any, as to the stoppage of such supply by reason of the existing European war, and any and all such other facts as will bring the existing conditions in the aniline color industry fully to the knowledge of the Senate.

The Bureau immediately engaged an expert chemist to make a detailed study of the dyestuff situation in the United States. As a result of this investigation there was published late in 1915, a report entitled "Dyestuffs for American textile and other industries," " which gave consideration to all the factors connected with the establishment of a self-contained American coal-tar chemical industry, including a discussion of the nature of the dyestuff and the previous sources of supply. An important element on which there was no definite information was knowledge of the particular species of dyes that were being used. The total dyes imported were shown by the statistics, but as the products were highly specialized, the few classes into which all dyes were grouped in the import statistics did not give sufficient data on which to determine the kinds that should be manufactured. Accordingly it was decided to make a new examination of the papers in the custom houses relating to dyes imported during the fiscal year 1914, and to compile the statistics in accordance with the trade classification. The results of this work were published in 1916 under the title “Artificial dyestuffs used in the United States."" In addition the Bureau gave advice to users of dyes and to manufacturers who contemplated engaging in the industry. Several years later a much more detailed study of the same character covering all the chemicals except dyestuffs imported in the fiscal year 1914 was made, the American Chemical Society bearing a portion of the expense. The results of this work were published under the title "Chemicals and allied products used in the United States." 13

The general dislocation of commercial relations and the interference with commerce gave rise to many perplexing problems, in some of which the Bureau was able to give valuable information and advice, and on others to take an active part in conducting negotiations. An important work undertaken about this time was an arrangement made with the Russian government to allow exports

11

Special Agents Series No. 96. 13 Miscellaneous Series No. 82.

12

Special Agents Series No. 121.

to the United States. At the outbreak of the war the Russian government placed an embargo against the exportation of many commodities that had formerly been shipped to the United States. In order to obtain the release of these shipments a protocol was signed by the Russian Ambassador and the Secretary of State on September 23, 1915, which provided for the consignment of Russian goods to the Secretary of Commerce, who delegated to the Bureau of Foreign and Domestic Commerce authority for carrying on the work under the following arrangement.

American firms desiring to import goods from Russia were required to file an application with the New York office of the Bureau of Foreign and Domestic Commerce and to furnish a guaranty that no part of the goods would be exported in any form from the United States. They were also required to file bond with proper Russian officials covering the entire value of the shipment, such a bond to be made out to the Russian government and to run for a period of three years or until peace shall have been declared. After the application had been approved by the Bureau of Foreign and Domestic Commerce, through the commercial agent in charge of the New York district office, it was transmitted to the Russian commercial attache, and upon his approval was forwarded to the Customs Department of the Russian government for approval. All shipments released by the Russian government were consigned to the Secretary of Commerce, and the bills of lading and other shipping documents were transmitted to the commercial agent in charge of the district office of the Bureau at New York for indorsement and delivery to the consignee. By June 30, 1917, almost nine million. dollars worth of merchandise had been imported in this manner.

After the declaration of war between the United States and Germany in April, 1917, new duties were imposed upon the Bureau of Foreign and Domestic Commerce. These included the drafting of legislation needed to deal with trading with the enemy as well as the planning of the necessary machinery for administering such legislation when enacted, the organization of a division to license such exports as were to be regulated under the act of June 15, 1917 (40 Stat. L., 225), and the creation of a Division of Cost Accounting for the purpose of assisting the branches of the government interested in costs in connection with war contracts.

The personnel of the Division of Export Licenses consisted of members of the permanent staff of the Bureau of Foreign and Domestic Commerce, an increased clerical force, and a number of exporters, attorneys and economists who received more or less nominal salaries. Within the new division there were created a War Intelligence Section to collect data concerning the character of shippers and consignees, and a War Trade Statistical Section to analyze international trade in war commodities. In August, 1917, the machinery organized for this work was turned over by Executive order to the Exports Administrative Board, later designated the War Trade Board, but for some months thereafter the district offices of the Bureau continued to act as agents for the War Trade Board.

