The basic methodology of this analysis is historical and comparative. The variation in domestic intelligence operations since 1908 (when the FBI was established) is delineated to identify major periods of expansion and decline in such operations. These periods are then examined for common conditions which they share. Analysis reveals that there are three major periods of expansion of domestic intelligence since 1908 and two major periods of decline. The major growth periods are the 'Red Scare' Era (1917-1920), the Cold War/McCarthy Era (1948-1955), and the Civil Rights/Anti-Vietnam War Era (1967-1972). The major periods of decline are the Post-World War I Era (1924-1936) and the Post-Watergate Era (1973-1978). All of the periods of expanding domestic intelligence had been preceded by a major era of social reform. Social reform periods were characterized by the ascendance of liberal thought in American life, growth in Federal Government programs and activity, and emergence or resurgence of organized radical groups as a major force in American politics. A further condition which preceded all three periods of expansion was the existence of civil disorders in the Nation, usually in the form of labor or racial strife. With regard to the periods of decline, both were preceded by major Government scandals. The article concludes that the legality of the organizational behavior is affected by the interplay between the organization and its political economic environment. The article provides 62 reference notes, 1 table, and 1 figure.