The midland journal. (Rising Sun, Md.) 1885-1947, 1935-03-01

such cases means that
Presioeht it would be impossible
noose"eN for holders Of federal
bonds to collect on their old gold basis.
In other words, the holder of S1,OOO
federal bond is entitled to technical
value of $1,000, but in reality 1t 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 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, but 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
lege cases in 1918 which upheld the
sanctity of contract, and in the Dred
Scott slavery case in 1857 which had
much to do with Fastening the out
break of the Civil war.
Briefly, the ruling said:
1. 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 it's equivalent.
3. Congress has no authority under
the Constitution to abrogate 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 Brandeis, Stone, Roberts
and Cardozo in the majority. Dissent
iers were Justices McReynolds, Van
Devanter, Sutherland and Butler. the
four so-called conservatives.
Satisfaction within the administra-
ton was evident at once.
Justice McReynolds was spokesman
for the dissenters. He unleashed
scathing attack on the majority views.
His voice vibrant, he said:
'"The Constitution as we have known
It 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 spoliation of citi-
zens by their sovereign with abhor-
renee, but we are asked to affirm that
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 it's
own obligations and destroy the very
rights which they were endeavoring 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 to
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.
1.-TWO more years of the MIRA, with
Il Qualification of policies, more effec-
tive enforcement of codes and the
granting of ''unquestioned power" to
the federal government, were urged by
the President in message to congress.
The national recovery act termi-
mates June 16 this year. abandon
ment would be unthinkable," he said,
naming the act as 1.-The biggest factor
in giving unemployment to approx
mately 100000 people"
He said congress must maintain the
fundamental principles of the act to
establish at least minimum fair trade
practice and labor relations standard,
pleading that child labor must stay out
and that fixing of wages and hours was
practical and necessary.
Answering recent protests of labor,
he said: 'The rights of employees
freely to organize for the purpose of
collective bargaining should be fully
protected"
He urged more strict application of
antitrust laws, condemned monopolies
and private price fixing, opposed hind
RANGES to fair competition, and pro-