The Waterbury Democrat., 1935-02-05
DECISION ON. THE GOLD CLAUSE MAY
 COME SATURDAY
This Would Give Markets Time to Digest Ruling
 Over Sunday
By JOHN A. REICHMANN

(COpyrtght 10S5 by United Press) Washington, Feb 5-(UP)--A
 high government official close to the administrations monetary pro.
 gram said today the supreme court
 may hand down its opinion in the gold clause cases Saturday after- noon.
 He based his belief on the con-. tention that should the decision be returned on Saturday, the domestic markets would have all of Sunday
 in which to digest the ruling. Mar. ket considerations, he said, would work against decision next Mon- day as that is the eve of Lincoln's birthday. Domestic markets are all closed while foreign markets arc open.
 A Monday decision therefore
 would give foreign traders on open markets an opportunity to profit by the informations while domestic traders would be handi. capped. Consider Markets Publications that the court may
 be taking market trading into con-
 sideretion in timing it's opinion are regarded by the administration as
 the most disturbing factor about
 the courts deliberations. Those close to the administration l note that, if the decision is favor-
 able, little need be feared from the speculative response. On the con- trary, there would be an emphatic reaction from the depressing effect consideration of the case has had on stock and commodity markets. The court, they argue, aware of
 this situation, must be watching the market for some particular reason.
 Action of the court Saturday when 1t broke all precedent to say
 that 1t would not decide the gold cases at yebterday's session was re.
 garded as an acknowledgement of
 market interest even though Chief
 Justice Hughes said the step was
 taken to prevent crowding of the courtroom.
 Substantiation also was given the belief that the securities and ex. change commission would close the market if reading of the opinions began during market hours. 1t was established the commission is
 keeping in close touch with devel- opments and welcomed the courts Saturday announcement. Possibility the court would vary It's routine to hand down. the opin- ion at some unusual time at first was regarded as remote. It has gained credence within the past few days. Peculiar Situation The gold case presents an un- precedented situation. Never before has a case of such magnitude been pending at a time when the mar. kets of the world are within mo. ments from the courtroom as far as the transmission of the news is concerned. Never have facilities for handling the courts opinions been so strained to hairbreadth timing.
 While worrying over the possi. bility of losing some of the value of its gold. the government also is in the strange position of worrying about having too much gold. Record breaking absorption of the worlds monetary gold stocks by the government since 1t started paying $35 an ounce for the metal was reported as causing concern. Officials fear adverse effects on world trade and currencies because of the accumulation.
 On Feb 1 the ,treasury's gold holdings showed a record value of $8, ,405,362,138, a gain of $1.S75,-
 792,G13 from a year ago when the
 $35 offer first was made.
 Figured in terms of gold bullion,
 the treasury now .has 2.4O1,5S5
 ounces compared with the all-time
 record of 2,431,057 in September
 1891 which was before the depres-
 sion began to be reflected in the nations gold stores. The United
 States has 39 per cent of the
 worlds monetary gold against 46
 per cent at the 1881 peak.
 The absorption of another $10O,-
 900, 900 in gold in. the next month
 would bring the figure to the high.
 est in history. The result might be
 to draw away the gold backing for
 foreign currencies, thus operatina
 against stabilization of currencies
 on which foreign trade depends.