Arthur Millspaugh

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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 to 1927 in the government of Reza Shah, and from 1942 to 1945 in the government of Mohammad Reza Shah. With his help, Iran became independent of foreign loans to maintain its economy. 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 Tehran, 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...