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No. 133 "Federal Bureaucracy In The Fourth Year Of The New Deal: A Study of the Appalling Increase in the Number of Government Employees Which Has Resulted from the Attempted Concentration of Power in the Federal Government under the Present Administration," August 23, 1936.
No. 133 "Federal Bureaucracy In The Fourth Year Of The New Deal: A Study of the Appalling Increase in the Number of Government Employees Which Has Resulted from the Attempted Concentration of Power in the Federal Government under the Present Administration," August 23, 1936. American Liberty League. 400dpi TIFF G4 page images Digital Library Services, University of Kentucky Libraries Lexington, Kentucky Am_Lib_Leag_133 These pages may freely searched and displayed. Permission must be received for subsequent distribution in print or electronically. No. 133 "Federal Bureaucracy In The Fourth Year Of The New Deal: A Study of the Appalling Increase in the Number of Government Employees Which Has Resulted from the Attempted Concentration of Power in the Federal Government under the Present Administration," August 23, 1936. American Liberty League. American Liberty League. Washington, D.C. 1936. This electronic text file was created by Optical Character Recognition (OCR). No corrections have been made to the OCR-ed text and no editing has been done to the content of the original document. Encoding has been done through an automated process using the recommendations for Level 1 of the TEI in Libraries Guidelines. Digital page images are linked to the text file. JOIN THE AMERICAN LIBERTY LEAGUE The American Liberty League is organized to defend and uphold the Constitution of the United States and to gather and disseminate information that (1) will teach the necessity of respect for the rights of persons and property as fundamental to every successful form of government and (2) will teach the duty of government to encourage and protect individual and group initiative and enterprise, to foster the right to work, earn, save, and acquire property, and to preserve the ownership and lawful use of property when acquired. The League believes in the doctrine expressed by George Washington in his Farewell Address that while the people may amend the Constitution to meet conditions arising in a changing world, there must "be no change by usurpation; for this * * * is the customary weapon by which free governments are destroyed." Since the League is wholly dependent upon the contributions of its members for financial support it hopes that you will become a contributing member. However, if you cannot contribute it will welcome your support as a non-contributing member. ENROLLMENT BLANK American Liberty League National Press Building Washington, D. C. Date..... I desire to be enrolled as a member of the American Liberty League. Signature Town ................................ County .......................... State. Enclosed find my contribution of $...... to help support the activities of the League. FEDERAL BUREAUCRACY IN THE FOURTH YEAR OF THE NEW DEAL â˜… â˜… â˜… A Study of the Appalling Increase in the Number of Government Employees Which Has Resulted from the Attempted Concentration of Power in the Federal Government under the Present Administration AMERICAN LIBERTY LEAGUE Rational Headquarters NATIONAL PRESS BUILDING WASHINGTON, D. C. (133) Document No. 133 August, 1936 The Federal Bureaucracy in the Fourth Year of the New Deal you have finished with this pamphlet, please pass it on to some friend or acquaintance who might be interested, calling his attention to the membership blan\ on bac\ page. "In thirty-four months we have built up new instruments of public power" Franklin D. Roosevelt, Message to Congress, January 3,1936. â˜… Throughout the history of democratic governments bureaucracy has been a lurking menace. By the term bureaucracy is meant government by bureaus and commissions. The menace lies in an excessive multiplication of power which results in official interference in the private affairs of individuals and in the conduct of business. Bureaucracy involves the accumulation of power in the executive branch of the government at the expense of the legislative branch. The issue of bureaucracy in a broad sense concerns the extent to which the government properly may apply its regulatory powers over the life and property of individuals. â˜… â˜… â˜… Bureaucracy has flourished under the New Deal as an inevitable accompaniment of centralized government. Assumption by the Federal Government of new regulatory powers, at the expense both of the rights of the States and of individual liberties, and the exercise by the executive branch of a broad range of legislative powers have resulted in the creation of a host of new agencies. Bureaus and boards, once set up to administer new governmental functions, constantly reach out for added power. The Federal bureaucracy continues its course of expansion after nearly three and one-half years of the New Deal. Despite the assertions of administration spokesmen that the emergency has passed, there is no sign of a reversal of the trend by either legislative or executive departments. Some of the New Deal laws which purport to confer bureaucratic powers as, for example, the NRA and the AAA have been