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Form V. R. 181
BOARD DF GDVERNDRS
or THE

M

FEDERAL RESERVE SYSTEM

• O f f i c e Correspondence
To

Chairman Eccles

. rw sept»mh*r 2?
Subject:

1

Ronald Ransom




CONFIDENTIAL

On yesterday Miss Egbert delivered to me
the attached letter from the Secretary of State,
under date of the 26th, addressed to you. Attached
thereto you will find copy of my acknowledgmentof
the same date, which was delivered by hand.
Following this letter, Mr. Goldenweiser
communicated with Mr. Feis, as requested by the
Secretary, and they have an appointment for a
preliminary conference at 3:30 this afternoon. At
Mr. Goldenweiserfs request, I had Mr. Wyatt supply
him with a copy of Public Resolution-No. 27- 75th
Congress (Chapter 146-lst Session)(S. J. Res. 51),
which is a Joint Resolution commonly known as the
Neutrality Act as amended August 31, 1935. A copy
is attached with Sec. 5 marked. Also, at Mr.
Goldenweiserfs request, Mr. Wyatt prepared an
analysis of this Neutrality Act, copy of which is
attached. Mr. Goldenweiser is to give me a memorandum
after his conference today, and this will be attached
to the file.
My purpose in preparing this memorandum is
to bring you up-to-date on this matter, so that you
can have it on your desk on your return.

L •I" I

THESECRETAI,
" STATE
WASHINGTO... ->. C.

V

DEPARTMENT OF STATE
WASHINGTON

September 26, 1938

My dear Mr. Eccles:
The Department of State has grown aware that in
the possible event of application of Section 3 of the
Neutrality Act, many questions of a technical and semitecnnical nature would arise.

There seems to be a clear

need for attempting some further preliminary consideration of what types of transactions would fall within
the scope of the Act and which would be excluded.

Because

of the interest of the Federal Reserve System in these
Questions and your technical competence, I should appreciate it if you would designate someone to participate in
an informal committee study.

I have asked. Mr. Herbert

Feis of this Department to charge himself with this work,
and suggest that the person whom you may designate should
get in touch with him for the purpose of arranging a
meeting.
You will understand that the undertaking of the
st udy
The Honorable
Marriner S. Eccles, Chairman,
Board of Governors of the
Federal Reserve System,
Washington, D. 0.



C

- 2 study in no way implies any decisions es to policy.
In view of the way in which all sorts of rumor8 quickly
start concerning this field of action, I would ask you
to regard it as confidential.




Sincerely yours,

[PUBLIC R E S O L U T I O N — N o . 27—75TII CONGRESS]
[CHAPTER 146—1ST SESSION]

[S. J. Res. 51]
JOINT RESOLUTION
To amend the joint resolution entitled "Joint resolution providing for the prohibition of the export of arms, ammunition, and implements of war to belligerent
countries; the prohibition of the transpoitation of arms, ammunition, and
implements of war by vessels of the United States for the use of belligerent
states; for the registration and licensing of persons engaged in the business
of manufacturing, exporting, or importing arms, ammunition, or implements
of war; and restricting travel by American citizens on belligerent ships during
war", approved August 31, 1935, as amended.

Resolved by the Senate and House of Representatives of the United
States of Avierica in Congress assembled, That the joint resolution
entitled "Joint resolution providing for the prohibition of the export
of arms, ammunition, and implements of war to belligerent countries:
the prohibition of the transportation of arms, ammunition, and
implements of war by vessels of the United States for the use of
belligerent states; for the registration and licensing of persons
engaged in the business of manufacturing, exporting, or importing
arms, ammunition, or implements of war; and restricting travel by
American citizens on belligerent ships during war", approved August
31, 1935, as amended, is amended to read as follows:
"EXPORT OF ARMS, AMMUNITION, AND IMPLEMENTS OF WAR
"SECTION 1. (a) Whenever the President shall find that there exists
a state of war between, or among, two or more foreign states, the
President shall proclaim such fact, and it shall thereafter bo unlawful
to export, or attempt to export, or cause to bo exported, arms, ammunition, or implements of war from any place in the United States to
any belligerent state named in such proclamation, or to any neutral
state for transshipment to, or for the use of, any such belligerent
state.
"(b) The President shall, from time to time, by proclamation,
extend such embargo upon the export of arms, ammunition, or implements of war to other states as and when they rnay become involved
in such war.
"(c) Whenever the President shall find that a state of civil strife
exists in a foreign state and that such civil strife is of a magnitude or
is beinjr conducted under such conditions that the export of arms,
ammunition, or implements of war from the United States to such
foreign state would threaten or endanger the peace of tho United
States, the President shall proclaim such fact, and it shall thereafter
be unlawful to export^ or attempt to export, or cause to be exported,
arms, ammunition, or implements of war from any place in the United
States to such foreign state, or to any neutral state for transshipment
to, or for the use of, such foreign state.
"(d) The President shall, from time to time by proclamation,
definitely enumerate the arms, ammunition, and implements of war,




*

PUB. R«S.

