Evening star., 1935-02-02
NEW DEAL READY
FOR GOLD VERDICT
Early Decision Seen lndl'
Gated by Meeting of
Justices Today.
By the Associated Press.

BY the Associated Press.
The Roosevelt administration was
reported today. to have completed all
preparations for any swift monetary
action it may consider necessary after
the Supreme Court rules on the gold
cases.
This word was passed in authorita-
tive quarters as observers watched for
another Saturday conference of the
nine justices on whom President
Roosevelt's money policy hinges. The
court was expected to gather again in
the quiet chambers in the Capitol
where executive and legislative actions
are measured by the constitutional
yardstick.
Many believed the high court would
deliver on Monday its decision in the
cases attacking the Government abb
rogation Of the gold clause. This i'm
preston was so prevalent that the
Capital and much of the world was set
for a nerve-strained week end.
Nothing was certain. There was
possibility the ruling might not come
for another week or two. But ad-
ministration officials. while express
ing every confidence that the Govern
ment would be upheld, were taking
no chances of being caught unawares.
1t was understood the plans called
for almost instantaneous moves 10
meet any eventuality.
100 Billion Involved.
Involved in the cases were some
S100 mn mn nm of Couorppoapt and
private contracts. Should the court
determine that they should be paid
in terms of the pre-devaluation gold
content of the dollar, it would add
500 900 100000 to these debts.
The Securities and Exchange Com
mission was considering closing all A
exchanges from New York to San
Francisco during the period in which
the court may act. Recognizing that
uncertainty about the gold cases has
already caused depressed quotations in
many markets. the members were
known to be anxious to guard against
fluctuations of an extreme nature.
Under the law, the commission may
close any or all exchanges for a period
of 90 days in time of emergency.
Exactly what the administration
would do In case of an adverse de-
cision has not been announced, but
it was believed that several courses
of action, by legislation or otherwise,
had been drawn up in an attempt to
meet any conceivable verdict.
Points at Issue.
cases at issue total only $34,665, ,000-
which is mere trifle compared to
the 100000, 900, 900 involved.
They embrace both Government
and private bonds and the yellow
back" currency-which has been
called in by the administration. Their
holders contend the Government had
no right to abrogate the provision
calling for payment in gold or its
equivalent.
Here Is summary of the four ac-
tions on which the Supreme Court is
TO rule:
John M. Perry of New York, holder
of $4,000 in Liberty bonds, asked
they be redeemed either in gold or
in $16,931 in present currency. The
old gold dollar, he says, is equivalent
to S1.69 in present money.
F. Eugene Nortz of New York seeks
to recover S64,334, which he says is
the difference between what he re-
ceived for $106.300 in gold certificates
and what they actually were worth In
the devalued dollar.
The Bankers Trust Co. of New
York and William H. Bixby, trustees
for $34,548,000 in Iron Mountain
Railroad bonds. demand that they be
paid in gold or its equivalent in pres
ent currency.
Norman G. Norman Of New York,
owner of a $1,000 Baltimore g. Ohio
Railroad bond. seeks to obtain $3.50
for a $3.50 interest coupon as the
present day equivalent Of the latter
amount,