declared unconstitutional by the Supreme Court. Similar laws now before the courts will probably meet a like fate, and the bureaus operating under these laws will disappear. This is as it should be, for the Constitution contemplates that laws shall be made not by politically appointed bureaucrats but by representatives elected by the people for limited terms. It is an unfortunate fact, however, that at present the aggregate number of Government bureaus is far greater than ever before in our history, while the number of employees is nearly equal to the war time civilian total. The Federal bureaucracy has become a vast organism spreading its tentacles over the business and private life of the citizens of the country. Overlapping of activities, maladministration and confusion of purpose are evident on every side. The waste of the taxpayers' money is notorious. So long as the New Deal pattern of government prevails, a return to the normal administrative structure of the period between the World War and the depression appears impossible. The status of the Federal bureaucracy in the fourth year of the New Deal is, in brief, as follows: 1. Civil employees in the executive branch of the Government on June 30, 1936, the end of the fiscal year, exceeded by 260,772 the number at the beginning of the administration. 2. The increase in employees of the ten Cabinet Departments was 72,027. 3. Employees of new agencies of a permanent character created under the New Deal totaled 47,754. 4. Employees of emergency agencies and those operating under the works program, including special personnel assigned to regular departments and boards, totaled 144,499. 5. Official Civil Service Commission reports for June 30, 1936, show thirty-five regular departments and agencies which existed prior to the Roosevelt administration, twenty-four new agencies of a permanent character and about a dozen emergency and works program agencies not in the other classifications. 6. The monthly payroll of the civil employees in the executive branch in June, 1936, was $50,-000,000 greater than in 1933, or at the rate of $600,000,000 a year in addition to expense allowances. 7. The percentage of civil service employees has fallen sharply under the New Deal. 8. The new jobs have been awarded on the basis of political spoils, and in many instances replacements properly coming under the civil service have been similarly handled. 9. Extensions of civil service in the postal system, recently announced by the administration, have been deceptive in character and intended to promote political advantage. 10. Political motives have been shown by provisions in New Deal laws and Executive orders exempting employees of emergency agencies from civil service rules. 11. Bureaucrats in the emergency organization are not accountable for their acts to anyone but the Executive at whose pleasure they are appointed and at whose arbitrary will they hold office. Theories of Government The vast bureaucratic organization which has taken shape during the past three and one-half years conforms with the New Deal pattern of centralized government. It fits into the scheme of a planned economy but is out of harmony with the governmental theories upon which the Democratic campaign of 1932 was based. That platform advocated "an immediate and drastic reduction of governmental expenditures by abolishing useless commissions and offices, consolidating departments and bureaus, and eliminating extravagance to accomplish a saving of not less than 25 per cent in the cost of the Federal Government." In accepting the Democratic Presidential nomination in 1932, Mr. Roosevelt said that "for three long years" he had been preaching that Government costs too much, that if elected he would not stop that preaching but would put it into practice, and that as an immediate1 program of action all useless offices and functions "not definitely essential" would be abolished. During his campaign he elaborated on this theme. He said that "bureaus and bureaucrats have been retained at the expense of the taxpayer." He described a reduction in Federal spending as one of the most important issues of the campaign and promised to save some hundreds of millions of dollars annually by a reorganization of departments and the elimination of functions for which there was no real need. In his special message to Congress in March, 1933, preceding the enactment of the Economy Act, Mr. Roosevelt remained steadfast for the theories of government upon which his campaign was based. His abandonment of these theories came when he accepted schemes to control the economic order and to accomplish alleged reforms, which if successful would destroy the American form of government. Latest Payroll Totals The number of civil officers and employees in the executive branch of the Federal Government, on June 30, 1936, was 824,259. This was an increase of 260,772, or about 46 per cent, from the total on February 28, 1933, of 563,487. The totals do not include the legislative, judicial or military branches of the Federal Government or the employees of the local government in the District of Columbia. Also excluded are the more than 320,000 enrolled personnel of civilian conservation camps, nearly 25,000 employees of the Department of Agriculture who are hired under special letters