CHAPTER XI.

EXPORTS AND IMPORTS.

The control of foreign trade was for a very short time exercised by the Exports Council and later for several months by the Exports Administrative Board. With the passage of the Trading with the Enemy Act a War Trade Board was created, which board took over the powers which had before been exercised by the Exports Administrative Board and also additional powers under the Trading with the Enemy Act. The law under which the Exports Council and the Exports Administrative Board were created reads as follows:

ESPIONAGE ACT.

The Espionage Act is officially an act to punish acts of interference with the foreign relations, the neutrality, and the foreign commerce of the United States, to punish espionage, and better to enforce the criminal laws of the United States, and for other purposes. Public No. 24, 65th Congress, H. R. 291.

CERTAIN EXPORTS IN TIME OF WAR UNLAWFUL.

The control of exports is covered under "Title VII" and the material herein contained is summarized as follows:

Section 1 states that whenever during the présent war the President shall find that the public safety shall so require, and shall make proclamation thereof, it shall be unlawful to export from or ship from or take out of the United States to any country named in such proclamation any article or articles mentioned in such proclamation, except at such time or times, and under such regulations and orders, and subject to such limitations and exceptions as the President shall prescribe, until otherwise ordered by the President or by Congress; Provided, however, That no preference shall be given to the ports of one state over those of another.

Section 2 provides penalties by fine and imprisonment for the violation of this section.

Section 3 authorizes the collector of customs of any district to refuse clearance to a vessel if there is reasonable cause to believe that the vessel is to carry out of the United States articles

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in violation of section 1. Any one who attempts to take out a vessel notwithstanding the prohibition of the collector of customs will be subject to fine and imprisonment and the vessel and forbidden cargo are forfeited to the United States.

THE EXPORTS COUNCIL.

Under the Espionage Act, by executive order, on June 22, 1917, the Exports Council was created, composed of the Secretary of State, the Secretary of Agriculture, the Secretary of Commerce, and the Food Administrator. This council was directed to formulate for consideration and approval of the President policies and recommendations to be pursued concerning exports. Such policies were formulated and on July 9 the President issued a proclamation prohibiting the export of the more important commodities except under license. This list was amended and extended by order of July 23 and again August 6.

The commodities under the final list may be classified under the following headings: Coal, coke, mineral oils of all kinds, kerosene and gasoline; grains of all kinds and meals from the same; fodders and feeds of all kinds; meats and fats of all kinds, whether animal or vegetable; steel and iron, including pig, steel billets, plates, and structural shapes, scrap, and ferromanganese; fertilizers of all kinds, organic and inorganic; arms, ammunitions, and explosives, including all original materials and chemicals necessary for the manufacture of the same.

It was stated that in issuing this order it was not the intention to prohibit the export of commodities but to control export. First a sufficient amount of all the essential indispensable commodities to meet the needs of our own people and for the necessary military and naval program must be retained. The United States will liberate only surplus products. In liberating such surplus the necessities of the nations engaged in the war against the Central Empire first will be recognized. Neutral nations will however be considered and the United States will cooperate by fair and equitable means to supply their pressing necessities.

On July 9, the Secretary of Commerce organized the division of exports licenses as a division of the Bureau of Foreign and Domestic Commerce. Upon this division was placed the responsibility of issuing licenses in accordance with the instructions issued from time to time by the President.

On August 2, the President gave further orders to the division of export licenses superseding previous regulations. Shipments to all nations associated with the United States in the war are to be freely licensed without reservation and without restriction, except

for iron and steel products, for which licenses shall be granted only in case the articles are desired for actual war purposes or directly contribute thereto; and even exportation of iron and steel as above defined will only be permitted where application has been received by the Division of Export License before August 10, and only for articles which are completely made up and manufactured before that date.

To facilitate exports to Canada and Newfoundland at first, a special license only was required, but on August 2 this plan was modified so as to require individual licenses for shipments on or after August 16, for certain classes of iron and steel, and this was extended to all classes on August 29.

On August 15 it was announced that all licenses must be made in regular form prescribed by the Division of Exports Licenses.

THE EXPORTS ADMINISTRATIVE BOARD.

