The Birmingham age-herald., 1924-08-17
lS REAL
 BOSOF HUNGARY
Jeremiah Smiths Control Of Nations Finance
 Is Absolute

!. An American citizen exercises n die. tatorshir today over the ancient King dom of Hungary in some respects more absolute than that of its royal rulefs of the past. The virtual ruler of Hun, gary today, robbed of the pomp and circumstance of royalty, has the plain New England name of Jeremiah Smith and comes from Boston, Mass, says the New York Times.
 His position, known officially as com. missioner general, is unique. He has authority above that: of the executive or the legislative, body; for all prac- tical purposes he is the financial czal of Hungary. His authority is even greater than that of the reparation commission. He holds his appointment from the, council of the league and is responsible to the league and not tc the government of Hungary. He has three years to reign, with possible extension of the term should the league decide at the end of that time that the financial situation demands the con. tinuance of his office.
 Mir. Smith directs his control of Hun. garian affairs from Budapest.
 To Balance Budget.
 An American was selected for the post because of his obvious neutrality and disinterestedness Commissioners Smith was born in New England in 1870, and is a graduate of Harvard After serving as secretary to Justice Gray of the United States supreme court he practiced law in Boston. Dur sSaaS 4ka ho F. as captain, and later accompanied the American mission to negotiate peace as counsel to the treasury department and as an adviser on financial prob lems.
 After careful investigation by the league, the financial doctors of Europe decided the natural resources of Hun. gary, and it's food supply, would be quickly re-established if it's budget were properly balanced and its curren- ty stabilized It was decided the imitation of it's currency must be checked at the earliest possible moment, This imitation had been brought about bF printing paper money as a means of supplying govefnmene needs. The money required by the government would have to be provided by economy in expenditures and by taxation. It further decided loan of 50 million dollars should be made to Hungary.
 Has DietatiOnaI Power.
 The dictatorisl and Sar-reaching pow CTS exercised over Hungary by Com missioner Smith can be seen from the plan finally worked out by the Eesgtle of supplying government needs. The gram was worked out providing for bal. aneing the Hungarian national budget. Second, central bank was to be es. tablished to control the currency and render the crown stable. Third, a loan was to be raised for the Hungafian government to tide over the period of reform and reconstruction. Of this loan the United Statest contributed ' 1-2 million dollars. Commissioner Smiths work is to safeguard the in. ternaticnal loan and at the same time put Hungary on it's feet.
 Commissioner Smiths powers may be classified under three general divis- ions. First, he supe-vises tEe spend. ing of the international loan. Second, he controls the revenues of Hungary, which have been pledged for the loan, Re further ses that the intrest is paid on the loan, and then gives his au. thorization to the Hungarian govern. ment to spend what is left for its own purposes according to the plan of the league. Third, he controls the money after it has been collected. As the money for government comes ip from taxes and other sources it goes into special account in the Central bank where it is under Mfr. Smiths control, ! A new Central bank has been estab. lished under this arrangement which bears much the same relation to Hun. gary as does the Federal Reserve Bank to American finances, Mir. Smith ap. points an adviser to this bank.