The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1935-03-01

federal bond is entitled TO technical
value of $1,000. but in reality it 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 a 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 bred
Scott slavery case in 1857 which had
much to do with Fastening the out
break of the Civil war.
Briefly. the ruling said:
l. 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. hut. 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
ers were Justices McReynOlds, Van
Devanter, Sutherland and Butler, the
four so-called conservatives.
Satisfaction within the administra-
ton was evident at once.
''Tm satisfied" said the New Deal
senate leader, Senator Robinson of
Arkansas
"In other words" said Chairman
Doughton of the house ways and
means committee, "what the govern
ment did might not have been abso-
lutely legal, but it was right"
Attorney General Cummings ex-
pressed his pleasure.
Informed of the courts decision,
Chairman Summers (Dem., Texas), of
the house judiciary committee said:
That's all right. The big trouble
was in the private cases. We can take
care of the federal cases by legislation
without paying cent"
Speaker Byrns said: "a satisfac-
tory verdict. But the Importance of
the opinion, as I've said before, is, to
my mind, exaggerated"
Justice McReynolds was spokes man
for the dissenters He unleashed
scathing attack on the majority views.
His voice vibrant, he said:
1.-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"
Noting the secretary of the treasury
had said the government had realized
a profit of over two billion dollars, Nc
Reynolds said:
1.-TWO billions might be ballooned in
definitely, to twenty, thirty, or what
you will
"Just men regard spoliation of citi-
zens by their sovereign with abhor-
the Constitution has granted power to
accomplish both.'-r7
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 its
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
After three-hour conference be-
tween the President and admnistra-
ton leaders. Attorney General Cum
mings said:
...As far as they concern us. the de-
ciSions constitute a complete victory
for the government all along the line
and no administration action seems to
be necessary"
The announcement caused stock and
commodity markets TO soar. and be-
cause of the speculative frenzy. the
chicago Board of Trade suspended all
trading temporarily in accordance with
recent resolution of the directors.
Grain exchanges In other cities did
likewise. Stock exchanges remained
open and the ticker was soon nine min
utes behind the trading. Railroad