In addition to a lack of confidence in estimates of depreciation, the decision by BFDC to include gross capital formation in national product was influenced by the policy uses to which the GNP would be put, which differed from those to which national income had been put in the 1930s.
George Jaszi served as Chief of the National Income Division of BFDC from 1949 to 1959, Assistant Director of the Office of Business Economics from 1959 to 1963, and the Director of that office, subsequently renamed the Bureau of Economic Analysis, from 1963 to 1985.
For the BFDC, the Hays Organization's dominant position in the mid 1920s simplified industry contacts because it allowed North to deal essentially with a centralized bureaucracy on the industry side.
The securing of such information was aided immensely by the 1926 appointment of George Canty, a BFDC employee with experience as a congressional aide and a State Department official, as a trade commissioner based in Europe.
In 1925, both Hoover and Klein had argued before a Senate subcommittee for a $15,000 BFDC appropriation to establish Canty's position.
Part of George Canty's mandate from Klein was to "uncover the official source of agitation against American films and to do what he [could] to minimize its effects"(33) and under his tenure BFDC contacts with government representatives increased.
Moreover, the industry consistently ignored BFDC field staff warnings and failed to take "concerted action" until legislation had already been passed; then, when it was too late, studio heads reacted with "much excitement, with frantic appeals for aid from this Department"(42) The industry had, North thought, brought the quotas on themselves, since they had "failed to see that legislation of this kind was in the air and therefore did not modify their course to meet it.
In 1929 the BFDC was made a division in its own right, placing films on the same level as major export commodities such as machinery, minerals, automobiles, textiles, chemicals, and electrical products.
While the Washington-based staff of the BFDC motion picture unit was never very large, the unit had the support and attention of both Secretary Hoover and bureau Director Klein, as is evident from its rise to division status in 1929.
Although the BFDC motion picture division's efforts in the 1920s are not easily traced to the present time, it can be argued that they contributed to establishing as government policy that films were an important export commodity deserving of assistance.
Morse to Henry Howard, 8 January 1923, "Motion Pictures, General" file, record group 151/281, National Archives (hereafter BFDC motion picture records).
Homer Platten, 19 January 1924, BFDC motion picture records, "General.