Evening star., 1935-02-18
j. s. IS VICTORIOUS.
IN GOLD DECISION
Upheld on Two, but Loses
on Federal BondS-BarS
Collection.
Continued From First Page.)

which he demands would appear to
constitute not recoupment OF loss
in any proper sense but an unjustif1ed
enrichment.
Plaintiffs Position Termed Untenable.
Plaintiff seeks to make his case
solely upon the theory that by rea-
son of the change in the weight of the
dollar he is entitled to $l69 In the
present currency for every dollar
promised by the bond, regardless OF
any actual loss he has suffered with
respect to any transaction in which
his dollars may be used. We think
that position is untenable."
President Roosevelt kept in tele-
phone conversation with the Capitol.
but he reserved comment until he
had opportunity to read the decision.
Elation was evident among RooSe-
velt's advisers, both in Congress and
downtown.
I'VE are not concerned with conse-
ouneces," said the court, "in the sense
that consequences. however serious,
many excuse an invasion of constitu-
tional right
I'VE are concerned with the consti-
tutional power of the Congress over
the monetary system of the country
and it's attempted Illustration.
Exercising that power. the Congress
has undertaken to establish uniform
currency, and parity between kinds OF
currency, and to make that currency,
fnydor for tho
payment of debts.
I'm the light of abundant expert
ence, the Congress was entitled to
choose such a uniform monetary sys-
TEN and to reject a dual system, with
respect to all obligations within the
range of the exercise of its constitu-
tional authority.
THE contention that these gold
clauses are valid contracts and can
not be struck down proceeds upon the
assumption that private parties and
States and municipalities may make
and enforce contracts which may
limit that authority.
"Dismissing that untenable assump-
ton, the facts must be faced"
Clauses Interfere With Congress.
I'VE think that it is clearly shown
that these (gold) clauses interfere
with the exertion Of the power grant,
ed to the Congress, and certainly it
is not established that the Congress
arbitrarily or capriciously decided
that such an interference existed"
While there was little uncertainty
at the White House as to the exact
ruling on Federal bonds. there was no
indication that presidential action was
imminent.
The courts position on private
bonds applied as well to bonds issued
by States and municipalities.
Regarding gold certificates, Hughes
specified the Court of Claims had no
jurisdiction.
AS to whether holders had the right
to recover actual damages when gold
coin is not paid, the court reminded
that the plaintiff admitted Congress
had power to regulate currency and
deliver gold.
AdW AACiu INUt dlu t1Cbs
AS to Federal bonds, Hughes said
the law was not valid act when il
applied dollar for dollar in payment
of Government bonds, the question be-
ing whether Congress can invalidate
the pledge which the Government
made when it pledged its credit in
issuing bonds.
Congress cannot ignore the promise
which the Government had made, he
said, and Congress cannot repudiate
the Governments obligations.
But, it developed subsequently, those
who consider themselves to have suf-
fered wrongly from the contested Law
cannot sue for the additional money
they believe their due.
The joint resolution of Congress sus-
pending gold payments which the
court today declared valid as applied
to private contracts was enacted or
June 5, 1888. Its purpose was ito as.
sure uniform value to the coins and
currencies Of the United States"
Hughes reviewed at length thu
history of previous regulations con.
cerning money and a decision of the
court on the subject.
He stated the court was not con.
cerned with the wisdom of the law ir
question, but that the question was
one of power and not politics.
President Roosevelt was closeteo
with his secretaries, Marvin H. Nc.
Supreme Court decision was handed
down.
Lower Courts Are Sustained.
Hughes emphasized the word "af
firmed" when the private bond case
were decided, sustaining lower courts
The Chief Justice enunciated with
a distinctive clearness. With feeling
he read his brief summary of the
cases decided and then launched intt
the reasons for the court findings.
The crowded court listened intently
all eyes fixed upon the black-robec
Chief Justice.
Fairly construed, the gold clause.
were intended to afford definite
standard of a measure Of value ant
thus protect against the depreciation
of the currency by payment Of
lesser value than the prescribed,
Hughes said.
Treasury officials were running bach
and forth from the court to the mar
shals office relaying the decision ovel
an open telephone circuit to high ad'
ministration officials downtown.
Senator Robinson, Democratic
leader, came out Of the court at l2:ls
and said I'm satisfied"
Informed of the courts decision
Chairman Summers, Democrat o.