Show TEST lEST CASE LIKELY LIKEL Y ON GOLD HOARDING EDICT Court ourt Ruling Upon f Legal Backing for I fc Order to Be Asked Decision Also Needed to Clear I Sit Situation Resulting ii in iii I Debt Payments By Dy RICHARD L. L GRIDLEY United lt d Press Tress Financial Correspondent Corresponded WASHINGTON May 2 Early 2 Early liti mi to test the authority o of the government gov nt to fine or imprison gold golc hoarders appealed likely toda today Indications In In- also pointed toward probable probable able court action to clarify the situation sit resulting from the governments governments government's govern ments ment's refusal to pay maturing debts in La gold coin Several hoarders have openly de de- lied fled the government and questioned of 01 the presidents president's or or- ten years years' imprisonment imprison Imprison- ment nent or a line ine for all persons failed to give up their gold money in excess of by ast last night The justice department however insists it jt will undertake prosecution of hoarders hoarder I The burden of proof of gold hoarding hoard hoard- ing it was said toda today is s up to the I government and considerable difficulty dim I culty was expected by the government government govern Jo ment in enforcing the order As most I of ot the gold hoards are believed ed to be secreted in safe deposit boxes and home depositories such as sugar bowls and hollow walls it w was uncertain un un- un I certain ain as to what steps would be betaken betaken taken by the justice de department to prove rove the hoarding of ot money Another question tr troubling the legal le Ie I gal minds of ot both the government and md business houses is the provision for payment in ingold gold coin of ot the federal debt and an estimated In private obligations obligation Since the banking crisis early carly in March the government has refused to meet its maturing interest and principal principal prin prin- cipal payments in gold coin cpin although such contracts are required by law to carry the provision that principal and interest will be payable in United States gold coin of the present stand stand- I value Many private debts bea a similar provision but it Is now I unlawful for p persons or corporations to make these payments in gold coin I Since the dollar has declined 15 per in terms of foreign gold currencies curren curren- cies des a th theoretical premium of a like amount is established for gold old in terms of or American dollars Holders of gold bonds arc are expected to institute tute action to determine whether they c can n collect this premium A case case in London last year I was decided in favor avor of the debtor had contracted to pay in gold Th court held in this case that the contract to pay in gold cold coin was not nota notI a contract to deliver r the actual metal I b but but- buta ta a contract to deliver lawful money noney This case is being given close study tudy here by financial and governmental govern mental authorities as a decision which might it t carry considerable d able w weight here |