
This iutstion is ant ttion mill ,rbb,,bly be 6c4,10.i if r.
11.4isryls uosouiaufs ,:eoldo to foil4A dkit
cbovo ",;rea,
ca,,ra;

of te 00xt f4,4rr five sontss.




4110,-00

should Like tv, 2.4;mml of the Trustees tu tto soglestious
I neds to Zr..1 141-iery, ftir I very sintoroly believe tht the engineers
soolei bring tu the Comtoo A greet 4o4.1 a strength. InalsA,Ja.
the
Etokertspent, if ere4ted, sou140,zire

sof other Doii4rtt

in fuonin4ton, twee dirset neatest, *it,h every other Dmi- rtaent aud
indeindent oritizik4tiou la the Government, the eagius*rs to t 4vuo;p
should be &bre intertAted in the generti iogras of the au,n8ot Comm,itttio
for efficiency, vouagal und businest atioistrutinn in the Govermi,4tnt ti,4n
t,ny other grouk uf oltitess.




tours very truly,

A-o-ach~
May 12, 1924.
Hon- Benjamin Strong,
15 Nassau Street,
New York City.
Dear Ben:

I think it is very important to have
a meeting of the Trustees of the National Budget
Comaittee, and I therefore hope that you can
attend a meeting which I have called at the
Recess Club on next Wednesday, May 21st, at
one o'clock.
Yours very cordially,.,

-

P-C



TELEPHONE WHITEHALL 2130

ed"440 H N T. PRATT
52 BROADWAY
NEW YORK

October 21, 1924.

To Messrs. John W. Davis,
Russell C. Leffingwell,
McCune Lindsay,
/Samuel
Benjamin Strong,
Paul M. Warburg,
Trustees of the National Budget Committee.

Dear Sir:

A siiecial meeting of the Trustees of the National Budget

Committee will be held at the Recess Club on Wednesday, October 29th,
at 1:00 P. M.

Wili you not try to make every effort to be iresent at
that time ?




Yours very truly,

JOhA

T.

PRATT,

Chairman.

2.02k
k0C7-




_

AL.WA.inDUistENATItiAAL brume cammIT/Es

e oppareut to the Chair

that unless the

Executives, the Amorietn asoSers AseocifAion or the 1.; nufacturers

Aoeociation, or earso other large group becomes interested in the fight
wnich the 4t,tlone1 Buddot Committee and the i.ovar Taxes - Lees
,

LO4kie are itugig, it would oo unwise to continuo our efforts sftor the

first of thtl yesr.
*ale the oukport of the 4isahers of the Naticiaal Sudget
Comaittee, so 1Nr. 40 the pays,ent of their dues is concerned, is

escourt4ing, sod veil it. C. A. Dyer, ?readout of

the ,OWelt Taxes 410.

Less Lftisiatioh, reports that he hes 00-40 tvouty-sight Congrenon
motscra of the Leigue -unU

sowowh4t

eocus reek re from the

fara organisetiona c,nd other groups with wtosi te

in Gorr's-

,ondocce, it is unwise to continuo our or U4106$ we can got 60Mb
strong TO13,4, to timok us in our fight.
The Chsirmun has boez4. making strenuous effort

to enlist the

support of 1.41.0 fisilw.4 Executives snd LuAmeriosa Sunicers Assoeia.tion,

but uk to ote has not been successful.

It ie netesstry, therefore,

to bring the whoi- ,4sestion of the coatinuntion of the work up for
considerhtion t the mooting csilo4 for Fiednesday, Ootoher 22th.

John T. iTstt.
Ccto3er El, 1g24.




OH N T. PRATT

TELEPHONE WHITEHALL 2130

52 BROADWAY
NEW YORK

3




:cLoCer 2d, 1g24.

To tha Trurtiee ot the
dg

Dux St.!.-at

A secIll sectin4; ce the Trusts 1 of the Notional

Ludftt 1c,awittee *III
kovel.-41. 11-,

bla

tieij44 CIO aa qandi44

It

/111 yea not m4ke every e:ft,5rt to be .irseat
LL t .Leeting, 1.r.d viciee
to

0:toter zir urot y

iiU. be a111e

titui1 t
Yvvr

very truly,

Jalt I. aim.,

Cir
P. S. The meeting of the Trustees c.adled for tcAorrow,
Wedusday, October Uth,

to IT4eure a full ettendunce.

bton koeti.onad to kondel,

TELEPHONE WHITEHALL 2130

'DHN T. PRATT
52 BROADWAY
NEW YORK




November 10, 1924.

Hon. Benjamin Strong,
33 Liberty Street,
New York City.

11

11-2'N-4

Dear Ben:

Mr. C. A. Dyer, of Columbus, Ohio, President
of the Lower Taxes - Less Legislation League, writes me that
he will be in Atlantic City for a meeting of a group of
manufacturers and agriculturists the latter part of this
month and that he can arrange, on his way to Atlantic City,
to be in New York on the night of Aovember 20th.
I would like very much to have an informal

dinner at my house, #7 East 61st Street, at seven thirty
that night, of the Trustees of the National budget Committee
with Mr. Dyer, for I think what

he has

to say would be of

very great interest in finding some light as to what we
ought to do with the Budget Committee.
I hope you can be with us.
Yours very cordially,

(77.'
C-7":"

,,

MEMORANDUM FOR THE TRUSTEES
of the

NOV 22 L24

NATIONAL BUDGET COMMITTEE

At a conference held last night at which Mr. Strong and
Mr. Leffingwell were present with the Chairman, the opinion (with
which, I believe, generally, Mr. Stimson and Mr. Chadbourne agree)

was that the wise thing for the Committee to do was to maintain a
skeleton organization, give up the publication of its magazine and
keep its ,membership in a condition where it could be appealed to

in the event of any attack being made upon the integrity of the
Budget System.