27J

the export of which is prohibited by this section. The arms, ammunition, and implements of war so enumerated shall include those enumerated in the President's proclamation Numbered 2163, of April 10,
1936, but shall not include raw materials or any other articles or
materials not of the same general character as those enumerated in
the said proclamation, and in the Convention for the Supervision of
the International Trade in Arms and Ammunition and in Implements
of War, signed at Geneva June 17, 1925.
"(e) Whoever, in violation of any of the provisions of this Act,
shall export, or attempt to export, or cause to be exported, arms,
ammunition, or implements of war from the United States shall be
fined not more than $10,000, or imprisoned not more than five years,
or both, and the property, vessel, or vehicle containing the same shall
be subject to the provisions of sections 1 to 8, inclusive, title 6, chapter
30, of the Act approved June 15, 1917 (40 Stat. 223-225; U. S. C ,
1934 ed., title 22, sees. 238-245).
"(f) In the case of the forfeiture of any arms, ammunition, or
implements of war by reason of a violation of this Act? no public or
private sale shall be required; but such arms, ammunition, or implements of war shall be delivered to the Secretary of War for such use
or disposal thereof as shall be approved by the President of the United
States.
"(g) Whenever, in the judgment of the President, the conditions
which have caused him to issue any proclamation under the authority
of this section have ceased to exist, he shall revoke the same, and the
provisions of this section shall thereupon cease to apply with respect
to the state or states named in such proclamation, except with respect
to offenses committed, or forfeitures incurred, prior to such revocation.
"EXPORT OF OTHER ARTICLES AND MATERIALS

"SEC. 2. (a) Whenever the President shall have issued a proclamation under the authority of section 1 of this Act and he shall thereafter find that the placing of restrictions on the shipment of certain
articles or materials in addition to arms, ammunition, and implements
of war from the United States to belligerent states, or to a state
wherein civil strife exists, is necessary to promote the security or
preserve the peace of the United States or to protect the lives of
citizens of the United States, he shall so proclaim, and it shall thereafter be unlawful, except under such limitations and exceptions as the
President may prescribe as to lakes, rivers, and inland waters bordering on the United States, and as to transportation on or over lands
bordering on the United States, for any American vessel to carry such
articles or materials to any belligerent state, or to any state wherein
civil strife exists, named in such proclamation issued under the
authority of section 1 of this Act, or to any neutral state for transshipment to, or for the use of, any such belligerent state or any such
state wherein civil strife exists. The President shall by proclamation
from time to time definitely enumerate the articles and materials
which it shall be unlawful for American vessels to so transport.
"(b) Whenever the President shall have issued a proclamation
under the authority of section 1 of this Act and he shall thereafter
find that the placing of restrictions on the export of articles or
materials from the United States to belligerent states, or to a state




t
\ )
v
\

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7J

6

wherein civil strife exists, is necessary to promote the security or
preserve the peace of the United States or to protect the lives or commerce of citizens of the United States, he shall so proclaim, and it
shall thereafter be unlawful, except under such limitations ana exceptions as the President may prescribe as to lakes, rivers, and inland
waters bordering on the United States, and as to transportation on
or over land bordering on the United States, to export or transport,
or attempt to export or transport, or cause to be exported or transported, from the United States to any belligerent state, or to any state
wherein civil strife exists, named in such proclamation issued under
the authority of section 1 of this Act, or to any neutral state for transshipment to, or for the use of, any such belligerent state or any such
state wherein civil strife exists, any articles or materials whatever
until all right, title, and interest therein shall have been transferred
to some foreign government, agency, institution, association, partnership, corporation, or national. The shipper of such articles or
materials shall be required to file with the collector of the port from
which they are to be exported a declaration under oath that there
exists in citizens of the United States no right, title, or interest in
such articles or materials, and to comply with such rules and regulations as shall be promulgated from time to time by the President.
Any such declaration so filed shall be a conclusive estoppel against
any claim of any citizen of the United States of right, title, or interest
in such articles or materials. Insurance written oy underwriters on
any articles or materials the export of which is prohibited by this
Act, or on articles or materials carried by an American vessel in violation of subsection (a) of this section, shall not be deemed an American interest therein, and no insurance policy issued on such articles or
materials and no loss incurred thereunder or by the owner of the
vessel carrying the same shall be made a basis of any claim put forward by the Government of the United States.
u
(c) The President shall from time to time by rjroclamation extend
such restrictions as are imposed under the authority of this section to
other states as and when they may be declared to become belligerent
states under proclamations issued under the authority of section 1 of
this Act.
"(d) The President may from time to time change, modify, or
revoke in whole or in part any proclamations issued by him under the
authority of this section.
"(e) Except with respect to offenses committed, or forfeitures
incurred, prior to May 1, 1939, this section and all proclamations
issued thereunder shall not be effective after May 1, 1939.
"FINANCIAL TRANSACTIONS

