)Ci?. .A- ■" » r ^ ' A A—" — ^ ^i '^ 1 '^ ^i -■- — % 6 S 8 g ''v. : 6 z: CILITY CN (- 5 ii Great Britain. Committee on staffing an-i methois of work of the Board of trade. , .^, Reports of the committees appointea to investigate the staffing and methods of worv of the Board of trade. gjvfns" ..■=(fc.. ;, fr^^ >■ y-^' '"% v?i/. ^yy <'. :M 4 Y^ I-,:.!- /- -¥ ^4. \ *" 4 it r; VT ... ..>■■ r ■: -rfl w "M ^1 SPECIAL INVESTIGATION COMMITTEES ON STAFFS. Reports of the Committees appointed to investigate the staffing and methods of work of the Board of Trade, the Department of Overseas Trade, and the National Savings Committee. ^ttitaWS to |8«Tliametit 65 (Cammunii of W* ^ajcitg. PUBLISHED BY HIS MAJESTY'S STATIONERY OFFICE. Tr. hp nurchased through any Bookseller or directly from H M ST moNERY OFFICE at the foUowing addresses : ^ ^^^^^. ^ ^ . "*'^' -^ ' 23, FORTH STREET, Edinburgh; t..,„.,^- or from E. PONSONBY, LTD., 116, Grafto n street, Dlb^. 1921. Price 6rf. Net. [Cmd. U6l.] SPECIAL INVESTIGATION COMMITTEES ON STAFFS. Note. — The cost of the Reports is 2dl. 2s. Qd., the whole of which " represents the cost of printing and publishing. I. — Report of the Committee appointed to investigate the Staffing and Methods of work of the Board of Trade. To the Finance Committee of the Cabinet. In accordance with the directions contained in your letter 3/L/30, of the 16th July 1920, we have the honour to make the following report of our investigation into the staffing and method of work of the Board of Trade. Terms of Reference. — Our terms of reference were : — " To examine, either by way of test examination or otherwise, as they may see fit, the staffing and methods of work of the Board of Trade ; and to report, what, if any, economies ma}' be effected therein, having regard to the work which the Board is called upon to perforai in the execution of the policy decided upon by the Government." 1. Proceedings of Committee. — (a) Vv e have held 24 meetings, and have heard the evidence of 24 witnesses, including the two Permanent Secretaries of the Board and Officers from the following departments : — Industries and Manufactures Department. Statistical Department and " Census of Production " Dei)artment. Power Transport and Economic Department. Finance Department. Home Timber Accounts Department. Marine Department. Department of Registrar-General of Shipping and Seamen. Intelligence and Parliamentary- Department. Solicitor's Department. Establishment Department. Department of Board of Trade Journal. Commercial Relations and Treaties Department. Bankruptcy Department. Companies Winding-up Department. We have also heaid the evidence of three officers of the Treasury who have been in close contact with certain aspects of the work of the Board, and, in connection with questions of interdepartmental co-ordination, we have heard that also of Ll: L officers of the Ministry of Transport, the General Register Office, and the Department of Scientific and Industrial Research. (h) We have made a personal inspection of the following departments of the Board : — Department of Industries and Manufactures. 2? Bankruptcy Department. cvj Companies Winding-up Department. Statistical Department and Department of Census of (^ Production. ^ Home Timber Accounts Department. Department of Registrar-General of Shipping and Seamen. (c) In reply to our interrogatories, we have received from various departments of the Board a number of memoranda and statistical statements as a basis, or in amplification, of the verbal O evidence. j2 Throughout our investigations we have received all possible assistance from the Officers of the Board, and we wish to express our recognition of the sincerity of the desire that they have displayed to observe strict economy in their methods of admini- stration. It will be observed that some of the recommenda- tions that we have to make have been suggested to us by the Officers themselves. 2. Previous Inquiry.— An inquiry of the same nature as that with which we were charged was carried out by the Board's own officers in December 1919, at the instance of the Treasury. Each Department was investigated jointly by the officer-in- charge of it, and by one of the Assistant Secretaries of the Board. The investigators were required to sign a certificate that " all the work of the branch is in your opinion essential at the present time " ; and that " the methods employed in carry- ing out the work of the branch are in your opinion as simple as possible." As a result of this inquiry a number of recom- mendations for the simplification of work, the improvement of methods, and the reduction of staff were made by the investigators. We have satisfied ourselves that those recommendations have been or are being carried out. 3. Regrading. — We learn that the Board is at the present time engaged, like other departments, in preparing a general sclieme for the regrading of all Officers of the Board, in accordance with the recommendations of tlie Reorganisation Committee of the Whitley Council of the Civil Service. Each Department of the Board is being regraded in accordance with its particular functions. The general review of the staff and organisation of the Board which this work entails provides a convenient opportunity^ for making such alterations and economies as those which are suggested in this report. 4. Recent Difficulties and Improvemerits. — A prefatory word should be said about two special difficulties that have attended O (38)15688 Wt 13073—173 1000 & 90 8/21 E & S A 2 2fc'y'y-5 lS77:i 8 the Board of late in the tasks of organising its staff and of designing its methods of work. In the first place, it has been made the recipient of various administrative functions that, together with the staffs that were discharging tliem, ha^'e been handed over to it fi'om other offices as they were wound up or reorganised. In the second place, certain of its functions in relation to such matters as reparations, dumping and key industries, have been in a state of suspense, because the policy of the Government in relation thereto was not decided. Both these circumstances have tended to make it difficult for certain departments of the Board to adapt their staff and methods to the work which they are called upon to perform with the precision which they would themselves prefer. We desire also to mention that certain alterations in the organisation of the Board have been made of late which appear to us to have been very beneficial in the reduction of labour. We refer in particular to (1) the establishment of a council of the higher officers of the Board, which has effected an economy of time and trouble in the settlement of questions of importance requiring the attention of the Minister and the Secretaries. Whether a council of the sort would suit the needs of smaller and more homogeneous offices is a question that may be open to doubt, but there can be no doubt that it suits those of the Board of Trade, which is a large office comprising two distinct sides, the executive and the advisory, and many separate departments. (2) The assembly in one building of all the permanent departments of the Board which need to be in close touch with each other, and the convenient grouping within that building of the senior officers and their subordinates. (3) The establishment of a central registry to deal with the whole of the correspondence of the Board. 5. Method of Present Enquiry. — The Board of Trade is rather a federation of offices than a single office. It contains 27 departments employing 4,856 officers, and the functions of the departments differ as widely as those, for example, of the Department of the Standards, and of the Enemy Debts Depart- ment. Some of them, such as the Bankruptcy and Companies Winding-up Departments, are self-contained, have their own separate headquarters, and are little connected with the rest of the Board. Some, such as the Mercantile Marine Offices of the i\Iarine Department, liav^e a local organisation that is scattered over the country. {See Appendix B.) h\ view of the magnitude, diversity, and wide distribution of the functions of the Board and of its organisation, a compre- hensive examination of the whole of its staffing and work would have needed a period of time longer than we considered admissible under the special circumstances of our enquiry. We have, therefore, adopted the method of a test enquiry suggested by the terms of our reference. By means of an examination that has roved over specially selected dej^artments we have arrived at certain conclusions that are in onr opinion ajDplicable to the general methods of the Board, and these conclusions we illustrate by reference to specific instances observed by us in the departments examined. We also refer to certain matters of more detail that affect particular departments only. C. Nature of Eecovimendations. — We have found nothing in the course of our test examinations that suggests to us that the staff of the Board is not fulJy occupied. On the contrary, figures have been produced to us Avhich show that the principal officers of the Board are undoubtedly over-burdened ; that the hours worked by the upper division and staff officers often greatly exceed the official office hours ; and that there is much overtime amongst the clerical staff. On the other hand, various matters relating to organisation, co-ordination, and control have come under our notice, in which, in our opinion, economies of effort and labour might be effected that would result indirectly in the economisation of staff. It is with matters of this sort, and not for the most part with any proposals for the direct reduction of staff, that we chiefly deal in this report. Matters of policy are, of course, outside the terms of our reference. By those terms, however, we are directed to " have " regard to the work which the Board is called upon to perform " in the execution of the policy decided upon by the Govern- " ment." In accordance with this direction we have, in considering the methods of work of the Board, taken into careful consideration also the ends which the work is designed to serve : and where those ends appear to us to be insufficiently defined, or not to be in sufficiently close relation to any policy decided upon by the Government, we have, as in the paragraphs immediately following, drawn attention to the circumstances, and have made suggestions for the clearer definition and delimitation of the Board's sphere of activity. Part I. 7. Delimitation of Activities of Advisory Side. — The work of the Board falls under two main heads, corresponding, roughly, to the dual organisation of the Department under its Joint Secretaries. There is, in the first place, the executive or administrative side, taking action from day to day to discharge the responsibilities imposed upon the Board by statute for conducting specific operations. The other side is advisory or deliberative, and is mainly responsible for providing such knowledge of, and well-informed judgment upon, industrial, commercial, and economic questions, as is required by the Board for the general guidance of its policy and administration. It will be clear that where the nature and extent of any duty are precise and clearly defined (as is ordinarily the case 6 with executive functions) it is a matter of little, difficulty to observe a proper standard of economy by making a provision for its discharge which is not more than adequate for the definite purpose in view. But in the case of provision for the supply of knowledge or ideas, the wide and indefinite character of the purposes to be served affords less opportunity for the application of criteria by which conscientious public servants can satisfy themselves that an adequate standard of efficiency has been attained, or by reference to which a check can be put upon an.y tendency towards the undue enlargement of depart- mental activities. This indefiniteness in the purposes to be served tends to obscure the distinction between the more essential purposes and those which, however valuable in themselves, are of secondary or subordinate importance. In times of financial stress such as the present, it is, however, particularly necessary that this distinction should be observed in accordance with an increasingly strict standard of what is essential. Apart from the need of the Board for information, intelligence, or an instructed judgment upon specific questions, it has appeared to us that the general nature of its essential equipment on the advisory side is determined by its general function as the Department of State usually referred to upon any question affecting the commercial or industrial community. This function demands an extensive familiarity with the general organisation and conditions of industry and commerce in this country. In certain instances, however, to which we now proceed to refer, it lias appeared to us that the activities of the Board upon the advisory side have gone beyond what would seem to be necessary'- for the general purpose indicated above. (a) The Industries and Manufactures Department. — In illus- tration of this opinion we refer in the first place to the Industries and Manufactures Department. This department comprises a number of technical officers engaged in the acquisition and maintenance of an intimate technical knowledge of certain industries and manufactures, which is frequently put at the disposal of individual manufacturers applying for help and guidance as to processes of manufacture. It appears to us that to give such advice, in the case of certain industries only, involves a discrimination between one industry and another which cannot be justified. Further, it appears to us that so far as the State has already undertaken any responsibilities in connection with the technical assistance of the processes of manufacture, the duties involved have been entrusted to the Department of Scientific and Industrial Research, which deals with applications of this kind in accordance with the general policy pursued by that department in discharge of its functions as a whole. Eliminating, therefore, this aspect of the utility of the staff, we come to the question of their value for the purpose of advising the Board itself ; and our conclusion upon this point is that technical advice of this character- is not essential for the proper discharge of what we conceive to be the Board's respon- sibilities towards the commercial and industrial community. Should such advice be required by the Board in any particular instance for the discharge of its own functions, it appears to us that it should preferably be obtained by consulting the Department of Scientific and Industrial Research (the resources of which must be far more complete than the Board itself could expect to possess) rather than that a partially duplicate service of experts should be maintained for purposes not, in our opinion, directly related to the Board's essential functions. (b) llie Power Transport and Economic Department. — We have also observed in the case of the Power, Transport and Economic Department a similar aspiration to acquire and maintain an equipment of technical knowledge relating to power and transport. Here again it has appeared to us that the technical aspects of these matters are already the proper care of other departments, viz. : — the Ministry of Transport, and (to some extent) the Department of Scientific and Industrial Research, the Electrical Commissioners, and the luel Research Board. It is true that power and transport questions will in many cases involve considerations affecting the commercial and industrial interests which are properly within the pro- vince of the Board. But they will similarly affect interests for which other departments are responsible, and we see no reason why the Board, any more than any other department, should need to be equipped with any specialist advisers except for the purpose of adequately representing and interpreting the general aspects of the interests for which it is depart- mentally responsible. If the functions of government are to be properly distributed between the several departments of State without wasteful overlapping it is essential that each depart- ment should rely for teclmical knowledge of any particular suJDJect-matter upon the dejjartment which is primarily con- cerned with that subject-matter, and should confine itself to the ordinary procedure of interdepartmental consultation for the adjustment of any matters which are of mutual concern. In the case, therefore, of both the Industries and Manu- factures Department and the Power, Transport and Economic Department it has appeared to us that their organisation and personnel should not exceed what is sufficient to keep the Board, with the aid of its Advisory Council, in touch with industrial, commercial and economic conditions. So far, more- over, as the Power, Transport and Economic Department is a " buffer department," specially organised to represent the Board in its relations with the Ministry of Transport, we are not satisfied that there is any justification for its separate existence. (c) Coiiwiercial Helations and Treaties Departmertt. — We find another illustration of the general principles to which we have 8 referred, relating to the scope and object of the work of the advisory side of the Board, in some of the activities of the Commercial Relations and Treaties Department of the Board. This department is concerned with the effect on British trade of the actions of Foreign governments, and furnishes whatever advice and information the Foreign Office may require in its dealings with those governments on commercial questions, A special section is maintained to accumulate information about foreign tariffs, which assists and supplies information to British traders about any questions that may arise in this connection. We question whether the more special and technical aspects of these matters are not now more properly the function of the Department of Overseas Trade. That department also is necessarily concerned to advise and assist. British subjects engaged in foreign trade, and stands in a special relation to the Foreign Office. The reduplication of function must lead, not to waste of effort only, but to inconvenience to the trading community, caused by the uncertainty as to which is the right department to approach. Here again tlie need that a branch of the Board should be employed in maintaining a special familiarity with this region of expert knowledge is not apparent to us ; and we are of opinion that the Board might rely for technical information about these subjects on the Department of Overseas Trade. In this connection the transfer of the duties of the tariff section to that department should be con- sidered Whether in the event of that course being adopted it would be found necessary to retain this department as a separate organisation to represent the Board in its relations with the Foreign Office is a matter which will then require attention. 