Opinion ID: 427595
Heading Depth: 1
Heading Rank: 4

Heading: after the gold clause

Text: 34 Steinhardt's second contention on appeal is that the Joint Resolution went bust on October 28, 1977; even if the lease contained a gold clause, an amendment to section 463 permitted the application of the clause to any rents falling due on or after that date. As mentioned, the amendment provides: 35 The joint resolution ... shall not apply to obligations issued on or after the date of enactment of this section [Oct. 28, 1977]. 36 Pub.L. No. 95-147, Sec. 4(c), 91 Stat. 1229, codified at 31 U.S.C.A. Sec. 463 (1976 Supp. I). Steinhardt argues that under landlord-tenant law, each lease payment is a separate obligation which is issued when the payment is due. Therefore, the joint resolution does not apply to any rents due after October 28, 1977. Steinhardt particularly disputes the trial court's holding that the obligation was issued when the lease was created. 37 We disagree with Steinhardt and reach the same result as the trial court. The legislative history to the amendment reveals that the word issued was intended to mean entered into. Senator Jesse Helms was the author of the amendment which he had originally introduced as S. 79 on January 10, 1977. At that time, Sen. Helms explained the meaning of the bill's language: 38 The text of my proposal is slightly different from that of the bill I have previously introduced on this topic. My bill, if approved, will make enforceable, gold clause contracts entered into after the enactment of the bill. It is intended to stand neutral with regard to the enforceability of gold clause obligations issued in the past. 39 123 Cong.Rec. 635 (1977) (emphasis supplied). 40 The bill was ultimately passed by the Senate on Oct. 11, 1977, as a rider to another bill affecting the Treasury Department. There was no debate of the Helms amendment; and only Sen. Helms explained the meaning of the bill. At the time, he introduced a letter from Henry Stockwell, Deputy General Counsel for the Treasury Department. The letter announced the Treasury's consent to the amendment and stated: 41 Senator Helms' amendment ... would repeal the Joint Resolution with respect to obligations entered into after the date of enactment of Section 4. 42 123 Cong.Rec. 33,219 (1977) (emphasis supplied). The House passed the amendment on October 14, 1977, with no debate and only a brief exhortation by Congressman Hansen. 123 Cong.Rec. 33,770 (1977). 24 43 Courts are always reluctant to rely on the position of one Congressman to demonstrate Congressional intent. However, in this case, the evidence is particularly strong, for the speaker was the author of the bill, there were no other interpretations of the statutory language, and the bill was passed summarily based on Sen. Helms' explanation. Moreover, his construction of the word issued corresponds with its normal meaning in law; debts are normally issued when they are first entered into and made available to the creditor, not when they ultimately come due. 25 Therefore, we hold that the 1977 amendment to section 463 does not apply to obligations entered into before October 27, 1977. 44 The Steinhardt lease contract was entered into on March 2, 1970. On that date, the lessee or his assigns became obligated to pay rents on the 99-year lease as they became due. 26 The 1977 Amendment, consequently, does not apply to any part of the lease; and the devaluation provision is invalid even with respect to rents due on or after October 28, 1977. 27