The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1934-07-06


fce March 4, 1888, the congress, &C
cording to the Con-
Legality stitution, held the
Questioned power to levy ana
collect taxes, to bor-
row money, to regulate foreign and
domestic commerce, to coin money and
regulate it's value and to govern its
relation to foreign coin, to combat
counterfeiting, to set up inferior
courts, to declare war and grant let
tiers of marque and reprisal, to raise
and support the army and the navy
and control calls for the militia, to
define and punish piracy, guard the
copyright of creative work, and to
make all necessary laws for carrying
out these various powers.
What has congress retained of these
vast powers, given 1t by the Constitu-
ton because it represents the people?
There is divergence of opinion. Sure
ly, however, there has been delegated
to the President some Of the most i'm
portant of those powers, and some
authorities like Senator Borah of
Idaho, and some of the Democratic
conservatives claimed the delegation
has been illegal. Whether that conten-
ton is true, of course, is matter
for the courts.
To examine just few of the things
done by congress will illustrate the
extent to which it went in granting
authority to the President. Take the
laws creating the Agricultural Ad-
justment administration and it will be
seen that the authority to levy and
collect taxes was granted and at the
same time a big handful of control
over interstate and foreign commerce
was given to the Executive. Produc-
ton control under the so-called Bank
head cotton control law is just that.
An important control over interstate
and foreign commerce was given the
President also under the national re-
covery act. General Johnson, admin
istrator. exercises that authority. of
course, but he does so under execu-
tive direction.
While the power is circumscribed to
an extent, congress gave the President
authority to change the value of the
dollar. He cannot vary it greater than
between fifty and sixty cents, as we
used to measure cents, but the power
to coin money and regulate its value
rests with Mr.. Roosevelt to that ex-
tent. The implications go much fur
ther. The treasury has an immense
fund of gold which 1t can use in main
tanning the relationship between our
dollar and foreign coins. 1t can spend
that money in the purchase Of foreign
exchange for sterilization of our dol
lars value.
Under the present set-up, congress
gave away temporarily the right to
make laws, or part
u. S. in Many of that authority. In
p nearly all Of the acts
of the New Deal
congress, much discretionary power to
draft regulations and rules for admin
istration of the new laws was accord
ed the Executive. Anti-administration
leaders contend that in using this dis
cretionary power, the executive branch
has put government into countless
businesses. Through the Reconstruc-
ton Finance corporation, for example,
the government owns or has influence
in through the medium of loans such
businesses as banking, dairying, cotton
and wheat and other grain stocks, in
the mortgage field, railroading and in
the various fields of commerce and
Industry such as those touched by the
Tennessee Valley experiment.
Through NRA, it is to be mentioned
also, the antitrust laws were virtually,
If not wholly. suspended. The recov-
ery act made the antitrust laws in
applicable where corporations signed
the codes and complied with the blue
eagle requirements. Under that same
set of laws, too, the government vir-
tually became a partner in all bust
nesses, since it exercises authority
over their manufacturing practices
and policies as well as their methods
of production and distribution.
Finally, it ought to be mentioned
that no longer can an individual sign
a contract by which he will agree to
make payment In gold. All such con-
tracts entered into heretofore, If they
are still in effect, mean nothing be-
cause they cannot be enforced as to
payment in gold. The treasury has
become the owner of all monetary
fha Of hn Mt
States.
Unless my survey is In error, con-
gress recalled to itself in the second
session only one of the powers 1t gave
away In the first. II took back the
control of pensions. The item of pen
sions was placed under executive con-
troll In the economy act of 1888. but
there was so much fuss raised about
the reduction in pensions and pay
ments of other kinds to veterans that
the politicians simply were forced to
do something about It. Failing In in
dividual efforts to break down the
schedules written under Mr.. Roose-
velt's direction, congress asserted It
self and repealed that part of the
economy act. These payments are too
valuable in political battles to let Mr..
Roosevelt handle them. Members Of
the house and senate wanted to do
that themselves.
The result of this restoration, of
course, was to increase the number
and amount of payments made out Of
public moneys. am In no position to
say whether the Presidents curtail-
ment of pensions and veterans COM
nensation navments was too harsh. or