On August 21, by executive order, there was created the Exports Administrative Board, to be composed of the Secretary of State, the Secretary of Agriculture, the Secretary of Commerce, the Food Administrator, and the United States Shipping Board; and upon this board was placed the executive administration of all articles under Title VII of the Espionage Act. At the same time, the composition of the Exports Council was modified, so as to be composed of the Secretary of State, the Secretary of Agriculture, the Secretary of Commerce, the Food Administrator, and the chairman of the Shipping Board. This council is to act in an advisory capacity in matters referred to it by the President and the Administrative Board.

On the recommendation of the Exports Council August 27, the President issued a proclamation which brought under control many of the more important articles of commerce. This list applied to the Central Powers and their allies and to the neutral countries of Europe. To other countries the list of commodities for which export license is required was greatly extended so as to include nearly all commodities except small unessential manufactured products and luxuries. The administration of these orders is placed upon the Exports Administrative Board.

The order of August 27 did not include coin, bullion, currency, or evidence of indebtedness. However, on September 7, the President issued a proclamation forbidding the exportation of the above-mentioned commodities except with the consent of the Federal Reserve Board, and subject to the approval of the Secretary of the Treasury.

On September 13 the Exports Administrative Board announced that after September 20 small shipments, the value of any one commodity of which does not exceed $100, may be exported by the authority of the Collector of Customs to countries except those of the Central Powers and their allies and the neutral countries of Europe.

To Canada, Newfoundland, and Mexico, the customs officials permitted the export without a license of shipments of not more than 125 bushels of wheat, 25 barrels of flour, 125 pounds of butter, or 25 barrels of sugar.

On September 17, the Exports Administrative Board announced a list of commodities whose conservation is necessary on account of the limited supplies and the needs of the United States in its successful prosecution of the war. Accordingly the exportation of these articles was practically prohibited. The list was further added to on September 28. The extended list comprises all the articles the supplies of which are are not more than sufficient to meet our own minimum needs. The list included all foods, grains, and fodders; iron and steel; metals, including machine tools of certain classes; and many chemicals. Licenses are required for the shipment of any article of commerce to the Central Powers and their allies and the neutral countries of Europe.

On October 5 the Exports Administrative Board announced that it would not grant bunker coal to a vessel which is bound for a border neutral and carries a cargo which may benefit the enemy, wherever such cargo originate. Also a vessel en route to nonEuropean neutrals, which touches at a United States port, shall not be granted bunker coal for the voyage unless she will agree to return to the United States with a cargo which will be approved by the Board, or which is destined for a country other than a border neutral.

On October 9 it was determined that raw cotton could be exported by special license to Great Britain, France, Italy, and Japan, and their possessions, and to Russia. This regulation was continued on October 9.

On September 25, it was announced that after October 10 collectors of customs will not approve even small shipments of commodities on the conservation list. This, however, does not modify the special arrangements which have been made regarding food, grain, fodder, butter, and sugar for Canada, Newfoundland, and Mexico.

THE TRADING WITH THE ENEMY ACT.

The Trading with the Enemy Act is entitled "An Act to define, regulate, and punish trading with the enemy and for other purposes." A summary of the more important provisions of this act is as follows:

Section 1 states that the act shall be known as the Trading with the Enemy Act.

Section 2 defines the word enemy for the purpose of trading in most comprehensive terms. It includes all persons and corporations residing in territory in control of the enemy, all corporations incorporated in any nation with which the United States is at war, and all persons and corporations in any country other than the United States doing business with such enemy territory. It includes all citizens or subjects of the nations with which the United States is at war whether resident in the United States or elsewhere. Also it includes the governments and all officials of countries with which the United States is at war.

The words "ally of enemy" are defined in terms parallel to those in which the term "enemy" is defined for all countries which are allies of countries with which the United States is at war.

The section also defines other terms used in the act, including "person," "United States," "the beginning of the war," "the end of the war," "banks," and "to trade."

Section 3 makes it unlawful

(a) For any person in the United States except with the license of the President to trade or attempt to trade with enemy or ally of the enemy.

(b) For any person except with the license of the President to transport or attempt to transport any subject or citizen of the enemy or ally of the enemy to or from the United States.

(c) To communicate in any way with a person in the enemy's territory, by mail, by paper, by picture, by telegram, by cablegram, or by wireless message, except with the license of the President or such officer as the President may designate.

The President is authorized to censor under such rules and regulations as he may prescribe all communications by any means between the United States and any enemy country.

Section 4 provides that insurance companies of the enemy country or ally of the enemy can only do business by special license, and prescribes the conditions under which such license shall be given. The President may renew or revoke such license in such manner and at such times as he shall determine.