Whereas certain property held by the Attorney General of the United States as successor in interest to the Alien Property Custodian consists of shares of stock, bonds, notes, or other beneficial interests, which are listed on the various public exchanges and have an established and ready market; and Whereas such property is not customarily sold, and cannot usually be sold to advantage, at public sale after public or other advertisement; and Whereas public or other advertisement of the sale of such property, or an attempt to sell such property at public auction, would be a useless formality and would necessitate the incurring of unwarranted expenses and costs and would result in unnecessary inconvenience and delay: Now, Therefore , by virtue of and pursuant to the authority vested in me by section 12 of the Trading with the Enemy Act, approved October 6, 1917 (40 Stat. 411, 423), as amended, and in the public interest I hereby authorize the Attorney General of the United States to sell any such property upon the various public exchanges, without prior advertisement, to any individual, corporation, partnership, or association, upon such terms and conditions and in such lots or amounts as he may deem advisable. FRANKLIN D ROOSEVELT The White House, May 31, 1938.
Executive Order 7901—Authorizing the Attorney General To Sell Upon Public Exchanges Without Prior Advertisement Certain Property Held Under the Trading With the Enemy Act
Executive Brief • At a Glance
By virtue of and pursuant to the authority vested in me by section 12 of the Trading with the Enemy Act, approved October 6, 1917 (40 Stat. 411, 423), as amended, and in the public interest I hereby authorize the Attorney General of the United States to sell any such property upon the various public exchanges, without prior advertisement, to any individual, corporation, partnership, or…
Plain-English Translation & Framers' Constitutional Analysis
Early Statesman synthesis distilling legal jargon into practical meaning, statutory anchors, and structural constitutional impacts.
Signed by President Franklin D. Roosevelt on May 31, 1938, this order concerns Authorizing the Attorney General To Sell Upon Public Exchanges Without Prior Advertisement Certain Property Held Under the Trading With the Enemy Act. By virtue of and pursuant to the authority vested in me by section 12 of the Trading with the Enemy Act, approved October 6, 1917 (40 Stat. 411, 423), as amended, and in the public interest I hereby authorize the Attorney General of the United States to sell any such property upon the various public exchanges, without prior advertisement, to any individual, corporation, partnership, or association, upon such terms…
Key Directives & Operative Actions
By virtue of and pursuant to the authority vested in me by section 12 of the Trading with the Enemy Act, approved October 6, 1917 (40 Stat. 411, 423), as amended, and in the public interest I hereby authorize the Attorney General of the United States to sell any such property upon the various public exchanges, without prior advertisement, to any individual, corporation, partnership, or…
Constitutional & Societal Entities Impacted
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.
"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."
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.
Alexander Hamilton
The Energetic Executive & Unified Command
"A feeble Executive implies a feeble execution of the government; and a government ill executed, whatever it may be in theory, must be, in practice, a bad government." — Federalist No. 70 (1788)
Hamilton would view this directive as the natural and indispensable functioning of administrative leadership. Without the power to coordinate agencies, manage personnel, and resolve operational ambiguities, the modern presidency would be reduced to an impotent figurehead.
George Mason
Bill of Rights, Due Process & 10th Amendment
"The purse and the sword ought never to be in the same hands... nor the liberties of the citizen placed at the pleasure of a single magistrate." — Virginia Ratifying Convention (1788)
George Mason and the Anti-Federalists would sound a fierce warning. They feared that Article II would inevitably evolve into an elective monarchy. When an executive order impacts private rights, property, or civil liberties without individualized judicial process, Mason would see their darkest predictions verified.
Five Measurable "Constitutional Friction" Dimensions
An objective audit measuring potential separation-of-powers tension against the United States Constitution and established Supreme Court doctrine.
Legislative Encroachment & Purse
Operates within delegated statutory execution without modifying legislative appropriations or taxing powers.
Executive Scope & Faithfulness
Exercises standard supervisory executive authority to faithfully execute existing statutes.
Federalism & State Sovereignty
Engages state and local partners in cooperative federalism programs.
Due Process & Individual Rights
Applies regulatory or compliance standards to private contractors or commercial entities.
Youngstown Jacksonian Tier
The order relies on inherent Article II executive discretion, civil service management, or foreign diplomacy where Congress has neither expressly approved nor prohibited action.
This order operates within Justice Jackson’s Zone of Twilight, resting upon concurrent presidential authority or congressional silence.
Scholarly & Legal Citations
Exec. Order No. 7901 (May 31, 1938), https://executiveordersarchive.org/orders/app-executive-order-7901-authorizing-the-attorney-general-sell-upon-public-exchanges-without.