of authorization, and employees on public works and work relief projects other than those with supervisory duties. The totals do include both classified positions which are subject to competitive examination under civil service laws and unclassified positions which are excepted from competitive examination by law or Executive order. Of the total of 824,259 on June 30, 1936, 117,-103 were employed in the District of Columbia and 707,156 outside. At the beginning of the administration there were 66,802 employees of the Federal Government in the District of Columbia and 496,685 outside. The New Deal thus has added to the Federal job-holding population in the District of Columbia a total of 50,301, and to the force of regular Federal employees scattered over the country, 210,471 in addition to the thousands hired from day to day by the Department of Agriculture. The Civil Service Commission separates the employees of the civil executive branch of the Government into three classifications. One is of civil officers and employees of the regular agencies which existed prior to the present administration. A second classification includes civil officers and employees of new agencies of a permanent character created under the present administration. The third classification includes civil officers and employees of so-called emergency agencies and agencies which draw their funds from executive allotments and are a part of the works program. Included in the last classification are special employees of the regular departments and agencies who are paid from work relief funds. Employees on June 30,1936, consisted of 632,-006 in regular agencies, 47,754 in new agencies of a permanent character and 144,499 in emergency agencies and agencies under the works program. The total of employees in the civil executive branch is now far greater than ever before in peace time. It is rapidly approaching the war time total. The number in the District of Columbia on June 30, 1936, was within 657 of the total of 117,760 on November 11, 1918, the date of the Armistice in the World War. The total outside the District of Columbia fell short of the total on Armistice Day by about 93,000. The following tabulation shows comparative totals of employees in the civil executive branch of the Government at different periods since the World War: Date Diet, oj Col. Outside D. C. Total Nov. 11, 1918. .. 117,760 800,000 917,760 July 31, 1920. .. 90,559 600,557 691,116 June 30, 1927. .. 59,800 467,428 527,228 June 30, 1932. .. 68,793 514,403 583,196 Feb. 28, 1933. .. 66,802 496,685 563,487 June 30, 1933. .. 65,437 506,654 572,091 June 30, 1934. .. 89,132 583,963 673,095 June 30, 1935. .. 103,453 615,987 719,440 June 30, 1936. .. 117,103 707,156 824,259 It will be noted from the above table that the number of persons now employed at the seat of Government in the District of Columbia is nearly 100 per cent greater than in 1927, during the Coolidge administration. The number outside the District is more than 50 per cent greater. Cabinet Departments The regular payrolls of six of the ten Cabinet Departments show increases of civilian employees under the New Deal. The aggregate payroll of the ten departments was 566,286 on June 30, 1936, as compared with 494,259 on February 28,1933, an increase of 72,027. The following table shows the civil employees of the ten Cabinet Departments on June 30, 1936, as compared with February 28, 1933: Increase or Department Feb.1933 June 1936 Decrease State .......... 4,664 4,614 50 Treasury ....... 52,266 56,063 +3,797 War............ 44,188 64,804 +20,616 Justice......... 9,022 7,470 1,552 Post Office ..... 272,550 264,614 7,936 Navy .......... 46,879 69,981 +23,102 Interior ........ 15,018 34,314 +19,296 Agriculture ..... 26,132 42,980 +16,848 Commerce...... 17,971 16,048 1,923 Labor .......... 5,569 5,398 171 Total ........ 494,259 566,286 +72,027 The totals do not show the full measure of present activity of these departments. Additional employees of eight of the departments, to an aggregate of 27,523, were being paid from work relief funds in June, 1936. These included 15,829 under the Treasury Department, 7,983 under the Department of Labor, 1,309 under the War Department, 844 under the Interior Department, 722 under the Department of Commerce, 387 under the Department of Agriculture, 353 under the Department of Justice and 96 under the Navy Department. The greatly expanded totals for the Department of Agriculture do not include the 5,633 employees of the Agricultural Adjustment Administration which, although a branch of the Department, is listed by the Civil Service Commission among new agencies. The total for the Department of Agriculture also does not include a host of employees, hired under special letters of authorization, who on June 30,1936, numbered 24,178. Even without these two groups the em- ployees of the Department of Agriculture jumped from 26,132 at the beginning of this administration to 42,980, an increase of 16,848, or 64 per cent. When employees paid from work relief funds are added, it is apparent that the Department of Labor has more than doubled its personnel instead of reducing it, as indicated in the above table. The reduction in employees of the Post Office Department represents a cutting-down of the force of civil service workers