8. Publications and Enquiries. — That the practical end to which work is directed should constantly be borne in mind is particularly necessary in connection with the publications of the Board, and with its statistical enquiries. As an instance of work of questionable utility, the cost of which might be saved by a more close attention to the practical purposes to be served, we may mention the completion of the interrupted census of production of 1912 which is now in progress. The utility of this labour, doubtful in any case owing to the lapse of time, is rendered more so by the circumstance that the interruption caused by the war prevented, the completion of the usual processes of compilation. We recommend that in order to prevent any waste of effort in this direction the Advisory Council of the Board should be charged with the duty of making a periodic review of its publications and statistical enquiries, with'^the object of advising as to their practical utility. 9, Register of Seamen. — As a further instance of a matter in which doubts have occurred to us as to the utility of the end 9 to which work is directed we may mention the elaborate photographic identity register of seamen, which, begun during the war, is still being maintained, and the continuance of which is in contemplation. Doubts cannot but suggest themselves whether the cost involved in this register can be justified in the interests of the community, especially in view of the fact that, as we are informed by those responsible for the work, it is by no means certain that the register can be made effective as regards coastwise shipping. It might perhaps be not wholly irrelevant to proceed from this observation to comment upon the end to which a great part of the work of the Marine Department of the Board is directed, and in particular to discuss the question whether the time is not at hand at which the work undertaken by the Board in the interests of seamen, for their protection in the matter of food, terms of employment, and so on, might not be more reasonably delegated to outside organisations. In view, however, of the fact that most of these activities of the Board are controlled by statute, we hold that considerations of this nature would lend us too near to questions of policy and too far from our terms of reference. We feel, however, that we are at liberty to express the opinion that every effort should be made to make this work self-supporting. 10. Tlie Board, the Rome Office, and the Coal Mines Depart- ment. — Before leaving this heading of our inquiry, we desire to call attention to the circumstance that, owing to the recent reorganisation of the administration of questions relating to coal and coal mines, it will be desirable that a careful watch should be kept on the co-ordination of the activities of the Board and those of the Home Office and of the Coal Mines Department, in order to prevent any duplication of administra- tive functions in relation to coal and coal mines. 11. Office Methods. — The Board is much occupied with operations and inquiries that involve the handling of large masses of material. The efficient performance of work of this nature requires much expert knowledge of technical methods and machinery, especially in the matter of labour-saving appliances, and it is clearly essential that the Board should keep very closely in touch with the latest information on the subject. Failure to do so must inevitably lead to waste of labour, owing to the continuance of obsolete methods, and to the imperfect adaptation of means to ends. The latest expert information and advice on the subject is available for all the Government Departments through the Office Machinery Committee of the Treasury. Instances have come under our notice in connection with the tabulation and classifi- cation of materials for the Census of Production and the methods and machinery employed therein, and in connection with calculations of interest in the Enemy Debts Department, 10 in which needed improvements have been effected by means of the assistance thus provided. We recommend that it should be recognised as an estab- lished rule that, when metliods have to be designed by the Board for performing work involving the handling of large quantities of material, this Committee of the Treasury should always be consulted before those methods are formulated. The Board does, in accordance with the general rule, consult the Treasury about the amount of staff to be employed on such work, but sometimes not until it has already formulated the methods to be followed. Since it is the methods that in most cases determine the amount of staff required, that is to leave the opportunity for technical and expert advice until it is too late. 12. Staff. — We have observed as a general characteristic of the organisation of the staff of the Board that, partly, no doubt, for historical reasons, the branches, departments, or sections into which it is divided are commonly separated from each other by hard and fast lines. Some grouping of staff is, of course, essential, particularly in the case of an office with such varied duties to perform as those of the Board of Trade ; but it appears to us that, in general, the segregation is too complete. By interposing unnecessary obstacles in the way of a transference of staff from one department to another it prevents the services of the more highly qualified officers from being brought into effective operation over the whole sphere of work with which they are qualified to deal, and it prevents the clerical staff from being promptly concentrated on any tem- porary increase in the volume of work in this department or in that. Further, by confining officers too exclusively to one sort of labour it tends to make them work in grooves, and to prevent them from cultivating that wider interest in the whole sphere of the work of the Board, and from gaining that more general knowledge of its conditions which is desirable in any Government Office, and in view of what is said in paragraph 7 above, particularly desirable in the Board of Trade. Some practical conclusions that are derived from this observation are referred to in the following paragraphs : — (a) Upper Division Officers. — The heavy responsibilities and the great pressure of work that have fallen on the senior officers of the Board during the war and the period of recon- struction have not unnaturally led to the employment of a number of junior officers as their private secretaries and personal assistants. We are of opinion that it would now be possible to make a return to a more economic practice in this respect. In order to effect a reduction in the number of officers so employed, it may be necessary that there should be a greater measure of devolution of responsibility on the part of the senior officers. 11 In view of this circumstance and of the over-segregation referred to in the preceding paragraph, we recommend that the Board should, in connection with the scheme of re-grading already mentioned, review the number to be required of junior officers of the upper division, of the status of assistant principal. Considering the extension since the war in the field of promotion for officers of the second division, we are of opinion that the policy of the Board should be ultimate!}'- to confine the number of its junior officers of the status men- tioned to such number as may be required to ensure a supply of highly qualified and fully trained men to fill the more responsible positions at the Board. (b) Clerncal Labour. — We refer above to the ill-effect of the over-segregation of staff, in preventing the most economical and efficient use of clerical labour. The method of pooling such labour has been adopted in some degrees as far as concerns shorthand writers and typists. We recommend that it should be adopted also, and in a greater degree, for general clerical labour, by amalgamating all work on kindred functions under a common direction, A greater degree of community as betAveen the various departments and sections of the Board as regards their clerical staff would, we believe, enable economies to be effected in the total numbers of such staff employed. Cases have come to our notice in which the Board has been able to make reductions in clerical staff without any consequent reduction in the output of work. We may mention instances in the Coal Section of the Statistical Department, in the Central Registry, in the pool of Shorthand Typists, and in the Department of the Financial Controller of Trading Accounts. A close watch upon the numbers of the clerical staff employed upon the more mechanical forms of clerical labour is particularly desirable when, as in the case of the Board at the present time, there are large sections of work that are being wound up after the war. We are satisfied that the Establishment Department of the Board is fully alive to this ; but we are of opinion that to assist it in making its watch upon this matter even more close and effective, more use should be made of simple methods of calculating and checking the normal output to be expected from clerks engaged in the handling of large masses of homo- geneous materials, in order that the Department may have, as far as possible, an automatic and continuous test as to whether the numbers engaged are no greater than is required by the amount of work to be done. (c) Estahlishme7it Department and Outlying Departments of the Board. — The semi-independent nature of the organisation of the big " outlying" departments of the Board, both permanent and temporary, makes the task of the Establishment Depart- ment at headquarters in the supply and control of their staffs 12 one of exceptional difficulty and responsibility. That tliis is fully appreciated by tlie officers of that Department, and that no elTort is spared by them to secure efficiency in method, and economy in tlie use of staff, we gladly recognise. At the same time we desire to emphasize the great importance, under the special circumstances of the Board, of the maintenance of the staff of this Department at a strength, both in numbers and qualifications, adequate to secure effective control over the staffing and methods of the numerous, varied, and important outlying departments. In particular, we are of the opinion that to each outlying department, the staff of which is big enough to justify it, there should be attached a special officer of the Establishment Department. The nomination of a special officer of the outlying department to act as liaison officer with the Establishment Department appears to us to be a method of organisation satisfactory in the cases of the smaller outliers only. 13. Certain Special Departments. — (a) Besides the over- segregation of departments to which we have referred, we find some evidence also of their unnecessary multiplication. We refer here in particular to a group of special departments, for the most part of recent fonnation, comprising the Intelligence and Parliamentary Branch (which serves inter alia as a secretariat to the Council), the Economic Section of the Power Transport and Economic Branch (which is largely occupied with special enquiries for the heads of the Office), and the special staffs engaged on the Journal, the Library, and the work of Publicity. The organisation of these each in a separate " com- partment " appears to us to lead to uneconomic use of the services of the staffs concerned, and in particular to some failure to employ to the best advantage the services of the senior officers who are put in charge of the separate " compartments." We are of opinion that an economy might be effected, and in particular in the time and labour of these senior officers, by the combination of all these departments into one under the general supervision of an officer of the type and experience of a Private Secretary to the President of the Board. The services of one at least of the senior officers now responsible for the departments would thus be set free for employment of a more essential nature, and the Economic Section of the Power Transport and Economic Department could probably be dispensed with altogether as a separate organisation. In this connection we are further of opinion that the opportunity of a re-organisation of the sort suggested should be made use of in order (1) to review the need for a special staff for the work of publicity, and whether the work in question could not be quite adequately performed, according to the more usual practice, by the Ministers' Private Secretaries ; (2) to consider a reduction in the senior staff of the Journal from an Editor and an Assistant 13 Editor to an Editor only. In this connection we desire to state that we are of opinion that it is both possible and desir- able that the Journal should l)e made self-supporting. The surest way of achieving that end would be the admission of advertisements. We recognise that there are arguments both ^or and against such a course : but we are of opinion that the advantages of it outweigh the disadvantages. (b) Marine Department. — Owing largely to historical sur- vivals, we are of opinion that there is now some overstaffing at the top of this department. The Office of Pilotage Com- missioner survives from the days when there was a separate Harbour Department of the Board of Trade. The greater part of the work of that department has now been transferred to the Ministry of Transport, and the continuance of the office appears to us unnecessary. The work can be done by the Headquarters staff of the Marine Department of the Board. We understand that it is not the intention to make any fresh appointment to the office on the termination of the service of its present occupant. There are two professional officers attached to the headquarters staff of the department. We are not satisfied that these are indispensable. The department must undoubtedly have at its disposal professional officers (seamen) to advise it upon the professional aspects of the questions that it has to decide : but it appears to us that it has such