Arthur Millspaugh
Encyclopedia
Arthur Chester Millspaugh, PhD, (1883–1955) was a former adviser at the U.S. State Department
’s Office of the Foreign Trade, who was hired to re-organize the Finance Ministry of Iran
from 1922–1927 and 1942-1945.
With his help, Iran became independent of foreign loans to maintain its economy. Back then (before World War II
), the Iranian public viewed the United States
as a liberator from British and Russian dominance, as well as the country which would make Iran prosperous and rich. Up until the Cold War, Millspaugh tried, unsuccessfully, to influence the U.S. State Department's policies toward Iran.
He was born at Augusta
, Michigan
, and educated at Albion College
, the University of Illinois
, and Johns Hopkins
. After teaching political science
for two years and working in the drafting office of the United States State Department for three more, he became acting foreign trade adviser in 1921-22. When Persia requested that an American financial adviser be sent to Teheran
, Dr. Millspaugh was appointed, and he and his staff
reached the Persian capital in November, 1922. He found the Persian treasury empty and the fiscal administration in chaos, but with the help of the Persian authorities and the military, he straightened matters out. A budget was established, taxes were collected, and brigandage
greatly diminished.
As Administrator-General of Finances of Iran, he brought positive results in balancing the Iranian budget, further strengthening the American case in Iranian government circles. Iranian government officials were grateful to Millspaugh by whom appreciable reduction was effected in the monthly deficit of the Iranian Government account.
He worked in Tehran
for four years, and again returned in 1942 by the invitation of Iran's 13th Majles.
Despite being given temporary legislative authority, Millspaugh's reforms were unable to rejuvenate the Iranian economy. Reza Shah
terminated the authority on grounds of Millspaugh’s repeated noncompliance with the Shah’s requests for increased military expenditure.
Millspaugh managed to implement a number of reforms, including a new taxation law that hit the poor hard but financed Reza Shah’s Trans-Iranian Railway project, which got underway in 1927. The mission’s accomplishments were repeatedly hampered by internal political rivalries in Iran
and a widespread system of patronage and graft among many leading Iranian politicians.
Fancying himself the successor to Morgan Shuster
’s unfulfilled legacy of restructuring Iran’s economy, in 1925 Millspaugh published a book on his assignment in Iran, "The American Task in Persia".
Discussing Iran’s shattered economy, Millspaugh’s book sympathetically portrayed Iran and Iranians, but heaped criticism on the Iranian bureaucracy. "The American task in Persia" was highly influential in shaping American political opinion towards Iran. Commentaries on Iran appearing in American foreign policy journals, such as Foreign Affairs and Foreign Policy Reports, or in leading journals such as Time
magazine, frequently relied on Millspaugh’s accounts as a principal source.
In 1942 Millspaugh headed another financial mission, this time clearly connected with the U. S. State Department. His mission was hampered again by internal political rivalries in Iran, the entrenched vested interests of the Iranian political elite (economic, military, political, and tribal), and frequent cabinet reshuffles in Tehran
with seesawing political orientations (with 11 prime ministers between 1941 and 1946). The financial mission under Millspaugh’s supervision again became a source of irritation between Tehran and Washington and had to be terminated in 1945.
In 1946, his second book on Iran, Americans in Persia, was published by the policy think-tank Brookings Institution
. Replete with “clinical” metaphors, and speaking from experience from his days working for the Shah's government, Millspaugh this time was more pessimistic and critical of Iranians, portraying them as incapable of self-government:
"Persia cannot be left to herself, even if the Russians were to keep their hands off politically. ...Persia has never yet proved its capacity for independent self-government." (p 243 of his second book)
United States Department of State
The United States Department of State , is the United States federal executive department responsible for international relations of the United States, equivalent to the foreign ministries of other countries...
’s Office of the Foreign Trade, who was hired to re-organize the Finance Ministry of Iran
Iran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
from 1922–1927 and 1942-1945.
With his help, Iran became independent of foreign loans to maintain its economy. Back then (before World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
), the Iranian public viewed the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
as a liberator from British and Russian dominance, as well as the country which would make Iran prosperous and rich. Up until the Cold War, Millspaugh tried, unsuccessfully, to influence the U.S. State Department's policies toward Iran.
