In 1917, under President Woodrow Wilson, the U.S. Congress passed legislation titled Trading With the Enemy Act. The objective was to stop any American from trading with our enemies and the allies of our enemies, during World War I. Sec. 2(c) of the act defined "enemy" as foreigners and countries who were at war with the United States. It specifically excluded American citizens as enemies. Sec. 5(b) specifically excluded transactions of the American people. Public Law No. 65-91 CHAP. 106. - An Act To define, regulate, and punish
The war powers were terminated following World War I, in 1921. However, The Trading With the Enemy Act of 1917 was granted an exemption. The "Roaring Twenties," then arrived, a decade of greed and decadence. This culminated with the notorious stock market crash of '29. Franklin D. Roosevelt was placed in the White House. Speaking of the economic crisis during his inaugural address, Roosevelt said, "...I shall ask the Congress for the one remaining instrument to meet the crisis - broad Executive power to wage war against the emergency, as great as the power that would be given me if we were in fact invaded by a foreign foe." On March 6, 1933, President Roosevelt relied on Sec. 5(b) of the Trading With the Enemy Act as authority for his Proclamation 2039 which closed all banks for five days. This was clearly a time of financial crisis, not of war, and hence was not within the literal terms and purposes of the Act. Importantly, the Act was amended so as to include every citizen and every transaction and any form of national emergency.
On March 9, 1933, Roosevelt issued Proclamation 2040. It referred to the national emergency and again asserted Sec. 5(b) as authority for it. Roosevelt then proclaimed that the Proclamation of March 6, 1933, would remain in full force and effect until proclamation by the president. It remains in force to this day. Therefore, an effectively permanent law exists that allows the president, by declaring an emergency, to assume the role of dictator. He may designate agencies of his choice to investigate, regulate, and license any transaction of any person (enemy) within the United States, by means of rules and regulations he may prescribe. In the event the reader has lingering doubt concerning the nature and effect of the Trading With the Enemy Act, it is suggested that he read Senate Report 93-549.
The preeminent legal researcher on the subject of the War Powers is Dr. Eugene Schroder. His treatise on the subject can be reached by clicking on "Emergency Declared," within this site's menu. Video presentations are available here. |