advice at its disposal in an adequate manner through the District Survey Officers in charge of the local Marine Offices, who are professional men. We further recommend that consideration should be given to the question whether economies might not be effected by relying for medical work on outside medical men, as is now done at some ports, instead of maintaining a staff of inside medical officers. The Assistant Secretary in charge of the department suggested that economy might be effected by the release of the surveying staff from certain purely clerical duties. We are of opinion that the suggestion is valuable ; and we have no doubt that it will be further explored. (c) Registry of Shipping and Seamen and the General Register Ojjice. — We recommend that the custody of records of seamen's deaths including missing or unlogged deaths and the issue of certificates shovild be undertaken by the General Register Office and not as at present by the Registrar General of Shipping and Seamen We ascertained that the additional labour involved would render no increase necessary in the large staff of the General Register Office, and the transfer should enable the Registrar- General of Shipping and Seamen to dispense with the staff now maintained for the purpose. (d) Finance Department. — The opinion was expressed to us by the Assistant Secretary in charge of this department that an 14 economy could be effected in certain sections of the work of the department and in particular in the Pay Office and in the Examination of Accounts Section, by the substitution of a smaller number of more highly qualified officers for a larger number with less qualifications. We are in agreement with this opinion. The employment of a larger proportion of trained accountants and paymasters would, we believe, conduce to both economy and efficiency. (e ) Deputy Warden of the Standards. — The Standards Depart- ment is charged with the custody of the Imperial Standards of volume and dimension, and with certain administrative duties related thereto. The head of the office is Deputy Warden of the Standards with a salary of 800L The position is usually occupied by an officer of high scientific attainments. It appears to us that under modern conditions the services of an officer of such special qualifications are not indispensable in this position. We were informed that the duties of the office could be added without difficulty to those of an Assistant Secretary of the Board, and we recommend that on the expira- tion of the term of service of the present occupant the office should be merged in this manner. Part II. 14. War Depar-tvients. — We have given special attention to the War Departments of the Board, including in that category both temporary departments set up during the War to meet War conditions and temporary departments set up since the Armistice to deal with consequences of the War or of the Peace Treaty. We felt it incumbent upon us to examine the necessity for the continuance of such departments, of the former class at any rate, after the expiration of two years from the date of the Armistice. It will be seen that in general we find no ground for dis- satisfaction with the progress made in winding-up, and, subject to the observations below, little matter for adverse criticism of their organisation or staffing. From returns obtained by us shortly after we were appointed, it appears that by August 1920, fifteen War departments, em- ploying at the date of the Armistice an aggregate staff of 993, had been wholly wound up and disbanded, or transferred to other Government Departments, and thus removed fi'om our purview. The departments thus transferred were the Road Transport Board and the Meat Supplies Department (both transferred to the Ministry of Food) employing staffs at the Armistice of 256 and 40 respectively, and the Canal Control Committee (transferred to the Ministry of Transport) employing at the Armistice a staff of eight. The departments wholly disbanded (which employed at the Armistice an aggregate staff of 689, were : — Petrol Control Department ; Paper Control 15 Department ; Tobacco and Matches Control Board : Committee on Work of National Lnportance ; Petroleum Pool Board ; Horse Transport Department ; Cotton Control Board ; Insurance In- telligence Department ; Air Raid Compensation Committee ; Industrial Inquiries Branch ; Rubber and Tin Exports Com- mittee ; and Tramways (Board of Trade) Committee. At the date of the returns referred to (August 1920) we found the following departments in existence : — Estahlished during the War. — Coal Mines Department ; Exports and Imports Licensing Section ; Scientific Instrument, Potash and Glassware Section ; Mineral Resources Development Branch ; Dyes Trade and Licensing Committee ; Flax Control Board ; Mercantile Marine War Medals Branch ; War Insurance Accounts Branch ; Controller of Trading Accounts Department ; Timber Supplies Department ; Home Timber Accounts Branch, Imported Timber Disposal Section ; and Central Council (Forage) Department. Estahlished since the Armistice. — Profiteering Act Depart- ment ; Reparation Claims Department and Clearing Office (Enemy Debts). The Exports Credit Department of the Board had -by the date of these returns been transferred to the Department of Overseas Trade, and had thus passed out of our purview. We propose to give a brief note on each of these departments and our conclusions with regard to it in particular. (a) Coal Mines Department. — As the passing of the Ministry of Mines Act resulted in the absorption of this branch into the work of the new department, it was removed from our purview before we were in a position to complete our proceedings. (b) Licensing Section. — This department has been responsible for issuing licences for both the export and import of com- modities which have been subject to restrictions. Upon the Sankey decision in December 1919 import prohibitions were suspended and the staff of 21 officers engaged upon import licensing were dismissed or absorbed into other temporary departments. The work which has since been, and continues to be, performed, is limited to the issue of licences in respect of restricted exports ; and is mainly conducted by the Board as agent for other departments, such as the Ministry of Food and Ministry of Agriculture and Fisheries. The extent of the work to be performed, as measured by the number of licences issued, has for many months shown a heavy decline, accompanied by a substantial reduction of staff. In the three months September to November 1919 the stalf em- ployed appears on average to have been 185, whereas the average staff for the three months August to October 1920 has been 37 only. The reduction in staff has indeed been pro- portionately far in excess of the reduction in the number of licences issued ; for example, the average output of licences 16 issued per head of tlie staff of 185 mentioned appears to have been 76, while the average output per head of tlie staff of 37 appears to be approximately 178. While this compai^son has suggested to us that the department was less economically organised at the earlier date than at the present time, the improvement is one which calls for an expression of satisfaction ; and upon a detailed inspection of the working arrangements we found no matter for criticism. As regards the future of this department and the probable date of its discontinuance, we understand that the Board does not at present propose to continue the export prohibitions for which it is itself responsible after the legal termination of the war. It is understood, however, that it is in contemplation by some of the departments for which the Board is acting to extend the period of the restrictions entailing these licensing operations. It was suggested to us that, in that event, it would still be more convenient and economical for the staff at present employed upon the w^ork to continue to perform it by arrangement with the other departments concerned. These arguments appear to us to have some weight ; and, while the extension of these restrictions after the termination of the war is a question of policy beyond our province, we think that, in the event of such extension the question should be carefully considered whether these operations could not be more economically performed by the Board of Trade under agency arrangements than by each of the departments concerned maintaining a separate licensing section. A further element of uncertainty as to the future of this section arises out of the possibility of legislation on key industries, &c. (c) Scientific Instruments and Glassware Section. — This section is the remnant of a large department transferred to the Board from the Ministry of Munitions which was responsible during the w^ar for controlling and stimulating the glassware and scientific instrument industry, in view of its backward state and radical importance for many essential war purposes. Its main function during the war was to collect scientific intelligence on the subject with a view to nursing factories with expert advice and assistance for the removal of hindrances to output. These advisory functions the section appears to have continued in some measure since its transfer to the Board. The staff taken over from the Ministry of Munitions was, however, rapidly reduced. In December 1919, it consisted of 12 officers, together with three part-time technical advisers. In August last the staff consisted of eight individuals only, of whom five are understood to have since been dismissed. We are assured that the Board no longer sees any reason for the maintenance of this staff as a separate section and that it is proposed to absorb its functions into the headquarters staff of the Industries and Manufactures Department of the Board, 17 presumably with a view to the retention of an element of expert technical knowledge upon the subject. While the discontinuance of the section as a separate War Department meets Avitli our approval, we must refer to our recommendations in para- graph 7 (a) above as indicating a doubt as to whether the addition apparently contemplated to the technical equipment of the Board could properly be justified. {d) Mineral Resources Development Section. — This section also was transferred to the Board from the Ministry of Munitions ; it has been responsible for the collection of detailed information on the subject of nonferrous mining and for the administration of agreements entered into by the Government during the war for the assistance of certain mining companies. In August 1920 the staff consisted of one Director at a salary of 1,200L, one engineering assistant ai a salary of 500Z., one technical assistant at a salary of 350^., and three typists. Since that date, however, we are informed that the section has been entirely discontinued. Its work and records have been wholly absorbed bj' the recently established Ministry of Mines ; and, with the exception of one officer transferred to that Ministry, the whole of the staff has been disbanded. (e) Dye Trades and Licensing. — This section consists, we are informed, of a small staff of two clerks and two typists who are employed at Manchester in connection with the export licensing and allocation of supplies of reparation dye-stuffs received from Germany. The recent passing of the L)yestuffs (Import Regulation) Act, 1920, will, we understand, substantially modify the duties discharged by the section. While no precise estimate can at present be formed as to the extent of the work for which provision will need to be made, we are assured that the addition of one or two officers to the present establishment is expected to be' sufficient, and that a large part, if not the whole, of the cost will be defrayed by the revenue received in the form of licence fees. (/) Flax Control— The staff of the Flax Control Board itself has comprised a Secretary (who was an officer of the ]\Iinistrj'- of Munitions on loan to the Board, receiving a special allowance of 2001. per annum) and two female clerks. The Flax Supplies Committee at Belfast, which is charged with the administration of the purchase and sale of tlie Ii'ish flax crop of 1919 and 1920, &c., employed, until recently, a large staff of flax inspectors, graders, and clerks ; but the cost of these operations has l^een met by the addition of a percentage to the prices charged, and has entailed no Exchequer liability. We are now informed that the whole of the staff of the Control Board and of the Flax Supplies Committee was disbanded at the end of 1920, with the exception of two officers only, who have now been discharged. (g) Mercantile Marine War Medals. — This section comprises a staff of 51 temporary officers who have been engaged since 15688 B 18 August 1919 ill the preliminary issue of war medal ribbons to officers and men of the Mercantile Marino, and in the prepara- tion of the medal issue — estimated to amount to 45,000 medals and approximately 680,000 clasps. The branch is also engaged upon the issue of the memorial plaque and scroll, with the King's letter to next-of-kin, in respect of approximately lt>,OOU cases. We were informed that no reduction of this staff could be ajiticipated until about July 1921, after the first large issue has been completed. We doubt whether the scale of operations now being performed could be reduced with economy ; indeed, it seems clear that any such reduction would not only prolong the operations to a considerable extent, but that the delay would hinder the tracing of the seamen concerned, thus com- plicating the operations and rendering the issue more costly on balance. (h) War Insurance Accounts. — This branch is responsible for the investigation and settlement of claims made under the Government War Risks Insurance Schemes (Cargo and Aircraft) and under the Air Raid Compensation Scheme, and is also responsible for auditing the accounts of insurance companies who have acted as agents for the Government under the aircraft insurance sclieme. As regards the winding-up of this branch, it does not appear that the settlement of cargo claims, involving difficult questions of " average adjusting," can be completed for a year or two ; and the staff of six engaged upon this part of the work may accordingly need to be retained for some time longer. It will, however, be possible to wind up and dismiss the staff engaged upon aircraft claims l^y the end of the current financial year, while the auditing of insurance accounts is now complete and the staff engaged upon it have been disbanded. Certain established civil servants on loan from other depart- ments will also be released in the near future. The branch comprised in August 1920 a staff of 23. This staff has already been reduced to 14 ; and we are assured that it should not exceed nine by the end of the present financial year. (i) Controller of Trading Accounts DepaHment. — This is a branch under the control of the Board's Finance Department and is engaged upon the winding up of certain trading services embarked upon by the Government during the war, including the administration of certain agreements or loans. At the date of our detailed investigation of this section in November we found to our satisfaction that the accounting work iuA^olved, so far as it had not already been completed l^y that date, was now merged in the general work of the Finance Department, and that no separate organisation was still in existence. The accounting work in connection with paper and potash had been completed, vfhile a small accounting staff of seven or eight were .19 still engaged in work in connection with spelter and zinc. We found no reason to doubt that the work is performed with a proper regard to economy. (j) Home-grown Timhcr Hujj'ply Department and Iloine-groivn Tiinher Accounts. — These important sections are dealing with the residue of certain functions in the control and distribution of home-grown timber which were taken over by the Board from the War Office in 1917. The Supply Department (Avhich is under the Controller of Timber Supply) is the administrative department in charge, through an organisation of local officers, of the standing timber and stores of converted timber owned by the Government, its remaining objects being to realise these stocks to the best advantage. The Home-grown Timber Accounts Department, on the other hand (which is under the Controller of Trading Accoimts) is performing work ancillarj'- to the disposal of these stocks by following up the consignment upon any sales, invoicing to