More effective use of shipping was fostered by the War Trade Board, which had been created six months after the declaration of war by the Trading with the Enemy Act (October 6, 1917), and which, in conjunction with the activities of the Alien Property Custodian, possessed full powers to curtail enemy trade. It thereby obtained practical control of the foreign commerce of this country, and was able both to conserve essential products for American use and to secure and economize tonnage.

Such control was assured through a system of licenses for exports and imports. No goods could be shipped into or out of the country without a license, which was granted by the War Trade Board only after investigation of the character of the shipment and its destination or source. The earlier export of goods which had found their way to Germany through neutral countries was thus curtailed and the blockade on Germany became strangling. Products necessary to military effectiveness were secured from neutral states in return for permission to buy essentials here. Two millions of tonnage were obtained from neutral states for the use of the United States and Great Britain. Trade in non-essentials with the Orient and South America was limited, extra bottoms were thus acquired, and the production of non-essentials at home discouraged. Altogether, the War Trade Board exercised tremendous powers which, however necessary, might have provoked intense resentment in business circles; but these powers were enforced with a tact and discretion characteristic of the head of the Board, Vance McCormick, who was able successfully to avoid the irritation that might have been expected from such governmental interference with freedom of commerce.

The problem of labor was obviously one that must be faced by each of the war boards or administrations, and nearly all of them were compelled to establish some sort of labor division or tribunal within each separate field. The demands made upon the labor market by war industry were heavy, for the withdrawal of labor into the army created an inevitable scarcity at the moment when production must be increased, and the different industries naturally were brought to bid against each other; the value of any wage scale was constantly affected by the rising prices, while the introduction of inexperienced workmen and women affected the conditions of piecework, so that the question of wages and conditions of labor gave rise to numerous discussions. The Labor Committee of the Council of National Defense had undertaken to meet such problems as early as February, 1917, but it was not until the beginning of the next year that the Department of Labor underwent a notable reorganization with the purpose of effecting the coördination necessary to complete success.

Unlike the food, fuel, and transportation problems, which were solved through new administrations not connected with the Department of Agriculture, the Bureau of Mines, or the Interstate Commerce Commission respectively, that of labor was met by new bureaus and boards which were organic parts of the existing Department of Labor. In January, 1918, that Department undertook the formulation and administration of a national war labor policy. Shortly afterwards delegates of the National Industrial Conference Board and of the American Federation of Labor, representing capital and labor, worked out a unanimous report upon the principles to be followed in labor adjustment. To enforce these recommendations the President, on April 9, 1918, appointed a National War Labor Board, which until November sat as a court of final appeal in labor disputes. An index of the importance of the Board was given by the choice of ex-President Taft as one of its chairmen. A month later, a War Labor Policies Board was added to the system to lay down general rules for the use of the War Labor Board in the rendering of its judgments.

Not merely enthusiasm and brains enabled America to make the extraordinary efforts demanded by the exigencies of war. Behind every line of activity lay the need of money: and the raising of money in amounts so large that they passed the comprehension of the average citizen, forms one of the most romantic stories of the war. It is the story of the enthusiastic coöperation of rich and poor: Wall Street and the humblest foreign immigrants gave of their utmost in the attempt to provide the all-important funds for America and her associates in the war. Citizens accepted the weight of income and excess profit taxes far heavier than any American had previously dreamed of. They were asked in addition to buy government bonds to a total of fourteen billions, and they responded by oversubscribing this amount by nearly five billions. Of the funds needed for financing the war, the Government planned to raise about a third by taxation, and the remainder by the sale of bonds and certificates maturing in from five to thirty years. It would have proved the financial statesmanship of McAdoo had he dared to raise a larger proportion by taxation; for thus much of the inflation which inevitably resulted from the bond issues might have been avoided. But the Government feared alike for its popularity and for the immediate effect upon business, which could not safely be discouraged. As it was, the excess profit taxes aroused great complaint. The amount raised in direct taxation represented a larger proportion of the war budget than any foreign nation had been able to secure from tax revenues.