in the postal service in various parts of the country with resultant delay in the handling of the mails. The reduction in the number of employees in the Department of Justice is accounted for chiefly by the repeal of prohibition. The totals for the War and Navy Departments, both of which show large increases, include only civilian employees. The military services also have expanded greatly. Old Independent Agencies Nearly all the important independent agencies which were in existence prior to the New Deal show increases in the number of employees. The Veterans Administration leads with an increase of nearly 3,000 employees between February, 1933, and June, 1936, despite the economy program at the expense of the veterans which was initiated at the beginning of this administration. The following tabulation shows the number of employees of the more important independent agencies created prior to the New Deal: Increase or Agency Feb. 1BSS June 1936 Decrease Veterans Administration ........ 34,501 37,460 +2,949 Govt. Printing Office.............. 4.719 5.532 +813 Reconstruction Finance Corpora- 2,177 3,321 +1,144 General Accounting Office........ 1,969 2,389 +420 Interstate Commerce Commission 2,291 1,931 -360 Civil 8ervice Commission...... 620 1,102 +482 Federal Trade Commission 464 572 + 108 + 220 Employees Compensation Com- 173 395 Nat'l Advisory Comm. for Aero- 308 389 + 77 Federal Reserve Board...... 210 351 + 141 Federal Power Commission 64 332 +278 Tariff Commission ............... 306 304 2 Fed. Home Loan Bank Board____ 96 270 +174 9 One important emergency agency, the Reconstruction Finance Corporation, is included in the foregoing table. This corporation, which was created under the Hoover administration, shows an increase of 1,144 employees under the New Deal. New Permanent Agencies The Civil Service Commission lists 24 new agencies of a permanent character created under this administration and in operation on June 30, 1936. The employees of these agencies, on that date, totaled 47,754, of whom 12,500 were in the District of Columbia, and 35,254 outside. The largest of the new agencies is the Home Owners Loan Corporation. Next come the Tennessee Valley Authority, the Agricultural Adjustment Administration, the Farm Credit Administration and the Federal Housing Administration. The totals on June 30, 1936, for the new agencies of a permanent character, as listed by the Civil Service Commission, follow: Disl. Outside Agency of Col. D.C. Total Home Owners Loan Corporation... 2,066 13,705 15,791 Tennessee Valley Authority........ 13 14,437 14,450 Agricultural Adjustment Adminis- 4,610 1,023 5,633 Farm Credit Administration....... 1,347 2,360 8,707 Federal Housing Administration... 1,283 2,377 3,660 Securities and Exchange Commis- sion .................... 860 220 1,080 Federal Deposit Insurance Cor- 257 525 782 Social Security Board.............. 677 71 748 Federal Communications Commis- 415 324 739 Railroad Retirement Board........ 433 434 National Labor Relations Board.. 96 97 193 175 175 Commodity Credit Corporation... 77 25 102 Central Statistical Board.......... 55 55 National R.R. Adjustment Board 46 46 Electric Home and Farm Authority 32 32 National Mediation Board......... 20 20 Federal Savings and Loan Ins. Corp. 17 17 National Cap. Park and Planning 16 16 14 14 Other Minor Agencies (4)........ 17 41 60 12,500 35,254 47,754 Among the above are several which absorbed agencies previously existing. The Farm Credit Administration includes the old Federal Farm 10 Board, the land banks, the intermediate credit banks and other agricultural credit bodies. The Federal Communications Commission took over the former Radio Commission. The National Mediation Board is successor to the United States Board of Mediation. Emergency Agencies From work relief and public works funds subject to the allotment of the President, the administration has been able to provide regular jobs to the number of 144,499, listing only administrative employees and taking no account of the several million who have been given employment on work relief and public works projects. Of these administrative jobs, 18,708 are in the District of Columbia and 125,791 outside. About a dozen new agencies, such as the Works Progress Administration and the Resettlement Administration, are included in the Civil Service Commission's list of emergency agencies and agencies under the works program. Others in the list are regular departments or new agencies of a permanent character with special employees paid from allotted funds. The following tabulation shows employees of emergency agencies and agencies under the works program on June 30, 1936: Dist. Outside Agency oj Col. D.C. Total Emergency Conservation Work... 1,463 40,572 42,035 Works Progress Administration.. 2,097 33,246 35,343 Works Program (Regular Depts.' 4,524 22,999 27,523 Resettlement Administration ____ 3,715 16,169 19,884 Public Works Administration 3,315 7,404 10,719 Puerto Rican Reconstruction Adm. 40 2,281 2,321 General Accounting Office......... 2,012 2,012 Farm Credit Administration 17 1,567 1,584 National Youth Administration... a 1,105 1,173 253 226 479 Rural Electrification Adm......... 336 336 National Resources Committee... 138 191 829 Federal Surplus Relief Corp...... 232 27 259 Federal Emergency Relief Adm... 202 202 Civil Service Commission......... 