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


TOWNSEND PLAN WEAKENs
WHAT ABOUT "WRlTE-UPs"
REPUBLICANS ATTACK
The Supreme Court decision on
the gold clause cases cleared the
way for Congress and the Admin
istration to go ahead with the pro
gram Of the New Deal although the
legislative branch Of the govern
ment seems to be in no hurry to pass
measures submitted to it.
BY a five to four decision the
Court upheld the power OF Con.
gress to abrogate the gold clause
in private contracts and although the
power OF Congress to do the same
thing in regard to government bonds
was not upheld the further opinion
Of the Court that holders of these
securities al show no loss and are
hence entitled no damages
amounts to the same result
In this connection 1t Is hardly
worth while to attempt to cover the
argument presented by either the
majority or the minority opinions.
However, it might not be out OF the
way to give a few facts concerning
the situation. There are outstand-
ing about $4,000, 900, 900 in gold
clause government bonds and about
SIG, 00O, 900, 900 of non-gold clause OBJ
legations. The gold clause bonds
were issued during the war. Prot.
Irving Fisher points out that the pur-
chasing power of the dollar is now
twice what 1t was when the last
Liberty loan floated,' and that "per-
sons who lent the government In
1918 and now get $1,000 back get
twice as much in purchasing power"
Obviously this Is what the major
ity Of the Court had in mind when it
said the plaintiff in the bond case
has not shown, or attempted to
show, that in relation to buying pow
er he has suffered any loss what
ever and that to give him now an In
crease Of 50 per cent in dollars would
constitute not a recoupment OF loss
in any proper sense, but an unjusti-
fled enrichment" 1t is worth point
ing out, we believe, that the govern
ment bonds did not specify payment
in gold coin of or equal to the
standard of weight and f%ineness" ex-
listing when the bonds sold.
The obligation was payable "in Un-
tied States gold coin OF the present
standard Of value"
Strongly organized opposition to
all concessions granted in reciprocal
trade treaties Is certain and tariff
Hobbies will vigorously resist any ef-
fort to encourage foreign trade. Rep
reservations get to the President and
affected interests send out a stream
OF propaganda, emitting shrieks and
yells OF real or fancied injury. 1t
was so in the case Of manganese,
wine, pork, sugar. glass, cement and
matches. 1t will be so in regard to
almost every commodity that Is
touched. The Hobbies are resource
full and acquire publicity rivaling
that OF the administration, insofar as
the particular issue is involved, and
Congressman never fail to hear from
those who think their tariff protec-
ton may be lowered.
The bitter battle between factions
of veterans over the form OF the
bonus bill has been intensified late
ly. Recently, Representative Patman
Queried Commander B~elgrano, asking
pertinent questions, and command
ers OF two veterans associations
have engaged in debate over the Is
sue. Meanwhile, reports OF a COM
promise are being heard, In the hope
of pulling the President over to
quicker payment by an agreement
that payment of the bonus shall pre-
clude all future claims. 1t Is said
that the administration Is worried
over what the future may hold when
the inevitable demand for a service
pension arises.
II in the future a plain pension Is
given to all who served in the World
war anu 10 lueII uopouucuIo IL thOy
are dead experts hesitate to estim-
ate how much it will cost. Already
the American Legion is advancing
the idea of a pension for certain
classes and it Is but a step forward
to ask for the same pension plan
that now costs the government $685.
OOO, 900 a year for the handful OF
soldiers who fought in the Spanish
American war.
At present survivors of World War
veterans only benefit II death is at
tributable to the war. Pensions for
survivors Of other wars are far more
liberal and, If extended to those OF
the recent conflict, will require an
immense sum. At this time, and
without including such a pension,
the Veterans Bureau estimates that
expenditures on veterans Of the last
war will exceed a billion dollars a
veal before death brings about a de-
crease In the number being paid.
The so-called Townsend plan has
failed to make the Roadway that
many conservatives feared. The ap-