During the fiscal year 1917 the Bureau took over from the Federal Trade Commission the work of encouraging scientific cost accounting among manufacturers. A Division of Cost Accounting was created and a number of conferences were held with representative accountant and manufacturers, as well as with officers of branches of the government service, but by Executive order the work was retransferred to the Federal Trade Commission within the year. Toward the end of this year the cost of production work was transferred to the newly created Tariff Commission.

After the close of the war the work of the Bureau expanded rapidly as a result of the increased attention being paid to the development of foreign markets. The appropriations for the Bureau for the fiscal year 1924 show an increase of almost 300 per cent over those for the fiscal year 1919, the amount for each year being as follows:

While the Bureau of Foreign and Domestic Commerce was extending its service in the promotion of foreign trade the State Department was also paying increased attention to this work. Soon after the Bureau of Trade Relations was abolished, two of the eight officers of the Department of State "to aid in important

drafting work" were detailed as Foreign Trade Advisers. A service accordingly grew up around the Foreign Trade Advisers filling practically the same place as the old Bureau of Trade Relations. One of the Trade Advisers was assigned to special treaty work. The other, with the clerical force, headed a service which came to be known as the Office of Foreign Trade Adviser. The expansion of the work of the Office of Foreign Trade Adviser received an impetus as a result of the necessity of the State Department keeping in touch with economic developments which so vitally affected the conduct of the war and which were of great importance in the adjustments following the cessation of hostilities. Soon, however, it became evident that there was being built up an organization which was designed to give commercial information to business men as well as to study economic problems that might have a bearing on international relations. By 1920, it had a total personnel of sixty-six, of whom eighteen were technical and professional employees, and its annual cost amounted to approximately $90,000.

Concurrently with the foregoing, the State Department brought increasing pressure upon its consular officers to extend their activities in the field of securing information regarding foreign trade conditions and of taking other action that would promote the foreign trade interests of the United States. Not content with this, it, in 1920, took the radical action of providing for a special class of consular officers, to be known as "Economic Consuls " who should devote themselves to this work. This was accomplished through the issue by the President, on November 16, 1920, of an Executive order amending the Consular Regulations, which, among other things provided that not to exceed twenty-five consuls of classes 3, 4 and 5, might" whenever the good of the service requires, be designated to service as assistants to consuls-general in economic investigational work" and when so designated should be known as "Economic Consuls."

In a circular letter addressed to American diplomatic and consular officers the duties of these officers were declared to be: " to prepare reports, either upon their own volition, or upon instruction, relating to important economic matters from a broad viewpoint in the light of general economic and international principles "; to "supervise, under the consuls-general, the trade promotion work of the consulates-general to which they are assigned"; to "direct the work of

replying to trade inquiries and transmitting trade opportunities in order that their special knowledge and technical training may be applied to the improvement of that branch of the work," etc. The same circular letter made it clear, however, that the appointment of these officers was not to lessen in any degree the responsibility of other consular officers in respect to their reporting commercial activities.

The result was increasing friction between the Department of State and the Department of Commerce over representation in the field and the dissemination of information in the United States. The Department of State had no publications through which it could spread information, but the office of the Foreign Trade Adviser showed an increasing tendency to correspond directly with business men on commercial matters.

In the spring of 1920 when the bill making appropriations for the legislative, executive and judicial expenses of the government for the fiscal year 1921 was reported by the House Committee on Appropriations it failed to provide for the commercial attaches, and made a decided reduction in other items for the Bureau of Foreign and Domestic Commerce. There was a vigorous protest by chambers of commerce and other trade associations, and a sharp fight ensued on the floor of the House of Representatives, where an amendment was offered to appropriate the usual amount for commercial attaches. The amendment was attacked on technical grounds and on its merits. The technical point was that it was out of order on an appropriation bill, as there was no authority at law for the appointment of commercial attaches, and therefore the terms of the appropriation involved legislation. On the merits of the amendment it was argued that the attaches duplicated the work of consular officers and that the Consular Service should undertake all foreign trade promotion work. The point of order was sustained by the chair, but on appeal the decision of the chair was overruled by a vote of 105 to 63." After a spirited debate the appropriation for commercial attaches was restored by a vote of 210 to 39, and the other appropriations were increased without a record vote.14

When the appropriation bill for the fiscal year 1924 was under consideration a point of order was again made, but the chair

14

Congressional Record, Vol. 59, pt. 4, pp. 3767-71, 3779.