Show I Dissenting Opinion Rendered by Justi Justice Justi e j I Constitution Is Gone Says Minority Judge 1 WASHINGTON Feb 19 phere p- p Here i i The te op non ot of the gold McReynold on Ulce dause cases case Norman Noran C. C Norman vs v. the Baltimore Balmore Ri ad d' d com company a 9 On w writ j ot of oi of the rd ari to the te supreme court of New York ot of America merIa The Te UniS Finance Corporation Corpora Corpora- tion et ct al I. I 47 vs vs I end and Wil- Wil Bankers Bankers' Trust company Wil Wi- Wi l' l trustees The United liam H. H oi cit A America I rIa Corpora on et at al pe I vs v. Trust and IL H. Bixby companY I trustees On write o of certiorari to court or of United States circuit the te appeals for the Ei Eighth F. F Eugene v. v vs the United Unite On from the court or of claims Le February 18 1935 Mr Justice 1 jag Ig Mr Justice V an n Devanter Mr Ir I Justice Sutherland Mr JustIce Butler and i conclude that If 1 given Buter the enactments here challenged chal- chal half hal hal- f will bring about of property rights right and ton tion or of national obligations tn in the decisions the just announced is i impossible imposible de demand and statement lt ment or of our views To let slide down the easy slope by the course coure eay or of events nn and to dull dul ones one's mind event the extent of the thc danger r b. b that te Is t to fail fai in l on s 's obligation of responsibilitY I Just men re regard repudiation and of citizens by their sOV riton with wih abhorrence but we are ae aked to affirm aIrm that the te contu- contu to has granted power lion t. t ton both No definite delegation or of such a at t pJ cr exists exist and we cannot believe be- be be bel l lieve the farseeIng framers fraters who labored leve with hope of r justice and the blessings of H liberty intended that the te expected 1 should have authority shoud 1 to annihilate its it own obligations and t destroy the very ri rights hs which I te they were ene endeavoring o protect protect Limited Powers Power Not only is there no permission I for such ony acton they are inhibited And no or words can conform conform con con- form them to our charter chater q The federal Is Is one ci f delegated and limited powers which der derive e from the constitution It Cn can exercise only the powers I granted to- to toil i. i Powers Power claImed must be denied granted ranted and as with other writings the whole of wih the constitution is for ascertain the when one to of an any part By th the called so-called gold Jold clause clause- promise promie to pay in i United States gold c coin of the present standard oi of value or of or equal eual to the I present standard of weight and fine fine- found found in very many private and public obligations the creditor agrees agree to accept and the debtor Undertake un Un- dertke to return the thing loaned I or its it equivalent Thereby each secue se- se I cures protection one against decrease de- de cue crease in value of the te currency the theother te oth other r against an increase The clause is i not not new or obscure J. J or discolored by any sinister pur- pur ps For more than years year our citizens have employed a like lie agree agree- agree I Durin During the te war between the stat states its equivalent payable in ini i aided in i surmounting Unan- Unan cial difficulties From the house house- cal ti top tp men proclaimed its it merits merit billions sold while bonds for tor were to support the World war var Contract Seen The treaty of recognized recognized it i as appropriate and jut just It I appears in the obligations which have rendered possible our great undertakings public work rail rail- rai- rai 1 roads road buildings s f Under the interpretation accepted accept accept- e ed here for or many years this thi clause definite enforceable expresses a f contract contract Both b statute and Ion long use the United States have approved lt il Over and nd over oer again they have I enjoyed the added value aue which it f 1 gave to their tei obligations i So S late as a Ma May 2 1933 they issued l to t the public more than it of their notes each ot of which a solemn promIse to pay in gold coin Be Before ore that day this coin had In fact been ben withdrawn with with- wit wit- drawn from rom circulation but statutory statu- statu tory tor measure of value the ot of grains I The pem permanent nent court of oC Intern Intern- tonal justIce Interpreted the clause cause as this ti court Iud han done md and upheld It It Cases Case of Sebin and Brazilian loans loan publications P P. P C C. C J. J M. M series A NO 2021 1929 It I wa as there thee declared The da clause Te gold se merely mere mere- ly prevents the borrower from I availing aln Itself isel ot of a po possibility or of discharge dis- dis chr charge e of the debt In depreciated i currency a and ld the treatment ot of the gold clause as Indicating a more Jadam modality or of payment without reference refer refer- rde- rde I t ence to R a gold jold standard of value alue would be not to construe but to destroy detroy it i. i In First vs Intercom Intercom- I i Beige 1934 A. A A C C. the howe house of lods expressed ex- ex pressed like lie views 1 Gregory vs Morris Morrs 1878 96 U. U S. S lt of similar I construed causes ues and ad sanctioned this stipulation In behalf