Evening star., 1935-02-10
Temporary Market FURRY
Likely to Bring Closing,
Wall Street Believes.
RETURN TO OLD DOLLAR
DECLARED NOT INVOLVED
Lawyers Point to Steps Congress
Could Take if Corporations
Face Difficulties.
BY CLAUDE A. JAEGER,
Associated Press Financial Editor.

NEW YORK, February 9.-Wall
Street came to the end of another
week of waiting for the gold decision
in a much calmer frame of mind.
This is not to say that the financial
community is any less intent than pre-
viously on the momentous decision of
the Supreme Court as to the consti-
tutionality of the Governments seiZ-
ure of all gold in the country, or its
abrogation of both its own and private
contracts to pay in gold dollars OF
specific weight and fineness or their
equivalent.
But after mature consideration OF
the problem, several important quar-
ters in Wall Street have come to the
conclusion that the forthcoming de-
cision will. at worst, do not more to
the Nations financial nerve centers
than give them a temporary furry
of confusion.
Favor Keeping Open.
If necessary, financial markets car
furry passes. Governors of the New
York Stock Exchange are reliably re-
ported to favor keeping the market
open, if the decision should be made
during trading hours, with close su.
pervision of transactions.
Two or three weeks ago Wall Stree
let itself get worked up into a pretty
bad state OF nerves over the gold cases
Talk was heard that an adverse de.
cision might even bring about a re,
turn to the old dollar, worth abou
S1.69 in terms of the present dollar
But legal experts point out that a re-
turn to the old dollar is not involved
in the cases before the court, anc
that Congress specifically has tht
power to regulate the value of money.
The cases involve several actions
and obviously the decision may upholc
the Government in some and revers'
| 1t In others. If it should find againS
the Government in the question o
| abrogating private contracts to pa,
in ole gold dollars or the equivalent
Wall Street analysts figure that mos
OF the railroads, many utilities anc
other corporations, would find them
selves hopeleSsly burdened with debt
But lawyers point out that there arr
several steps which Congress coulc
take to save them from having to pay
at the old dollar rate.
Other Steps Possible.
Some Wall Street legal experts thinl
that if the court finds against tht
Government, and many doubt that il
will. that it would most likely be or
the question of the Government:
abrogating its own contracts. as rep.
resented by Liberty bonds. But ever
in that event, they point to step
which Congress might take to preven
holders of these bonds from collecting
in the equivalent of the old dollars.
On the whole, Wall Street has don,
/ little to try to hedge against tn
| possibilities of the decision. There ha
been some shifting of funds out o
bonds. particularly United States Gov
ernment bonds, which do not contain
| the gold clause, into those which dc
but one economist for large invest
ment institution which had done tina
said recently, II think the net resul
will be that we have needlessly wastet
some money on brokers' commissions.
| The chief effect of the forthcomin;
decision in Wall Street has been th
retarding of making commitments O
any sort until the uncertainty is over
New financing has been held in abey
ance. Holders of gold clause bond
which have been called have beer
reluctant to turn them in.