Evening star., 1934-01-09
DEBT MORATORIUM
VICTORY IS HAILED
Supreme Court UphoIds
States Right to Suspend
Contracts in Emergency.
BY the Associated Press.

BY the Associated Press.
Administration officials today hailed
privately as constitutional victory for
the national recovery legislation close,
but decisive, Supreme Court decision up
holding the validity of the Minnesota
mortgage moratorium law.
BY a vote of to the high tribunai
ruled in. favor of the first emergency
statute passed, either in the State or
Nation, defending in broad principle the
right of a State to suspend contracts in
an emergency.
- The Minnesota law, which also pro-
yided the first major test to be decided
by the high court, extends the time 1or
redemption of foreclosed property untli
NAV /. 1885. In the majority opinion,
handed down by Chief Justice Hugnes,
however. the court went deep into basic
principles. . ,ouor -
said the Chief Justice. Emergency
does not increase granted power or re-
move or diminish the restrictions I'm,
posed upon power granted or reserVeo'
The Constitution was adopted In a
period of grave emergency.
Occasion for Power.
"While emergency does not creale
mower, emergency may furnish tne oe-
casion for the exercise OF power
Justices Brandeis, Stone. Carooza ana
Roberts sided with the Chief justice.
Justice Sutherland presented pulky
dissenting opinion. with WHICH cus.tI.o
Van Devanter, McReynolds and Butter
known as conservatives, agreed
The actual case brought to the Su-
,,re,,e Court was one involving Jonn n.
and Rosella Blaisdell of Minneapolis
they sought an extension of time 1or
the redemption of their property, whlcn
had been foreclosed. The State court
urheld the constitutionality OF the
moratorium law. ....,.,
.T,Istice Hughes said the constitutional
rroyision regarding the rights OF con-
tract was qualified not only py tile
measure of control which the State re-
telns over remedial processes, Out tile
State also continues to possess autnol 8
itv to safeguard the vital interests OF
the people" ., ~
Then followed long review OF
previous opinion supporting his views
and the Chief Justice summed up the
tenor of his opinion with these WORDS
1T is manifest from this review OF
our decisions that there has peen
growing appreciation of public neeos
and the necessity of finding ground
for a rational compromise between in
dividual rights and public welfare.
Far-Reaching Effect.
"If by the statement that what the
Constitution meant at the time OF ltS
adoption, it means today, it is intended
to saw that the great clauses OF the
Constitution must be confined to the
Interpretation which the trainers, with
the conditions and outlook OF their
time. would have placed upon them,
the statement carries its own refuta-
ton"
Justice Sutherland in his opening
words said: Few questions OF greater
moment than that just decided have
been submitted for judicial inquiry
during this generation. He simply
closes his eyes to the necessary i'm
plications of the decision who fails to
see in it the potentially of future
gradual and everlasting incroachments
upon the sanctity of public and pri-
Vate contracts"
Next he outlined the position that he
and others in the minority took
If the contract ct-impairment clause,
when framed and adopted" he said,
meant that the terms of a contract
for the payment of money could not
be altered in invitum by State statute
enacted for the relief of hardly pressed
debtors to the end and with the ef-
feet of postponing payment or enforce
ment during and because Of an eco
nomic or financial emergency, 1t is but
to state the obvious to say that 1t
means the same now"
He then detailed conditions under
which the Constitution was created
the efforts Of the debtor classes to have