EDWARD C. SCHMULTS PAPERS, 1973-77 (1978-81)

Enter text here...Edward C. Schmults began his career in public service as the General Counsel for the U.S. Department of the Treasury in June 1973. During his tenure he provided legal advice and counsel on the Federal Government’s General Revenue Sharing Program, was involved in the integration of processes to institute the Privacy Act of 1974 within the Department, directed a reorganization of the Treasury General Counsel’s office, and oversaw the conflict of interest vetting for candidates for positions and consultancies within the Department. Additionally, Schmults served as Executive Director and General Counsel of the Emergency Loan Guarantee Board.

Schmults oversaw many of the Treasury Department’s communication efforts with the Senate Select Committee on Presidential Campaign Activities and the Watergate Special Prosecution Force. In this effort, he compiled background information on several controversial issues of the day that were related to the Department and the Watergate scandal, including the Milk Price Support Program, ITT Corporation Anti-Trust Case, and allegations of the improper use of Federal agencies (Internal Revenue Service, Customs Service, and Secret Service) by the President and his advisers. Schmults often accompanied key Treasury Department officials being interviewed or deposed on Watergate issues by the Senate Select Committee or the Special Prosecutor’s Office, and wrote summaries of these occurrences, which are included in the collection. He was a key intermediary between the White House and the Senate Select Committee on matters related to the subpoena and subsequent interview of Secret Service personnel who were serving, or had served, in a protective capacity in the White House. He worked with the IRS Commissioner with respect to Senate Select Committee subpoenas issued for the examination of tax records of public and private citizens associated with the Watergate scandal.

Schmults’ time as General Counsel culminated in his nomination by President Nixon to be the Undersecretary of the Treasury, a position he assumed in July 1974. During his tenure as Undersecretary, Schmults served on the Board of Directors of the Securities Investor Protection Corporation, the Federal Financing Bank, and the United States Railway Association. Within these roles, he was involved as a key decision maker with the Lockheed Corporation government loan program and their production of the L1011 aircraft, securities and banking reform, and controlled transfer procedures related to ConRail.

In November 1975, Schmults moved to the White House Counsel’s Office. As Deputy Counsel for the President, Schmults provided legal advice to the President and members of the White House staff on domestic and foreign policy issues, constitutional or statutory powers of the President, acceptance of gifts, and the Hatch act and other political restrictions. He also handled conflict of interest questions, standards of conduct, Secret Service protection authorizations, and approval of White House contacts with independent regulatory agencies.

The collection is particularly useful for studying regulatory reform, legislative encroachment, and the 1976 Presidential campaign. For example, the regulatory reform records encapsulate not only President Ford’s philosophy, but also reflect a growing sentiment among many Americans favorable to a smaller role for the Federal government. Of special interest are the records on cable television which include an internal debate about whether or not to deregulate the growing industry. The collection also contains material related to airline deregulation, railroad reorganization, telecommunications (Federal Communications Commission), and the trucking industry. The material on legislative encroachment provides a useful study of the post-Watergate politics of the era, especially the attempt by Congress to reassert its authority in the making of foreign policy. Finally, the material on the 1976 Presidential campaign offers an account of the many challenges President Ford faced in his bid to win reelection; not only from the Democratic nominee but the conservative wing of the Republican Party as well.

Related Materials (September 2014)
Significant related materials on the Treasury Department include the William Simon Papers, the Arthur Burns Papers, and the Arthur Burns Journals, and such White House Central Files (WHCF) categories as FG (Federal Government), BE (Business-Economics), CM (Commodities), and FA (Federal Aid). On issues involving direct legal questions, significant materials appear in the files of staff members of the Domestic Council, the Office of the Assistant for Economic Affairs, and the WHCF Subject File. The Edward C. Schmults Files, distinct from the Schmults Papers, consist of Schmults' official White House records.