GOLD CLAUSE DECISION.
Although it had been freely stated that if the decision of the Supreme Court had been adverse throughout to Congress measures would have been taken to regularize the position, it had been feared that a short period of chaos would scarcely have been averted, inasmuch as public and private debts measured in present United States currency would have been increased enormously. Consequently the decision of the Supreme Court upholding Congress in abrogating the Gold Clause so far as private debts were concerned was welcomed in Wall Street, where* prices advanced excitedly. All the same, it will be well carefully to remember the second part of the decision of the Supreme Courts which, briefly, was to the effect that in repudiating the Gold Clause on Government gold obliga- tions Congress had exceeded its powers, and in fact had acted unconstitutionally. To this, however, it. was added that it was not in the power of the Supreme Court to secure redress for holders of such bonds. Moreover, it must also be remembered that the decision in favour of the Government was expressed by one vote, four of the nine judges declaring in unequivocal terms that Congress had acted unconstitutionally. The final effect of these decisions remains for the people of the United States to determine, but I am inclined to fear that while the decision may stimulate fresh speenlation in America, both in stocks and commodities, it will ncit be a factor in the long run tending to increase confidence- in contracts. The American Constitution has always been regarded as a steadying influence in American life, and what has been defied once by Congress can be defied again. Therefore I am- not altogether surprised that financial circles in the City, while fully prepared to see Some favourable developments in the United States in the near future are more anxious when they take a long view.
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