Budget and Accounting Act of 1921

The Budget and Accounting Act of 1921 created the Bureau of the Budget and housed it within the Department of the Treasury. General Charles G. Dawes, vice president during Coolidge's second term, was the first director of the Bureau of the Budget, under President Harding. Brigadier General Herbert M. Lord was the Bureau of the Budget's second director, and the single person with whom President Coolidge met most often and for the longest blocks of time during his time in office. (DETAIL NOTE Coolidge's Appointment Books)

Coming to the presidency, as he did, after the initial settling into place of the budget control system during Harding's administration, Coolidge was really the first chief executive who had the power to shape the finances of federal agencies and departments. With the Bureau of the Budget operating efficiently, he had both complete information on the fiscal condition of the executive agencies and the power to approve or deny their appropriation requests and expenditures.

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