behal of all al Justice Waite there said The Te obligation secured by the mortgage or lien len under which MorIs Morris Mor- Mor ris Is Held ld was for the payment of b fold Eold coin oin or or as a w wis said ald in n Bron Bron- 1 ion on y v Rod Rodes 7 Wall Wal 1869 aG VAn 1 A agreement to er de a certain tight i of standard gold to be Ocer- Ocer ascer- ascer tined I by a count of coins coin each of Which l Is I certified to contain contin a deft def i of or that weight and lz not distinguIshable from a con t tract act to deliver delver an equal l weight ot of bullion o ot equal fineness We Wc t think j It cear that under such cir cir- s it was within tha tho pow pow- ot t e court COUtt so O far as Gre Gregory pw- pw or Wa u Concerned to treat tret te the contract contrad Iu Li I One for the te delver of so s much 4 and If It Morris was go gold Id bullion bulon I Mori willing to accept accept a judgment which h might be discharged in n currency to have his damages estimated according according according accord accord- have hi value of bul bul- ing to t t the e currency bu- bu lion lon Earlier Earler Cases Earlier Earler cases Bronson cases Bronson v. v Bodes Hodes 7 Wall Wail Wal Butler Buler v. v Horwitz 7 Wall Wal 58 Dewing v. v Scars Sears 11 1 Wall Wan v. v Wilson Wilon 12 Wall Wal Thompson Tompson v. v Butler Buter 95 U. U S. S while while important need not be dissected Gregory v. v Morris Morri is in harmony with wih them and the opinion opinion ion there thee definitely and finally stated stated stat stat- ed the doctrine which we should apply apply ap ap- ap- ap ply It I Is true to sa say that the gold clauses were intended to afford a definite standard of oi measure of value and thus thus to protect against against a depreciation of the currency and against the discharge of the obligation obliga tion ton b. b by payment payment of less lessan than an that prescribed Furthermore they furn furnish means for computing the sum payable in currency If i gold should become un un- obtainable The borrower agrees to repay in gold coin containing 25 8 grains to the dollar dolar and if this thi cannot cannot can cm not be secured the prom promise e is i to discharge discharge dis dis- dis charge the te obligation by paying for each d dollar la loaned the currency value of that tat number of grains grains Thus Thu the purpose of the parties partes will wi be b carried out Irrespective of any chan change e in m currency the thing loaned or an equivalent will wi be re re- re- re nothing turned nothing more nothing less The present currency consists consists of promises to pa pay dollars of 15 5 21 grains the government go procures gold old bullion bulon on that basis basis The calculation cal cat culat n to determine the damages for tor failure to pay in gold would not be difficult Gregory v v. Morris points the point th way Under appropriate statutes the United States State for many years year issued gold certificates in I the following form This certifies certie that tat there have been deposited in the treasury of the United States of ot Ameria America one thousand dollars in gold old coin pable payable payable pay pay- able to the bearer on demand This certificate is a legal lela tender lender tender in inthe inthe inthe the amount thereof in payment of ot otal all al vate debts debt and dues public and Y Various rou Orders Order The Te certificates here involved involved- series 1928 were 1928 were issued under Sec See 6 Act Mar 14 1 1900 31 Stat Slat 47 as a amende See U. U S. S C. C A. A Title Tie 31 31 Sec Q In view of the te stat statutory tor direction diec- diec diree- diree tion ton that gold coin coir for which certificates certificates are issued shall be held for tor their payment on demand and used for rio no other no-other other purpose it it- it seems sees idle to argue as counsel for the United States did that other use Is 1 permissible per per- under the ancient act of lar March h 3 1863 te By various orders of the the dent arid and ad the te treasury fr from m April Apri 5 to December cember 28 28 1933 persons person holding holding holding hold hold- ing gold certificates were required to deliver delver them and accept an jan equivalent amount of any form of coin cin or currency coined or issued under the laws o of the te United States designated by the secretary of f the treasury Heavy penalties were provided for failure to comply That the holder of one of th these se certificates was owner of an express promise promie by the United Unie States Slates to deliver deliver de de- de- de liver gold coin colli of the weight and fineness established by statute when the certificate issued or if it such demand was ws not honored honor d to p pay the holder the value in i the currency then in use Wie seems clear cear enough h. h This ThU was vas the obvious s design of the he contract contrad The act ac of oC March 14 1 1900 31 Stat StaL Stat C C. 41 45 47 as amended in effect until unU January 31 1934 provided That the dollar dolar consisting consisting con con- of grains of gold nine nine- tenths fine shall be the standard standard stand stand- ard unit of value and all al forms of money money issued or coined by the United States shall be maintained at a parity parit of oC value with wih this standard and also the secretary