the purchaser, demanding and bringing to account the purchase monej's, keeping accounts of the revenue and expenditure of each timber estate, and carrying out periodical stocktakings of the timber remaining in Government possession. Home-grown Timber Sujjply Department. — At the beginning of December 1919 the staff of thi» department comprised 171 officers at headquarters and 335 officers in the provinces or in Scotland or Ireland, the total staff thus amounting at that date to 506. In July 1920 the staff of tlie department had been reduced to 97 officers at headquarters and 194 provincial officers, amounting in all to 291 ; and since that date a further continuous reduction had taken place, the staff in November comprising a total of 190. Home-grown Timher Accounts. — We are informed that in May 1918 this branch comprised a staff of 300 officers. By July 1920 this staff had been reduced to 191 ; and since that date it has been still further reduced to 160, beyond which figure, it is understood, no further substantial re<luction is at present to be expected. We are inclined to infer from the very substantial reductions in staff' above mentioned that botb departments were fonnerly less economically organised than at present. The reduction is, however, satisfactory ; and we have not noted any point of substance upon which the organisation or stalHng deserves adverse criticisms. We discussed with the officers of the branch the possibility of merging the work of two small sections ; and we are now informed that this merger has been carried out with a saving at a rate of nearly 600Z. a year. We also suggested some minor re-arrangements of procedure to which, we understand, effect will be given in the near future. Substantially, however, we are satisfied that the Home-grown Timber Accounts Department is economically organised for the performance of the duties at present imposed upon it. B 2 20 As regards any possibility of the curtailment of these duties, the main operations of the Department are ancillary to the operations of the Suppl}' Department in the disposal of timber stocks. We examined certain investigations which are conducted by the department into the timber orders of past years, and we considered also whether the stocktaking previously referred to was justified by its value to the Government. But we were disposed to agree that the sums at stake are so large that it would be false economy to run the risk of loss which might at present be involved in the curtailment of these precautionary processes. We were informed that the investigations into old orders had already disclosed omissions to debit sums totalling approximately to 40,000Z. (though this included some charges which were matters of bookkeeping onlyj, and that the periodical stocktaking had brought to light a failure to bring to account at least one sale of standing timber. It is desirable, in our opinion, that efforts should be made to dispose of the balance of the timber stocks as speedily and in as large quantities as is consistent with the profitable realisation of these assets, and that the balance of profit as to the continu- ance of operations such as those in connection with the investi- gation of old orders should be constantly kept in mind, and the operations discontinued as soon as it appears that the probable yield is smaller than the cost of the stait involved. We believe that these considerations are present to the responsible officers and we hesitate to urge any drastic acceleration of sale in view of the very considerable amounts of money involved, which render staff expenditure of subordinate importance as compared with the judicious realisation of these valuable national assets. We are informed that in Great Britain alone the value of the standing timber available for disposal is still approximately six and a half million pounds and that the value of the remaining converted timber is approximately a million and a half pounds. (k) Imported Timber Disposal Section. — This department has been responsible for the control and disposal of imported timber. In December 1919 the total stafE employed appears to have been 479, this number having been reduced since the previous April (1919), when it stood at 646. A rapid reduction appears, however, to have taken place to 242 in July 1920, and, after declining slightly during the following three months, the number suffered a further heavy reduction to 133 by November 1920. We understand that the last mentioned reduction is due to the fact that practically the whole of the outstanding stocks of imported timber have recently been disposed of en bloc. The remaining staff (which should have been reduced by the end of the year to 130) will, we are informed, be necessary in order to deal with further imports of timber during the next two years under existing contracts. In the case of this department also the very heavy reduction of staff within the last 12 months has suggested to us a lack of 21 economy in its previous organisation. We saw no reason to doubt, however, that it is now under careful and economical supervision. [i) Central Council (Forage). — This council was originally promoted by the War Office during the war to deal with the supplies of hay and straw availal)le for civilian requirements and other work in which the Board was concerned. Prior to May 1920 a staff of one male statistician and 12 female clerks was employed by the Board upon a section of the work. By that date, hoAvever, this work had come to an end and the staff in question had been wholly disbanded. The remaining opera- tions have been performed by the staff of the council itself, and are accordingly beyond our purview. The Board contributes, however, towards the expenses of the council. At the beginning of 1920 this contribution was at the rate of about 7,000Z. per annum ; but since April 1920 the rate of contribution has been reduced by about one-half. (m) Profiteering Act Departrneut. — This Department was created to administer the Frofiteering Act, 1919, passed in August of that year. It employed in August 1920 a staff of about 140 officers at a cost of 31,61oZ. per annum. This staff, which we are informed is from 20 to 30 per cent, below the authorised establishment, has been since reduced to a total at the present date of 115. As regards the future of this work, the position appears to be that the provisions of the Profiteering Act, unless extended by legislation, will lapse in May next, when the department will be wound up as rapidly as possible, (n) Reparation Claims Depai'tmeiit. — This department was established early in 1920 for the primary purpose of receiving and collating for submission to the Reparation Commission the British claims in respect of damage caused to civilians under the various heads specified in the Peace Treaty. The total staff in August 1920 amounted to 120 officers, all of whom, with the exception of 2, were temjDorary. We understand, however, that the organisation has hitherto been regarded by the Board as provisional in the sense that, pending certain decisions, the nature and extent of the duties devolving upon the department must remain for the present uncertain. Some doubts having arisen in the course of our inquiry as to the necessity for the retention of the whole of tlie staff at present engaged in the department, the matter was reviewed at our suggestion by the Treasury and as a result a reduction of five clerks in the Registiy was recommended. Subject to this reduction we* are satisfied that the balance of advantage lies with proceeding with the work rather than with delaying the examination of claims until outstanding questions of policy and procedure are settled. 22 (o) Clearing Oijice {Enemy Debts). — Tliis office was created under the Peace Treaty to administer tliat section of the Treaty which provides for the clearing of certain pecuniary obligations between nationals of the British and German empires respec- tively. A smaller Clearing Office for the administration of Austrian property is in course of being established, which it has been possible to organise as part of the main German Clearing Office. The staff employed has been gradually increased pari passu with the development of the department's operations ; the number was 42 in December 1919, 340 in April 1920, and 446 in July 1920. The total average monthly salaries of the staff in August 1920 amounted to 6,594Z. The expense of the Clearing Office is, we understand, to be defrayed out of a commission to be charged upon payments made to creditors, or, in the case of the administration of Austrian property, out of a percentage levy upon assets realised or distributed. As the office thus entails no charge upon the Exchequer, and in view of the accretion of new duties to the department, we have refi'ained from attempting to form any conclusions as to its proper staif requirements under settled conditions. In conclusion we desire to express our appreciation of the services of our Secretary, Mr. W. J. Peete, of the Ministry of Health, which have been of the greatest benefit to us throughout our inquiry. HILTON YOUNG. HENRY MANN. S. P. VIVIAN. W. J. Peete, Secretary. 17th January 1921. 23 APPENDIX A. List of Witnesses. Sir S. J. Chapman, K.C.B, C.B.E. H. A. Payne, Esq., C.B. P. W. L. Ashley, Esq., C.B. A. W. Flux, Esq., C.B. G. A. G. Stanley, Esq. H. F. Carlill, Esq. H. Mead Taylor, Esq. J. Tannahill, Esq. H. Cowley, Esq. C, HipwooD, Esq., C.B. C. H. Jones, Esq., C.B.E. G. C. L. Maunders, Esq. G. E. Burls, Esq. S. W. Clark, Esq. F. Harcourt Kitchin, Esq. H. Fountain, Esq., C.B., C.M.G. H. E. Burgess, Esq. W, P. BowTER, Esq. Sir F. Heath, K.C.B. J. R. Brooke, Esq. W. L. Rind, Esq. E. C. Martin, Esq. H. Biggs, Esq. W. Desborough, Esq. Board of Trade. } Department of Scientific and Industrial Research. Ministry of Transport. General Register Office. > Treasury. APPENDIX B. Departments of the Board of Trade. Permanent Departments: — (]) Secretariat; (2) Intelligence and Parliamentary (including Library) ; (3) Commercial Relations and Treaties ; (4) Industries and Manufactures (including Standards Department) ; (5) Industrial Property (including Patent Office and Cotton Marks Office at Manchester) ; (6) Power, Transj)ort and Economic .Department (including Gas Admini- stration Branch) ; (7) Statistics ^including Census of Production Office) ; (8) Marine (including Consultative Branch, Mercantile 24 Marine and Survey Services, and Seamen's Registry) ; (9) Pilot- age Commissioner; (10) Companies (including the Winding-up Department) ; (11) Bankruptcy (including the High Court Department) ; (12) Legal ; (13) Finance ; (14) Establishment ; (15) Board of Trade Journal; (16) Department of Mines; (17) Department of Overseas Trade (Development and Intelli- gence) (Joint Department with the Foreign Office). Temporary Departments. (18) Controller of Trading Accounts ; (19) Timber supplies ; (20) Imported Timber Disposal Section ; (21) Home-grown Timber Accounts Branch ; (22) Profiteering Act Department ; (23) Clearing Office (Enemy Debts) ; (24) Reparation Claims ; (25) Russian Claims ; (26) Publicity ; (27) War Insurance Accounts Branch. The Department of Mines and the Department of Overseas Trade are administered through their Parliamentary Secretaries. There are also in the provinces 33 Mercantile Marine Offices ; 29 Marine Survey Offices ; 24 Salaried Official Receivers' Offices, and 28 Non-Salaried Official Receivers' Offices. The Clearing Office has a branch in Berlin and one in A^ienna. 25 MEMORANDUM BY BOARD OF TRADE WITH REFERENCE TO THE REPORT. The report of the Committee appointed by the Finance Committee of the Cabinet to examine the staff and methods of work of the Board of Trade lias been very carefully considered. In their report the Committee draw attention to certain difhcvdties in the organisation of the staff owing to various administrative functions having been handed over to the Board from other offices as tliey were wound up or reorganised and owing to certain of its functions in relation to such matters as Reparation, Dumping and key industries having been suspended. Some of the suggestions made in the Report appear, however, to be based on a misconception of the duties undertaken by certain Departments. The Committee direct attention to the functions of certain of the Departments in which they consider that the advisory side has been developed beyond what would seem necessary for the purpose. They discuss in this connection the duties and staffing of the Industries and Manufactures Department and the Power, Transport and Economic Department (paragraph 7 (a) and (6) ). These two Departments were organised three years ago as the resu] t of the recommendation of a Committee consisting of Sir Clarendon Hyde, Sir A. F. Firth, Bart., Mr. H. J. Mackinder, M.P., and Mr. C. T. Needham, M.P., who considered them to be necessary in order to strengthen and improve the organisation of the Board in the business interests of the country. The duties of the two Departments were stated to be as follows, in a Paper which was presented to Parliament in 1918 on the Reorganisation of the Board of Trade : — Industries and Manufactures. '• A new department dealing with home industries, with special reference to their development and stability, production, and the economic strength of the country generally ; with questions of policy connected with trade monopolies and com- binations, alien penetration into British industries, and the promotion of new trades. This section will also deal with matters within the scope of the Board of Trade relating to reconstruction of British industries and trades." Industrial Power and Transport. " A new Department charged with the consideration of all questions of general policy relating to transj^)ort in its com- mercial aspect, including shipping canal and railway rates and facilities, through railway and ocean rates, shipping conferences, &c. It will also deal with questions of policy relating to industrial power, including electricity gas and water power for industrial purposes, the conservation of fuel, petroleum, &c. 26 The duties of the Power, Transport and Economic Department have been somewhat modified owing to the creation of the Ministry of Transport, but the greater part of them remains. The name of the Department is somewhat misleading owing to some of the functions of the Board of Trade having been trans- ferred to other oflices since the formation of the Power, Transport and Economic Department and to other functions of the Board having been added to the duties of the Department. It would appear that the title of the Department has misled the Com- mittee as to its actual functions. As regards the Industries and Manufactures Department the Committee make two criticisms : — (1) They suggest that certain of the work should be done by the Department of Scientific and Industrial Kesearch. (2) They suggest that the staff of the Department with technical training is not necessary for discharging the functions of the Board of Trade. The Board of Trade maintain close co-operation with the Department of Scientific and Industrial Researcli and they have made specific enquiries of that Department in order to satisfy themselves on the question whether there is any overlap between the work of the two Departments. It will be seen from the attached letter from the Department of Scientific and Industrial Research that there is no such overlap but that, on the contrary, it would be necessary for that Department to set up a staff able to advise them on commercial matters if the existing staff were not maintained by the Board of Trade. As regards the second criticism the main object in the organisation of the Industries and Manufactures Department was to staff it with a limited number of officers who would have the qualifications iiecessarj- to enable them to appreciate the technical characteristics of the Industries which come from time to time before the Department, and on which advice is required for the purposes of the Board. It has not been and is not intended to have a staff of officers who would have special knowledge of any particular industr}^ or groups of industries ; any such course would involve the creation of a staff far in excess of anything which has been contemplated. Some officers have special knowledge and the Board of Trade have taken over from the Ministry of Munitions a section which had been definitely charged during the war with assisting manufacturers with technical knowledge and advice ; the officers so taken over have naturally continued to give such advice where asked for it, but that is quite an exceptional case and it has never been suggested that that action ^ould be extended in any way. On the other hand there is a verj great advantage in having officers of the Department technically trained to an extent which enables them to appreciate quickly the technical side of the representations made to the Department by manufacturing interests for Govern- ment assistance of various kinds. 