The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-02-19
COURT LINES Up
FIVE TO FOUR IN
COLD DECISIONS
Heated Minority Opinion Is
Delivered by Justice
MCReynOldS.
CONTINUED From Page Onel

An1FA EaEAAAa1AaA aA~ atAsaH
ed with the definite purpose 70 de-
stroy obligations.
The destruction of all obligations
by reducing the standard gold dollar
to one grain OF gold. or brass or
nickel or copper or lead viii become
an easy possibility.
Default is thus made both easy
and safe. These bonds are held by
men and women in many parts Of
the world. they have relied upon cur
honor.
loss OF reputation for honorable
dealing viii bring us amending hu-
initiation
Denounces Treasury Profit
Justice NcReynolds mentioned
the Treasury's s2000OO0OOO gold
seizure profit. In bitter language
he denounced A..
To such counterfeit there would
be no limit. with each new debaSe-
ment Of the dollar they would eX-
pand
Two billions might be ballOOned
indehnitely-tO twenty, thirty or
what YOU VIII maybe enough
10 cancel the public debt, maybe
more"
And with that hOt shot ne lett the
New Deal % its victory.
Belief that the courts decisions
had imposed upon this and sue
ceeding Administrations a perma-
nent policy Of sequestering gold in
stead Of permitting it 70 circulate
was based upon the Liberty bond
opinion.
No Loss Established
The court ruled that John NJ.
Perry had not established that he
had suffered loss because his Lib
erty bonds are being retired IN New
Deal dollars. but held that If loss
actually we're sustained recourse
could be had 10 the court Of claims.
Thus. if gold again were permitted
to circulate years hence and ma
turing governing obligations were
retired in devalued dollars. the bond
owner would suffer. Mr.. Perry S
weakness was that if the govern
ment actually had paid him IN gold
he would not have been permitted
TO keep the metal.
AS an alternative. there only re-
mains the present policy of cur
rency backed by a billion reserve,
the gold backing of which may be
varied to comply with varying COM
modify prices.
Although Justice McReynOldS
wrote the dissenting opinion con-
CURED in by Associate Justices Van
Devanter, Sutherland and Butler, it
scarcely reflected the bitterness and
passion which he put into his out
line Of the dissent. which went
much farther than the printed rec
ord.
Seek Danger Signals
Justice Department officials are
COmbing the opinions for danger
signals to guide them If additional
monetary legislation IS needed.
The definite commitment of the
government TO a permanent policy
OF a gold bullion reserve was based
on the courts findings in the Lib
erty Bond cases. The court ruled
there that the government could not
break a contract made with its citi-
zens to pay in gold.
The opinion saved the govern
ment BY hedging the question of
Just compensation for the taking of
gold around with so many handicaps
that suit to recover more than the
face value OF the certificate seemed
impossible.
Under the court S ruling the per-
son suing would have 20 show to
what extent he had been damaged
Not being allowed to hold gold coin.
he could not show himself entitled
to receive them in payment. the
court found. He would also have
TO show that commodity prices at
present we're such that his currency
dollar would bay him less than tie
gold dollar would have bought when
he made his contract for gold pay
ment.
New Legislation Planned
To guard against this situation.
the Administration was reported
planning new legislation to prevent
the filing of suits on gold clause
cases in the Court Of Claims. Since
the government can only be sued
by its own consent. this would pre-
clude danger OF any future suits
claiming actual damages being fled.
Justice AIcReynolds' opinion said
in part:
~AcquieSence in the decisions Just
announced IS impossible: the circum-
stances demand statement of our
views. To let oneself slide down
the easy slope offered by the course
Of events and 10 dull ones mind
against the extent Of the danger
that is precisely TO fail in ones
obligation Of responsibility.
Just men regard reputation and
Spoliation o. citizens by their SOW
ereign with adherence: but we are
asked 10 affirm that the ConStitu-
ton has granted power to accom-
pliSn DOtn.
No definite delegation of such
power exists and We can not believe
the farseei1g trainers who labOred
with hope Of establishing justice
and securing the blessing OF liberty.
intended that the expected govern
ment should have the authority to
annihilate is own obligations and
destroy the very rights which they
are endeavOrng 10 protect.
Forecast Is DiScredited"
Counsel for the government and
railway companies asserted with
emphasis that incalculable financial
disaster would follow refusal 10 up
hold. as authorized by the Con-
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