of the treasury is authorized and directed to receive deposits of gold goldcoin goldcoin goldcoin coin with the treasurer treasure in sums of not less Jess than 20 and to issue In denominations of not less than 10 and the coin so depos deposited ed shall shan be retained 1 in the treasury and held for the of such sueh payment certificates cor on demand and used for forno forno forno no other purpose See U U. S S. S C C. A. A title tte 31 section seeton 34 THe Tile act ac of February 4 1910 36 State C. C 25 p. p directed that any bonds and certificates of in indebtedness indebtedness in in- of the United States hereafter issued shall be payable principal and Interest In United States gold coin of the present standard of value Off Of Gold Standard I By executive orders April Apri 5 and April Apri 20 O. O 1933 the pre president undertook undertook un un- un to require owners of gold goldcoin goldcoin goldcoin coin gold bullion bulon and gold to deliver delver them on or before before before be be- fore May 1 to a federal reserve ba bank and to prohibit the exportation exportation tion ton of oC gold coin gold bullion bulon or gold certificates As a consequence ence the United States were off of the gold sold standard and their paper money began a rapid decline in the markets markets of the w world Gold coin gold certificates and gold bullion bulion were no longer obtainable Gold is not now paid nor is It available for payment upon public or private debts was wa declared In treasury treasur statement of May 27 1933 and this is i still sUl true All Al' Al gold coins have been melted meled Into bars The Tue agricultural adjustment net act ne of May I 12 2 1933 48 Stat C. C 2 25 pp 31 62 52 58 entitled 53 entitled an au ni act to rc rc- the Die existing national ceo eco economic by Increasing u agricultural purchasing power to toraL raL raise c revenue for tor extraordinary expenses incurred b by reason mason of such emergency to provide pro emergency emer emer- genc gency enc relief relict with respect to agricultural agricultural agri agri- I. I cultural indebtedness to for the tho orderly liquidation of joint stock 1 land banks and for other otier purposes b by section ton 43 3 that such notes nots United States Stake stats notes and all aU other coins and currencies cur cur- here heretofore or hereafter corned coined or isuel by b- bor or under the authority of the tle United States State shall be legal tender for all debts Il public and private privat debt Also that the president by proclamation proc proc- may fix fb tx the weight of the gold dollar dolar as he finds necessary r from his Investigation to stabilize domestic prices or to pro teet the foreign commerce against the adverse effect of depreciated foreign currencies And further such gold ld dollar the ot uch g dolar weight o of which is i so fixed shall be be the standard units unit of value and all forms of money issued or coined nI by the United States shall shil be maintained at a parity with this standard and It shall be he the duty of the secretary of or the treasury to maintain such sueh parity but In its no event shall the weight of the gold dollar dolar be fixed so ao as to re reduce reduce re re- duce its is present weight by more than 50 5 per Gold Golt Reserve Reser e Act Ac The gold old r reserve serve ser e act of ot January 30 1934 48 s Stat Stat C. C 6 pp undertook to ratify preceding presidential orders and proclamations lons requiring requiring- surrender of gold but prohibited him from establishing establish establish- ing the weight of the gold dollar dolar at more than 60 6 per of its it present weight By proclamation tion ton January Januar 31 1934 he directed that thereafter the standard should contain 15 5 21 grains of gold nine tenths fine The weight had been grains since 1837 No such dollar dolar has ha been coined at any time an On June 5 1933 congress passed a a joint resolution to assure uniform uni form value to the coins and currencies cur cur- of oC the United States 48 Stat Stat C. C 48 8 p. p 12 This recited that holding and dealing in gold affects the public interest and are therefore subject to regulation that the provisions of obligations which purport to give the obligee tho the right to require payment Ingold in ingold ingold gold coin or in any amount of money of the United States measured mea inca thereby obstruct the power of congress to regulate the value of money and are arc Inconsistent with wih the policy to maintain the equal v value lue of every dollar dolar coined or Issued It I then declared that every provIsion provision provision pro pro- vision In a any obligation purporting purport purport- in ing ing- to g give e the obligee a right to require payment in gold is against public policy and amI directed that every obligation theretofore or hereafter incurred whether or not al any such provision is contained therein or made with ith respect thereto shall be discharged upon payment dollar dolar for dollar dolar in an any coin cin or currency which at the time of payment is legal tender for public and private debts debt Four causes are here for lor deci dec dec- sion Two of them arise arie out of corporate cor car obligations containing gold clauses railroad clauses clauses railroad bonds One is I based on a United States fourth |