League of Nations Secretariat

Over the more than 25 years of existence, the total expenditures of the League grew exponentially and are in proportion with the League's increasing number of institutions. In addition to forwarding payments from the member states to the ILO and the PCIJ, the League was funding the work of its more than a dozen technical and political sub-organizations. In 1921 the expenses of the League secretariat and sub-organizations mirrored the still small size of the organization, amounting to only about 8 million Gold Francs. In 1924, this number rose by more than 25% to over 13 million Gold Francs due to the massive expansion of the various technical organizations such as the Health Organization and the Economic and Financial Organization. The League incurred the highest amount of expenses, amounting to over 15 million Gold Francs, in 1931 due to the world financial crisis and the inflation of global prices.

The Economic and Financial Organization received over 10% of the budget, while the Health Section received approximately 7%. At the other end of the spectrum was the High Commissioner for Refugees, which got 1%. When it came to the distribution of money, the League organizations that were the most popular got the most money from the League budgeting committee.

In terms of cost, the League was, in many ways, quite expensive. The costs for the yearly Assembly meetings, which lasted several weeks and brought together several hundred delegates, journalists, and visitors, ranged annually between 500,000 and 750,000 gold francs. The printing costs of the League were also high, amounting annually to about 300,000-500,000 francs between 1920 and 1933. The League  was, for most of its existence, always in good financial health. The administrative personnel always calculated its budget with a 10% buffer and, in addition, was steadily working on ways to find additional forms of income, such as by selling League films and publications or by outsourcing the printing costs from Switzerland to France.

There are two primary sources: the budgets and the audits. They each hold the exact financial information for all parts of the League, the PCIJ and the ILO. However, the first one estimates and the second tallies what was spent. The annual budget reports can generally be found in the League of Nations Official Journal. The League treasurer generated these budget numbers in advance. They were to calculate the cost of the League’s activities for the next year, which were to be approved by the Assembly in its annual session. These estimates were generally based upon the previous year's expenditure, and the League planned activities that were known before the Assembly. The second sources are the confidential financial audits, in which the auditors of the League collected all the information on the actual income, expenditure and working capital of the League, the ILO and the PCIJ. These audits include all the budget changes that were made throughout the year, like the reduction of salaries of personnel that were dismissed or quit, the actual profits that were made on the sales of League publications, etc.

UN Archives Geneva

Herbert Ames

The officials included various members of the League leadership. The first was the British Secretary-General of the League of Nations, Sir Eric Drummond (1920-1933), who acted as the "Chief Financial Agent" and the League's trustee. He was responsible for the League's liquid and physical assets. In the first years of the League, all of the League bank accounts were, theoretically, his as Swiss banking law did not yet fully permit international organizations to have a bank account. Furthermore, he could authorize money transfers without having to consult the Treasure and it was his name that appeared in the land registry entry and on the leases of the League buildings. He also could, in the name of the League, inherit money from individuals seeking to leave the League some money in their will.