134 â– 134 Division of Industrial Analysis.... as 98 Coordinator for Industrial Cooper- 40 40 Prison Industries Reorganization 20 2 22 Veterans Administration ......... 4 2 6 Total ........................... 18,708 125,791 144,499 The supervisory force engaged in emergency conservation work, commonly known as the 11 Civilian Conservation Corps, totals 42,035, as given in the foregoing table, but is supplemented by a military personnel of 7,449. The enrolled personnel of the CCC numbers 321,213, exclusive of 7,511 enrolled Indians, 1,002 in Hawaii and 192 in the Virgin Islands. It therefore appears that there is one member of the supervisory force for each six or seven of enrolled personnel. The Works Progress Administration, created by Executive order, has become one of the largest establishments in the Government service. It has more employees than any of six of the ten Cabinet Departments had at the beginning of this administration and more than any of four of the ten has at the present time. The Resettlement Administration, another agency created by Executive order, also has become one of the very large establishments of the Government, its total personnel being greater than any of five of the ten Cabinet Departments at the beginning of this administration and greater than any of four of the ten at the present time. The Public Works Administration, created by authority of Title II of the National Industrial Recoveiy Act, has a force which is large in comparison with several of the Cabinet Departments. The Federal Emergency Relief Administration, authorized by a special act, had only a few employees left on June 30,1936, its activities having been shifted to other agencies. Increase in Payroll Total The payroll of civil employees in the executive branch of the Government in June, 1936, was about $50,000,000 greater than in December, 1933. Monthly totals have been given in the reports of the Civil Service Commission only since that date. In June, 1936, the total was $129,487,167 as compared with $80,414,085 in December, 1933. This is an increase of 61 per cent. The increase is at an annual rate of nearly $600,000,000, which takes no account of enormous amounts wasted by officials and employees in expenses of various sorts. 12 New Deal and Civil Service For half a century after the establishment of a classified competitive civil service, in 1883, the extension of the system went forward without interruption. Fifteen years after its establishment more than half of the civil employees in the executive branch of the Government were under the statutory merit regulations. By the time of the Wilson administration two-thirds of the employees were embraced in the system. In the Coolidge administration the proportion became three-fourths, and in the Hoover administration, four-fifths. The latest annual report of the Civil Service Commission states that at the end of the fiscal year 1935 the competitive classified service represented 63.3 per cent of all civil employees in the executive branch. The official percentage at the end of the fiscal year 1936 is not as yet available. It is expected that it will show a further decline in the proportion of the Federal bureaucracy appointed under and subject to merit rules. The New Spoils System A return to the spoils system has been notorious under the New Deal. The selection of thousands of new employees under a system in which political endorsements are the most important factor has proceeded simultaneously with the issuance of White House statements professing loyalty to the statutory merit system. No victorious party, either in this country or elsewhere, evej- went so far to reward its workers at the expense of the people as has the New Deal party. Throughout the emergency agencies and even in many regular departments the O.K. of the political leader continues to be required of applicants for positions. In other words, party service rather than intelligence or fitness is the sole criterion. The political power of the New Deal party and its leaders has been strengthened at the expense of the whole people of the country. The National Civil Service Reform League, in a letter made public August 16, 1936, called the attention of President Roosevelt to an instance 13 in which a political endorsement had been required from an applicant for an important administrative post in the Works Progress Administration. The league asserted that a policy of this character was in conflict with assurances previously given that relief administration would be kept free from politics. On the basis of the proportion in the Government service protected by the competitive classified system at the end of the fiscal year 1935, as many as 305,000 of the 824,000 employees were outside the statutory merit system on June 30, 1936. The number outside the system on June 30, 1935, was almost 270,000. Inasmuch as the total employees increased by about 105,000 during the fiscal year 1936, it is probable that those outside the merit system number considerably more than 305,000 and that the percentage of those within the system has dropped below 63.3 where it stood a year ago. Postmasters The administration has capitalized Executive orders extending the application of civil service laws. What has actually