Imperial Valley press., 1935-02-18
PHASES
INVOLVED IN
FAMOUS CASE
Continued from Page d

Continued from Page d
eel the gold payment promise in
the governments own bonds. II de-
cided that congress in that respect
had exceeded its powers. But on
the other hand, it said a person
could not be awarded damages
without showing actual and real
damage suffered by breaking of the
contract in the bond.
Perry. the court said, not only had
not shown actual damages. but
would be given an "unjustified en-
richment" if he were paid the S6,-
93l.25 extra.
Because Perry failed to show he
had suffered real damages, the
court ordered his suit thrown out
of the court OF claims.
"Plaintiff, the court ruled,
"'seeks to make his case solely up
on the theory that by reason of the
change in the weight of the dollar,
he is entitled to Sl69 cents in the
present currency for every dollar
promised by the bond. regardless OF
any actual loss he has suffered with
respect to any transaction in which
his dollars may be used. We think
that position IS untenable.' -
The court S decision appeared to
permit the technical possibility of
someone attempting in a suit in
the court of claims to show actual
damage. But "new deal' officials
jubilantly hailed the decision as a
victory, for under the terms laid
down by the court they believed it
improbable that any one could show
such damage. They pointed out
that despite devaluation, internal
purchasing power of the dollar has
not changed greatly-and that was
the test laid down by the court.
WASHINGTON. Feb. 18.-The
supreme court today handed down
decisions in the momentous gold
cases approving and protecting new
deal monetary policies.
The court was divided five to four
on all cases
The court gave outright approval
to legislation which eliminated the
gold payment clauses from all prl-
vate bonds.
1t threw out other suits which
sought to test this legislation as ap-
piled TO government bonds.
The court likewise threw out
suit in which payment at the rate
of $1.69 in devalued currency was
sought on gold certificates turned
IN under the treasury's gold seizure
orders.
The court reSorted to unprece-
dented procedure by first announc-
ing its decision in the case, and
then proceeding one by one to the
reading of opinions supporting the
decisions.
In the government bonds and gold
certificates cases the court held the
U. S. court of claims, in which the
suits were filed, had no authority
to entertain such suits.
In the Liberty bond case, the
court held that congress went too
far in eliminating the gold payment
clause from government bonds.
But it said that any action to re-
cover must be in law and that the
court Of claims had no jurisdiction.
The supreme court S action in
DENYING the court of claims juriS-
diction in these cases appeared to
leave the holders of government
bonds and gold certificates no re-
course in recovering extra payments
regardless OF the fact the court be-
leved congress went too far in ap-
plying the gold clause cancellation
TO federal bonds.
The government cannot be sued
anywhere except in the court OF
claims without its permission. With
the court of claims denied permis-
sion TO entertain these suits. the
bondholders apparently have no
place to seek compensation. Rem
edial action in congress would seem
TO be their only alternative and this
would be opposed by the admins
tration forces.
Treasury officials said they view
ed the court IS action on the gold
cases as a complete government
victory.
The decision of the court uphold
ing the outlawing Of the gold clause
in private bonds affected some S75,-
600 100000 Of obligations, chiefly
those of railroads. public utilities
and other leading corporations.
Holders of bonds of some of these
corporations had demanded pay
ment at the rate of S169 for 81 face
value. They claimed they were en-
titled to the extra amount because
the new deal" had deyalued the
collar proportionally. The supreme
court, however, denied their claims.
Chief Justice Charles Evans
hughes. loudly reading the first
opinion, sketched the new deals'
actions in meeting the 1888 banking
crisis and readjusting the nations
monetary system.
"We are not concerned with the
wisdom of the steps taken" Hughes
told the courtroom packed with ad-
ministration officials, lawyers, Wall
street representatives and sociahteS.
1--WE are concerned only with pow