The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1935-03-07
Call il Repudiation

NdlI ISSpuui&tiOu
Observation-Disclosures it has
been several weeks since the SUI
preme court of the United States
rendered its history-making decis-
ion in the gold cases, there is no
slackening in the disturbance from
the effects of the administrators
gold policies, even in the light Of
the court ruling. While the court
held that congress had no power
to enact legislation invalidating the
gold clause in government bonds,
it said in the same breath that col
lection from the government by a
bondholder was another story. Since
the government has taken gold out
of circulation, collection appears
virtually impossible but the APP
pearance is not going to stop bond
holders from seeking what they re-
gard as justice.
1t is now apparent that the gov
ernment's action is going to be re-
garded both here and abroad as
reputation. That is nasty word
when applied to governments and
its repercussions likely will be
heard for a good many years.
While the Reputation of the gold
payments will affect comparatively
Jew people directly, the signifi-
canoe of the action in q political
way is becoming more and more
apparent. The Reputation in its ef-
feet on the bond holders may be
only temporary, but its effect po-
litically will be far-flung.
think it is generally considered
now that the gold question will
become paramount issue in the
next political campaign and it is
not impossible that it will continue
70 be an issue over q period of
years. This is so because, admit
tedly, actual damage has been done
to American prestige in foreign
lands. 1t is made to appear, there
fore, that there will be combina-
ton of international and domestic
influences at work henceforth with
respect to this governments gold
policies.
Domestically, the issue was born
IN the presentation in congress OF
two bills designed to restore, par
tally ait least, the status Of this
government as regards the gold
policies to that obtaining before
the devaluation of the dollar. Sim
ultaneously, former President Her
bert Hoover, in one of the few ex-
pressions made since retiring from
office, declared his belief that the
return of gold payments was nee
essary and vital to stabilizing con-
ditions and re-establishing the
United States in world favor.
OF Course, with the abundant
Democratic majority in congress,
the gold bills will get nowhere very
fast. Likewise, Mr.. Hoover's ex-
preston can and will result only in
providing ammunition for New
Deal supporters, whose answers to
criticism usually is a question
whether it is desired to return to
the conditions that caused the de-
preston.
Nevertheless, hear considerable
discussion to the effect that these
ripples must be considered as only
the beginning. They will have the
effect of causing many people to
think about the problem. Discus
sions will take place in the homes
and in the shops. There will be
those who contend for sound money
of the old style. Equally vehem-
emit defenders of the New Deal will
arise. Thus, the issue becomes
joined and it is not outside the
realm of possibility that monetary
questions will become as important
in 1885 as they were in the Bryan
free silver days.
Operation of God Rulings
New as to the practical opera
tion of the gold rulings: There can
be no doubt that the United States
Constitution gives congress power
to coin money and regulate its
value. The Supreme court always
has sustained this power. So, when
congress, by resolution, allowed
president Roosevelt to seize all of
the gold in this country and hold
it in the treasury, it accomplished
Indirectly that which it could not
do directly. In this way it forced
the invalidation of thousands of
private contracts wherein one party
promised to make payments in
gold. Congress made such pay
ments impossible and those who
were to be paid have nothing left
but establishment. As to the gold
payment clause in the government
bonds the Supreme court said that
congress had no right to enact
legislation the effect of which was
to void that payment. 1t would
AAon, 3harafnra fhof ,n,a4 .-xo.,