U.S. SECURITIES
VOIDED GOLD CLAUSE
DECISION OF COURT AWAITED
INTENSE INTEREST
(United Press Assn.—Telegraph Copyright.) (Rec. 5.5 p.m.) Washington, Feb. 17. As the week-end passed without the Supreme Court announcing that its gold clause decision would not be made on Monday, officials at Washington are confident that the opinions will be handed down to-morrow and are tensely awaiting this all-important action.
Despite the complete reticence of Administration officers, from _ Mr Roosevelt down, as to what they will do if a decision is adverse, it is assumed that immediate action will be taken to prevent disruption of the national financial structure as built on various “new deal” monetary legislation. The Treasury’s two billion dollar stabilization fund is already operating to keep the dollar steady on foreign exchanges. The unusual length of time the Court has considered its arguments and its unprecedented action in several times publicly postponing its decision have produced nation-wide excitement, which has been compared to that following the Scott decision of 1856, which was one of the things precipitating the Civil War.
The decision, if given to-morrow, undoubtedly will not be until after the close of the markets, and if adverse it is believed certain that Mr Roosevelt will temporarily close the New York Stock Exchange and perhaps the commodity markets as well.
Judgment is pending in a test case brought by the holder of a gold bond in the Baltimore Railroads Company, who contends that an interest payment of 22 dollars (normally £4 8/-) should have been the equivalent of the old gold value, or about 40 per cent, more, and that in effect he has been deprived of property without due process of law. Tlie whole basis of President Roosevelt’s monetary policy is affected by the issue.
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Bibliographic details
Southland Times, Issue 22510, 19 February 1935, Page 7
Word Count
291U.S. SECURITIES Southland Times, Issue 22510, 19 February 1935, Page 7
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