happened in the very few instances of this character is that persons chosen by political methods have had their jobs made secure. Incumbents have obtained a permanent tenure of office without undergoing competitive tests. Through non-competitive examinations they have been rated under a system in which experience in the particular job is the most important single element. It is easy for anyone even without average intelligence to hold his job under such circumstances. Wide publicity has been given a recent Executive order, issued July 20, 1936, which places all first, second and third class postmasters, a total of 13,730, under the competitive classified service. Before the Executive order was issued, about 95 per cent of the positions had been filled for four-year terms by political selection. The Executive order is a sham inasmuch as it does not affect the status of those who have received political appointments, even when their present terms expire. At the expiration of present terms the incumbents are virtually assured of reappoint-14 ment, if they still hold the favor of the Postmaster General and the President. If found eligible by the Civil Service Commission in a non-competitive examination, postmasters may be recommended to the President by the Postmaster General for reappointment. The Executive order does not abolish the four-year terms or insure reappointment of a postmaster who makes a record for efficiency. The only actual gain for the merit system, under the Executive order, is in instances when vacancies occur by death, resignation or removal. In such cases an open competitive examination will be held by the Civil Service Commission. The President is obligated to fill the vacancy by appointing the highest eligible person, unless it is established to the satisfaction of the Civil Service Commission that the character or residence of such person disqualifies him. The Executive order superseded one issued by the President on July 12, 1933, under which the Postmaster General, in making recommendations for appointment, was allowed to choose among the three highest eligibles as certified by the Civil Service Commission. Under that order the Postmaster General was allowed to reject any of the three eligibles, thereby forcing the Commission to approve an additional applicant. By the device of appointing acting postmasters, it was possible to avoid the choice of any of the three highest eligibles, if none of them met with political favor. The motives of the administration in issuing the recent order would be less open to question if the President had not waited for more than three years before proposing the filling of vacancies other than by political methods. The bill placing first, second and third class postmasters under civil service, which was before the recent session of Congress, was fully as deceptive as the Executive order. This bill, approved by the administration, made it permissible for the Postmaster General to reappoint postmasters for indefinite terms without compliance with any civil service regulations other than those governing a non-competitive classification. The National Civil Service Reform League, in its annual report in May, 1934, denounced the 1933 Executive order as "a mere cloak for the spoils system" and "a disgrace to the Roosevelt administration." The association asserted that the order placed an "odious and useless task" upon the Civil Service Commission. Under that order the administration substituted political appointees for many postmasters who had risen from the ranks of the postal service, including those in New York, Philadelphia, Boston and St. Louis. An instance of political favoritism in the relatively unimportant postmastership at West Point, New York, was brought to light by the Army and Navy Journal. Two days before the issuance of the Executive order of July, 1936, the Postmaster General called for an examination, with a view to the substitution of a political appointee for Miss Grace Harrington, 62 years of age, daughter of an Army lieutenant killed with Custer at the battle of Little Big Horn in 1876. Miss Harrington, whose retention was desired by the Army personnel at West Point, had served for eight years. Previously she had been a school teacher in New York City. Her efficiency had not been questioned. The new Executive order did not halt the steps being taken to annex the West Point office to the political patronage of the administration, the procedure followed being that in effect under the Executive order of June, 1933. Miss Harrington was denied an opportunity to take the examination which was ordered by the Civil Service Commission at the request of the Postmaster General. Exemption from Civil Service The real attitude of the administration toward civil service is shown by the exemptions written into laws and Executive orders. Emergency agencies created by emergency laws specifically providing for exemption from civil service include the National Recovery Administration, the Public Works Administration, the Agricultural Adjustment Administration, the Federal Emergency Relief Administration, the Tennessee Valley Authority, the Home Owners Loan Corporation, the Federal Deposit Insurance Corporation and the Federal Housing Administration. 