He practiced law in Rising Sun from 1881 to 1882, then took a position as the editor of the Franklin Democrat newspaper in Brookville, Indiana.

The following year, he was named a Judge of the Seventh Judicial Circuit of Indiana, where he served until 1913.

President Woodrow Wilson appointed him Comptroller of the United States Department of the Treasury in 1913.

[1] Downey received a recess appointment from President Woodrow Wilson on August 3, 1915, to a seat on the Court of Claims (later the United States Court of Claims) vacated by Judge Charles Bowen Howry.

He was confirmed by the United States Senate on January 17, 1916, and received his commission the same day.