ROOSEVELT’S VICTORY

Taranaki Daily News, 20 February 1935, Page 5

ROOSEVELT’S VICTORY

DECISION IN GOLD CLAUSE CASE ‘NEW DEAL’ MONEY POLICY UPHELD J FIVE JUDGES TO FOUR MAJORITY r By Telegraph—Press Assn.—Copyright. I Received 8 p.m. Washington, February 18. THE United States Supreme Court has by five votes to four upheld the Government’s right to cancel the gold clauses !n the Private Banks Act. The Administration’s practical victory caused President Roosevelt and his aides gleefully to scrap their elaborate plans for counter-action if the decision had been against them. Briefly, the Court ruled that Congress had the power to nullify the promises to pay in gold contained in the bonds of private corporations, that it had no such power where the Government’s own bonds were concerned, but that Federal bond-holders had suffered no damage and had no right at present to other than dollar for dollar redemption, and that a gold certifica'i) was worth only its face value in the present devalued currency.