Department of Commerce Timeline
Tad DeHaven
- 1789: The
U.S. Constitution goes into effect and the young nation goes on to
become a great economic power. The rise in prosperity is fueled by
entrepreneurship and the vast investment of private capital unhindered
by the small and distant federal government.
- 1789: The ninth law passed by Congress transfers lighthouse operations from the states to the federal government.1 When the Department of Commerce was created in the early 20th century, lighthouses were the department’s largest activity.
- 1790: The
first national census is taken. The Constitution requires an
enumeration of citizens every 10 years to apportion seats in the House
of Representatives. Today, the Bureau of Census within Commerce collects
a vast array of information beyond the basic decennial population data.
- 1795: The
House of Representatives creates a Committee on Commerce and
Manufactures. The Senate follows suit in 1816 with a committee of the
same name.
- 1802: The Patent Bureau is
established. It is moved to Commerce in 1925, where it remains as the
Patent and Trademark Office. The granting of patents is an enumerated
federal power under the Constitution.
- 1807: President
Thomas Jefferson signs legislation providing for a “Survey of the
Coast.” Federal mapping and surveying activities would end up in
Commerce a century later, and then be incorporated into the National
Oceanic and Atmospheric Administration in 1970.2
- 1820:
The Department of Treasury begins collecting and publishing statistics
on foreign trade. Treasury’s collection of economic data expands in
subsequent decades, and the activity is moved to Commerce in 1903.3
- 1842:
The Department of State begins collecting information about foreign
trade regulations. This activity expands over time and is also moved to
Commerce in 1903.
- 1870: A national weather
service is established under the Signal Corps of the U.S. Army. Later
housed in the Department of Agriculture, it is transferred to Commerce
in 1940.4
- 1871: A
Commissioner of Fish and Fisheries is created. It is moved to Commerce
in 1903, then moved to the Department of the Interior for a while, then
back to Commerce, where it resides today as the National Marine
Fisheries Service.
- 1901: In his first State of
the Union address, President Theodore Roosevelt calls for the creation
of a Secretary of Commerce and Industries. The purpose is to create a
“comprehensive and far-reaching scheme” to oversee “our business
interests,” he said.5 Roosevelt wanted to collect detailed economic information in order to increase federal regulation on businesses.
- 1901: The
National Bureau of Standards is created and moved to Commerce two years
later. The Constitution provides for the federal government to “fix the
standard of weights and measures,” but the current National Institute
of Standards and Technology pursues activities beyond that limited
mandate.
- 1902: The Census Office is given
permanent status. Previously, an organization to carry out the census
was created and disbanded every ten years.
- 1903: The Department of Commerce and Labor is established with about 10,000 employees.6 Today, the Department of Commerce has about 40,000 employees.7
- 1909:
The Department of Commerce and Labor has 11,999 employees, including
1,860 at headquarters and 10,139 outside of Washington, with the latter
including the Lighthouse Service (7,067), Immigration Service (1,537),
and Steamboat Inspection Service (303).8 In census-taking years, such as 1910, the number of employees balloons.
- 1913: The
“Department of Commerce” is born when the Bureau of Labor is split off
to form a new Department of Labor. An official history of the Department
of Labor notes that its founding “was the direct product of a
half-century campaign by organized labor for a ‘Voice in the Cabinet.’”9
- 1915: The Bureau of Corporations within Commerce is moved to the new Federal Trade Commission.
- 1918: Lighthouse
Service workers are granted the first federal employee retirement
plans. Today, overly generous pension and retiree health benefits for
federal workers has created an enormous $5 trillion unfunded obligation.10
- 1926: The Aeronautics Branch is created in Commerce, the forerunner of today’s Federal Aviation Administration.
- 1927: A
Radio Division is created in Commerce. Its activities are later moved
to the Federal Radio Commission, and then the Federal Communications
Commission.
- 1932: The current Commerce
headquarters building is opened. It is a massive edifice covering eight
acres, and the largest office complex in the world at the time.11
- 1933: Some
senators supportive of the New Deal consider abolishing the Department
of Commerce and transferring its indispensible functions to other
agencies.12
- 1942: The
Bureau of Census provides detailed information about the neighborhoods
where Japanese-Americans live in order to help the War Department round
120,000 people up and put them into internment camps.13 In
some cases, the bureau provides lists to federal authorities that
include the names and addresses of individual Japanese-Americans.
- 1945: The Office of Business Economics—now the Bureau of Economic Analysis—is established.
- 1961: The
Area Redevelopment Administration is created to distribute subsidies to
depressed areas of the country. It is replaced in 1965 by the Economic
Development Administration. The ARA and the EDA achieve notoriety for
wasteful pork barrel spending, the latter becoming a frequent target of
Sen. William Proxmire’s “Golden Fleece” citations.14
- 1966: The transportation activities of Commerce are moved to the new Department of Transportation.
- 1969: The Office of Minority Business Enterprise is established. Today it is the Minority Business Development Agency.
- 1970: The Office of Telecommunications is created, and later becomes the National Telecommunications and Information Administration.
- 1970: The National Technical Information Service is established.
- 1970: The
National Oceanic and Atmospheric Administration is formed. Apparently,
it is housed in Commerce because President Richard Nixon did not get
along with his Secretary of the Interior.15
- 1977: The Office of Energy Programs in Commerce is moved to the new Department of Energy.
- 1980: The
International Trade Administration is created in Commerce. The ITA’s
activities include subsidizing exports and enforcing barriers to
imports.
- 1981: The U.S. Travel and Tourism
Administration is created. This agency was closed in 1996, but Commerce
still operates an Office of Travel and Tourism Industries.
- 1988: The
Advanced Technology Program and the Manufacturing Extension Partnership
are established to subsidize businesses in response to concerns that
U.S. industry is falling behind foreign competition. ATP is renamed the
Technology Innovation Program in 2007.
- 1993: President
Bill Clinton names political operative, Ron Brown, to be Secretary of
Commerce. Brown’s tenure is marred by investigations into how he used
taxpayer financed foreign trade junkets to raise campaign contributions.16 The Boston Globe found that “coveted slots on U.S. foreign trade missions generated a major fund-raising bonanza for the Democratic Party.”17
- 1995: The
new Republican House majority fails in an attempt to dismantle
Commerce. Former Secretary of Commerce, Robert Mosbacher, calls the
agency “nothing more than a hall closet where you throw in everything
that you don’t know what to do with.”18
- 1998: U.S.
District Judge Royce Lamberth determines that Commerce officials
systematically concealed and destroyed documents relating to the Brown
trade mission scandal.19 He
compares the behavior of Commerce officials to that of “con artists”
and “scofflaws,” pointing to the “flurry of document shredding in the
Secretary’s office” after Brown died.20 The scandal illustrates the dangers of entangling the government in promoting private business interests.
- 1999: Political
operative and deputy assistant secretary for international economic
affairs at Commerce, John Huang, pleads guilty of campaign finance
violations after steering millions of dollars to the Democratic Party,
often from unknown sources.21 At
Commerce, Huang received dozens of classified briefings at the same
time that he was keeping in close contact with foreign governments and
business interests.22
- 2006: In
response to a congressional inquiry, the department admits more than
1,100 laptops have gone missing since 2001, many containing sensitive
personal data.23
- 2008: The Inspector General of Commerce reports that 10 percent of the department’s 2006 budget consisted of congressional earmarks.24
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