"SEC. 3: (a) Whenever the President shall have issued a proclamation under the authority of section 1 of this Act, it shall thereafter be unlawful for any person within the United States to purchase, sell, or exchange bonds, securities, or other obligations of the
government of any belligerent state or of any state v herein civil
strife exists, named in such proclamation, or of any political subdivision of any such state, or of any person acting for or on behalf
of the government of any such state, or of any faction or asserted
government within any such state wherein civil strife exists, or of




4

[P

RKS.

27J

any person acting for or on behalf of any faction or asserted government within any such stato wherein civil strife exists, issued after
the date of such proclamation, or to make any loan or extend any
credit to any such government, political subdivision, faction, asserted
government, or person, or to solicit or receive any contribution for
any such government, political subdivision, faction, asserted government, or person: Provided, That if the President shall find that such
action -will serve to protect the commercial or other interests of the
United States or its citizens, he may, in his discretion, and to such
extent and under such regulations as he may prescribe, except from
the operation of this section ordinary commercial credits and shorttime obligations in aid of legal transactions and of a character customarily used in normal peacetime commercial transactions. Nothing in this subsection shall be construed to prohibit the solicitation
or collection of funds to bo used for medical aid and assistance, or
for food and clothing to relieve human suffering, when such solicitation or collection of funds is made on behalf of and for use by any
person or organization which is not acting for or on behalf of any
Buch government, political subdivision, faction, or asserted government, but all such solicitations and collections of funds shall be
subject to the approval of the President and shall be made under
such rules and regulations as he shall prescribe.
"(b) The provisions of this section shall not apply to a renewal or
adjustment of such indebtedness as may exist on the date of the
President's proclamation.
"(c) Whoever shall violate the provisions of this section or of any
regulations issued hereunder shall, upon conviction thereof, be fined
not more than $50,000 or imprisoned for not more than five years,
or both. Should the violation be by a corporation, organization, or
association, each officer or agent thereof participating in the violation may be liable to the penalty herein prescribed.
"(d) Whenever the President shall have revoked any such proclamation issued under the authority of section 1 of this Act, the provisions of this section and of any regulations issued by the President
hereunder shall thereupon cease to apply with respect to the state
or states named in such proclamation, except with respect to offenses
committed prior to such revocation.
uEXCEPTIONS

AMERICAN REPUBLICS

"SEC. 4. This Act shall not apply to an American republic or
republics engaged in war against a non-American state or states,
provided the American republic is not cooperating with a nonAmerican state or states in such war.
"NATIONAL MUNITIONS CONTROL BOARD

"SEC. 5. (a) There is hereby established a National Munitions
Control Board (hereinafter referred to as the 'Board') to carry out
the provisions of this Act. The Board shall consist of the Secretary
of State, who shall be chairman and executive officer of the Board,
the Secretary of the Treasury, the Secretary of War, the Secretary
of the Navy, and the Secretary of Commerce. Except as otherwise
provided in this Act, or by other law, the administration of this Act




[PUB.

