Plentywood herald. [volume] (Plentywood, Mont.) 1908-current, 1935-02-28


~ 1t would be impossible
"oe" for holders of federal
bonds to collect on their old gold basis.
In other words. the holder of a $1,000
federal bond Is entitled to a technical
value OF 81 600. but in reality II would
be impractical to make any collection
OF that amount. since the Court OF
Claims Is the only tribunal before
which suits against the government
may be taken. and other courts may
not entertain such suits without a spe-
cial act of congress.
The court also held that those who
held gold certificates had no cause of
action and could not sue the govern.
ment. The power of congress to deal
with currency was fully upheld.
Not only this country. bur the entire
world. awaited what the mine lonely
old men" of the Supreme court had to
say about the Roosevelt monetary pol
icies. The decision Is ranked with the
courts decisions in the Dartmouth col
VSS taSCo j IL 1910 NtiAH difiClo Nv
s~anctity of contract, and in the bred
Scott slavery case in 1857 which had
much to do with Fastening the out
break OF the Civil war.
Briefly, the ruling said:
/. Congress has the power to nullify
promises to pay In gold contained In
the bonds of private corporations.
2. A gold certificate is worth only
Its face value in present devalued cur
rency. Congressional power over the
currency includes the right to estab-
lish circumstances under which gold
certificates need not be redeemed In
gold or Its equivalent.
3. Congress has no authority under
the Constitution 10 ahrogate the pay
ment-in-gold clause of government
bonds. but, as no actual damage has
been shown, therefore there Is no
basis for suit for recovery.
The decision was read by Chief JUS
tice Charles Evans Hughes. who voted
with Justices Brandels, Stone. Roberts
and Cardozo In the majority. Dissent
ers we're Justices M~cIseynolds. Van
Devanter, Sutherland and Butler. the
four so-called conservatives.
Satisfaction within the admlnistra-
ton was evident at once.
Justice McI,eynolds was spokesman
for the dissenters. He unleashed a
scathing attack on the majority views.
His voice vibrant. he said:
THE Constitution as we have known
1t is gone"
If given effect, the enactments here
challenged will bring about confisca-
ton of property rights and repudia-
ton Of national obligations"
Just men regard spollatlon Of citi.
zens by their sovereign with abhor-
renee, but We are asked to affirm thai
the Constitution has granted power to
accomplish both"
mo definite delegation of such a
power exists; and we cannot believe
the farseeing trainers, who labored
with hope of establishing justice and
securing the blessings of liberty. In.
tended that the expected government
should have authority to annihilate its
own obligations and destroy the very
rights which they were en~deavoring to
protect"
Notified that Chief Justice Hughes
was reading the decision, President
Roosevelt went to the cabinet room
where he listened to telephone reports
from an aid. Three cabinet officers
were at his side. The Chief Executive
was prepared to take swift action L
protect the credit Of the government
In case an adverse decision was hand
ed down. but executive orders were
unnecessary. The carefully prepared
program was not needed.
TWO more years Of the MIRA, will
l. Qualification Of policies, more effec
tive enforcement Of codes and thu
granting Of "unquestloned power" t,
the federal government, were urged b,
the President In a message to congress
The national recovery act termi
mates June 10 this year. abandon
ment would be unthinkable," he said
naming the act as the blggest. facto
In giving unemployment to approx
mately 4,O00.OOW people"
He said congress must maintain tn
fundamental principles of the act t
establish at least a minimum fair trad
practice and labor relations standard
pleading that child labor must stay OH
and that fixing Of wages and hours wa
practical and necessary.
Answering recent protests of labor
he said: 1.-THE rights Of employee
freely to organize for the purpose o
collective bargaining should be full
protected"
He urged more strict application o
antitrust laws, condemned ~monopolie
and private price fixing. opposed hind
RANGES to fair competition, and pro