TRADING WITH THE ENEMY

ACT, a war measure pa ed by Congre in 1917 after America’s entry into the World War. It endowed the President with extraordinary powers to regulate trade with the nation’s enemies and their allies during the course of the war. The measure foliowed presidential proclamations forbidding the export of foodstuffs, steel, and other war nece ities except as licensed by the government, and placing all articles of export, especially to neutral countries neighboring Germany, under similar government control. The act amplified these measures in prescribing either direct or indirect trading with the enemies of the United States and also brought the prohibition of imports within the President’s powers. As a result of its enactment, foreign commerce suffered a decline. It was nece ary to scrutinize closely the trade of numerous concerns suspected of enemy affiliations and a considerable black list was prepared, _ which included some 1600 South American firms. Great Britain enforced a similar legislation and had prepared a similar black list. The act barred trading with, transporting, or communicating with an enemy, or an enemy’s ally; authorized the censoring of all communications between the United States and foreign countries; controlled the busine of enemies or their allies (Germans mainly were affected) domiciled on American territory; regulated foreign insurance companies doing busine in the United States; controlled the transfers of credits, currency, bullion and securities between _ the United States and a foreign country; and made other provisions restricting the use of channels whereby aid and comfort could be extended to the country’s enemies through American agencies.