subversion of the fundamental principles of our government.
The Administrative Commissions.—As a necessary concomitant of these regulatory movements, commissions or other public agents were created whose duty it was to enforce the public utilities and pure food laws. At first the commissions had small authority; but as necessity arose their powers were expanded. When the present powers of these commissions and agents were worked out, it was found that they were a combination of executive, legislative and judicial; and, thus, instead of keeping these functions separate, they were combined. Regulatory commissions have now become recognized as essential under modern conditions as the executives, legislatures or courts. The development of the administrative commissions is probably the most fundamental change which has taken place in our government since the adoption of the Constitution. Therefore it is not at all surprising that the development of these commissions has been looked upon with suspicion and doubt by the people, in consequence of which it is only slowly and, as proven necessary by irresistible facts, that they have increased in numbers and expanded in functions.
The above is a wholly inadequate, because necessarily all too brief, summary of economic conditions which existed antecedent to the war.
the effect of the world war
When the World War broke out in August, 1914, the immediate economic effect was to create almost a panic in this country. The stock exchanges in the chief commercial countries of the world were successively closed. Prices of many commodities fell. But it was not long before the permanent economic effect of the war began to appear.
The Greatly Increased Demand for Commodities
There were withdrawn from productive work by the allies alone 15,000,000 to 20,000,000 of men; and behind the lines as many more were ere long diverted to war manufactories. In consequence of the collosal transfer of the ranks of industry, there was a great decline in the agricultural and ordinary manufacturing production of Europe. Yet, the many millions of men in the field required more than the usual amounts of food and great quantities of clothing. The demand for ships, guns and munitions was insatiable. The result was an extraordinary call for essential commodities from the United States.
Increase in Exports
The amount of wheat which was exported in the fiscal year 1914-15 was more than double that of any previous year. The exportation of meats and fats rapidly increased until it became threefold.
The exports of iron and steel gradually increased until they became fourfold.
The exportation of copper increased twofold. Many other commodities were exported in proportion to those mentioned.
Thus while, from the outbreak of the war, the central powers were in a great measure cut off as export markets for the United States, the needs of the allies were so greatly enhanced as to vastly more than counteract the partial loss of the export market for the central powers.
Increase in Horns Demands
Finally in April, 1917, we entered the war; and in consequence there were at once great governmental demands for materials to build ships, for munitions, for food, and for textiles. To meet these needs it was necessary greatly to extend our manufacturing, transportational, mining and
