Executive Order 1860 Constitutional Neutral (+0.02)

Executive Order 1860—Fixing the Rate of Interest on Money

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Tuesday, November 11, 1913

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1 min read (271 words)

Plain-English Translation & Framers' Constitutional Analysis

Early Statesman synthesis distilling legal jargon into practical meaning, statutory anchors, and structural constitutional impacts.

This executive order, signed by President Woodrow Wilson on 1913-11-11, establishes federal administrative policy concerning "Fixing the Rate of Interest on Money." It outlines operative directives for executive department officers, delegating enforcement responsibilities and establishing official governance guidelines.

Constitutional Assessment: Scrutinized through Article II, Section 2, this action exercises the President's constitutional role as Commander in Chief. Early Framers recognized broad executive discretion in commanding military forces during conflict, provided it remains bounded by congressional declarations and respects civilian domestic courts.

Key Directives & Operative Actions

▪ By virtue of the authority vested in me I hereby establish the following Executive Order for the Canal Zone: Section 1.

▪ No rate of interest shall be allowed in excess of six per centum per annum upon any contract for the use or detention of money, unless the same is in writing and the interest agreed upon must not exceed twelve per centum per annum.

▪ All contracts whatsoever which may in any way, directly or indirectly, violate the preceding section by stipulating for a greater rate of interest than twelve per centum per annum, shall be void and of no effect for the amount or value of the interest only; but the principal sum of money or value of the contract may be received and recovered, Section 3.

▪ No evidence of usury shall be received on the trial of any case unless the same shall be pleaded and verified by the affidavit of the party wishing to avail himself of such defense.

Constitutional & Societal Entities Impacted

🏛️ Armed Forces & Military Establishments

Total Words

271

1,530 characters

Estimated Read Time

1 min

@ 200 words / min

Flesch-Kincaid

17.8

Post-Grad reading level

Constitutional Polarity

+0.02

Framers' Alignment index

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Scholarly & Legal Citations

Exec. Order No. 1860, Woodrow Wilson (Nov 11, 1913). Available at https://executiveordersarchive.org/orders/app-executive-order-1860-fixing-the-rate-interest-money.

Official Document Text

Source: The American Presidency Project (UCSB Archive)

Original Source →

By virtue of the authority vested in me I hereby establish the following Executive Order for the Canal Zone: Section 1. No rate of interest shall be allowed in excess of six per centum per annum upon any contract for the use or detention of money, unless the same is in writing and the interest agreed upon must not exceed twelve per centum per annum. Section 2. All contracts whatsoever which may in any way, directly or indirectly, violate the preceding section by stipulating for a greater rate of interest than twelve per centum per annum, shall be void and of no effect for the amount or value of the interest only; but the principal sum of money or value of the contract may be received and recovered, Section 3. When the interest received or collected for the use or detention of money exceeds the rate of twelve per centum per annum, it shall be deemed to be usurious, and the person or persons paying the same, or their legal representatives, may recover from the person, firm or corporation receiving such interest, the amount of the interest so received or collected, in any court of competent jurisdiction, within two years from the date of the payment of such interest. Section 4. No evidence of usury shall be received on the trial of any case unless the same shall be pleaded and verified by the affidavit of the party wishing to avail himself of such defense. Section 5. This order shall take effect thirty days from and after its publication in the Canal Record. WOODROW WILSON THE WHITE HOUSE, November 11, 1913.