27 It is clear that when the Board of Trade are asked, as they have been constantly asked lately, to recommend Government action in respect of particular iiidustries, and in respect of the effects of dumping and collapsed exchanges, they must be in a position to form some independent judgment as to the importance of those industries and to criticise the considerations which are put forward by the trades often collectively. This is not a function which the Department of Scientific and Industrial Research can discharge. The functions of the technical staff of the Department of Scientific and Industrial Research are to undertake research work ; the technical staff of the Industries and Manufactures Department of the Board of Trade is not qualified to undertake such work, and the suggestion that a partial duplicate service of experts is being maintained, is quite mistaken. Similarly with regard to the Power, Transport and Economic Department, no technical officers have been appointed as such, though three of the staff officers in the J^epartment were chosen (as was natural in llie case of new appointments) with an eye to the technical knowledge they possessed. It is necessary that the Board of Trade should have on its staff some officers who have had the training necessary to enable them to appreciate the technical aspect of questions coming within its scope. Since the Committee took evidence, the position has some- what altered as regards railway questions. The Board of Trade have informed the Ministry of Transport that, when new proposals regarding railway rates come into force, the Board need no longer retain their powers under Section 31 of the Railway and Canal Traffic Act, 1888, and that those powers should be transferred either to the Ministry or to local conferences. Further, the work of making enquiries into the industrial demand for new liglit railways and the like is now in obeyance, as it has been decided that no money can be included in the Estimates for any such schemes. The matters specially referred to above form only a small part of the work of the Industrial Power and Transport Depart- ment which is responsible generally for the work of the Board of Trade which does not fall within the scope of any other Department, e.g., that Department is responsible for any action which may be taken by the Board of Trade with respect to banking legislation and for the administration of the Gas Regulation Act, 19^0, which places many new and important duties upon the Board of Trade. The Board of Trade agree with the Committee that the organisation and personnel of the Industries and Manufactures Department and of the Power Transport and Economic Depart- ment should not exceed what is sufficient to keep the Board with the aid of its Advisory Coimcil in touch with industrial, commercial and economic conditions. 28 In paragraph 7 (c) the Committee suggest that it should be considered whether the tariffs section of the Commercial Relations and Treaties Department should be transferred to the Depart- ment of Overseas Trade (Development and Intelligence). The Commercial Relations and Treaties Department is responsible for advising the Foreign OlHce in trade questions affecting the relations between Governments. It is in regard to customs tariffs and regulations that a large proportion of the questions arise which form the subject of conflict between British traders and Foreign Governments, officials and organisations and it is essential, in order to enable the Department to discharge its duties efficiently, that it should have at its immediate disposal the fullest possible information on the matters dealt with by its tariffs section. Paragraph 8 refers to publications and inquiries undertaken by the Board. In connection with this subject the Board of Trade Council considered the question of what piiblications should be continued, modified or dropped, some little time ago, and it is proposed to arrange for a regular periodic review of publications and inquiries by the Council In addition, a Standing Committee was set up last year to examine all periodical and other publications which is to make such recom- mendations as appear desirable with a view to effecting economies and for the purpose of reviewing expenditure thereon. The Board cannot, however, agree that the completion of the results of the census of production for 1912 which was interrupted by the war should be abandoned. The material had already been collected at considerable expense and the results are of great importance in affording a new basis of comparison for post-war statistics of production, particularly having regard to the industrial progress made in the years immediately preceding the war. Paragraph 9 refers to the Central Index Register of Seamen and to the protection of seamen. The continuance of the register in its present form was carefully considered some little time ago and it was thought desirable. There are arguments both for and against, but the matter will be fully examined again, and if the register is continued, the question of removing any expense from public funds will be carefully considered. The question of the protection of seamen has also been under consideration before, but as the Conimittee point out, these duties are statutory and any reduction in the Board's activities would be difficult. Should it be possible, however, to accom- plish anything of the kind, the Committee's suggestion will be kept in mind. Paragraph 10 refers to the possibility of duplication of administrative functions as between the Board of Trade, Home Office, and Coal Mines Department. This matter is being carefully watched. 29 Paragraph 1 1 recommends that the Board shoukl consult the Treasury Committee on Office Machinery before formulating the methods of handling large quantities of material. This recommendation has been adopted. Paragraph 12 refers to the segregation of departments and the staffs of the departments, and suggests that the system of grouping whicli has been adopted places obstacles in the way of a transference of staff from one department to another. The only rule that obtains in the Board is that the best qualified man is taken for the particular work to be done. Recently it has been more difficult to move men from one department to another because, owing to the pressure of work, men could not be spared to leave the work they are employed ui)on. But this has not always been so, and out of the 26 heads of permanent departments and upper division men who were inembers of the staff of the Board of Trade before the war, 19 had experience in more than one department of the Board or as private secretaries to the heads of the department, and of the remainder one is a statistician specially qualified for the one department in which he serves. Those menibers of the staff who acted as private secretaries to either the Parliamentary or permanent chiefs of the department, obtained a central view of the whole work of the Board. The Board agree with the view expressed by the Committee in paragraph 12 (a) that there should be as much devolution of responsibility on the part of the senior officers as is possible, and this matter is being carefully watclied. Tlie Committee suggest in paragraph 12 (h) that clerical staff should be pooled and that simple methods of checking and calculating the normal output for clerks engaged in handling large masses of homogeneous material should be adopted. Action in the direction suggested is taken whenever possible and its extension is continually being watched, but very few departments of the Board have functions so kindred as to enable the pooling of officers engaged on general clerical work to be effected as can no doul^t be done in the case, e.g., of large commercial or insurance offices where it is possible to arrange for large blocks of work of very similar character to be done at different times. Paragraph 12 (c) refers to the relations between the Establishment Department and outlying departments of the Board. The Committee's suggestion that an officer of the Establishment Department should be attached to outlying departments, raises a difficult question. The Establishment Department has an intimate knowledge of the whole organisa- tion of the Board and it acts with the different departments of the Board as the co-ordinating authority with regard to staff methods and organisation in the same way as the Treasur}^ do with regard to all departments of State. Two of the largest 30 outlying departments are the Industrial Property Department and the Enemy Debts Clearing Office. In the first there is an officer sjjecially sanctioned for the purpose of dealing with staff matters, and in the second is a chief clerk who was specially selected by Establishment Department for the post. Both these officers submit any suggestion that they have to make to Establishment Department. The only other large outlying staff is the provincial staff of the Marine Department. In this case staff matters are dealt with by a principal clerk at headquarters of Marine Department (in consultation with the assistant secretary when necessary), and here again all suggestions for alteration, &c., are submitted to Establishment Department. The position of an officer of the Establishment Department attached to one of the other Departments would be one of considerable difficulty and, on the whole, it is considered that more satisfactory results are obtained by the present system of liaison. Some of the Committee's suggestions in paragraph 13 are valuable and the Library has been made part of the Intelligence and Parliamentarj'- Branch. The Committee's suggestion that the Board of Trade Journal should accept advertisements is also being adopted, but this additional work will increase the difficulty of giving effect to the Committee's suggestion that an assistant editor might be dispensed with, at any rate for the present. It would not, however, be an economical or satisfactory arrangement to transfer the economic section of the Power, Transport and Economic Department, some of the work of which is of a higlily important character, away from the supervision of an officer of the rank of assistant secretary. It has been found in practice that it is necessary to have a small staff whose whole time is available for furnishing information on important matters dealt with by the Board of Trade in order to prevent misconception arising as to the action taken by the Board and the grounds for such action. Paragraph 13 (6) suggests that the Marine Department is overstaffed at the top and refers to the office of Pilotage Commissioner. It is not quite accurate to say that the greater part of the work of the Harbours Department was transferred to the Ministry of Transport. As a matter of fact the greater part of that Departmeat's duties were transferred to the Marine Department and to the Power, Transport and Economic Depart- ment of the Board of Trade. When the Harbours Department (or Public Utilities Department as it was at the time) was merged in other departments the Office of Pilotage Commis- sioner was created in order to carry out local inquiries and settle orders under the Pilotage Act of 1913. This work was interrupted by the War, but it is anticipated that the work will be completed by May, 1922, and no fresh appointment to this post is contemplated. The work will then be merged with the headquarters work of the Marine Department. 31 With regard to the second paragraph of 13 (6) the Committee are not satisfied that two professional officers are indispensable. Both these officers are doing very valuable work for the Depart- ment and could not be spared, butAvhen a vacancy occurs, which will in the ordinaiy course be within two years, it is proposed to consider whether some re-arrangement could not be made. With regard to the third paragraph of 13 (6) the matter is being specially considered, and if it is found on further exami- nation that the medical inspection work can be effectively carried out by employing outside medical men alone on a more economical basis than the present system that course will be adopted. As the Committee suggest in the fourth paragraph, the question of relieving the surveying staff of clerical duties is being proceeded with. In paragraph 13 (c) the Committee recommend that the General Register Office should take charge of the records of seamen's deaths, including missing and unlogged deaths, and the issue of certificates. The matter is being looked into, but under the Merchant Shipping Act of 1894 it is a duty of the master to transmit such records to the Registrar General of Shipping and Seamen, and for the Registrar General of Shipping and Seamen to issue certified copies of such records. These records are necessary to the Board of Trade for the purpose of taking any administrative action which may be required as the result of the cause of death, e.g., it may be necessary to see whether precautions should not be taken to prevent further accidents when a death has occurred from a particular kind of accident. Paragrai^h 13 {d) suggests that the employment of a larger l^roportion of trained accountants and paymasters in the Finance Department would conduce to both economy and efficiency. This matter is under consideration. Paragraph 13 (e) refers to the post of deputy warden of standards being merged into that of an Assistant Secretary of the Board. The Board have already taken action with regard to tliis post which carries out the suggestion that some economy might be effected in this direction. The Department has always been under the direction of an Assistant Secretary of the Board of Trade and an arrangement has recently been made to employ a scientific and technical officer as deputy warden for part time only. Part II. states that in general the Committee found no ground for dissatisfaction with the progress made in winding up war departments, and little matter for adverse criticism of the organisation or staffing. In these circumstances it is not proposed to offer any comment, but the statement made in para- graph (j) that the value of the standing timber available for disposal is still approximately six and a half million pounds and that the value of the remaining converted timber is approxi- mately one and a half million pomids should be amended. The 32 figure oE six and a half million pounds relates to the amount of I standing timber purchased. " 5th April 1921. Scientific and Industrial Research Department, 16-18, Old Queen Street, Westminster, London, S.W. 1. Sir, 31st March 1921. I AM directed to acknowledge the receipt of your letter of the 7th March enclosing an extract from the report of the Hilton Young Committee on the organisation of the Board of Trade, and to say that there appears to he some misunderstanding on the part of the Committee of the respective functions of this Department and of the Board of Trade in relation to the industries of the country. Technical officers of this department are not civil servants but are men of scientific training who have an established position as research workers and whose principal function it is to advise the Department itself on the work done by its various boards, committees, and research associations, and on applica- tions made to the Department by outside bodies and persons for grants in aid of research. The Department assists industries in the application of science to their processes in the main through research associations or by the published work of its various research boards and committees. The Department is not in a position to give technical advice to individual firms. On the other hand, this Department relies upon the Board of Trade for information and advice as to the general economic and technical condition of the several industries, and uniformly consults them whenever specially favourable terms are asked by an industry on the establishment of a research association. The Scientific Instrument Research Association and the Glass Research Association are cases in which the Board of Trade through its Industries and Manufactures Department, has " advised " this Department as to the general standing of the industries concerned. In other cases, where it has been necessary to negotiate with individual firms for the granting of licences under patents held by the Department, it has sought the information of the Board of Trade as to the teclmical and general standing of the individual firms. The Committee of Council assume that the Board of Trade must in turn rely for information of this kind largely on its own technical officers, but so far as they are aware the functions of the Board of Trade technical officers are quite distinct from those of the technical officers attached . to this Department. They understand that the technical officers at the Board of Trade 33 are established civil servants, and that the accumulation of wide technical information over long periods of service makes this status desirable. On the other hand, for the purposes of this Department, it would be undesirable that its technical officers should look upon their appointments as permanent, and it is no uncommon event for a technical officer attached to this Department to obtain an outside appointment after some years of service here. The long separation from practical scientific work which permanent appointment under this Department would entail would diminish, rather than increase, the value of the advice which it is the duty of these Officers to give, I am to add that, when the Secretary appeared before the Hilton Young Committee, he laid stress upon the close touch which is continuously maintained between the Industries and Manufactures Department of the Board of Trade and the Depart- ment of Scientific and Industrial Research, and he had no intention of suggesting in anything he said that there was any overlapping of function between that Department of the Board and his own. I am. Sir, Your obedient servant, The Secretary, (Sgd.) H. FRANK HEATH. Board of Trade, Great George Street, Westminster, S.W. 1. ise 34 II. — Report of the Committee appointed to investigate the Staffing and methods of work of the Department of Overseas Trade. To THE Finance Committee of THE Cabinet. 