WHEREAS I have determined that the exclusion from the interest equalization tax, to the extent provided in this order, is necessary to avoid such consequences for Canada as to imperil or threaten to imperil the stability of the international monetary system; Now, THEREFORE, by virtue, of the authority vested in me by section 4917(a) of the Internal Revenue Code of 1954, as added by section 2 of the Interest Equalization Tax Act, approved September 2, 1964 (Public Law 88-563), by section 301 of title 3 of the United States Code, and as President of the United States, it is ordered that Executive Order No. 11175, dated September 2, 1964, be, and it is hereby, amended to read as follows: SECTION 1. Except as provided in section 2, the tax imposed by section 4911 of the Internal Revenue Code of 1954 shall not apply to the acquisition by a United States person of stock or a debt obligation of Canada or a political subdivision thereof, any agency or instrumentality of Canada, any corporation, partnership, or trust organized under the laws of Canada or a political subdivision thereof, or any individual resident in Canada, if such stock or debt obligation is acquired as all or part of an original or new issue as to which there is filed the notice of acquisition prescribed by the Secretary of the Treasury or his delegate. SEC. 2. The exclusion from tax provided in section 1 shall not apply to the following: (a) Any acquisition of stock or a debt obligation of a company registered under the Investment Company Act of 1940 (54 Stat. 847; 15 U.S.C. 80a-1 to 80a-52); and (b) Any acquisition of stock or a debt obligation of a Canadian corporation, partnership, or trust formed or availed of for the principal purpose of acquiring stock or debt obligations of a Canadian or other foreign issuer or obligor, other than stock or debt obligations described in section 1 or in section 4916(a) of the Internal Revenue Code of 1954. SEC. 3. The provisions of sections 1 and 2 shall be applicable to any acquisition by a commercial bank of a debt obligation described in such sections, and section 3 of Executive Order No. 11198, dated February 10,1963, is hereby superseded. SEC. 4. The Secretary of the Treasury or his delegate is authorized to prescribe from time to time regulations, rulings, directions, and instructions to carry out the purpose of this order. SEC. 5. This order shall be effective upon its filing for publication in the Federal Register and shall apply to all acquisitions made during the period this order is in effect. LYNDON B. JOHNSON The White House September 12, 1966
Executive Order 11304 🏛️✅ Zone 1: Maximum Authority Constitutional Neutral (+0.02)
📜 Art. I §8: Delegated Tariff & Commerce Execution
Executive Order 11304—Amending Executive Order No. 11175 Relating to the Exclusion For Original or New Canadian Issues Where Required for International Monetary Stability
Executive Brief • At a Glance
⏱️ 2 min read (447 words) •
● In Effect
🎯 Primary Mandate
Executive Order No. 11175, dated September 2, 1964, be, and it is hereby, amended to read as follows: SECTION 1.
⚖️ Constitutional Footing
🏛️✅ Zone 1: Maximum Authority
Express or Implied Congressional Authorization
📜 Art. I §8: Delegated Tariff & Commerce Execution
🏛️ Scope & Affected Sectors
Private Citizens & Property Owners Foreign Nations & International Entities Financial Institutions & Monetary Authorities
Plain-English Translation & Framers' Constitutional Analysis
Early Statesman synthesis distilling legal jargon into practical meaning, statutory anchors, and structural constitutional impacts.
Signed by President Lyndon B. Johnson on September 12, 1966, this order concerns Amending Executive Order No. 11175 Relating to the Exclusion For Original or New Canadian Issues Where Required for International Monetary Stability. Executive Order No. 11175, dated September 2, 1964, be, and it is hereby, amended to read as follows: SECTION 1. Except as provided in section 2, the tax imposed by section 4911 of the Internal Revenue Code of 1954 shall not apply to the acquisition by a United States person of stock or a debt obligation of Canada or a political subdivision thereof, any agency or instrumentality of Canada, any corporation…
Constitutional Assessment: This action represents an orderly exercise of Article II administrative discretion, managing the internal machinery and personnel of the executive branch without abridging the ancient liberties of the people.
Key Directives & Operative Actions
▪
Executive Order No. 11175, dated September 2, 1964, be, and it is hereby, amended to read as follows: SECTION 1.
▪
Except as provided in section 2, the tax imposed by section 4911 of the Internal Revenue Code of 1954 shall not apply to the acquisition by a United States person of stock or a debt obligation of Canada or a political subdivision thereof, any agency or instrumentality of Canada, any corporation, partnership, or trust organized under the laws of Canada or a political subdivision thereof, or any individual resident in Canada, if such stock or debt obligation is acquired as all or part of an original or new issue as to which there is filed the notice of acquisition prescribed by the Secretary of the Treasury or his delegate.
