and South America. The value of trade with Asia increased 244 per cent and that with Oceania and South America 192 and 95 per cent, respectively. Although the actual value of trade with Europe is greater than prior to the war the gain is less than the increase in prices and the actual quantity of goods is smaller. This decline in the relative importance of Europe as a factor in our trade as other areas gain is in part a continuation of a gradual shift in this direction evident before the war and in part the result of the war's serious impairment of European commercial strength.

I believe it can be said with confidence that the unique situation of our foreign trade is to a considerable degree due to the support given by Congress and the administration to the activities of this department. The reorganization of this service for practical trade promotive purposes is well indicated by the growth of applications by business houses and farm cooperatives for assistance by the department. In 1921 these inquiries averaged less than 700 daily, whereas they now exceed 7,500 daily and are heavily overtaxing the facilities of the organization. A recent query to export houses requesting estimates of their foreign transactions in which they were materially assisted by this department, either in sales promotion or in the prevention of losses, brought responses indicating a total exceeding $500,000,000.

etion of President Harding, I called in September, National Conference on Unemployment. This cons its primary purpose the promotion of temporary s, but also had in view a broader consideration of the of business slumps. The relief measures adopted by e proved so successful that we overcame unemployless time than in any other depression in our history. lating emergency measures, however, the responsible labor leaders, and economists of the conference agreed he proposal that exhaustive investigations should be whole problem, with a view to the abiding minimization

e.

nce of this objective I appointed a committee on business unemployment, which brought in its report in April, committee found that slumps in business are due funda

the economic collapse from the wastes, extravagance, , inflation, overexpansion, and relaxation of effort by loped during booms. Remedies were proposed in three

First, the better control of credit by the Federal reem and the individual bankers, so as to prevent rank n and overexpansion; second, the provision of more information as to the tendencies in production, stocks, conof commodities, employment, etc., so as to enable business to judge better of the approach of dangerous periods; and › deferment of as much as possible of public construction ing periods of full private demand in the industry to those when the construction industries were not so much in de

is no doubt that the appearance of the report, sponsored by inent business men, labor leaders, economists, and engineers, ch to curb the beginnings of a dangerous boom in the spring

Moreover, the report has enlisted remarkable public attenth in the United States and abroad. It has stimulated ecothought and has developed some very tangible results in apon of the principles laid down for mitigating the high losses community through the waste of booms and their inevitable se into gigantic unemployment.

e of the important recommendations of the committee, as stated e, was the necessity for improved statistical services by the Dement of Commerce. It was considered that no other agency d adequately provide such a service. In consonance with this mmendation the monthly Survey of Current Business was ugurated in 1921 with the aim of bringing all of this type of inmation together and I ing it promptly. The publication

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has been steadily improved, until it now comprises 1,400 separate items collected from 55 Government departments, 116 voluntary agencies, and 35 technical and trade sources. Its paid subscription list has increased more than 50 per cent in the past year.

WASTES DUE TO SEASONAL CONSTRUCTION

A second committee was named by me from the unemployment conference on seasonal operation in the construction industries, which carried on extensive research into this problem and made its report last July, just after the close of the fiscal year now under review. The report showed conclusively that custom, not climate, is mainly responsible for the seasonal ups and downs in building, and that these evils are largely unnecessary and can be eliminated. For most types of construction it is now possible to build the year round in all parts of the United States. The elimination of these wastes would strengthen the entire business structure, for construction is the balance wheel of American industry. The value of yearly con struction in the United States is more than $5,000,000,000. If building falls off, there is always a slackening in many other lines of industry, resulting in unemployment, decreased purchasing power employees, and further depression.

of

Neither of the reports of these two committees included any ree ommendation as to extension of governmental activities further than that there should be strengthening of the economic and physical research now being carried on by the department. It was felt that a stimulation of thought and organization in the local communities was more consonant with our national conception of individual and community initiative. Important action has now been taken in many communities in changing leasing dates and other devices to induce more regularity to construction.

BITUMINOUS COAL INDUSTRY

Investigation made early in this administration, published in various departmental documents, revealed the high instability of the bituminous coal industry and the fact that it was functioning great national loss. Committees of important men representing various phases of the problem were appointed and systematic co operation has been set up in remedy. Due to the war and to perio of profiteering, far too many mines had been developed and placed in operation. Practically the whole of these mines had continued to operate on a basis of partial weekly employment. There were ap proximately 30 per cent too many mines engaged in the business and holding to themselves 30 per cent more labor than would be nece sary to produce the nation's coal if they were continuously employe

One result of this intermittent employment is that a large proportion of the workers, although employed at a very high minimum daily wage, did not receive a sufficient annual employment to maintain a reasonable standard of living. Thus there grew out of this vicious cycle constant incitement to labor difficulties.

Investigation showed clearly that the primary remedies needed were (a) sufficient transportation facilities, because car shortages resulted in increase of prices, profiteering, and stimulus to the maintenance of high-cost mines; (b) the reduction of the seasonal character of the industry by the summer storage of coal by the larger commercial and industrial users; and (c) a period of industrial peace so that by avoiding strikes the subsequent profiteering would disappear and thus the fly-by-night and high-cost mines lose their support; in other words, the restoration of real competitive conditions. Through cooperation of trade associations of the principal industrial consumers, through chambers of commerce and public utilities a large amount of regular summer storage has been induced. Through the fine cooperation of the railways greater equipment and terminal facilities have been provided and car shortages have been largely eliminated. Through cooperation by the department with the unionized operators and with the leaders of the United Mine Workers a long term agreement has been entered upon, which insures industrial peace in the industry. These desired remedies have now in a great measure been attained. Here is a case where the saving of economic waste can be measured in the hundreds of millions of dollars.

It is true that during the past few months the industry has been somewhat demoralized by the large stocks of coal accumulated in anticipation of a possible strike last spring, and by the lessened demand during the summer. The broad result of gained stability, however, has been that the public has received its coal during the last fiscal year at the lowest price of any year since before the war. During the year under review prices averaged $2.23 per ton for run-of-mine coal at the mine. In 1920, chiefly because of car shortages, the price averaged $5.64. That was a year of wild speculation and profiteering, with no constructive effort by the Government to improve the position of the consumer. In the year 1922. before cooperation could effect a remedy, a strike of five months intervened, followed by a great car shortage. Nevertheless, owing to the restraint imposed on profiteering and to the cooperation of various industries in distribution, the average price for that year was $3.67.

The industry is now on the road to stabilization. The benefits lie not only in the provision of coal to the consumer at lower prices than have been ained at any time since the beginning of the