DOUBTS OF JUDGES

Taranaki Daily News, 14 January 1935, Page 5

DOUBTS OF JUDGES

GOLD POLICY VALIDITY UNITED STATES HEARING MARKET REPERCUSSIONS UNPRECEDENTED REQUEST By Telegraph—Press Assn.—Copyright. Rec. 6.45 p.m. New York, Jan. 12. The seeming dubiousness with whidh the Supreme Court judges received the Government arguments that President Roosevelt’s gold devaluation policy should be held to be valid, had sharp repercussions on the markets to-day. There was a considerable flow of capital into Government securities containing the “gold payment clause,” with the result that various Liberty Loan bonds rose by as much as one point. On the other hand, about £3,000,000,000 of bonds issued since the devaluation slumped. Stock Exchange brokers admitted that they were mystified about what might happen if the Court’s decision was against the Government. Many took seriously the plea of Mr. H. S. Cummings, Attorney-General, that chaos would result. Commitments of all sorts were limited, with prices slightly off. In the final day’s arguments Mr. Cummings made the unprecedented request that the Court should keep its decision open so that the Government might present further evidence if necessary. Previously several judges, notably Mr. Justice Hughes, has sharply questioned various parts of the Government’s argument particularly the legality of voiding the “gold clause” in Government bonds, because of the utmost seriousness of the matter. The Court will probably consider the case for a fortnight, perhaps even for a month.