POSSIBLE LOOPHOLES

Hawera Star, Volume LIV, 21 February 1935, Page 5

POSSIBLE LOOPHOLES

Congress May Have to Pass Special Legislation

GOLD CLAUSE PAYMENTS

REPORTS OF COURT ACTIONS

(United Press Assoclatlon--By Electric Telegraph

Copy rig hK.

WASHINGTON, Feb. 19. Elation in Administration circles over the favourable decision in the gold clause case changed’ to serious consideration to-day of possible loojjfioles in tlie decision as ic pertains to the gold clause in Government bonds. Reports from London that holders of such securities are preparing a court action to force payments in gold led sonic to believe tlint- Congress in ill pass special legislation denying any or all bondholders under any consideration recourse to the court.. Meanwhile the Administration is preparing to push ahead with its 4,000,000,000 dollar financing programme when and if Congress passes an enabling Act under the non- 'old clause basis. Both the security and commodity markets turned easy to-day after yesterday’s enthusiastic reception of the Government’s Supreme Court victory by traders. The volume of sales on the New York exchange was greatly reduced. Steady, though orderly selling gradually erased yesterday s price gains” and it is reported that yesterday’s frantic buying was largely by speculators who were “caught short. A firm tone, following the United States gold clause decision, characterises London stock markets, says a, British Official AVireless message. LeadEnglish issues were mostly higher. British Government stocks were arm and the AVar Loan reached £lO7 os. Throughout the day there were active dealings on the Stock Exchange, most AVest Australians showing advances in the street after the close as the news of a favourable Yellowdine cable spread. Commonwealths reached 16s “Not only moat negotiations,” says The Times, “but all trade discussions with the Dominions would be eased it the British Government could define, however roughly, the place of agricultural industries in the economic system of Britain, and if the Dominion Governments could be equally clear about the development they desire for secondary industries.