He was born at Augusta
Augusta, Michigan
Augusta is a village in Kalamazoo County in the U.S. state of Michigan. The population was 899 at the 2000 census. The village is mostly within Ross Township, though a small portion extends south into Charleston Township....
, Michigan
Michigan
Michigan is a U.S. state located in the Great Lakes Region of the United States of America. The name Michigan is the French form of the Ojibwa word mishigamaa, meaning "large water" or "large lake"....
, and educated at Albion College
Albion College
Albion College is a private liberal arts college located in Albion, Michigan. Related to the United Methodist Church, it was founded in 1835 and was the first private college in Michigan to have a chapter of Phi Beta Kappa. It has a student population of about 1500.The school's sports teams are...
, the University of Illinois
University of Illinois system
The University of Illinois is a system of public universities in Illinois consisting of three campuses: Urbana-Champaign, Chicago, and Springfield. Across its three campuses, the University of Illinois enrolls about 70,000 students. It had an operating budget of $4.17 billion in 2007.-System:The...
, and Johns Hopkins
Johns Hopkins University
The Johns Hopkins University, commonly referred to as Johns Hopkins, JHU, or simply Hopkins, is a private research university based in Baltimore, Maryland, United States...
. After teaching political science
Political science
Political Science is a social science discipline concerned with the study of the state, government and politics. Aristotle defined it as the study of the state. It deals extensively with the theory and practice of politics, and the analysis of political systems and political behavior...
for two years and working in the drafting office of the United States State Department for three more, he became acting foreign trade adviser in 1921-22. When Persia requested that an American financial adviser be sent to Teheran
Tehran
Tehran , sometimes spelled Teheran, is the capital of Iran and Tehran Province. With an estimated population of 8,429,807; it is also Iran's largest urban area and city, one of the largest cities in Western Asia, and is the world's 19th largest city.In the 20th century, Tehran was subject to...
, Dr. Millspaugh was appointed, and he and his staff
Staff of office
A staff of office is a staff, the carrying of which often denotes an official's position, a social rank or a degree of social prestige.Apart from the ecclesiastical and ceremonial usages mentioned below, there are less formal usages. A gold- or silver-topped cane can express social standing...
reached the Persian capital in November, 1922. He found the Persian treasury empty and the fiscal administration in chaos, but with the help of the Persian authorities and the military, he straightened matters out. A budget was established, taxes were collected, and brigandage
Outlaw
In historical legal systems, an outlaw is declared as outside the protection of the law. In pre-modern societies, this takes the burden of active prosecution of a criminal from the authorities. Instead, the criminal is withdrawn all legal protection, so that anyone is legally empowered to persecute...
greatly diminished.
As Administrator-General of Finances of Iran, he brought positive results in balancing the Iranian budget, further strengthening the American case in Iranian government circles. Iranian government officials were grateful to Millspaugh by whom appreciable reduction was effected in the monthly deficit of the Iranian Government account.
He worked in Tehran
Tehran
Tehran , sometimes spelled Teheran, is the capital of Iran and Tehran Province. With an estimated population of 8,429,807; it is also Iran's largest urban area and city, one of the largest cities in Western Asia, and is the world's 19th largest city.In the 20th century, Tehran was subject to...
for four years, and again returned in 1942 by the invitation of Iran's 13th Majles.
Despite being given temporary legislative authority, Millspaugh's reforms were unable to rejuvenate the Iranian economy. Reza Shah
Reza Shah
Rezā Shāh, also known as Rezā Shāh Pahlavi and Rezā Shāh Kabir , , was the Shah of the Imperial State of Iran from December 15, 1925, until he was forced to abdicate by the Anglo-Soviet invasion of Iran on September 16, 1941.In 1925, Reza Shah overthrew Ahmad Shah Qajar, the last Shah of the Qajar...
terminated the authority on grounds of Millspaugh’s repeated noncompliance with the Shah’s requests for increased military expenditure.
Millspaugh managed to implement a number of reforms, including a new taxation law that hit the poor hard but financed Reza Shah’s Trans-Iranian Railway project, which got underway in 1927. The mission’s accomplishments were repeatedly hampered by internal political rivalries in Iran
Iran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
and a widespread system of patronage and graft among many leading Iranian politicians.
