The number of licensed firearms dealers declined sharply by about 35 percent from the high point of 260,700 dealers in April 1993 to 168,400 as of September 30, 1995. ATF data indicated that several factors collectively contributed to this decline. One factor was the efforts by ATF since January 1993 to increase enforcement of existing laws by closely scrutinizing firearms dealer applicants and licensees through increased inspections. Another factor was the ATF's revision of the application requirements to obtain more information about applicants. A third factor was the Federal legislation in September 1994 to increase licensing fees and add more licensing requirements. In addition, State and local agencies' enforcement of their laws may have resulted in reductions in the number of firearms dealers. A review of ATF and other documents revealed no indication that ATF had a policy or sought to reduce the number of licensed dealers by some targeted number. However, ATF recognized that its efforts would probably result in a reduction in the number of licensed dealers. Officials from the seven organizations consulted provided a variety of opinions on the advantages and disadvantages of reducing the number of firearms dealers. Figures, table, map, footnotes, and appended background information