Evening star., 1933-06-08

Two separate and distinct points Of
view are revealed in the course of the
debate on national legislation affecting
the gold clause in public and private
contracts. One group insists that OBJ
legation Of contracts shall not be i'm
paired Another fears collapse and
would judge action in an emergency by
those who concede that abandonment
Of gold requirements Is irregular.
It is suggested by the New York
obligations containing such provision
might sue to have the courts construe
| it "a gold value clause, and demand
payment in dollars in amount sufficient
to cover the known premium OF gold
over paper money" That paper, how
ever, adds that there will doubtless be
q strong temptation for the courts here
to do what has been done by judicial
bodies abroad, and to declare the in
depreciation of the gold-coin clause as
o gold value clause to be against public
policy, especially in view of the vast
volume of outstanding obligations and
other contracts that now include the
gold clause in one form or another"
Presenting the background of those
who regard the treatment Of gold as
be1oC0 OAA oAi CaAiC1SCAiNy, eifC SAAoiAN
World Herald argues: 1.-THE objective
is to make the dollar an honest one.
Obviously q dollar that Is worth.
in terms of goods. commodities and
services. as little as As cents in one
year, and as much as $2.93 in another
year, Is anything but honest. 1t con-
verts contractual relationships into a
wild speculation, wrongs debtor and
creditor alternately, and holds the pro-
ducer and worker at its capricious
mercy. An honest dollar Is one Of
reasonable stable value. and it is such
a dollar that President Roosevelt is
striving to establish"
In answer to this, the Baltimore Sun
condemns such action as IAN inglorious
course" and suggests that "at some
future and less excited time the quality
impaired must seem to be little less than
capricious. The Sun views the course
Of events as borrowing dollars Of high
purchasing power and endeavoring to
pay back with cheap dollars" and en-
phasizes the point that there is mo
persuasive show Of desperate necessity
or even promise Of national economic
gain"
Delicate questions Of public policy
and public ethics" are recognized by the
st. Louis Post-Dispatch, which offers
the verdict: Even those who approve
the Governments action must feel q
tinge Of regret at what amounts to the
formal Reputation of an obligation.
Yet, until prices In terms of gold are
raised, the enforcement of the gold
clause would involve bankruptcy for a
large part of private debtors under gold
contracts, a still further increase in the
already heavy burden Of taxation re-
quired to meet service on public debts,
and bankruptcy for many local units"
There is an old saying that neces-
sity knows no law" suggests the Hart
ford Times. with the conclusion that
ut should be possible SO to frame the
law that the stoppage of gold payments
should not operate to conisoate the |
property of any person without just |
compensation" With a quotation from |
Webster that "justice is the great in |
terest of man on EARTH" The Times |
comments: 80 much justice as is hu-
manly possible should be done by the |
Federal Government in its legislation to
suppress and prevent the fulhllment OF
contracts to pay In gold. To our view
the consideration should be regarded as
one which Is as necessary as can be
inflation.".
THE real issue Is sound money"
thinks the Fort Worth Star Telegram,
with the comment that "a country
whose gold stocks are at record high,
and with an embargo against its ex-
port, should keep 1t sound" The Cleve-
land Plain Dealer feels that "the
recipe for successful administration in
cludes an acceptance Of the lessons Of
experience without blind allegiance to
> dead past, and . Willingness to build