▪
The exclusion from tax provided in section 1 shall not apply to the following: (a) Any acquisition of stock or a debt obligation of a company registered under the Investment Company Act of 1940 (54 Stat. 847; 15 U.S.C. 80a-1 to 80a-52); and (b) Any acquisition of stock or a debt obligation of a Canadian corporation, partnership, or trust formed or availed of for the principal purpose of acquiring stock or debt obligations of a Canadian or other foreign issuer or obligor, other than stock or debt obligations described in section 1 or in section 4916(a) of the Internal Revenue Code of 1954.
▪
The provisions of sections 1 and 2 shall be applicable to any acquisition by a commercial bank of a debt obligation described in such sections, and section 3 of Executive Order No. 11198, dated February 10,1963, is hereby superseded.
Constitutional & Societal Entities Impacted
🏛️ Private Citizens & Property Owners
🏛️ Foreign Nations & International Entities
🏛️ Financial Institutions & Monetary Authorities
Policy Areas & Topics
🏛️
The Framers' Constitutional Council
1787 PrismEvaluating this order against the constitutional debates of 1787 and the limits of Article II executive power.
🏛️✅ Zone 1 (Maximum Authority)
§
"When the President acts pursuant to an express or implied authorization of Congress, his authority is at its maximum, for it includes all that he possesses in his own right plus all that Congress can delegate."
— Justice Robert H. Jackson, Youngstown Sheet & Tube Co. v. Sawyer (1952) Express or Implied Congressional Authorization
JM
James Madison
Separation of Powers & Legislative Primacy
"The constitutional magistracy was designed not to invent policy, but to be the faithful instrument of the laws passed by the people's representatives." — Speech in the First Congress (1789)
Madison would approve the structural posture of this order. The President acts strictly in subordination to statutory authority granted under Article II, Section 3 ("take Care that the Laws be faithfully executed"). The checks and balances hold firm because the policy origin remains with the legislature.
Madisonian Stance: Concurring (Statutory)
AH
Alexander Hamilton
The Energetic Executive & Unified Command
"The direction of war implies the direction of the common strength; and the power of directing and employing the common strength must be under the direction of the single hand of the Executive." — Federalist No. 74 (1788)
Hamilton would forcefully champion executive discretion here. For foreign entanglements, commerce defense, and national security, deliberative assemblies are too slow and faction-ridden. A unified, energetic Executive exercising swift command is precisely what the Philadelphia Convention intended for national preservation.
Hamiltonian Stance: Supportive of Execution
GM
George Mason
Bill of Rights, Due Process & 10th Amendment
"The president will be surrounded by flatterers and sycophants... and the great powers of the executive will gradually absorb the liberties of the people." — Cato IV (Anti-Federalist, 1787)
The Anti-Federalist prism advises continuous democratic vigilance. Even routine administrative directives aggregate centralized federal power away from town halls and state assemblies toward a distant executive apparatus.
Anti-Federalist Stance: Eternal Vigilance Required
📐
Five Measurable "Constitutional Friction" Dimensions
An objective audit measuring potential separation-of-powers tension against the United States Constitution and established Supreme Court doctrine.
⚖️ Discretionary Twilight Zone
35 / 100 friction index
Dimension 1 • Art. I, §1 & §8
Moderate Friction
Legislative Encroachment & Purse
Administers commerce or fiscal programs requiring ongoing statutory delegation and legislative oversight.
Benchmark: Power of the purse, taxes/tariffs, and rule of law reserved to Congress.
Dimension 2 • Art. II, §1 & §3
Low Friction
Executive Scope & Faithfulness
Exercises standard supervisory executive authority to faithfully execute existing statutes.
Benchmark: Faithfully execute laws enacted by Congress vs. unilateral decree.
Dimension 3 • 10th Amendment
Moderate Friction
Federalism & State Sovereignty
Engages state and local partners in cooperative federalism programs.
Benchmark: Police powers and un-delegated responsibilities reserved to the States.
Dimension 4 • 5th & 14th Amendments
Moderate Friction
Due Process & Individual Rights
Applies regulatory or compliance standards to private contractors or commercial entities.
Benchmark: Protection of private property, contracts, liberty, and procedural justice.
Dimension 5 • Separation of Powers
Low Friction
Youngstown Jacksonian Tier
The President operates strictly as the constitutional Chief Executive, carrying out policy established by Congress with strong statutory backing.
