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THE GOLD CLAUSE.

The cabled report of the judgments delivered by (lie Supreme Court of the United States upon questions regarding the “gold clause” in various classes of securities held by the public is not quite as clear as could be wished. In these securities, according to general custom, it was specially stipulated that payment of both principal and interest should be made in gold currency. Some twelve months or more ago Congress, at the President’s instance, passed legislation which purported to delete this clause and provide for satisfaction of the liability by payment, in paper currency based on a heavily debased gold dollar. The issue before the Court was as to whether this legislation did not offend against the constitutional law of the country and was not therefore inoperative. So far as the cables received up to time of writing go, it would seem that the highest court in the land has held that as concerns private securities —presumably those issued by companies and the like—the new law is effective. On the other hand .the decision would seem to be that as regards securities issued by the Federal Government it is abortive. This, however, is greatly qualified by some kind of “obiter dictum” of the bench to the effect that, while this is the ease, the holders of these securities have no standing upon which they may take action for recovery. The. position seems to be somewhat anomalous, hut that is nothing new where the quirks and quibbles of the law are concerned, and doubtless some more lengthy explanation will be forthcoming ere long.

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https://paperspast.natlib.govt.nz/newspapers/HBTRIB19350219.2.13

Bibliographic details

Hawke's Bay Tribune, Volume XXV, Issue 57, 19 February 1935, Page 4

Word Count
265

THE GOLD CLAUSE. Hawke's Bay Tribune, Volume XXV, Issue 57, 19 February 1935, Page 4

THE GOLD CLAUSE. Hawke's Bay Tribune, Volume XXV, Issue 57, 19 February 1935, Page 4

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