Evening star., 1933-08-13
BY REX COLLIER.

b1 hEA SOLLlLRs
Is the Governments oft-reiterated
threat to prosecute gold hoarders
merely a bluff?
This question has become a popu-
lar one in financial and other circles
as Uncle Sam continues to procras-
tinate in carrying out his widely pub-
licized roundup of those who have re-
fused to give up their gold in COM
pliance with the Presidents order
Time after time "deadline" has
been set for the big swoop-down by
the Department of Justice, but in
variably the zero hour has been eX-
tended and nothing has happened.
So long has action been delayed and
50 often have newspaper correspondents
asked Attorney General Cummings
about it that the mere mention Of gold
hoarders is sufficient to produce
round OF hearty laughter at Mr.. Cum
mlngs' press conferences. Appreciate
ing tie humor of the situation. the At
torney General joins in TIL laughter.
but always assures the reporters that
he honestly meant what ne said about
pro ecutionS.
The stock question that precipitates
the hilarity is Have YOU caught any
gold hoarders yet, Mr. Attorney Cen
eral?"
Wher he customary laughter has
subsiGet The genial and Suave Mr.
CunmiL=s will lay his cigar down, lean
bark i'll his tall-backed chair and earn
estly repeat his warnings that pub
Ecity and prosecution surely will fol-
low soon"
Sincerity Is Real.
n JI-11n 1,n ci,, ri4 Nf
Attorney General Cummings doubts for
4 moment that he does mean to publish
the names of gold hoarders and prose-
cute fragrant violators" of the eXecrl-
tive order eventually. But there Is
something more than a sneaking sus-
plclOn that the Government has held to
the hope that the threat Of publicity
and prosecution would be sufficient to
cause a stampede of disgorging that
would make legal action unnecessary.
The anticipated stampede so far has
not developed. however On the con-
trary, more than 200 alleged hoarders
have defied the Government to come
and take 1t. meaning their gold. de
clarlng they are perfectly willing 10
volunteer as defendants III test cases.
There Is. too. the question OF the con-
Sttutlonailty Of the executive order to
tor Borah was among the first to raise
the contention that the boarding
edlct OF the President violates the con-
slltutional guarantees of property rights
OF the individual. He was joined in that
DSlet by former Senator Charles d
IhOm2S OF Colorado. who invited" the
department or Justice 20 prosecute him
for 'hoarding' Sl20 in gold.
Attorney General Cummings. a con-
stltutlonal lawyer of repute before he
was member of the cabinet. is said TO
nave advised the President that his ex-
ecutlNe order Was constitutional and
enforceable. III fact. MI CUMMINGS is
reported to have assisted Treasury OF
nclalS III drafting the order.
Chronological resume of the gold
boarding drive IS of interest.
First Step BY Woodin.
Secretary WoOdin took the first Of
IlclaI acton aimed at gold hoarders ON
March y, when he issued an order pro-
hlpltlng reopened banks from permitting
Withdrawals tor boarding.
PRESIDENT ROoSevelt'S sensational or
der 'forbidding the boarding of gold
coin. gold bullion and gold certiticaIes''
was ISSUED on April 5. Under ener-
gency authority conferred on him By
me banking act of March g. he declared
tnat said national emergency still con-
tlnleS TO exist and announced that all
persons are hereby required to deliver
on or before May l, 1888. to a Federal
Reserve Bank or a branch or agency
thereof. or to any member bank OF the
Federal Reserve system all gold coin,
gold bullion and gold certificates now
owned by them Or coming into their
ownership on or before April 28 1888"
with several exceptions concerning in
ouStrlal gold, coin collections and gold
licensed for export
Another exception was that individll-
ais might retain as much as S100 in gold
without incurring official displeasure.
The final clause of the order con-
tanned the teeth" It read: Whoever
Wlltullv violates any provision OF this
Executive order Or of these regulations
or Of any rule, regulation or license
issued Hereunder may be fined not
more than $4,000. or if natural per-
son, may be imprisoned for not more
than 10 years, or both and any officer.
director or agent Of any corporation
who knowingly participates in any such
violation may be punished by a like
fine. imprisonment. or both"
Return of Gold Assured.
Secretary Woodin that same day ex-
planned that the President had been
contemplating such an order eve, since
passage of the emergency banking act
and declared that the order assured"
return Of boarded gold to the banks.
Not long thereafter the inquisitive
neWspapermen began asking Attorney
General Cummings about gold hoarders
On April ii he said: Until We know
what our problem is, it is difficult to
prepare detailed plans. Maybe there
will be no necessity for action"
On May 3. after Senator B0rah and
former Senator Thomas had challenged
the order. Cummings and Woodin con-
ferred about the situation.
On May 4 Mr. Cummings delivered
his first authentic broadside of threa.S
at the hoarderS. He announced that
publicity or prosecution was planned.
but said no action would be taken
against the defiant Thomas because he
was mot big violator' We are
going after the flagrant violators who
have large sums in thier possession" hf
explained He said the Treasury was
compiling a list of suspected hoarders"
which would be checked by Justice
agents.
IF I were q gold hoarder," he con-
cluQeQ WlCn SOME emphasis. ana NAG
not made good, I rather think I should
make haste to do So"
On May Thomas notified the United
States attorney in Denver that he had
obtained Sl20 in gold to qualify my
self for the penitentiary." and remarked
that it wouldn't look dignified for the
Government to fail to prosecute me
now"
For several weeks the Attorney Cen
eral admitted to reporters that he had
not yet caught any hoarders, but at
each of the semi-weekly press confer
ences he insisted that he was "hot on
their trail"
1000 in Suspect" List.
On June Mr.. Cummings announced
that he had transmitted to the Bureau
of Investigation list of 1000 "sus
peotS" suh,pitted by the TraaS S1Irv