Benchmark: Express or Implied Congressional Authorization
⚖️
Audit Synthesis
This order operates within Justice Jackson’s Zone of Twilight, resting upon concurrent presidential authority or congressional silence.
Weighted composite: Art. I (25%), Art. II (25%), Federalism (15%), Due Process (15%), Youngstown (20%).
ℹ️
How to read these dimensions: Executive power expands whenever an administration acts without explicit statutory authorization from Congress (Article I), touches upon police powers historically reserved to the states (Tenth Amendment), or limits private rights and property without judicial process. A low friction score indicates strict concordance with enacted law; a high friction score highlights orders testing the limits of presidential discretion.
Total Words
447
2,601 characters
Estimated Read Time
2 min
@ 200 words / min
Flesch-Kincaid
20.3
Post-Graduate Legal
Text size:
Related Executive Orders
2 orders cited directly in this text, plus related actions from this administration.
EO 11175 Sep 2, 1964
🏛️✅ Zone 1 (Maximum Authority) Constitutional Neutral
Executive Order 11175—Exclusion for Original or New Canadian Issues as Required for International Monetary Stability
📜 Art. I §8: Delegated Tariff & Commerce Execution
The tax imposed by section 4911 of the Internal Revenue Code of 1954 shall not apply to the acquisition by a United States person of stock or a debt obligation of Canada or a political subdivision thereof, any agency or instrumentality of Canada, any corporation, partnership…
Lyndon B. Johnson Post-Graduate Legal • 2m
EO 11198 Feb 10, 1965
🏛️✅ Zone 1 (Maximum Authority) Constitutional Neutral
Executive Order 11198—Imposition of Interest Equalization Tax on Certain Commercial Bank Loans
📜 Art. I §8: Delegated Tariff & Commerce Execution
Section 1. The provisions of section 4931 shall apply to acquisitions by commercial banks of debt obligations of foreign obligors to the extent set forth herein. Sec. 2.
Lyndon B. Johnson Post-Graduate Legal • 3m
EO 11305 Sep 12, 1966
🏛️✅ Zone 1 (Maximum Authority) Fidelity (+0.23)
Executive Order 11305—Authorizing the Secretary of Army and the Governor of the Canal Zone, Respectively, to Perform Certain Functions Relating to the Panama Canal and the Canal Zone
📜 Art. II §2: Commander-in-Chief Supervisory Authority
The following provisions of this section shall constitute Subpart A of Part 3 of Title 35 (Panama Canal) of the Code of Federal Regulations— 3.1 Delegations to Secretary of the Army.
Lyndon B. Johnson High School • 7m
EO 11303 Sep 12, 1966
⚖️✨ Zone 2 (Zone of Twilight) Constitutional Neutral
Executive Order 11303—Modifying Executive Order No. 9721, as Amended by Executive Order No. 10103, Providing For the Transfer of Personnel to Certain International Organizations
📜 Art. II §3: Administrative Management & Civil Service
Executive Order No. 9721 of May 10, 1946, as amended by Executive Order No. 10103 of February 1,1950, providing for the transfer of personnel to public international organizations in which the United States Government participates be, and it is hereby, modified as follows: The…
Lyndon B. Johnson High School • 1m
EO 11302 Sep 6, 1966
⚖️✨ Zone 2 (Zone of Twilight) Constitutional Neutral
Executive Order 11302—Prescribing Regulations Governing the Allowance of Travel Expenses of Claimants and Beneficiaries of the Veterans' Administration and Their Attendants
📜 Art. II §1: Executive Discretion & Internal Operations
The Administrator of Veterans' Affairs may authorize or approve the payment of the actual necessary expenses of travel, including lodging and subsistence, of any claimant or beneficiary of the Veterans' Administration traveling to or from a Veterans' Administration facility, or…
Lyndon B. Johnson Post-Graduate Legal • 2m
EO 11301 Sep 2, 1966
🏛️✅ Zone 1 (Maximum Authority) Fidelity (+0.29)
Executive Order 11301—Establishing the President's Committee on Libraries and the National Advisory Commission on Libraries
📜 Art. II §3: Faithful Execution of Statutory Law
Establishment of Committee. (a) There is hereby established the President's Committee on Libraries (hereinafter referred to as the "Committee").
Lyndon B. Johnson Post-Graduate Legal • 4m
📜
Scholarly & Legal Citations
Exec. Order No. 11,304 (Sept. 12, 1966), https://executiveordersarchive.org/orders/app-executive-order-11304-amending-executive-order-no-11175-relating-the-exclusion-for.