B-

27J

O

is vested in the Department of State. The Secretary of State shall
promulgate such rules and regulations with regard to the enforcement of this section as he may deem necessary to carry out its pro- J /I
visions. The Board shall be convened by the chairman and snail
hold at least one meeting a year.
" (b) Every person who engages in the business of manufacturing,
exporting, or importing any of the arms, ammunition, or implements of war referred to in this Act, whether as an exporter, importer, manufacturer, or dealer, shall register with the Secretary of
State his name, or business name, principal place of business, and
places of business in the United States, and a list of the arms, ammunition, and implements of war which he manufactures, imports, or
exports.
"(c) Every person required to register • under this section shall
notify the Secretary of State of any change in the arms, ammunition,
or implements of war which he exports, imports, or manufactures;
and upon such notification the Secretary of State shall issue to such
person an amended certificate of registration, free of charge, which
shall remain valid until the date of expiration of the original certificate. Every person required to register under the provisions of
this section shall pay a registration fee of $500, unless he manufactured, exported, or imported arms, ammunition, and implements of
war to a total sates value of less than $50,000 during the twelve
months immediately preceding his registration, in which case he shall
pay a registration fee of $100. Upon receipt of the required registration fee, the Secretary of State shall issue a registration certificate
valid for five years, which shall be renewable for further periods of
five years upon the payment for each renewal of a fee of $500 in the
case of persons who manufactured, exported, or imported arms, ammunition, and implements of war to a total sales value of more than
$50,000 during the twelve months immediately preceding the renewal,
or a fee of $100 in the case of persons who manufactured, exported,
or imported arms, ammunition, and implements of war to a total
sales value of less than $50,000 during the twelve months immediately
preceding the renewal. The Secretary of the Treasury is hereby
directed to refund, out of any moneys in the Treasury not otherwise
appropriated, the sum of $400 to every person who shall have paid a
registration fee of $500 pursuant to this Act, who manufactured,
exported, or imported arms, ammunition, and implements of war to
a total sales value of less than $50,000 during the twelve months
immediately preceding his registration.
"(d) It shall be unlawful for any person to export, or attempt to
export, from the United States to any other state, any of the arms,
ammunition, or implements of war referred to in this Act, or to
import, or attempt to import, to the United States from any other
state, any of the arms, ammunition, or implements of war referred
to in this Act, without first having obtained a license therefor.
"(e) All persons required to register under this section shall maintain, subject to the inspection of the Secretary of State, or any person or persons designated by him, such permanent records of manufacture for export, importation, and exportation of arms, ammunition, and implements of war as the Secretary of State shall prescribe.




D

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KES.

27 ]

"(f) Licenses shall be issued to persons who have registered as
herein provided for, except in cases of export or import licenses
where the export of arms, ammunition, or implements of Avar would
be in violation of this Act or any other law of the United States, or
of a treaty to which the United States is a party, in which cases such
licenses shall not lie issued.
w
(g) Whenever the President shall have issued a proclamation
under the authority of section 1 of this Act, all licenses theretofore
issued under this Act shall ipso facto and immediately upon the
issuance of such proclamation, cease to grant authority to export
arms, ammunition, or implements of war from any place in the
United States to any belligerent state, or to any state wherein civil
strife exists, named in such proclamation, or to any neutral state for
transshipment to, or for the use of, any such belligerent state or any
such state wherein civil strife exists; and said licenses, insofar as the
grant of authority to export to the state or states named in such
proclamation is concerned, shall be null and void.
"(h) No purchase of arms, ammunition, or implements of war shall
be made on behalf of the United States by any officer, executive
department, or independent establishment of the Government from
any person who shall have failed to register under the provisions of
this Act.
"(i) The provisions of the Act of August 21), 1916, relating to the
sale of ordnance and stores to the Government of Cuba (39 Stat. G19,
043; U. S. C, 1934 ed., title 50, sec. 72), are hereby repealed as of
December 31, 1937.
"(j) The Board shall make an annual report to Congress, copies
of which shall be distributed as are other reports transmitted to
Congress. Such reports shall contain such information and data collected by the Board as may be considered of value in the determination
of questions connected with the control of trade in arms, ammunition,
and implements of war. The Board shall include in such reports a
list of all persons required to register under the provisions of this
Act, and full information concerning the licenses issued hereunder.
"(k) The President is hereby authorized to proclaim upon recommendation of the Board from time to time a list of articles which
shall be considered arms, ammunition, and implements of war for the
purposes of this section.
"AMERICAN VESSELS PKOHIIUTED FKOM CAKBYINQ AIIMS To BELLIGERENT
STATES

"SEC. G. (a) Whenever the President shall have issued a proclamation under the authority of section 1 of this Act, it shall thereafter
be unlawful, until such proclamation is revoked, for any American
vessel to carry any arms, ammunition, or implements of war to any
belligerent state, or to any state wherein civil strife exists, named in
such proclamation, or to any neutral state for transshipment to, or
for the use of. any such belligerent state or any such state wherein
civil strife exists.
"(b) Whoever, in violation of the provisions of this section, shall
take, or attempt to take, or shall authorize, hire, or solicit another to
take, any American vessel carrying such cargo out of port or from the
jurisdiction of the United States shall be fined not more than $10,000,




