The Daily Alaska empire., 1935-03-11
The Gold Decision.
lNeW York Times.)

i A golden sword of Damocles longer dangles overhead
 By hclding that Congress power to regulate the value of currency cannot be nfringed by gold clause contracts of private corporations or sub ordinate units of government, the Supreme Court has cleared the way for Administration recovery plans.
 Business firms now know the definite limits of their indebtedness and may make future commit ments accordingly The Administration may proceed with it's $5,OG0OO0O0o unemployment pro- gram with assurance of control over it's budgetary obligations
 In the private bond and gold certificates de- cisionS recently the Court upheld the Government unconditionally. In the fifth, Liberty Bond decision, hypothetical loophole left by the Court for bondholders who may in the future be able to prove that they have suferered real dam ages. This is warning to the Government against unrestricted infation It should aid the Adminis- ratons fight against dangerous currency expansion and give business added confidence in the future soundness of the dollar
 The reassuring gold decisions fortunately, come amidst many signs of business revival. Long pros trate heavy industries show life Production mounts in the steel and automobile industries If private industry and the Administration can take advantage of the psychological effect of this judicial vote of confidence may soon scale depression barricades.
 The newborn boom in the security and modity markets was inevitable And it is beneficial III so lar as It IS d ndullSoJdClOn OI new NlSOl III the lately paralyzed limbs of industry But care should be taken by the Administration and by busi- ness leaders not to permit this manifestation to turn into sef-defeating speculative orgy.
 With ccmmendable realism the Court majority went beyond the legal tecncalities to discuss the obvious social and economic inequitics of awarding the creditor more than his pound of flesh and adding 69 per cent to the staggering burden of private and public gold debts
 The devauation of the dollar placed the do mestic economy upon new basis" the Chief Jus tce said for the majority "In the currency thus provided States and municipalities must their taxes railroads their rates and fares public utilities their charges for services The income out of which they must meet their obligations is determined by the standasd
 Tt requires acute analysis profound economic inquiry to disclose the dislocation of the domestic economy which would be caused by such disparity of conditions in which, it is insisted those debtors under gold clauses should be required to pay S69 in currency while respectively receiving their taxes rates, charges and prices on the basis of enc dollar of that currency"
 We dc rot share the alarm voiced so vehemently by Justice McReynolds Of the minority. Instead of meaning the overthrow of constitutional govern ment he remarked the majority decision properly reassers the constitutional authority Of Congress to establish and maintain uniform currency without interference
 "The contention that these gold clauses are valid contracts and connot be struck down." the Court majority said proceeds upon the assumption that private parties and States and municipalities may make and enforce contracts which may limit that authority. Dismissng that untenable assumption, the facts must be faced We think that it is clearly shown that these clauses interfere with the exertion of the power granted to the Congress and certainly it is not established that the Con- gress arbitrarily caprciousy decided that such interference existed"
 The gold decisions will go down in history with several other recent liberal rulings the Court which have interpreted the Constitution in the spirit in which it was written-not as a strait-jacket, but as a living body of orderly government