VITAL ISSUE

Wanganui Chronicle, Volume 79, Issue 29, 4 February 1935, Page 7

VITAL ISSUE

N.R.A. POLICY INFLATIONARY GOLD CLAUSE SUPREME COURT RULING SIGNIFICANT DELAY [By Telegraph—Press Association— Copyright) Received Feb. 3, 7.5 p.m. WASHINGTON, Feb. 2. After the markets had closed to-day the Chief Justice, Mr. Hughes, announced that the Supreme Court would not issue the gold clause ruling on Monday as expected. He explained that the matter was under consideration, and the nine justices were not yet ready to render an opinion. During the past fortnight the market movements have been largely influenced by speculation on what the decision might be. The fear that it may be adverse, that is, that the Administration inflationary gold policy will be declared illegal, has caused much apprehension, and inertia haf ruled in the securities exchanges whereas the continued industrial improvements would normally send prices sharply forward. The" commodity markets in general have been similarly affected. It is understood that the administration is confident of a favourable ruling, but is prepared for an adverse one, and is reported to have measures drafted that will be rushed through Congress to counteract the immediate deflationary effect, that such a ruling would have. The nature of these Bills is not known.

It is further reported that ii the event of an adverse ruling, the Government is prepared to close the security exchanges to prevent immediate fluctuations in prices. The postponement of the decision is viewed as a bit alarming in some Administration quarters, as it seemingly indicates that the Court is finding difficulty in weighing the legal issues involved against the Government’s contention that a favourable decision is imperative to the national welfare.