Mr. C. A. Dyer of the Lower Taxes - Less Legislation League,
was also present and in the opinion of Messrs. Strong and Leffingwell,
while they were very sympathetic and heartily approved of what Mr.
Dyer is doing, they felt that some other organization than the

National Budget Committee should be created or utilized for such
propaganda or publicity as Mr. Dyer's League may desire.
If you are in accord with the above recommendations, I

should be pleased to have your consent thereto in writing, which
will, I believe, if agreed to, be sufficient justification for our
carrying out the above program.

JOHN T. PRATT,
Chairman.

November 21, 1924.




MEMORANDUM FOR THE TRUSTEES
of the

NOV 22 L24

NATIONAL BUDGET COMMITTEE

At a conference held last night at which Mr. Strong and
Mr. Leffingweli were present with the Chairman, the opinion (with
which, I believe, generally, Mr. Stimson and Mr. Chadbourne agree)

was that the wise thing for the Committee to do was to maintain a
skeleton organization, give up
keep

its ,membership

the publication of

in a condition where

it

its magazine and

could be appealed to

in the event of any attack being made upon the integrity of the
Budget System.

Ir. C. A. Dyer of the Lower Taxes - Less Legislation League,
was also present and in the opinion of Messrs. Strong and Leffingwell,
while they were very sympathetic and heartily approved of what Mr.
Dyer is doing, they felt that some other organization than the
National Budget Committee should

be

created or utilized for such

propaganda or publicity as Mr. Dyer's League may desire.
If you are in accord with the above recommendations, I

should be pleased to have your consent thereto in writing, which
will, I believe, if agreed to, be sufficient justification for our
carrying out the above program.

JOHN T. PRATT,
Chairman.

November 21, 1924.







52 49J-war/if/ay
,6:2101-4

No

1924
dr1 21P ,

Hon. Benjamin Strong,
33 Liberty Street,
New York City.

.t.71

erl.;*

Dear Ben:
NOV 2.21:44

The enclosed speaks for itself.
I should be very glad some time in the next

month or two to accept your formal resignation and get you into the place of really
enjoying your life, without so much darned
criticism.

Yours very cordially,
V-47.-:=X174,7.

ACK MO
P-C
Enclosure.

ED(JED

NKT4 2,1 1924
.14

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Nov
Benjamin Strong, Esq.,
33 Liberty Street,
New York City.

5, 1924

AO 26 1924

Dear Ben:

Many thanks for your letters of
November 24th and I will act on your
resignation, I hope, before the first of
the year.
You are the fellow who put me
into the job and the fun and pleasure I
have had out of it has been due almost
entirely to the wonderful support you and
the other Trustees have given to the movement.
I am only sorry that matters have
broken in such a way that the old
associations and work could not be carried
on.

Yours very cordially,

H N T. PRATT
52 BROADWAY
NEW YORK




Benjamin Strong, Esq.,
33 Liberty Street,
New York City.
Dear Ben:

In view of the present

successful

operation

of the Budget Bureau in Washington, I have come to the
conclusion that it is hardly fair to the regular subscribers of the National Budget Committee to continue
the solicitation of

funds for

the purpose of further

maintaining the Committee's activities.

Generally

speaking, the objective of the Committee has been
accomplished and I see no reaeon why we cannot fold up

our tents and store them away

for

possible future use,

should the occasion arise.

I am therefore enclosing a proposed letter to

be sent to all the members and would like to have your
comments before sending it out.
Yours very truly,
_

Enclosure.

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")1-1 N T. PRATT

TELEPHONE HANOVER 0680

52 BROADWAY
NEW YORK




N D3OTED,

-.DI/fte12,,r a a
June 15, 1925.

Benjamin Strong, Esq.,
33 Liberty Street,
New York City.
Dear Ben:

Thank you very much

for your

and I think your suggestion is so

am incorporating it in my

Sincerely yours,

P-C

wise that I

letter to

scribers.

letter

our sub-




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wilt 10
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JOHN T. PRATT
52 BROADWAY

TELEPHONE. HANOVER 06E30

NEW YORK




June 27,1927.

DIRECTORS NATIONAL BUDGET COMMITTEE
rwitatio/OaNs....411Is

M. A. Arnold
John P. Burke
Nicholas Murray Butler
William M. Chadbourne
Charles G. Dawes
Walter
Dickey
A. B. Farquhar
H. Fries
Leroy Hodges
Frank O. Louden
W. Norris
Albert L. Ordean
Andrew J. Peters
Arthur N. Pierson
Henry L. Stimson
Frederick S. Whitwell

Seattle, Washington
Los Angeles, Cal.
New York City
It

II

It

Chicago, Illinois
Kansas City, Mo.
York, Pa.
Winston-Salem, N.C.
Richmond, Va.
Oregon, Ill.
Philadelphia, Pa.
Duluth, Minn.
Boston, Mass.
Westfield, N.J.
New York City
Boston, Mass.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102