The Washington herald., 1917-11-26
M'ADOO ISSUES
REGULATIONS TO
AID U. S. TRADE
Control Of Com
munications and Easing
ofExchange Are Aims.

Secretary McAdoo. OF the Treasury
Department. last night issued regula-
lions through which he will enforce
provisions of the espionage and trad
ing with the enemy acts The regula-
tions foreshadow q Tightening Of con-
troll Of messages Of all sorts sent out
Of this country and an easing Of the
exchange situation with neutrals.
Control of exchange and export Of
money or credits Is committed to the
Federal Reserve Board.
Both the War Trade Board and the
customs service will have jurisdiction
over letters. maps or writing of any
sort sent out OF the country and in
tended for the enemy or his allies,
Jurisdiction over written or printed
matter leaving the country is now
divided among the War Trade Board,
Customs Service and Censorship
Board. the latter created by the Presi-
dents executive order under this law.
These three services will cooperate.
Check ON Communications.
The War Trade Board is charged
with supervision over tho sending.
taking or transmitting. or attempting
to send, take or transmit out Of the
United States any letter or other writ
ing. book. map. plan or other paper,
picture, or any telegram, cablegram or
does not impair that Of the Censorship
Board.
The Customs Service Is endowed
IL
cept those contained in the United
States mail.
The regulation Of foreign exchange
is expected to be one OF the most i'm
portant effects of the order. Time ex-
change between the countries to
which the United States has not per-
mitted expectation of American pro-
ducts has fallen steadily. Business
with the Northern neutrals. the South
American countries and others is done
at a tremendous sacrifice in exchange.
The balance of trade, formerly we'll
in favor of the United States, has
swung the other way. AS the export
of gold or coin has not been en-
bargoed as effectually as has the ex-
port of commodities, there has been
no waN in which American traders
could pay for theirimports, except at
rates running as high as Z per cent
for exchange.
1t is generally believed embargoes
will be relaxed in certain respects. In
return for this. and in return for pur-
chases OF products OF the countries af-
fected, It Is believed a credit arrange
ment can be worked out whereby
neither party will suffer.
Controls Foreign Exchange.
The Federal Reserve Board. sub
ject to the approval of the Secretary
Of the Treasury, will Investigate.
regulate or prohibit transactions in
foreign exchange, gold or silver ex-
ports, currency. exports and trans
fers Of credit. The board is en-
powered to require the production of
books and papers in its investiga-
tions.
Provisions of the espionage and
trading with the enemy acts. under
which the War Trade Board has re-
quired licenses for all shipments Of
bullion or coin. will remain in full
force until later regulations are
adopted by the Federal Reserve
Board.
w. P. G. Harding and Paul War
burg are the committee of the Fed
eral Reserve Board who drew up
the regulations. and 1t is believed
they are ready to put them into ef-
feet Immediately.
The Bureau OF War Risk Insurance
has had the question of licensing
enemy insurance companies before
it for many weeks. License to en-
emy companies will be strictly linn
tied to the business in which they
are involved with American COM
panies.