In 1898, Lord joined the
United States Army for the
Spanish–American War and was commissioned as a
major of
United States Volunteers. He was assigned to the
Paymaster Department duties and served with the Volunteers until joining the
Regular Army. In 1902, Lord was commissioned as a Regular Army
captain, and he continued to serve in the Paymaster Department. and members of his staff, December 7, 1918. Front row, left to right: Mr.
Gerard Swope, Major General George W. Goethals, Brigadier General Herbert Lord, Brigadier General William H. Rose. Back row, left to right: Edwin W. Fullam, Brigadier General
Frank T. Hines, Brigadier General
Robert E. Wood, Colonel F. B. Wells. Lord was serving as a major in 1908 when President
Theodore Roosevelt made use of his previous experience by detailing Lord to assist the
United States Congress with the development of a new tariff bill. The result, the
Payne–Aldrich Tariff Act of 1909, caused a rift between Republican reformers who supported low tariffs and conservative Republicans, who supported
protectionism. In 1910, Lord was appointed to oversee the disbursement of U.S. funds to the government of Cuba following the United States military's
Second Occupation of Cuba. Following the
Great Salem fire of 1914, President
Woodrow Wilson assigned Lord to oversee the disbursement of federal disaster relief funds. $200,000 was appropriated for the effort, and Lord was praised for fulfilling all requests for assistance so efficiently that he saved $150,000 of the fund. During
World War I, served as the Army's Director of Finance. During the war, he was promoted to
brigadier general and controlled the expenditure of $24 billion in War Department appropriations. At the end of the war, he was awarded the
Army Distinguished Service Medal for his services, the citation for which reads: In March 1919, Congress adjourned without making provisions to pay more than $800 million that the military owed to factories, railroads, and other businesses for services and materiel they provided during the war. On his own initiative, Lord diverted funds appropriated for other purposes so they could be used to pay the debts, which had by then increased to over $1 billion. The creditors were satisfied, which averted an economic crisis, and at the next session of Congress, the House and Senate retroactively approved of Lord's actions. 1921. In the years following the war, soldiers who had sustained wartime wounds, injuries and serious illness applied for disability payments. Because of haphazard recordkeeping that resulted from the exigencies of service on the front lines, veterans often did not have records to verify their units, type of service, or medical condition. Lord took the initiative to pay them based on their own certification of eligibility, with the War Department later using centrally located records for verification. Lord's efforts enabled the eligible veterans to rapidly obtain their disability payments, and Congress once again retroactively approved his actions. Lord retired from the Army on June 30, 1922, to accept appointment as Director of the U.S. Bureau of the Budget, succeeding its first director,
Charles G. Dawes. ==Budget director==