WASHINGTON, Feb. 17— Disclosures about the Defense Department paying hundreds of dollars for a hammer and hundreds more for a toilet seat have infuriated President Reagan, who has called the reports a ”constant drumbeat of propaganda” and not typical of the way the Government operates.

But that ”propaganda,” the President apparently forgot or did not know, originated with a commission on governmental efficiency for which he has been full of praise, the Grace Commission.  (more)