1. We were appointed " to examine either by way of test examination or otherwise," as we might see fit, " the staffing " and methods of work of the Department of Overseas Trade, " and to report what, if any, economies may be effected therein, " having regard to the work which the iJepartment is called " upon to perform in the execution of the policy decided by " the Government." 2. We liave been furnished with full descriptive particulars of the work and organisation of the Department; we have interviewed and questioned a number of the principal officials ; and we have personally inspected the work in progress in t3-pical sections. After careful consideration of the whole matter, we now beg to present our Report. 3. Tiie Department is a joint sub-department of the Foreign Office and Board of Trade. It comprises a headquarters estal)lishment in London (numbering ajoproximately 550), an establishment of Trade Commissioners and Correspondents in the British Dominions (numbering 77), and an establishment of Commercial Counsellors and Secretaries (numbering 50) who are attached to the British Diplomatic Service abroad. The Consular Service is, we understand, responsible to the Depart- ment in respect of commercial matters, but is directly adminis- tered by a staff in the Foreign Office. 4. We find that by far the larger part of the headquarters staff is engaged, directly or indirectly, in collecting, classifying, and indexing information relating to trade and traders, and communicating it in different ways to those interested, or claiming to be interested, in overseas trade. The main sources of information upon which the Department draws are the inci- dental and periodical reports of its representatives overseas, Government publications at home and abroad, published works ■on commercial subjects, books of reference, trade directories, &c., the general and trade press, and the correspondence of traders themselves witJi the Dei^artment. Excej)t in the case of publications which admit of ready reference and are stocked for that purpose, information is recorded in the shape of type- written copies, card indexes, and press cuttings. To a large extent it consists of .lists of traders at home and abroad, with particulars relating to them. Much of the rest is detailed and fragmentary, and does not, in our view, admit of presentation in a form which would be helpful to classes of traders, though it may conceivably serve to answer particular inquiries. We 35 appreciate the desire of the Department to be armed at all points to meet anj"- inquiries that may possibly bo received, and we recognise the difhculties of sifting a mass of diversified information, and assembling the selected items in a convenient and accessible form. But we are impressed, not more by the present volume and character of the work, than by the possi- bilit3' of its unlimited growth, and we think that in the interests of economy some change in the general method is called for. 5. We consider that, as a general principle, the Department should not attempt to deal with inquiries which are outside its province, but should only supply information which it is in a specially favourable position to furnish or procure ; and that, in other cases, inquirers should be encouraged to go direct to accessible sources of information [e.g., other Government Depart- ments, published blue books, directories, standard books of reference, the general and trade press), or, in the alternative, should be told that the Department is unable to help them. Discrimination should be exercised in order to av^oid waste of time on matters which have no real bearing on British trade overseas. 6. We also recommend that the question of charging fees to traders for services rendered should be seriously considered. The dissemination of the information collected b}' the Depart- ment is effected in three ways, namely, by publication in the Board of Trade Journal, by circularising a number of traders known to be interested in particular matters, and by answering specific inquiries from individual traders. As stated in para- graph 8 (Banking, &c., Section), traders on the Special Register to whom information is regularly sent, pay an annual fee of 21. 4.S. 6d., but as this includes the subscription to the Board of Trade Journal {11. 6s.), the net charge made is negligible. Beyond this, and the cost of cablegrams recovered from traders at whose request they are sent, no charge is made for information supplied. We can understand that when the Department was created the desirability of making its existence widely known was good ground for doing the work free of charge ; but the position is different now, and we see no reason why a system of charges should not be introduced. It would discourage inquiries which have no serious commercial purposes behind them, and traders who value the assistance of the Dej^artment would presumably not object to paying a reasonable charge for services rendered to them. We suggest, therefore, that a scale of fees should be drawn up on the lines adopted by firms whose business is that of making inquiries and supplying information as to the status of business houses in the United Kingdom and elsewhere. 7. At a later stage of this Report we shall return to the question of the general method of work. Our main object in introducing it here is to focus attention on the matter at the c 2 36 outset, and to illuminate some of the observations we have to make on the particular methods of work now in operation in various sections of the Department, 8. The Department is divided into sections, which are grouped for administrative purposes into four divisions. Some of the sections are sub-divided, as indicated below. The staffs shown are exclusive of the Directing Staff and Secretariat (numbering 21), and of typists, of whom there are 120 in the Department. The Empire Section (which is sub-divided into five geographical groups) handles information relating to commercial matters in the British Dominions, and deals with inquiries from traders at home and in the Dominions. Staff, 25. The Trade Section (which is sub-divided into six groups according to trades) handles information as to com- mercial matters in the United Kingdom with relation to overseas trade, deals with inquiries from traders at home and abroad, and directs, from the point of view of British industr}^ the activities of the Department's representatives abroad. Staff, 107. The Economic, Editorial, and Overseas General Section edits and issues the annual reports written by the Department's representatives abroad, and prepares special papers on economic questions, and standing manuals on commercial conditions in countries abroad. (The Overseas General Subsection deals with questions relating to more than one country, collecting the necessary information from other Sections con- cerned.) Staff, 15. The Foreign Sections, which are laid out in six geo- graphical groups, undertake with relation to foreign countries the same functions as the Empire Section undertakes with relation to British Dominions. Staff, 91. The Foreign Administrative Section deals with Establish- ment questions respecting the Commercial Diplomatic Service. Staff, 3. The Empire Administrative Section deals with Establish- ment questions relating to the Trade Commission Service. Staff, 3. The Banking, Status, Special Register, and Shipping and Transport Section. Staff, 22. The Banking Subsection collects and supplies to inquirers information as to banking facilities and rates of exchange in other countries. 37 The Status Subsection collects information as to the financial standing of firms in the United Kingdom and, if required, of firms abroad. The Special Register is a record of firms to whom information is regularly supplied as it becomes available. Any reputable firm may be placed on the Special Register on payment of a Subscription of 21. 4,9. Qd. per annum. The Shipping and Transport Subsection collects and supplies to inquirers information as to transport facilities, port facilities, "through routing" of goods, &c. The Establishment and Finance Section deals with all staff and domestic matters at headquarters and under- takes the accounting work of the Department. Staff, 20. The General Registry is responsible for the registration, custody, and circulation through the office, of all corre- spondence. Staff, tii. The Statistical Section answers inquiries involving statistics, checks statistics in reports, and supplies statistics to other sections. Staff, 8. The Tariff Section collects information and answers inquiries as to tariff's and taxation in all countries. Staff, 8. The Inquiry Room supplies information to callers or refers them to the proper section. Staff, 2. (There is also an Inquiry Room in the City Offices of the Department. Staff, 3.) The Library. — This section undertakes the requisition, receipt, cataloguing, circulation and storage of books and publications used by the Department. The cost of the books and publications is borne on the vote of the Stationery Office. Staff', 6. The Exhibitions and Fairs Sections deal with all ques- tions of Government participation in exhibitions and fairs, organise British Industries Fair, Touring Exhi- bitions, &c. Staff, 34. 9. Inter-relation of the Empire, Foreign, and Trade Sections. — We cannot see that any useful purpose is served by the present division of work as between the Empire and Foreign geographical Sections on the one hand and the Trade Section on the other. This is, as it were, a division between the market abroad (which in the end means the trader abroad) and the trader at home. But it is of the essence of the matter to bring the latter into touch with the former, and this, we think, would be most effectively done in one branch. As it is, 2377-" j;o 38 each of the various Geographical Sul sections keeps its own records of traders, and the Trade Subsections, in turn, keep theirs ; there is much passing of files bstween the two groups; the division of functions is not very clear ; and overlapping in the daily work is in our view inevitable. The idea underlying the present arrangement is that the Empire and Foreign Sections should specialise in knowledge of trade conditions in the different countries. The reports, however, of the Depart- ment's representatives abroad, who must be assumed to be the specialists for their respective territories, are available to all sections, and so far as a general survey of the economic and commercial conditions in a particular country may be of service to home traders, it is provided in the annual reports of the representative in that country, which are edited and issued by the Economic Section. In our view, a trader at home or abroad is mainly concerned to find a buyer or seller of the particular classes of goods in which he is interested, and, for the rest, if he requires information as to tariffs, banking, or shipping, special sections exist to supply it. 10. We consider that the Trade and Geographical Sections should be amalgamated, and that ihe records now kept separately by each groujD should be combined and classified according to trades. The Economic and Editorial Section should still continue as a separate section, but its subsection (the " Over- seas General "), which now deals with inquiries from home traders relating to more than one country abroad, should disappear. We think that a very substantial saving of staff would be effected b}^ this re-arrangement, and there would be a consequential reduction of work in the General Registr}^ and Librar}^, both of which are responsible, under the present system, for circulating files and books to all sections which may possibly be concerned. 11. The i^rincipal officers of the Geographical and Trade Sections are entitled " Market Officers " and " Trade Officers " respectively. With the amalgamation of the two groups the distinction in nomenclature should cease. We do not consider that either title has any particular significance in relation to the work done, or that previous practical experience of countries or trades is really required for the performance of the duties. Many of the present officers appear to have had little or no experience of the kind. 12. General Registry and Post Boom. — The arrangements for the registration and tracing of papers appear to us to be much over-elaborated. Registers and name indexes are kept which involve duplication of entries, and the entries themselves are, in our opinion, unnecessarily expansive. Elaborate subject indexes (cards) are also kept in some of the other sections of the Department in order to save the staffs of those sections the trouble of obtaining the original papers from the Registr3\ 39 The bnlk of the papers, so far as we can judge, consist of inquiries which can be disposed of by a single reply, and for these we see no need to keep indexes either in the Registry or in other sections. We think that it would be suflicient to numljer them, enter them briefly in a numerical register, and send them (without jackets) to the proper section to be answered, after which they might be filed away for a period and tlien destroyed. If the incoming correspondence were handled at the outset Iw responsible officials who could distinguish between the important and the unimportant letters, the former only need be treated as "registered files" and much saving of clerical labour would result. In the case of "registered files," the entries in the registers should be abbreviated and the indexing simplified. 13. Outgoing letters are despatched by the Registry'-, carbon copies being enclosed in the relative files, and the files noted accordingly, but when for one reason or another letters are sealed in other sections and sent to the Registry for despatch unaccompanied by the files, the addresses are recorded in a special book kei:)t for the purpose as evidence of the despatch of the letters. We think that this is unnecessary and should cease. Nor do we see any reason for making duplicate carbon copies of all outgoing letters, and binding them together in volumes, and we think that this practice also should cease. 14. We are of opinion that by a re-arrangement on the lines indicated above, the staff of the Registry and Post Room could be reduced to less than half the present number (64), and there would also be some saving of staff in other sections consequent on the reduction of the card indexing referred to above. 