The Waterbury Democrat., 1934-12-17
By JOHN A. REICHMANN

By JOHN A. REICHMANN
 United Press Staff COrrespondent)
 Washington (UP)-The New Deals monetary policies involving billions of dollars in governmental and private debts will face the scrutiny of the supreme court early in the new year when the tribun- al will hear argument on the valid ity of deva1uation.
 Four cases have been submitted to the court attacking devaluation and the outlawing of the gold clause in all private and public contracts. Each presents a differ ent phase of the important ques- ton, but the fundamental Ques- tions involved are identical.
 Here Are the Questions
 Briefly expressed they are:
 Are the laws of Congress regu- lating the use of gold and estab- fishing a new gold content for the dollar valid?
 Can debts carrying a clause pro- viding for payment in gold coin or the weight and fineness prevailing before devaluation be paid in law full currency of the United States, dollar TOT QOllaT
 An estimate of the importance of the answers to these questions as far as they involve the admin istration's fight on the depression can be gleaned from the fact that the government alone on March l, 1884, had outstanding more than $21, O00,000,000 of obligations carrying the gold clause. Respon- sible authorities believe that pri- vate obligations, such as mort gages on homes and industrial properties, frequently represented by bond issues, carry the gold clause to the extent of $90,O00,000,- 900 to $125,000,000,000.
 Burden to Population When devaluation was under taken and these gold clauses con demned it was on the belief that the increased value of the gold dol lar had burdened the population beyond economic endurance. The explanation given was that the debts, on the whole, were con tracted at time when the dollar was of less value than it is to- day. In other words, measured in terms of the goods which the pub lie must purchase, or in terms of the labor which must be per formed to earn a dollar, the debts were far harder to meet than they had been under the dollar value at the time of the contract.
 Devaluation was undertaken to help remedy this condition. Should the court hold that the devaluation law was invalid and that the gold clause of extant contracts is still binding on the contracting parties, it will mean that for every dollar of debt contracted for the debtor must pay $1,69.
 Started fin New York The question was first carried tc the court by Norman c. Norman of New York city in a case involv- ing a $1,000 bond of the Baltimore & Ohio Railroad. Norman de- manded payment of the interest coupon on these gold clause bonds in gold. Failing in that, because gold had been impounded by the government, he demanded that currency equivalent to the amount of gold called for in the contract he paid him. This would have re- quired the road to pay $3S.10 on the interest coupon with an origin al gold face value of $22.50. When the payment requested was not made Norman brought suit to compel payment under the letter of the contract. The New York supreme court ruled against him upholding the right of Con- gress to alter the gold content of the dollar.
 Soon after the case was carried to the supreme court the govern ment induced the court to take under consideration two cases aris- ing in St Louis and involving the same questions. The St Louis case involved the gold clause in 30 year mortgage bonds of the St Louis, Iron Mountain & Southern Railway Company, river and gulf divisions.
 Trust Company in Case The properties which were mort gagged under the bond issue are now Q part of the estate of the Missouri Pacific Railroad company, now being reorganized. The Bank. CTS Trust Company. trustees under tho bond issue, have demanded fulfiilment of the gold clause, q de. mana that would require the Mss souri Pacific 10 pas. t7o0, ,ooO. .oOo on c mortgage debt 0f ela0,0O0,00 if enforced against eli its 0utntand' lng obligations,
 The unliod states has entered the case na an interested party be-. cause such q ruling would eive prior obligations e Hons share lf tho r0nd'A ahnoie, The government has n claim for iaEea against tho