In seeking to sell its bonds the Government, rather against its will, was compelled to rely largely upon the capitalists. The large popular subscriptions would have been impossible but for the assistance and enthusiasm shown by the banks in the selling campaign. Wall Street and the bankers of the country were well prepared and responded with all their strength, a response which deserves the greater credit when we remember the lack of sympathy which had existed between financial circles and President Wilson's Administration. Largely under banking auspices the greatest selling campaign on record was inaugurated. Bonds were placed on sale at street corners, in theaters, and restaurants; disposed of by eminent operatic stars, moving-picture favorites, and wounded heroes from the front. Steeple jacks attracted crowds by their perilous antics, in order to start the bidding for subscriptions. Villages and isolated farmhouses were canvassed. The banks used their entire machinery to induce subscriptions, offering to advance the subscription price. When during the first loan campaign the rather unwise optimism of the Treasury cooled enthusiasm for a moment, by making it appear that the loan could be floated without effort, Wall Street took up the load. The first loan was oversubscribed by a billion. The success of the three loans that followed was equally great; the fourth, coming in October, 1918, was set for six billion dollars, the largest amount that had ever been asked of any people, and after a three weeks' campaign, seven billions were subscribed. Quite as notable as the amount raised was the progressive increase in the number of subscribers, which ranged from four million individuals in the first loan to more than twenty-one millions in the fourth. Equally notable, as indicating the educative effect of the war and of the sale of these Liberty Bonds, was the successful effort to encourage thrift. War Savings societies were instituted and children saved their pennies and nickels to buy twenty-five cent "thrift stamps" which might be accumulated to secure interest-bearing savings certificates. Down to November 1, 1918, the sale of such stamps totalled $834,253,000, with a maturity value of more than a billion dollars.

The successful organizing of national resources to supply military demands obviously depended, in the last instance, upon the education of the people to a desire for service and sacrifice. The Liberty Loan campaigns, the appeals of Hoover, and the Fuel Administration, all were of importance in producing such morale. In addition the Council of National Defense, through the Committee on Public Information, spread pamphlets emphasizing the issues of the war and the objects for which we were fighting. At every theater and moving-picture show, in the factories during the noon hours, volunteer speakers told briefly of the needs of the Government and appealed for coöperation. These were the so-called "Four Minute Men." The most noted artists gave their talent to covering the billboards with patriotic and informative posters. Blue Devils who had fought at Verdun, captured tanks, and airplanes, were paraded in order to bring home the realities of the life and death struggle in which America was engaged. The popular response was inspiring. In the face of the national enthusiasm the much-vaunted plans of the German Government for raising civil disturbance fell to the ground. Labor was sometimes disorganized by German propaganda; destruction of property or war material was accomplished by German agents; and valuable information sometimes leaked out to the enemy. But the danger was always kept in check by the Department of Justice and also by a far-reaching citizen organization, the American Protective League. Equally surprising was the lack of opposition to the war on the part of pacifists and socialists. It was rare to find the "sedition" for which some of them were punished, perhaps over-promptly, translated from words to actions.

The organization of the industrial resources of the nation was complicated by the same conditions that affected the purely military problems—decentralization and the emergency demands that resulted from the sudden decision to send a large expeditionary force to France. The various organizing boards were so many individual solutions for individual problems. At the beginning of the war the Council of National Defense represented the only attempt at a central business organization, and as time went on the importance and the influence of the Council diminished. The effects of decentralization became painfully apparent during the bitter cold of the winter months, when the fuel, transportation, and food crises combined to threaten almost complete paralysis of the economic and military mobilization.

The distrust and discouragement that followed brought forth furious attacks upon the President's war policies, led not merely by Roosevelt and Republican enemies of the Administration, but by Democratic Senators. The root of the whole difficulty, they contended, lay in the fact that Wilson had no policy. They demanded practically the abdication of the presidential control of military affairs, either through the creation of a Ministry of Munitions or of a War Cabinet. In either case Congress would control the situation through its definition of the powers of the new organization and the appointment of its personnel.