The first systematic, thorough study of the U.S. budget.

Context

Entering the twentieth century, America was the newest world power and undergoing rapid economic expansion with no signs of slowing. Along with economic growth came calls for the size and scope of the federal government to keep pace with industrialization. In cities across America and abroad, labor movements were gaining steam among industrial workers.

Labor movements were common in America and abroad. In the U.S., however, the labor movement did not universally receive a warm reception. On the other side of the world, in Russia, workers were rising up against the state and seeking a communist revolution. Fear of such a revolution trespassing U.S. shores led to the Red Scare. Between ___ and ___,

 

President Taft’s Commission

Better remembered for his time at the U.S. Supreme Court than in the White House, William Howard Taft was not, altogether, an ineffective president. In fact, when it comes to the story of federal budgeting in the U.S., Taft is among the most critical players.

In December 1909, President Taft requested funding from Congress for an inquiry into the organizational efficiency and financial methods of the government. The following summer,

Authorized by President Taft in the Sundry Civil Appropriation Bill of 1913, the Commission on Economy and Efficiency conducted the first systematic, detailed study of the United States budget.

Final Commission Report

In the summer of 1912, around three years after the Commission’s establishment, President Taft transmitted the Commission on Economy and Efficiency’s final report. The report included the shortcomings of the current system—inasmuch as there was a ‘system’—and proposals to fix them.

Although the report fell on deaf ears in Congress, it would become the roadmap for the transformational budgeting reforms of 1921.

The Budget Act of 1921 addressed and mirrored the concerns and proposals of the Commission’s Report.

 

Click above to read the Report via Google Books.

 

The Report is ___ pages long. To read a short summary, click the button below.

 Summary


Recommendations

The Commission made six primary recommendations:

  1. That the president must annually submit to Congress a budget no later than the first Monday of the regular session.

  2. That the budget submitted by the president contains:

  3. That the Treasury Secretary must submit to Congress reports on the

 

Composition of the Commission


The Commission was composed of a chairman, four commissioners, a secretary, and 54 members from departments and agencies throughout the federal government who were organized into 15 committees.

 

Commission Leadership:

  • Frederick A. Cleveland, Chairman

  • William F. Willoughby, Commissioner

  • Judge Walter W. Warwick, Commissioner

  • Frank Johnson Goodnow, Commissioner

  • Henry Stuart Chase, Commissioner

  • Merritt O. Chance, Secretary

Other Members: Name, Position within government (Position within committee)

State Department Committee:

  1. Hon. Huntington Wilson, Assistant Secretary of State (Chairman)

  2. Wilbur J. Carr, Director of the Consular Service

  3. William McNeir (Chief Clerk)

Treasury Department Committee:

  1. James L. Wilmeth (Chairman and Chief Clerk)

  2. Merritt O. Chance, Auditor for the Post Office Department; appointed Commission Secretary—replaced by Charles A. Kram.

  3. Lawrence O. Murray, Comptroller of the Currency

War Department Committee:

  1. Major General F. C. Ainsworth, Adjutant General of the Army (President)

  2. Captain Fred W. Sladen (Recorder)

  3. Brigadier General W. W. Wotherspoon

  4. Brigadier General E. A. Garlington (Assistant)

  5. John C. Scofield (Chief Clerk)

Justice Department Committee:

  1. O. J. Field (Chairman and Chief Clerk)

  2. S. W. Finch, Chief of the Bureau of Investigation

  3. J. H. Mackey (Disbursing Clerk)

Post Office Department Committee:

  1. Theodore L. Weed (Chairman and Chief Clerk)

  2. Robert S. Sharp, Chief Post Office Inspector

  3. George G. Thomson, Division of Supplies Superintendent

Navy Department Committee:

  1. Admiral Richard Wainwright (Chairman)

  2. Captain R. C. Smith

  3. G. W. Simpson, Pay Inspector

  4. Commander Philip Andrews

  5. R. H. Robinson, Naval Constructor

  6. Commander J. M. Poyer (Recorder)

Interior Department Committee:

  1. Oscar Lawler, Assistant Attorney General (Chairman); resigned—replaced by Charles W. Cobb.

  2. Don M. Carr, Private Secretary to the Secretary; resigned—replaced by Irving Rittenhouse.

  3. Clement S. Ucker (Chief Clerk)

  4. Edward B. Fox; added after initial committee formation.

Agriculture Department Committee:

  1. George P. McCabe, Solicitor (Chairman)

  2. Jasper Wilson, Private Secretary to the Secretary

  3. Zappone, Clerk of the Division of Accounts and Disbursements

  4. James B. Adams, Assistant Forester

  5. C. C. Carroll, Chief Clerk of the Bureau of Animal Industry

Department of Commerce and Labor Committee:

  1. Robert M. Pindell, Jr. (Chairman and Chief Clerk)

  2. William F. Willoughby, Assistant Director of the Census

  3. W. L. Soleau (Disbursing Clerk); resigned—replaced by George Johannes.

  4. George C. Havenner, Division of Publications Chief

  5. Roger O’Donnell, Special Inspector, Bureau of Immigration and Naturalization

Smithsonian Institution Committee:

  1. W. de C. Ravenel, Administrative Assistant, National Museum

  2. H. W. Dorsey (Chief Clerk)

  3. A. B. Baker, Assistant Superintendent, Zoological Garden

Interstate Commerce Commission Committee:

  1. H. S. Millstead (Disbursing Clerk)

Commissioners of the District of Columbia Committee:

  1. Alonzo Tweedale, Auditor of the District

Civil Service Commission Committee:

  1. G. R. Wales, Chief Examiner

  2. J. T. Doyle, Secretary

Government Printing Office Committee:

  1. Benjamin C. Vipond

  2. James K. Wallace

  3. Seward T. Covert

Independently detailed to assist the Commission:

  1. W. E. Wilmot

  2. Mary F. Bickford

  3. W. H. H. Smith

  4. Dorothy Hunt

  5. H. A Holmes

  6. John P. Murray

  7. Lieutenant A. L. Parsons