15. Economic and Editorial Section. — We have examined some of the annual reports of the overseas officers of the Department, and have made inquiry as to the standing manuals of commercial information relating to particular countries which are in course of preparation. The annual reports are issued as official publications, and we understand that the same course is contemplated in the case of the standing manuals. At the present time official publications are issued at a price which hai'dly pays for the paper used, without taking into account the cost of printing and other expenses. We see no reason why these reports and manuals should be sold at a loss, and we consider that traders to whom the information contained in them may be of value would not hesitate to pay a price which would cover the cost of production. We recommend, therefore, that the preparation and publication, both of the reports and the manuals should be carried out on a self-supporting basis, and that traders and others addressing particular inquiries to the Dei)artment should be referred to these publications when the information sought is to be found in them. 40 16. Library. — It appears to ns that there is some danger of overstocking the Library with books and publications which may only be nsed very occasionally. We recommend that no new additions shoidd be made to the stock unless the books are clearly required for frequent reference, a certificate to that effect being obtained from the heads of sections concerned in each case. 17. The amount of clerical labour in the Library does not seem to us to be justified. We observed that a daily record is kept of every copy of every newspaper received, of its issue to officials in the Department, and of its return to the Library. For example, a copy of the " Daily Herald " may be sent to one official ; it is marked out accordingly. Half an hour later it may come back and its return is duly recorded. It may then be sent to another official, and still others, the process of marking ** out " and " in " being repeated on each occasion. We consider that this is a waste of time and labour, and that it would be quite sufficient to have a simple standing instruction prescribing the ordinary circulation of the several copies of each newspaper or periodical. Clerical labour would also be reduced if books which are frequently required by a particular section were retained in that section as a regular practice. 18. Statistical Section. — The bulk of the information available in this section is apparently derived from official publications, and traders who are interested could purchase the publications or obtain the information from Reference Libraries, Chambers of Commerce, and other existing institutions where such publica- tions are stocked. The inquiries received in this section do not appear to be numerous or wholly concerned with British export trade. If, however, it is considered desirable to give callers statistical information obtainable from blue books, &c., this might be done in the Inquiry Room. Besides answering inquiries, the Statistical Section checks statistics in reports and supplies statistics to other sections- It does not apjiear to us that the Statistical Section is in a more favourable position to do this work than the other sections concerned, and we think that it should be abolished, and that the Department should, when necessary, make full use of the Statistical Branch of the Board of Trade. It already does so to some extent. 19. Foreign Administrative Section and I^Jntpire Administra- tive Section. — We think that co-ordination of practice and some slight saving of staff would be secured if these small sections Avere amalgamated with the Establishment and Finance Section, which deals, inter alia, with all staff matters at headquarters. 20. Status Subsection. — This subsection collects information as to the standing of firms for the use of other sections of the Department or of other Government Departments. A record is also kept of all registered companies. It does not appear to us that the references from other sections as to the status of 41 firms addressing inquiries to tlie Department are really necessaiy, or that any very general use is made of this sub-section by other Government Departments. Apart from this, the records, which, largely consist of press cuttings, do not seem to be of much practical value ; they must, in the nature of things, include a good deal of out-of-date matter ; aud we were infr.rmed that, in practice, reference is made to an unofficial inquiry oifice in the City when any specific information as to the status of a firm is needed. As regards registered companies, information is always available at Somerset House, and in our opinion there is no justili cation for duplicating it here. We consider that this sub-section should be abolished, and that inquiry should be made through the usual channels in the comparatively few cases where information as to the status of a firm is really necessary. 21. Tariff Section. — The records of tariffs in the various countries of the world \vhich are kept in this section appeared to us to be well up to date. Concrete information of this kind is of the first importance to exporters, and although it can be obtained from the offices of Foreign and Dominion representatives in this country, its concentration in one office appears to be justified on the grounds of convenience. We suggest, however, that it should be ascertained whether the Avork is duplicated in the Board of Trade. '22. Typing Staff. — Out of a total headquarters staff o£ 550, no fewer than 120 are typists. This allows one typist to every three members of the staff (excluding the Registry staff). We could give no clearer indication than this of the character of the work to which we refer in paragraph 4 above and in our " General Observations " below. Under the existing general method of work a relatively large typing staff is inevitable, but we nevertheless recommend that the typing arrangements should be closely examined by an expert on the subject. If the various changes which we have proposed in the methods of work are effected, the typing staff will, of course, be automatically reduced. 23. For convenience, we summarise the recommendations we have so far made, as follows : — (1) That the Department should not attempt to deal with inquiries outside its scope, that inquirers should be referred, wdiere possible, to accessible sources of informa- tion, and that discrimination shoidd be exercised with a view to prevent waste of time on matters which have no real bearing on British trade overseas (paragraph 5). (2) That, as far as possible, the oi)erations of the Department sliould be conducted on a self-supporting basis, and that for this purpose fees should be charged to traders for services rendered. (Paragraph 6.) (3) That the Trade and Geographical sections should be amalgamated. (Paragraphs 9 to 11.) 42 (4) That the work of the General Registry and Post Room should be considerably simplified, and incoming correspondence handled at the outset by responsible Officers. (Paragraphs lil to 14.) '5) That the reports and manuals edited or drawn up by the Editorial and Economic Section should be pub- lished at a price to cover the cost of production, and not issued on the usual terms applicable to official papers. (Paragraph 15.) (6) That the clerical work in the Library should be reduced and expenditure on books curtailed. (Para- graphs 16 and 17.) (7) That the Statistical Section should be abolished. (Paragraph 18.) (8) That the Foreign Administrative and Empire Administrative Sections should be amalgamated with the Establishment and Finance Section. (Paragraph 19.) (9) That the Status Sub-section should be abolished. (Paragraph 20.) (10) That the Typing arrangements should be examined by an expert on the subject. (Paragraph 22.) General Observations. 24. We now return to the question of a change in the general method of work to wdiich we referred in the opening part of this Report. But we wish to make it clear at this point that the recommendations we have already made are not dependent on the settlement of this question, and that in default of some such change as we recommend hereafter substantial economies in the directions indicated above should still, in our opinion, be effected. 25. The Department was created in 1917 to promote the interests of British trade abroad. This is a wide mandate, w^hich leaves undefined the methods by which it is to be carried out, and in the nature of the case the results of this or that method cannot be definitely ascertained with a view to gauging its effectiveness. We consider, however, that these are strong reasons for judging methods strictly on their own merits, and for limiting the operation of, if not wholly discarding, those which appear to be of doubtful utility. 26. We have no remarks to make as to matters of trade policy, questions of the effect of governmental measures abroad on British trade, or other questions which we conceive the superior officers of the Department may have to handle from time to time. Nor are we disposed to question the usefulness of the work of the Exhibitions and Fairs Division, whose schemes we understand, are conducted on a self-supporting financial basis. We are doubtful, however, whether the Depart- ment should concern itself .vith incidental matters which might reasonably be left to traders themselves. We observed, for instance, tliat it assists traders to obtain passports and passages for business journeys abroad, and engages in correspondence regarding the collection of debts. 27. Apart from these various activities, and the usual domestic functions pertaining to Establishment and Finance, the Department is wholly engaged on what may conveniently be described as Intelligence work. This comprises the processes of sifting, recording, and storing infonnation from the various sources particularised in paragraph 4, of communicating infor- mation from abroad to home traders, and home information to traders abroad, of answering inquiries from traders at home and abroad, and of bringing individual traders at home and abroad in touch with each other with a view to increasing the British export trade. It is not unnatural that the Department shoidd endeavour to collect all information that is likely to be of interest. But this results in a considerable amount of infor- mation being recorded or stored which in practice is not required, and unnecessary labour is involved in handling it in the first i]]stance and going through it afterw^ards in the search for particular items. It is, moreover, open to doubt whether the Department is generally in a position to supply traders with the precise kind of information Avhich they require, and whether many of the inquiries received are worth seiious attention ; and we are not at all satisfied that, under the existing procedure, the benefit accruing to the trade of the country is commensurate with the heavy clerical labour and expense involved. 28. There is, unfortunately, much room for wasted effort in the wide and varied field of intelligence over which the Depart- ment ranges. The present method of work sets no limit to the staff which might be employed, and we think that in the interests of economy it is imperative that the Department should, concentrate on essentials, and should err, if at all, on the side of doing too little rather than attempting too much. 29. We recommend that the Department should act as a vehicle, i-ather than a repository of information, and that the collection and supply of information should follow lines strictly adapted to the practical possibilities and necessities of the case. The initiative in trade comes normally from the seller, not the buyer, and an Intelligence system devised in the interests of the British export trade should concern itself principally with informing the home trader of conditions abroad. For this purpose we would draw a distinction between (a) general information of interest to classes of traders, and (/;) particular information requested by particular traders. In our view, the headquarters office in London is attempting too much in endeavouring to supply home traders with both kinds of information. In the nature of the case it cannot be in posses- sion at all times of up-to-date detailed information relating to 44 every market overseas. Such information can only be obtained on the spot at any particiilar time, and we think, therefore, that information in category [h) should be supplied to inquirers by the Department's representatives abroad and not by the head- quarters office. The latter should only concern itself with information in category (a). If the representatives abroad were instructed to make periodical reports in a prescribed form (monthly or quarterly according to circumstances in each territory), stating briefly the current market conditions and any leading features in each of the staple trades of interest to British manufacturers ; and digests of the reports, for each class of trade, were made at headquarters, these digests would serve as fingerposts to home traders. Any consequential inquiry by a particular trader for information under category (6) could then be sent to the proper representative abroad, who would corresf)ond with the home trader direct (as he largely does now), placing him in touch with likely bujT-ers and furnishing him with any particular information he might require. In cases of urgency the inquiry could be cabled at the inquirers expense. It would not, however, be necessary to refer to the representa- tives abroad any inquiries for information to be found in the standing manuals or in the Tariffs Section. The adoj)tion of these arrangements would render it unnecessary to maintain the extensive indexes of overseas traders and bankers, and the records of miscellaneous items relating to markets abroad, now kept at headquarters, and would considerably reduce the correspondence between headquarters and the representatives abroad, and check any tendency to irrelevancy and discursive- ness in the reports of the latter. 30, We may remark here that although it is a new departure for a Government Department in this country to introduce traders to one another for the purpose of trade, yet, regarded as an integral part of the Intelligence s^'stem, no objection need, in our view, be taken to it. Without it, the system would be useless to the trader who has no overseas representatives of his own. We consider, however, that once an introduction is effected, the DeiDartment should take no further part in the negotiations. Before leaving this point we must add that, in our view, a trader with a representative of his own in an overseas market will always be at an advantage, as compared with another Avho has no representative but relies solely on the help the Intelligence system can give him. 31. The headquarters office issues a monthly bulletin to the representatives abroad, containing information as to trade conditions at home. W^e are not impressed by the general character of the matter in these bulletins, having regard to the purpose which they are apparently intended to serve. The September issue, we observed, contained a three page article on various aspects of the dispute in the coal trade. Apart from this, the necessitv for the bulletins is not clear to us. The 45 representatives abroad are fnriiisliod by lieadquailers with indexes of Britisli manufacturers, and are thus in a position to put any prospective purchaser of British goods in their terri- tories in direct touch with sources of supply in this country. Inquiries of any other nature from traders abroad, which are clearly connected with British export trade, should be answered by the Department's representativ^es, or, in the rare instances where that is not possible, forwarded to headquarters to be dealt with. But we see no reason for maintaining a stream of home information to countries overseas, either in the form of the present monthly bulletin or otlierwise, and we recommend that it should be discontinued. 