
Born April 1889 in Worthington, Indiana, learned about telegraphy from his father. Wanted to pursue a career as a lawyer took a job after high school as a railway telegrapher.
In 1912, took a job with the State Department as a telegraph operator. Seemed fascinated with codes and often decoded messages for President Woodrow Wilson. Argued that the President's coded messages were easy to break and that the coding mechanism was hopelessly outdated. Wrote a 100 page report to report his conclusion title Exposition on the Solution of American Diplomatic Codes.
Was moved to the U.S. War Department in 1917 as the United States had entered World War I. Was given the rank of lieutenant and assigned to the U.S. Signal Corps where he was named head of theMI8 (Military Intelligence, Section), a section devoted to cryptology. Was assigned the task of cracking the German diplomatic codes and was successful, leading to the prosecution of German saboteurs, including Lothar Witzke.
Traveled to Europe and met with MI5 chief Vernon Kell and the chief of British Naval intelligence Admiral William Reginald Hall. Also met with French cryptologists to compare tactics.
At the end of World War I, Yardley's section was designated to be disbanded. Yardley and General Marlborough Churchill, the head of Army Intelligence, insisted that the section was essential to diplomatic relations during peacetime. In order to diffuse attention on the group, the operation was moved to New York City, where they operated out of a brownstone.