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It had one of these oldfashioned constitutions and an oldfashioned set of departments that had been created piecemeal. They just added another department when the legislature appropriated for something. They kept adding departments. Many of them rested on different bases, different types of law, were administered in different ways. Some of them had a quasi-independent status and didn't have to get their money through the Governor, but went direct to the Legislature.

Smith, therefore, was of great help to Murphy. Between them they did a brilliant job of bringing some order out of the pattern of operation in the State of Michigan. I think that, of course, was what had attracted Smith's attention to the problems of organization of governmnet and the socalled modern efficiency operations.

So when he got to Washington as Director of the Budget, he was fully concerned during the first year with the mere approval of the budget, and recommending to the President what to do about the appropriation requests. But he very soon began to have this theoretical idea of reorganization in order to get greater efficiency. That began to rumble around in his mind. We began to hear of Title II of the Budget Act. We had never heard about it before.

Then Smith began to greatly enlarge his own organization - that is, his budget for the Bureau of the Budget became much greater than it ever had been before. He was