Fancying himself the successor to Morgan Shuster
Morgan Shuster
William Morgan Shuster , American lawyer, civil servant, and publisher, who is best known as the treasurer-general of Persia by appointment of the Iranian parliament, or Majles, from May to December 1911.-Background:Shuster was born in Washington, DC and educated in the Columbian University and Law...
’s unfulfilled legacy of restructuring Iran’s economy, in 1925 Millspaugh published a book on his assignment in Iran, "The American Task in Persia".
Discussing Iran’s shattered economy, Millspaugh’s book sympathetically portrayed Iran and Iranians, but heaped criticism on the Iranian bureaucracy. "The American task in Persia" was highly influential in shaping American political opinion towards Iran. Commentaries on Iran appearing in American foreign policy journals, such as Foreign Affairs and Foreign Policy Reports, or in leading journals such as Time
Time (magazine)
Time is an American news magazine. A European edition is published from London. Time Europe covers the Middle East, Africa and, since 2003, Latin America. An Asian edition is based in Hong Kong...
magazine, frequently relied on Millspaugh’s accounts as a principal source.
In 1942 Millspaugh headed another financial mission, this time clearly connected with the U. S. State Department. His mission was hampered again by internal political rivalries in Iran, the entrenched vested interests of the Iranian political elite (economic, military, political, and tribal), and frequent cabinet reshuffles in Tehran
Tehran
Tehran , sometimes spelled Teheran, is the capital of Iran and Tehran Province. With an estimated population of 8,429,807; it is also Iran's largest urban area and city, one of the largest cities in Western Asia, and is the world's 19th largest city.In the 20th century, Tehran was subject to...
with seesawing political orientations (with 11 prime ministers between 1941 and 1946). The financial mission under Millspaugh’s supervision again became a source of irritation between Tehran and Washington and had to be terminated in 1945.
In 1946, his second book on Iran, Americans in Persia, was published by the policy think-tank Brookings Institution
Brookings Institution
The Brookings Institution is a nonprofit public policy organization based in Washington, D.C., in the United States. One of Washington's oldest think tanks, Brookings conducts research and education in the social sciences, primarily in economics, metropolitan policy, governance, foreign policy, and...
. Replete with “clinical” metaphors, and speaking from experience from his days working for the Shah's government, Millspaugh this time was more pessimistic and critical of Iranians, portraying them as incapable of self-government:
"Persia cannot be left to herself, even if the Russians were to keep their hands off politically. ...Persia has never yet proved its capacity for independent self-government." (p 243 of his second book)
Books by Arthur Millspaugh
- The American task in Persia, New York, Arno Press, 1925.
- Americans in Persia, Washington, D.C., The Brookings Institution, 1946.
- Crime control by the national government, Washington, D.C., The Brookings Institution, 1937.
- Democracy, efficiency, stability; an appraisal of American government, Washington, D.C., The Brookings Institution, 1942.
- Haiti under American control, 1915–1930, Boston, Mass., World peace foundation. 1931.
- Local democracy and crime control, Washington, D.C., The Brookings Institution, 1936.
- Party organization and machinery in Michigan since 1890, Baltimore, The Johns Hopkins Press, 1917.
- Peace plans and American choices; the pros and cons of world order, Washington, D.C., The Brookings institution, 1942.
- Public welfare organization, The Brookings institution, 1935.
- Toward efficient democracy; the question of governmental organization, Washington, D.C.Washington, D.C.Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....
, Brookings Institution, 1949.
See also
- United States-Iran relationsUnited States-Iran relationsPolitical relations between Iran and the United States began in the mid-to-late 19th century. Initially, while Iran was very wary of British and Russian colonial interests during the Great Game, the United States was seen as a more trustworthy Western power, and the Americans Arthur Millspaugh and...
- Morgan ShusterMorgan ShusterWilliam Morgan Shuster , American lawyer, civil servant, and publisher, who is best known as the treasurer-general of Persia by appointment of the Iranian parliament, or Majles, from May to December 1911.-Background:Shuster was born in Washington, DC and educated in the Columbian University and Law...
- Famous Americans in Iran
Sources
- U. S.-Iranian Relations: 1911-1951, M. Bonakdarian
- The Contemporary Political History of Iran, Dr. S. Jalaledin Madani.
- Iran in the last 3 centuries, Alireza Avsati. Vol 2. p 661-664. ISBN 964-93406-6-1.