16 The numerous agencies created by Executive order under the authority of the National Industrial Recovery Act or the Work Relief Act, such as the Resettlement Administration, the Works Progress Administration and the National Emergency Council, have been exempt from civil service by the express terms of the orders signed by the President. A few permanent agencies created under this administration, such as the Securities and Exchange Commission, are under civil service. Original administration drafts of some of the bills, however, provided for exemption from civil service. Congress, rather than the administration, was responsible for the civil service provisions finally adopted. The excuse that it was necessary to cut red tape because of the urgency of the situation does not hold water. Certainly the emergency was no greater than at the time of the World War, and it is a notable fact that with the tremendous increase in Government personnel then made necessary civil service requirements were meticulously observed. Furthermore, the patronage machine set up under the present administration for the award of political appointments was fully as cumbersome as would have been the prescribed procedure under civil service rules. The truth is that the administration wanted no obstacles in the way of the recruiting of the thousands of new employees by political methods. Bureaucratic Irresponsibility The new bureaucracy which has grown up under emergency laws is responsible only to the Executive. The bureaucrats whose positions are based on Executive orders neither need to nor do they make reports to Congress as is required by law in the case of most agencies created by specific statute. The NRA, for example, published no annual reports. Reports on work relief, direct relief and public works activities have been given to Congress only when demanded in connection with requests for additional lumpsum appropriations. Only a relatively few of the important officials appointed to responsible positions in emergency agencies have been submitted to the Senate for confirmation. 17 The New Deal bureaucracy thus is an irresponsible organization in the light of the standards of representative democracy. Any checks maintained by Congress on the conduct of officials in the executive branch give the people an indirect power of review. The purpose of the Executive to dominate the executive branch, and even an agency with quasi-judicial functions, was shown in the attempted removal of the late William E. Humphrey as a member of the Federal Trade Commission. That action was condemned in a unanimous decision of the Supreme Court. The President, in that case, sought to nullify a restriction on removals written into the Federal Trade Commission Act by Congress. Other Government Payrolls The totals given above with respect to the number employed in the civil executive branch of the Government represent only a fraction of those who have received income from the Treasury under the present administration. The National Industrial Conference Board estimated, in March, 1936, that 11,120,925 persons then were receiving all or part of their income from the Federal Government. Of these persons 5,720,017 were recipients of Government aid of one kind or another, including agricultural benefits; 3,086,748 were employed under the works program; 296,248 were employed by contractors on construction projects financed by the Federal Government; 1,108,766 were in current service in the regular Government establishment; and 909,136 were pensioners for past service. The 1,108,766 included 816,186 employees in the civil executive branch, 4,975 in the legislative branch, 1,933 in the judicial branch and 285,673 in the military services. The 909,136 beneficiaries on account of past service included 858,694 receiving military pensions and compensation and 50,442 receiving civil pensions. On the basis of these figures one out of every eleven persons in the United States, including men, women and children, is on the payroll of the Federal Government, or about one for every four who are gainfully employed. 18 Evils of Bureaucracy Three chief evils are apparent in the present Federal bureaucracy. First, it is needlessly costly to the taxpayers; second, it is inefficient by reason of overlapping of functions and the selection of employees by political methods; and third, it is in conflict with American principles of government because of increased powers designed to facilitate greater control of the private lives and business activities of citizens. The payroll of regular employees of the Government for the current fiscal year 1937, including civilian and military personnel, will require a total of $1,572,476,459, according to an estimate in the latest annual budget submitted to Congress by the President. This amount, which takes no account of recipients of aid or of those employed on work relief and public works projects, is twice the entire ordinary expenditures of the Government in the last year prior to our entrance into the World War. It is a sum greater than all collections from income taxes, both individual and corporate, in the fiscal year 1936. Payrolls alone thus use up revenues from income taxes, necessitating a resort to all sorts of hidden taxes paid by the whole people in addition to the billions of borrowed money which must be paid back by