The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-05-27
House AND SENATE
TAKE QUICK ACTION
TO SPEED MEASURE
Tote Favorable Reports on Pro-
posal Which Stirred Com.
modify Prices
AMENDMENTS ARE BEATEN
House Leader Says Bill Ratifies
And Makes Legal Present
Situation
AMENDMENTS ARE BEATEN

Washington, May 27.-(P}-The ad-
ministrations resolution to cancel the
gold clause in existing contracts and
make all obligations, public and pri-
vate, payable in legal tender money
was approved Saturday by both the
house and senate banking commit
tees, assuring swift attempts for con-
gressional enactment.
The house committee vote, after a
short closed session, was IL to and
a move was undertaken to get 1t be-
fore the chamber itself Monday.
The senate committee voted to re-
port the important legislative pro-
posal to 3. after rejecting by only
Z to 6 an amendment to eliminate
obligations to or from the United
States government.
This amendment, offered by Sena-
tor Glass Dem.. Va was designed
to require payments in gold on gov
eminent bonds and war debts due the
United States from abroad.
The house committee defeated II
to an amendment to prevent the
cancellation of existing governmental
gold contracts.
Steagall Is Hopeful
Chairman Steagall Dem.. Ala.), Of
the house committee, said This
measure ratifieS, reaffirmS, confirms
and makes legal a situation now exist
ing. We are off the gold standard.
I don't know whether we'll ever get
back on it or not. That is not wor-
Ssl,iveo q nA&vNey nff rho
gold standard did.
This bill will put us on a managed
currency basis. It will broaden our
currency basis.
"1t frees us at home and abroad Of
dependence on gold. =
1T is declaration OF economic
independence. It will restore pros
perity."
Questioned as to his assertion Fri
day that the resolution repealed "the
gold standard act" Steagall said:
1T doesn't specifically do that, but
in effect it does. It's all the same.
It makes it possible for the govern
ment to control gold for whatever
purpose it sees tit"
Asked. do you think it is cor,sti-
tutional?". Steagan said he did.
The new bill declares that regard
less of demand in any contract, past
or future, for payment in gold, any
and all coin and currency Of the
realm shall be legally disable in pay
ment.
It was submitted to congress by
the treasury Friday. In view of re-
cent votes on gold. passage by both
houses is considered certain.
Senator Glass, staunch defender Of
the gold standard, protested imme-
diately, saying if there is any integ-
rity left in the courts with regard
to the sanctity of contracts they will
hold the bill unconstitutional.
Ratifies Existing Fact
President Roosevelt explained 1t as
formally ratifying. by legal declara-
ton. an already existing fact. With
gold barred. the United States and
private debtors have been paying in
currency, and the payment has been
accepted generally through attempts
to force gold payment to bond-hold-
ers at home or abroad have been ex-
pected.
Some courts already have upheld
this voiding Of the contractual gold
clause, but the United States has
falling due this summer many bonds,
all containing the gold clause. It
will have to issue many more bonds
and though it has no intention Of
writing the gold clause in them, has
as yet no legal authority to leave 1t
out
Before bond marketing time comes
around the treasury wants the. whole
question settled. Cases might b.
taken to courts which might find,
as Senator Glass insists, that the
contractual demand for gold is sa-
cred. Though officials do not fear
the ultimate outcome of such rul-
ing, the resulting confusion in the
bond market might make tough sled
ding for government issues.
A collateral gain from his declara-
ton is seen by officials In removal Of
the premium on gold coin, which may
now be boarded by some for salts
faction of private contracts. As
money within the United States, it
is to have no advantage on either
silver or paper. Outside 1t might
command premium, but 1t cannot
he exported.