This is from a military lawyer friend of mine who must remain anonymous due to regulations in his job. I posted it during another online discussion of private ownership of former US gov't property:
"
Literally all CW firearms, accouterments and weapons in the hands of private collectors originate from one of three sources: (1) firearms and swords purchased by the individual officer and thereafer sold or disposed of by the soldier or his heirs. In this case, the government has never had title to the items and he or his heirs can pass legal title to someone else. (2) firearms and accounterments purchased by a soldier from the government at the conclusion of his term of service. Again, he is perfectly at liberty to sell, will or otherwise dispose of them. (3) firearms and other accouterments deaccessioned by the government and sold to a private dealier and thereafter resold by the dealer. Again, the acquisition is perfectly permissible as the government has voluntarily dispossessed itself of the item at issue. On the other hand, the government never loses title to an artifact that it has retained and has, without its authorization, been taken from it. "