32. We are convinced that if the recommendations sum- marised in paragraph 23 were carried out, and the intelligence work were restricted to essentials and conducted on the fixed lines suggested in this part of our Report, the headquarters establishment could be reduced to quite small dimensions, without in any way impairing the capacity of the Department to render effective assistance in developing British trade over- seas. It woidd then be for the consideration of the Government whether the Department should continue as a separate entity, or become a branch of the Foreign Office or Board of Trade. As a final suggestion we would strongly advocate the closest co-operation with Trading Associations, such as the Federation of British Industries, which we understand has a special branch for prosecuting inquiries as to overseas trade. Such co-operation should include the mutual exchange of information, and dupli- cation of work would thereby be avoided. A small Government office working in alliance with commercial organisations for the common object would, in our opinion, be the ideal arrangement. 33. In conclusion we desire to express our appreciation of the courtesy and facilities which the officials of the Department have accorded us during our inquiry. We recognise that their work in the Department has been discharged under special difficulties due to the circumstances in which the Department was created. 34. We have also to record our indebtedness to our Secretary, Mr. Hardisty, for the able assistance he has given us during the inquiry. J. STANLEY HOLMES. M. WEBSTER JENKINSON. C. W. Hardisty, W. YOFNG. Secretary, 29th November 1920. 46 RESOLUTION PASSED BY THE ADVISORY COMMITTEE OF THE DEPARTMENT OF OVERSEAS TRADE ON WEDNESDAY, JUNE 1st, 1921. This Committee, consisting of representatives of important indnsti'ial and commercial interests, who act in an honorary ■capacity as the Advisory Committee to the Department of Over- seas Trade, has had before it the report of Mr. Stanley Holmes's Committee on the work and organisation of the Department of Overseas Trade. The Advisory Committee since its incepticm has been fully acqnainted with the activities of the Department of Overseas Trade. In its opinion the Department, since its recent creation, has done and is doing valuable work in carrying out the functions entrusted to it by His Majesty's Government in regard to the promotion of Overseas Trade, and the dissemination of commercial intelligence. The Committee finds itself unable to agree with the main proposals of Mr. Holmes's Committee for the reorganisation of the Department. The Committee recommends that the geo- graphical and trade sections of the Department should not be amalgamated, and that the headquarters staff of the Department should continue to concern themselves with specific inquiries made by British firms. Any change in the direction of the recommendations of Mr. Holmes's Committee would either in- volve the creation of separate geographical sections within the various trade sections or would result in the maintenance, at increased expense, of augmented overseas services which, for lack of guidance, would be incapable of rendering adequate assistance to British traders. This Committee is in favour of any economies in expenditure on the Department which can be effected without lessening the value of the Department to British trade. The Committee has also had under consideration whether it would be possible and desirable for the Department to charge fees for certain classes of commercial information and assistance supplied to British traders. The Committee recommends that expenditure directly attributable to individual transactions should be recoverable fi'om the parties immediately concerned, but it does not consider that any material revenue can be looked for from this source. ADVISORY COMMITTEE TO THE DEPARTMENT OF OVERSEAS TRADE. Sir Francis H. Barker. Sir C. C. Barrie, K.B.E., M.P. Sir John Dewrance, K.B.E. Sir William Ellis, G.B.E. Sir Algernon Firth, Bart. 47 W. L. HiCHENS, Esq. F. HlOKTNBOTHAM, Esq. Kenneth Lee, Esq. Sir Charles McLeod. G. A. Moore, Esq. Sir Herbert Morgan, K.B.E. Major D. Watts Morgan, D.S.O. J. W. Murray, Esq. Sir William Pearce, M.P. Lieut.-Col. The Hon. Sidney Peel, D.S.O., M.P. Rt. Hon. Lord Riddell. H. Symonds, Esq. Major Wedgwood. Lieut.-Col. Willey, C.M.G., C.B.E., M.V.O., M.P. H. C. R. Williamson, Esq. 48 in. — Report of the Committee appointed to investigate the Staffing and Methods of Work of the National Savings Committee. To THE Finance Committee of the Cabinet. We, tlie Committee appointed to inquire into tlie staffing and methods of working of the National Savings Committee, have the honour to submit tlie following report : — 1. We have held two meetings for the purpose of taking evidence from the Secretary, the Director of Accounts, the Director of External Organisation and the Establishment Officer. We have also personally inspected the working of the whole of the branches of the Department. 2. The National War Savings Committee, established as a war organisation in the beginning of 1916, has been continued by the Government on a peace footing under the title of the National Savings Committee. The Committee at present con- sists of 27 members none of whom receives any remuneration for services on the Committee. The chairman and vice-chairman are in frequent attendance and the Committee meets monthly. 3. The function of the Committee is to organise and supervise local machinery for promoting the sale of National Savings Certificates issued at 15s. 6c^. each and redeemable at II. on the fifth anniversary of the date of issue or at 11. 6.5. on the tenth anniversary. The object of the "Savings Movement" is to encourage economy among all classes, to provide facilities for safe and profitable saving for the small investor and incidentally to raise money for the Government. From time to time the Com- mittee's organisation has been used for work outside its primary intention, e.g., the conduct of special campaigns connected with the issue of various Government loans and bonds, the most recent example of such special work being in regard to the arrangement whereby one-half of the sum received from the sale of certificates in each area is to be applied towards financing the local housing schemes of the area. 4. The activities of the Committee are confined to England and Wales but on behalf of the Treasury they exercise a supervision over the two provincial Committees in Ireland. A separate organisation has been set up for Scotland. 5. The local machinery above referred to consists of — (1) Local Savings Committees. — Of these over 1,800 have been formed by or at the instance of the National Committee. (2) Local Savings Associations or Cliihs. — Of these over 40,000 have been established by the Local Savings Committees who also supervise their work. About 13,000 Associations have been dissolved since November, 1918, the number in existence at the time of our inspection being approximately 28^000. 40 (3) Honorary Ofieial Agents. — Tlie National Committee have recognised about 6,500 shopkeepers and others as official agents for the sale of Certificates. No effort is now being made to extend these Agencies. It should, of course, be understood that National Savings Certificates can be purchased by any member of the community at a local Post Office or Bank irrespective of any association or local agency. 6. The whole of the w^ork of these local Committees and Associations is carried out on a strictly voluntary basis, but since 1918 provision has been made for payment of grants to Committees in aid of the expenses incurred by them in respect of stationery, postages, printing, rent of rooms used for offices and for meetings and, in the case of the larger Committees, clerical assistance. The grants are paid according to a scale not exceeding 10s. per annum per thousand of the population (in/nimum grant 10/.). 7. The total number of Certificates issued (in II. units) from the inauguration of tlie movement in 1910 until the end of 1919 was 382,615,980, and the net sum invested during the same period, after deducting repayments, was 266,981,976L 8. Prior to 1st April, 1919, the expenses of the National Savings Committee were met from the Vote of Credit. Since then provision has been made for them in the Civil Service Estimates under " Unclassified Services," the total amount of the Vote for 1920-21 being 106,190/. made up as follows :— £ A. Salaries and Wages - - - - 61,940 B. Travelling and Subsistence - - 11,050 C. Incidentals ----- 750 D. Expenses of Local Coniniittees - - 21,030 E. Advertising ----- 2,500 F. Special Campaigns and Propaganda - 8,920 £106,190 9. At the date of the Armistice, the staff employed l)y the National Committee numbered 391. Since then the volume of work has diminished wdth the result that it has been possible to effect a considerable reduction in staff, the number actually employed on 1st Decenil)er, 1920, being 301. Of these only 29 were pensionable civil servants, 10 held permanent but non- pensionable appointments and the remainder, 262, were employed on a purely temporary basis. 10. The staff employed, in relation to the work to be per- formed, is constantly kept under review by an Establishment Committee consisting of the Secretary, the Director of Accounts and the Establishment Officer, Avho informed us that the retrenchment above mentionel would have been much greater o 15088 50 but for a temporary accession of work arising out of tlie dissolu- tion of some 13,()()() Local Associations which has necessitated the clearing up and audit of their accounts and the administra- tion of their residuary assets and liabilities. Propaganda and organising work connected with the scheme of housing finance, to which a passing reference is made in paragraph 3, has also been responsible for a slight increase in the work of the Department. IJ. The establishment Committee anticipate that the follow- ing staff, amounting to 60 clerks and officers, will be gradually dispensed with during the current year : — Administrative Department. — Five Clerks in from 2 to 3 months. Accounts Department. Audit Branch. — 25 Clerks during the next 12 months — now engaged on work arising out of dissolved Associa- tions. Coupons Branch. — 26 Clerks during the next 12 months — reduction possible through the introduction of the "Standing Imprest System" in connection with the Coupon Supplies Accounts. External Organisation. — One Organiser. Establishment Department. — One Interviewer. One Women Welfare Superintendent. One Clerk in Supplies Branch. 12. Economy in staffing arrangements and in methods of working has been and still is the subject of close attention on the part of the members of the National Committee. Thus on 11th February, 1920, the Committee appointed a sub-committee of their number, consisting of Sir Joseph Burn, K.B.E., Actuary of the Prudential Assurance Company, Sir Wm. Schooling K.B.E., Mr. T. J. M. More, O.B.E., Inspector of Schools, Board of F>ducation, and Mr. H. Muspratt, O.B.E., Hon Secretary of the Liverpool Savings Committee, " to examine the size and " expense of the staff at Headquarters and to consider whether " any suggestions could be made for reducing the cost without " impairing efficiency." The sub-committee, after making a com- plete inspection of the work of the establishment, reported on 10th June last that they did not feel themselves in a position to make any specific recommendations but they suggested " that " the whole position might with advantage be reviewed at a later " date when fresh premises, which it is hoped will be more " suitable, are available ; when the present temporary conditions " have come to an end and the working of the Movement can be " developed on more permanent lines than are at present avail- " able." Meantime a detailed return of the Staff employed is submitted to the Committee at each of their monthly meetings. 13. Certain minor matters in regard to which the sub-com- mittee suggested slight economy of work and staff have been 51 attended to. The most important of these which had not been fully remedied at the time of our inspection referred to the system of registering letters-. We entirely endorse the sub-com- mittee's opinion that many letters are registered which are of no permanent value. Having to deal witli sucli a large nu]id)cr of Local Associations and other agencies the correspondence is naturally of considerable volume. But on examination it appeared to us that many of the letters were of temporary interest or were not likely to be referred to again and might have been disposed of without the formality of registration. For example, we saw no reason for registering letters from Local Associations and Committees merely requesting supplies of leaflets, posters, forms, c^-c, or for continuing the present elaborate method of dealing with such recjuests in the Supplies Department. 14. While agreeing with the sub-committee's view that the local workers in the movement being almost wholly voluntary " should appropriately be given an amount of consideration and attention which need not be given to paid officials," we are of opinion that the registering and recording of letters could be materially cut down without impairing the efficiency of the Committee's work. We suggest that the staff engaged thereon might be reduced by approximately 30 per cent, (i.e., from 17 to 12). Attention might at the same time be directed to the question whether it vv^ould not be possible to reduce the number of copies of letters and other documents which are now made for distribution among the various sections of the Department. 15. We concur in the sub-committee's opinion that tlie building in which the National Committee and their staff are accommodated is ill-adapted for efficient organisation, and tliat " the conditions in regard to sanitation, lighting, and large rooms leave much to be desired." It is probable that the high sickness rate prevailing among the staff is partly attrilnitable to the state of tlie building. 16. We were impressed with the large amount of corre- spondence arising from (1) the detailed scrutiny and examina- tion of the audit rei^orts of local associations, and (2) the winding up of the affairs of dissolved associations, ^fany of the officials of these associations, although estimable in other respects, appear to be poor correspondents, and it seems there- fore a matter for consideration whether in a numbci' of cases outstanding questions might not be more e.\:i)editiously and economically disposed of by personal visit rather than by prolonged and frequently ineffectual letter writing. 17. It appeared to us that in certain instances the work now- undertaken by officers of the intermediate and higher grades is comparatively simple and might appropriatelv be given to officers of lower grades. We understand that tliis matter is being looked into. 52 18. The work of the Uoiumittee's external organisation, which is distributed over the country, was fully described to us by the Director. We did not consider it necessary to inspect it. 19. Subject to tlie foregoing observations, we are of opinion that the affairs of the National Committee are being adminis- tered with due regard to efficiency and economy, and we are satisfied that the Committee are fully alive to the importance of the matter. Any reduction in work or in staff which may I'csult from our inspection is small compared with the savings above referred to (paragraphs 9 to 11) which the Committee have themselves accomj^lished or have in contemplation. It is chiefly in the direction of simplifying the local savings schemes that any further substantial economies can be looked for. For example, under the latest scheme (Scheme 7) designed by the Committee, clerical work is reduced to a minimum and book- keeping is practically eliminated. We ^vere informed that if this scheme were universally adopted by local associations, the Audit and Coupon Branches Avould be no longer necessary, and their stall', which now numbers 119, could be dispensed with. The extent to which associations can be urged to adopt the scheme is a question of policy outside the purview of our inquiry. Its advantages, however, are so obvious that the Committee may be trusted to secure its introduction wherever practicable. 20. In conclusion we desire to record our indebtedness to the Secretary and other members of the staff for their courtesy and assistance which have greatly facilitated our labours. 27th January 1921. R. WILLIAMS. E. H. POOLE. JOHN JEFFREY, UNIVERSITY of CALIKOKN AT LOS ANGELES LIBRARY I'linf.Ml iiiuler the authority of His MAJESTY'S Stationery OffICK I'.y liyie ami Spottiswoode, Ltd., East Harding Street. E.C. 4, Printer^ to the King'? most Excellent Majesty. 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