[PUB. RES

I

or imprisoned not more than five years, or both; and, in addition, such
vessel, and her tackle, apparel, furniture, and equipment, and the
arms, ammunition, and implements of war on board, shall b3 forfeited
to the United States.
"USE OF AMERICAN PORTS AS BABE OF SUPPLY

"SEC. 7. (a) Whenever, during any war in which the United States
is neutral, the President, or any person thereunto authorized by him,
shall have cause to believe that any vessel, domestic or foreign,
whether requiring clearance or not, is about to carry out of a port of
the United States, fuel, men, arms, ammunition, implements of war,
or other supplies to any warship, tender, or supply ship of a belligerent state, but the evidence is not deemed sufficient to justify forbidding the departure of the vessel as provided for by section 1, title V,
chapter 30, of the Act approved June 15, 1917 (40 Stat. 217, 221;
U. S. C.| 1934 ed., title 18, sec. 31), and if. in the President's judgment,
such action will serve to maintain peace between the United States
and foreign states, or to protect the commercial interests of the United
States and its citizens, or to promote the security or neutrality of the
United States, he shall have the power and it shall be his duty to
require the owner, master, or person in command thereof, before
departing from a port of the United States, to give a bond to the
United States, with sufficient sureties, in such amount as he shall deem
proper, conditioned that the vessel will not deliver the men, or any
part of the cargo, to any warship, tender, or supply ship of a belligerent state.
'"(b) If the President, or any person thereunto authorized by him,
shall find that a vessel, domestic or foreign, in a port of the United
States, has previously cleared from a port of the United States during
such war and delivered its cargo or any part thereof to a warship,
tender, or supply ship of a belligerent state, he may prohibit the
departure of such vessel during the duration of the war.
SUBMARINES AND ARMED MERCHANT VESSELS

"SEC. 8. "Whenever, during any war in which the United States is
neutral, the President shall find that special restrictions placed on
the use of the ports and territorial waters of the United States by
the submarines or armed merchant vessels of a foreign state, will
serve to maintain peace between the United States and foreign states,
or to protect the commercial interests of the United States and its
citizens, or to promote the security of the United States, and shall
make proclamation thereof, it shall thereafter be unlawful for any
such submarine or armed merchant vessel to enter a port or the
territorial waters of the United States or to depart therefrom, except
under such conditions and subject to such limitations as the President
may prescribe. Whenever, in his judgment, the conditions which
have caused him to issue his proclamation have ceased to exist, he
shall revoke his proclamation and the provisions of this section shall
thereupon cease to apply.
"TRAVEL ON VESSELS OF BELLIGERENT STATES

"SEC. 0. Whenever the President shall have issued a proclamation
under the authority of section 1 of this Act it shall thereafter be




4-/6

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unlawful for any citizen of the United States to travel on any vessel
of the state or states named in such proclamation, except in accordance with such rules and regulations as the President shall prescribe:
Provided, however, That the provisions of this section shall not
apply to a citizen of the United States traveling on a vessel whoso
voyage was begun in advance of the date of the President's
proclamation, and who had no opportunity to discontinue his vo}Tage after
that date: And provided further, That they shall not apply under
ninety days after the date of the President's proclamation to a citizen
of the United States returning from a foreign state to the United
States. Whenever, in the President's judgment, the conditions which
have caused him to issue his proclamation have ceased to exist, he
shall revoke his proclamation and the provisions of this section shall
thereupon cease to apply with respect to the state or states named
in such proclamation, except with respect to offenses committed prior
to such revocation.
"ARMING OF AMERICAN MERCHANT VESSELS PROHIBITED

"SEC. 10. Whenever the President shall have issued a proclamation
under the authority of section 1, it shall thereafter be unlawful,
until such proclamation is revoked, for any American vessel engaged
in commerce with any belligerent state, or any state wherein civil
strife exists, named in such proclamation, to be armed or to carry
any armament, arms, ammunition, or implements of war, except
small arms and ammunition therefor which the President may deem
necessary and shall publicly designate for the preservation of discipline aboard such vessels.
uREGULATIONS

