, 1935-01-16

Hughes and others.
The smart boys" began betting
the high court viii rule that any
federal obligation contracted on a
gold basis must be paid I'm gold. IL
may be they r right - but being
right doesn't always mean you cash
your bet.
New Deal officials are waiting for
the decision with a bit more inter
est than the next ones. But they
don't appear to be unduly disturbed
about the outcome.
Complex - Even though the SUI
preme Court should rule. In effect,
that a 81 debt becomes $l.09 at ex-
listing currency valuation, able New
Dealers are arguing President
Roosevelt still has q trick up his
sleeve.
Their theory Is that the admins
tration still would retain the power
TO call in and impound all gold.
They point out that the Supreme
Court theoretically nc least upheld
this power when II threw out the
question I'm the boarding ase
II this be true. and the court
should rule adversely 10 the govern
ment In the gold payment case
pending. gold could be issued 10
each debtor 10 pay his creditor
while a Treasury agent stood nj the
side or the creditor and took the
gold back again. Obviously. this
would be an involved process that
would give oil the unemployed book
keepers in the country work for
months. The idea is that once the
word got around that gold settle
ment could only be on this basis
the creditors would lose their taste
for the yellow metal.
Plenty or lawyers who followed
the arguments closely. including
some members OF congress, we're
not overly impressed with the man
ner In which the Department Of
OF Justice presented its case.
Bounds = The question now arises
How can the president be given
blanket authority to start enter
lprises hiring millions or men with
out running afoul OF the Supreme
Courts barrier against undue dele
CATION Of legislative power7"
Some committeeman dealing with
relief legislation are disposed 70 in
sist that specific directions shall be
given for expenditure Of the s4.-
000. 900. 900 lump sum - not too
minute directions, but sufficiently
definite to avert another Supreme
Court knockout.
Republicans and a sprinklinR Of
Democrats object to any lump sum
grant at all. The leaders have set
tied that. But they are not SO
sure that II wouldn't be wise 70 put
In O few boundary lines.
Sinclair Pessimlsts here who
see the country going TO the demini-
tion bow-wows by 1885 are MORALLY
afraid OF Huey Long. Optimists give
him n few months more in which 20
split the ears Of the Rroundlings.
Meanwhile Upton Sinclair Ia licking
his sores and nursing strength for
another bout with poverty. END
Poverty" clubs are organizing IN the
west, ON a plan somewhat modified.
but Rrimly determined TO substitute
public for private enterprise. Sin
, clair bosses the Democratic party In
California - q sprinsboard for q
bigger leap.
Students Of Long, Sinclair and
other nFureHSion freaks say that
Sinclair is more 10 be feared than
Long.
Decision - House appropriation
committeeman would like 70 cut
down the ambitions or Joseph r.
Kennedy, Securities Commission
chairman. They suggested that in
stead Of putting on 800 or more
sIeuths TO ferret out stock exchange
wrongs the Commission should get
warm I'm its chair. consolidate is po-
sItion, get acquainted with Its
duties. and thus prepare for bigger
things.
1t vas all up to FDR. He thinks
the commission Is ready To clean
I'D cr~ookedness IN security deal
ings. and 50 Tie got the appropria-
lions asked for In the budget.
Cain - Those who should know
say that the veteran Representative
Robert L. Doughton Of North Caro-
lima has about made up ms miad
to run for governor OF ms state
next election. 10 viii be with al