The New York herald., 1922-08-12
PERSIA GETS U. s.
FINANCIAL ADVISER
A. c. Millspaugh, Employee Of
State Department, to
Take Post.

Special Dispatch to THE New YORK HERALD.
New York Herald Bureau.
Washington. ID. c.. Aug. III.
Persia has once more turned toward
the United States for aid in administer
ing and reorganizing her financial and
economic affairs. A contract is about
to be signed whereby Arthur Chester
Millsp:ugh. now economic adviser In the
State Department, will become admins
traitor of Persia finances for period
of five years at q salary of about
$4,000 a year.
Mr.. Millspaugh was recommended
for this position by the state Depart
rnent. but the contract will be between
the Persian Government and Mr.. Mills
paugh, who will take with him staff of
experts from this country.
It was stated at the Persian Lega-
tion to-day that the signing Of the con-
tract only awaits the approval OF the
terms by the Persian Malls or national
council. which action is taken for
granted
Recent dispatches from Teheran to
London papers have referred to heated
debates In this national council over
oil concessions in Persia. which are be-
ing sought by the Standard Oil Com
pany and also by the Anglo-Persian
oil group. in which the British Govern
ment is stockholder.
Mr.. Millspaugh will be the second
American to be appointed to. position
of financial trust by the Persian Gov
ernment. a similar position having beer
held for a year. 1911-1912. by Morgan
r.
ter held the title Of Treasurer-Genera
financial adviser to the Government ha,
been held by citizens of Belgium anc
Grean Britain. The last adviser wa,
provided for in the Anglo-P Persian agree
ment Of 1919. The agreement, however
failed to pass the National Council and
the adviser appointed by the British
Government had to leave in consequence
1t was then that this Government was
asked to recommend a man.
The work which Mr.. Millspaugh Il
undertaking Is similar to but somewhat
broader In scope than that performed
by Mr.. Shuster. He is to be responsible
directly to the Persian Minister oi
Finance and to have exclusive charge
of the budget and the institution OF
financial reforms. He will have the role
of arbiter in all matters relating tc
finances and the question OF concessions
but no part in religious or political con.
troversies.
Mr.. Millspaugh has been attached to
the State Department since 1918. frst
In the capacity of trade adviser and
then as head OF a division. ae economic
adviser, a position he holds now. lie
was especially valuable to the State
Department throughout the disputes re-
garding oil lands In Mexico and drafted
practically all the American notes on
this subject.
Prior to entering the service Of the
Government Mr.. Millspaugh taught
political science at Johns Hopkins Uni
versity. He Is the author of severa
treatises on economic subjects. He Is Q
native Of Augusta. Mich. where he was
born thirty-nine years ago. lie tool
ar A. b. degree at Albion College II
1905, an A. NJ. from the University o.
Illinois In 1910 and a Phi. ID. from John:
Hopkins in 1916. He was appointed 9
Consul Of class four in July, 1921.
In Morgan Shuster's book. THE
Strangling of Persia" he tells how the
constitutional Government was set ur
upon the expulsion of the Shah. bu
later crushed by the Russian Govern
ment. under pretext that Russia's Inter
est In Persia was for the good OF thai
nation. II was the employee Of the
Medjlis (the National Assembly," says
Mr.. shuster. and thus when the Persian
Ministers capituiated to the demands OF
Russia. which meant the end OF al
hope of constitutional Government in
Persia. the Minister OF the Interior and
the Foreign Minister became very cool
toward the American treasurer. who had
sent an aid 10 Tabriz to investigate
gross frauds and malversions." A coup
d'ctat by the Cabinet and the Russians
destroyed the MedJlis on December "a,
1911.
The Americans were left without an
employer or status" Mr.. Shuster writes.
unless they chose to recognize the
purely de facto Cabinet. / was
compelled TO regard our task as at an
end" An order OF dismissal followed.
and on January Z. 1912, Mr. Shuster
gave I'M his office