This paper proposes a control scheme to reduce the power consumption of a variable displacement swash-plate type piston pump supplying oil to a valve-controlled hydraulic cylinder at constant pressure. Whenever flow rate demand was absent, the swash plate angle and the pump speed were changed to the minimum values required to compensate for the internal leakage flow. In response to command signals, the pump speed was changed in proportion to the absolute mean value of the speed component for position commands. At the same time, a pressure regulator was activated to maintain constant system pressure by precisely adjusting the pump speed with the swash plate angle fixed at the maximum. The conventional system consisting of a pressure-compensated variable displacement type pump is driven at a constant speed of 1,800rpm. By comparison, computer simulation and experimental results showed that idling power at stand-by status could be reduced by up to 70% by reducing the pump speed from 1,800rpm to 300rpm and the swash plate angle to the minimum.