"SEC. 11. The President may, from time to time, promulgate such
rules and regulations, not inconsistent with law, as may be necessary
and proper to carry out any of the provisions of this Act; and he may
exercise any power or authority conferred on him by this Act through
such officer or officers, or agency or agencies, as he shall direct.
" GENERAL

PENALTY PROVISION

"SEC. 12. In every case of the violation of any of the provisions of
this Act or of any rule or regulation issued pursuant thereto where a
specific penalty is not herein provided, such violator or violators, upon
conviction, shall be fined not more than $10,000, or imprisoned not
more than five years, or both.
"DEFINITIONS

"SEC. 13. For the purposes of this Actr—
"(a) The term 'United States'^ when used in a geographical sense,
includes the several States and Territories, the insular possessions or
the United States (including the Philippine Islands), the Canal Zone,
and the District of Columbia.
"(b) The term 'person' includes a partnership, company, association, or corporation, as well as a natural person.
"(c) The term vessel' means every description of watercraft
(including aircraft) or other contrivance used, or capable of being
used, as a means of transportation on, under, or over water.




[PUB. RES.

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"(d) The term 'American vessel' means any vessel (including aircraft) documented under the laws of the United States.
"(e) The term 'vehicle' means every description of carriage (including aircraft) or other contrivance used, or capable of being used, as
a means of transportation on or over land.
" (f) The term 'state' shall include nation, government, and country.
uSEPARABILITY OF PROVISIONS

"SEC. 14. If any of the provisions of this Act, or the application
thereof to any person or circumstance, is held invalid, the remainder
of the Act, and the application of such provision to other persons or
circumstances, shall not be affected thereby.
'APPROPRIATIONS

"SEC. 15. There is hereby authorized to be appropriated from time
to time, out of any money in the Treasury not otherwise appropriated,
such amounts as may be necessary to carry out the provisions and
accomplish the purposes of this Act."
Approved, May 1, 1937, 6.30 p. m., Central Standard Time.







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ANALYSIS OF IJEUTRALITi ACT

Takes Iffeot
Whenever the President issues a proclamation findings
(1) That a state of war exists between 2 or acre foreign Statesj or
(t) That a state of oivil strife exists in a foreign State, which it
of suoh magnitude or is being oonduoted under suoh conditions
that the export of arms, etc., from the United States to suoh
foreign State would threaten or endanger the peaoe of the
United States.
Prohibits
Any person within the United States ("Person" defined to include corporations 9 partnerships, eto«)i
I. To purohase, sell or we change bonds, securities or other obligations (Issued after date of proclamation) of, or
2. To make any loan or extend any orodit to, or
8* To solicit or rooeive any contribution f o n
(a) the government of any suoh State named in the
proclamation,
(b) any political subdivision of any suoh State,
(o) any faotlon or asserted government within any suoh
State where oivil strife exists, or
(d) any person acting for or on behalf of any suoh
government, faction or asserted governments
Bxeeptlons
Does not apply tot




1. Purchase, sale or exchange of bonds, securities or obligations Issued prior to date of proclamation,
2. Renewal or adjustment of Indebtedness existing on date
of proclamation,
3* An American republic engaged in war against a nonAnmrican State and not oooperating with a notiAinerioan State in suoh war*

4« Ordinary oopaoroial credits and short tine obligationsi
(a) in aid of legal transaction* of a oharaotor austomri*
ly used In nonaal peaoe tins oaciaeraial transactions,
0>) ^ » axaqpfcad by the President, in hit discretion,
(o) to suoh extent and undor suoh regulation! as ht nay
prescribe,
(d) upon a finding by tho President tJiat suoh action
will serve to proteot ths oocmsroial or othsr in*
terests of tho Unit#d Statos or its oltisons#i
6* Ths solioitatlon or collection of funds to bo usod for
(a) asdioal aid and assistanoe* or
(b) food and clothing to rollout hwaan sufferings
lien made on behalf of and for use by any person or organisation not act lnj for or on behalf of any suoh gonrerwasnt,
political subdivision, faction or asserted goveronentj
But all suoh solicitations and collections shall boi
(a) subject to approval of tho President, and
(b) ssvda under such rules and regulations as ha aay
prescribe*
Penalties
#60,000 fine
8 years imprisonment
or both
In oaaaa of aorporatione* organisations and associations, each officer
or agent participating in riolationa Is liable*
Revocation
Provisions saass to apply (exoept to previous offenses) whan Praaldant
revokes proclamation* (Apparently no express limitation on President's
authority to revoke, although issuanoe of original proelsMStlen la
aaadatory whan President finds state of war er civil strife to axlat.)