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Executive Order 1860 ⚖️✨ Zone 2: Zone of Twilight Constitutional Neutral (+0.02) 📜 Art. II §2: Commander-in-Chief Supervisory Authority

Executive Order 1860—Fixing the Rate of Interest on Money

Woodrow Wilson Woodrow Wilson
•
Tuesday, November 11, 1913
•
1 min read (271 words)

Executive Brief • At a Glance

⏱️ 1 min read (271 words) • ● In Effect
🎯 Primary Mandate

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.

View all 4 directives ↓
⚖️ Constitutional Footing
⚖️✨ Zone 2: Zone of Twilight
Concurrent Authority / Congressional Silence
📜 Art. II §2: Commander-in-Chief Supervisory Authority
Framers' constitutional debate ↓
🏛️ Scope & Affected Sectors
Armed Forces & Military Establishments
Inspect unabridged text ↓

Plain-English Translation & Framers' Constitutional Analysis

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

Signed by President Woodrow Wilson on November 11, 1913, this order concerns Fixing the Rate of Interest on Money. 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.

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

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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.

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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.

▪

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

Policy Areas & Topics

🏷️ Uncategorized
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The Framers' Constitutional Council

1787 Prism

Evaluating this order against the constitutional debates of 1787 and the limits of Article II executive power.

⚖️✨ Zone 2 (Zone of Twilight)
§

"When the President acts in absence of either a congressional grant or denial of authority, he can only rely upon his own independent powers, but there is a zone of twilight in which he and Congress may have concurrent authority."

— Justice Robert H. Jackson, Youngstown Sheet & Tube Co. v. Sawyer (1952) Concurrent Authority / Congressional Silence
JM

James Madison

Separation of Powers & Legislative Primacy

"Power is of an encroaching nature, and it ought to be effectually restrained from passing the limits assigned to it." — Federalist No. 48 (1788)

Madison would view this order with watchful scrutiny. Operating in the 'Zone of Twilight' where Congress is silent, each such directive establishes an administrative precedent that steadily expands the executive perimeter at the expense of legislative primacy.

Madisonian Stance: Vigilant / Cautionary
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: Strong Prerogative Support
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
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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
36 / 100 friction index
Dimension 1 • Art. I, §1 & §8

Legislative Encroachment & Purse

Low Friction

Operates within delegated statutory execution without modifying legislative appropriations or taxing powers.

Benchmark: Power of the purse, taxes/tariffs, and rule of law reserved to Congress.
Dimension 2 • Art. II, §1 & §3

Executive Scope & Faithfulness

Low Friction

Exercises standard supervisory executive authority to faithfully execute existing statutes.

Benchmark: Faithfully execute laws enacted by Congress vs. unilateral decree.
Dimension 3 • 10th Amendment

Federalism & State Sovereignty

Low Friction

Confined strictly to internal federal jurisdiction, federal property, or direct military command.

Benchmark: Police powers and un-delegated responsibilities reserved to the States.
Dimension 4 • 5th & 14th Amendments

Due Process & Individual Rights

High Friction

Scrutinized under the Bill of Rights for potential impact on private contracts, property rights, or procedural due process.

Benchmark: Protection of private property, contracts, liberty, and procedural justice.
Dimension 5 • Separation of Powers

Youngstown Jacksonian Tier

Moderate Friction

The order relies on inherent Article II executive discretion, civil service management, or foreign diplomacy where Congress has neither expressly approved nor prohibited action.

Benchmark: Concurrent Authority / Congressional Silence
⚖️ 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%).
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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
271
1,530 characters
Estimated Read Time
1 min
@ 200 words / min
Flesch-Kincaid
17.8
Post-Graduate Legal
Language Tone Score
+0.02
Constitutional Neutral
How is this scored?
Text size:

Official Archival Text

View Source Document
📑Sections Outline (5 sections)
Sec. 1Sec. 2Sec. 3Sec. 4Sec. 5

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

Section 1. #sec-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. #sec-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. #sec-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. #sec-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. #sec-5

This order shall take effect thirty days from and after its publication in the Canal Record. WOODROW WILSON

THE WHITE HOUSE, #signature

November 11, 1913.

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Scholarly & Legal Citations 

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