future generations. The mushroom growth of bureaucracy without proper attention to a coordination of functions of regular and emergency agencies, and without sufficient regard for the merit system in the choice of employees, has encouraged inefficiency. Fifteen agencies now are said to be concerned with housing problems as compared with four prior to the New Deal; thirteen agencies are making loans to farmers instead of four in former years; twelve are dealing with foreign trade instead of six; fifteen have to do with public lands instead of ten; and twelve are interested in the settlement of labor disputes instead of two. The special committees which are to report to the next Congress on a reorganization of the Government have a fertile field for work of inestimable value to the nation. If the American people desire the system of 19 economic planning attempted under the New Deal, they must suffer the evils of a huge bureaucracy. It seems evident, however, that the futile, costly and even injurious experiments of the past three and one-half years have not resulted in real progress but, on the other hand, have proved in many instances a positive detriment. What America needs is the opportunity for full recovery from the prolonged depression, world-wide in its scope. This can come only through business expansion, not through expansion of bureaucracy. The unemployment problem cannot abate except as business is able to absorb available labor. Recovery is retarded by the huge taxes and continued deficits that accompany governmental waste. Recovery is retarded by unnecessary interference by the Federal bureaucracy with business. Recovery is retarded by unwarranted and unconstitutional socialistic experiments. If these hindrances to recovery are done away with, the United States will enjoy once more a prosperity based on sound and enduring foundations. Expanding payrolls in private industry will largely care for present unemployment. The evi's of bureaucracy will be negligible if the Government is conducted in conformity with the Jeffersonian precept that "that government is best which governs least." PAMPHLETS AVAILABLE Â£OPIES of the following pamphlets and other League literature maybe obtained upon application to the League's national headquarters. Statement of Principles and Purposes American Liberty Leagues Its Platform Inflation The Holding Company Bill Expanding Bureaucracy Dangerous Experimentation Economic Planning Mistaken But Not New Work Relief The AAA and Our Form of Government Alternatives to the American Form of Government A Program for Congress The 1937 Budget Professors and the New Deal Wealth and Income The Townsend Plan The Story of an Honest Man (The Hagood Case) The New AAA The President's 1936 Tax Proposals New Work Relief Funds The American Form of Government, The Supreme Court and The New Deal Socialization of the Electric Power Industry Social and Economic Experiments Under the Guise of Taxation New Deal Budget Policies Delegation of Legislative Power to the Executive under the New Deal The President Wants More Power (leaflet) The Townsend Nightmare (leaflet) A Farmer Speaks (leaflet) Will It Be Ave Caesar? (leaflet) Our New Spoils System (leaflet) The Magi and the Showdown (leaflet) Government by Busybodies (leaflet) Gratitude in Politics (leaflet) 28 Facts About the New Deal (leaflet) New Labels for Old Poisons (leaflet) The New Deal Boondoggling Circus (leaflet) Government by Law Still Forced to Fight Against New Deal (leaflet) Who Are the Economic Royalists? (leaflet) Danger Signals (leaflet) And Satan Came Also (leaflet) An Open Letter to the President (leaflet) The Duty of the Church to the Social Order Speech by S. Wells Utley PAMPHLETS AVAILABLE (continued) The Duty of the Lawyer in the Present Crisis Speech by James M. Beck The Constitution and the Supreme Court Speech by Borden Burr The Fallacies and Dangers of the Townsend Plan Speech by Dr. Walter E. Spahr What of 1936? Speech by James P. Warburg Americanism at the Crossroads Speech by R. E. Desvernine The Constitution and the New Deal Speech by James M. Carson The American Constitution Whose Heritage? Speech by Frederick H. Stinchfield The Redistribution of Power Speech by John W. Davis Time to Stop Speech by Dr. Neil Carothers The Facts In the Case Speech by Alfred E. Smith The Townsend Utopia Speech by Dr. Ray Bert Westerfield Inflation and Our Gold Reserve Speech by Dr. E. W. Kemmerer Entrenched Greed Speech by Dr. G. B. Cutten Should We Amend the Constitution to Grant the National Government General Welfare Powers? Speech by W. H. Rogers The New Inquisition Speech by Jouett Shouse It Can Be Done Speech by Merrill E. Otvs The Need for Constitutional Growth by Construction or Amendment Speech by R. E. Desvernine Shall We Have Constitutional Liberty, or Dictatorship? Speech by James A. Reed An American Philosophy Speech by Jouett Shouse The Liberty League Old Friendships Destroyed Speech by Daniel O. Hastings A Federal Union National and State Responsibilities Speech by Fitzgerald Hall Constitutional Heresy Speech by R. E. Desvernine You Owe Thirty-one Billion Dollars Speech by Jouett Shouse The New Deal vs. Democracy Speech by Jouett Shouse An Open Reply to Secretary Wallace's Question Whose Constitution I The Dominant Issue of the Campaign by R. E. Desvernine